PATHWAY
TO NET ZERO

 Lord Barker  portrait

Lord Barker

Executive Chariman


In July 2020 En+ Group launched its vision for green aluminium, setting out nine principles to lead our industry into the low-carbon economy by developing a new asset class, green aluminium.  We followed this with the most significant announcements we have ever made in relation to our sustainability performance. These were our industry-leading targets for greenhouse gas emissions reduction, with a clear ambition of achieving net zero emissions by 2050 plus a stretching  35% reduction by 2030, and the success of our new-generation inert anode electrolysers allowing us to produce the lowest carbon aluminium ever created.


We also said that in September 2021 we would publish our plan for our Pathway to net zero, and I am delighted to say after comprehensive consultation and stress testing with a whole range of global stakeholders, here it is!  It has been a challenge – with well 98% of our aluminum is made using electricity already generated by hydropower (decarbonising power sources represents about 65% of the potential emission savings in our industry) we are not exactly replete with unpicked low hanging fruit, so this plan encompasses the entirety of our production chain, fr om extraction of bauxite, through the refining of alumina to the smelting of aluminium.


Smelting accounts for around one third of emissions in the process and so one of the main areas of focus in this report is the gradual transition to low-carbon and carbon-free aluminium reduction technologies, such as Eco-Soderberg, pre-baked anode technology and crucially in due course, further conversion to inert anode technology, wh ere inert anodes made replace the classic carbon anodes thereby significantly reducing emissions during the production process.


A relentless focus on efficiency, particularly improving energy efficiency is always a very effective way to reduce greenhouse gas emissions. So, other consistent themes in this report include our continued commitment to our industry leading “New Energy Modernisation programme” which aims to upgrade the hydro power plants of the Angara and Yenisei HPP cascade with a view to further increasing the energy output from the same volume of water passing through the hydropower turbines. We will also work to decrease electricity losses during transmission from generation facilities to consumption sites.


But this report also covers the whole gamut of our worldwide operations and key issues such as reuse and recycling, shipping, use of solar power and hydrogen, nature based solutions and carbon capture. We cannot possibly tackle all these issues on our own, so we are working in partnerships with best in class organisations across the globe to decarbonise our ‘hard to abate’ industry supply chain.


I believe that this report is actually an inspiring read, not least because it becomes increasingly clear that getting greener is also making us more efficient, opening the way for innovative low-carbon products to become lower cost and more competively priced for the end consumer, so more and more people can afford to buy them. As we all play our part in the race against climate change by striving to find new short cuts to a low carbon economy, Governments everywhere can also do more by promoting ‘Green Free Trade” i.e. the permanent unilateral suspension of import tariffs on all products with low-carbon content – such as low-carbon aluminium.


Sustainable businesses the world over need access to this vital green metal. We simply can’t build a low carbon economy without low carbon aluminium. Now more than ever, it is the material of net zero future. This report maps out in detail how we can take it there.

OUR STRATEGIC
APPROACH

Our climate ambition is to reach net zero by reducing value chain GHG emissions across the whole value chain, in line with 1.5°C pathways, and by balancing the impact of any remaining hard-to-decarbonise greenhouse gas emissions with an appropriate amount of certified carbon removals.

Science-based approach

Our climate ambitions are in line with global net zero goals. The Metals segment introduced SBTs for Scope 1 & 2 in line with the Aluminium Sector GHG Pathways to 2050 report developed by the International Aluminium Institute.

Timeframe

The Group’s mid-term target is to cut GHG emissions by at least 35% by 2030 (compared to 2018). Our long-term target is to reach net zero emissions by 2050.

Boundaries and scope of activities

Our target boundaries include the production facilitiesof both the Metals and Power segments, and cover all material sources of GHG emissions under operational control.

Scope of climate impacts

We set targets covering GHG emissions that are under our direct control (Scope 1) and indirect GHG emissions related to energy generation (Scope 2) in accordance with the GHG Protocol Corporate Standard, as well as Scope 3 emissions, including purchased goods and services, and fuel and energy related activities.

To achieve our climate targets, En+ Group relies on the following:


  1. Emissions abatement

    These are a core element of our pathway to net zero. We intend to implement technologies to prevent the release of GHGs into the atmosphere by reducing or eliminating sources of emissions associated with all of the Group’s operations, products and value chain.
    •    Shifting to pre-baked anode and inert anode technologies for smelters.
    •    Shifting from fossil fuels to liquefied natural gas (LNG), natural gas, and green hydrogen, or using renewable power for heating processes.

    Emissions abatement
  2. Avoided emissions

    The Group runs the New Energy programme, which is designed to increase hydropower generation up to 2.5 TWh per year, with the same amount of water passed through the hydro turbines of the HPP, and significantly reduce the impact on the environment, in particular, by reducing reliance on and hence preventing greenhouse gas emissions from the low efficiency fossil fuel powerplants.

    Avoided emissions
  3. Compensation and neutralization

    The Group is considering carbon capture, utilisation and storage (CCUS) technology for removal and sequestration of GHG emissions in the value chain that cannot be eliminated by abatement measures. The Group has a strategy to use nature-based solutions for the sequestration of GHG from the atmosphere. For primary aluminium production more than 98% of the Group’s electricity is produced at carbon-free or low-carbon sources of power generation, mostly from large scale hydropower stations. En+ Group understands that electricity consumption from renewable sources and especially from hydropower stations for primary aluminium production is an important part of the low-carbon pathway to achieve net zero emissions by 2050.

    Compensation and neutralization
  4. Transparency

    Our commitment to transparency and data-led disclosure is supported by reporting on the sources of emissions included and excluded from the target boundary, the timeframe for achieving net zero emissions, the amount of abatement and neutralisation planned in reaching net zero emissions, and any interim targets or milestones.

    Transparency

In 2020, En+ Group urged the London Metal Exchange (LME) to show greater green ambition with its sustainability proposals. We called for mandatory carbon content and sustainability-related disclosures by metal producers, and for these to be fully integrated with the existing trading system. This would enable better-informed decisions by buyers seeking to source responsibly and minimise the climate impacts of their procurement.

Roadmap

Balance

Compensation

Metals segment

Power segment

MlntCO2e

64,86

64,86
25.19
39.66
0

2018

60,92

60,92
23.16
38.20
-0.44

2020

64,32

64,32
23.24
41.53
-0.44

2023

59,07

59,07
23.14
41.53
-5.60

2025

41,39

41,39
17.00
36.49
-12.10

2030

31,23

31,23
16.06
32.17
-17.00

2040

-0,14

-0,14
15.63
9.73
-25.50

2050

KEY
STEPS

ABOUT US

En + Group is the world’s leading producer of low-carbon aluminum and renewable energy. With an annual production capacity of 3.9 mmt of aluminum, En + Group is the largest aluminum producer in the world (ex-China), while our 15.1GW of installed hydropower capacity makes us the largest independent hydropower company globally. The Group has a well-established presence across five continents and c.90,000 employees.

En + Group is the world’s leading producer of low-carbon aluminum

Sustainability is at the core of our business. We produce aluminum with the lowest carbon footprint, while over 98% of the Group's aluminum production is powered by renewable hydropower, lowering costs and emissions. The Group ranks in the first decile of the global cost curve while producing carbon emissions, with such costs being four times lower than the industry average.

Sustainability is at the core of our business.

En + Group is proud to be the largest company operating near Baikal and seamlessly transforming its natural power into pure hydropower. The Group takes environmental protection extremely seriously and is committed to ensuring its operations have the minimal impact on the lake and its habitats.

En + Group is proud to be the largest company operating near Baikal

En + Group also considers it necessary to participate in programs intended to preserve natural resources and biological diversity. They provide for continuous monitoring of the environment, rehabilitation of disturbed land, planting of trees and shrubs, etc.

En + Group also considers it necessary

The Company is committed to the highest international standards of corporate governance. The Group plans to continue improving in this area and adhering to internationally-recognised standards of corporate governance, transparency, disclosure, and accountability applicable to listed companies.

The Company is committed to the highest international s

The path of EN+ Group’s climate agenda

2015

RUSAL set five GHG reduction goals for the
period until 2025

2017

- Launch of ALLOW, low-
carbon aluminium brand
- Verification of GHG emissions of RUSAL and ALLOW carbon footprint by TUV Austria

2019

Group’s Sustainability report 2018

First SDG report

2020

Group's Sustainability report 2019 verified by the independent auditor

2021

The Group committed to


- 35% GHG emissions (Scope 1&2 against a 2018 baseline) by 2030
- Net zero by 2050


Submission of the climate targets for approval to the SBTi

News

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En+ Group, V&A and Nebbia Works unveil stunning aluminium pavilion to raise climate awareness at the London Design Festival ahead of COP26

September 22

En+ Group, V&A and Nebbia Works unveil stunning aluminium pavilion to raise climate awareness at the London Design Festival ahead of COP26

En+ Group and the V&A, the world’s leading museum of art, design and performance, will today unveil a stunning pavilion made of the world’s lowest carbon primary aluminium, as a focal point of the London Design Festival’s tribute to COP26. The pavilion, titled “Between Forests and Skies”, has been designed by Nebbia Works, a London based, multidisciplinary design studio, with a heritage in architecture, furniture design and art direction.

 The beautiful, immersive, rectangular platform pavilion (length 13.5m x width 9m x height 2.4m) has been produced from 27 individual sheets of low-carbon aluminium, bolted together with circular connection plates. The ‘legs’ of the forest, on which it delicately stands, are waterjet-cut-outs of each sheet, elegantly peeled down from the ceiling to open up vistas to the sky. Standing in a shallow pool of water in the V&A’s stunning courtyard, light travels up the reflective metal from the water to the sky. Visitors are able to walk freely below the silvery canopy.

The pavilion is positioned in the V&A’s John Madejski Garden at the V&A from 18 September to 17 October to coincide with London Design Festival (18 to 26 September). It is a tribute to COP26, the world’s largest climate conference, where world leaders will be gathering in November to accelerate action towards the goals of the Paris Agreement and the UN Framework Convention on Climate Change. Following the conference, the aluminium from the pavilion will be recycled for future climate campaigns.

We are future-proofed against rising fossil fuel prices, says chairman of energy company En+

September 21

We are future-proofed against rising fossil fuel prices, says chairman of energy company En+

Gregory Barker, En+ executive chairman, unveils the details of the company’s latest environmental commitment to achieve a net zero target by 2050.

Video: https://www.cnbc.com/video/2021/09/20/we-are-future-proofed-against-rising-fossil-fuel-prices-says-c... 

En+ Group publishes Pathway to Net Zero

September 21

En+ Group publishes Pathway to Net Zero

Aluminiumtoday.com

EN+ Group has published its Pathway to Net Zero Report, which provides details of the the initiatives being undertaken across the En+ Group to achieve climate targets announced in January of this year.

In January of this year, the Group announced its ambition to become net zero by 2050 and to reduce greenhouse gas (GHG) emissions by at least 35% by 2030. The plans set out in the report aims to meet these sector leading targets by reducing GHG emissions across the whole value chain in line with 1.5°C pathways. By 2050, the company aims for its activities within the Group’s value chain to have no net impact on the climate from GHG emissions. The targets cover GHG emissions that are under our direct control (Scope 1) and indirect GHG emissions related to energy generation (Scope 2) in accordance with the GHG Protocol Corporate Standard.


Read more: https://aluminiumtoday.com/news/en-group-publishes-pathway-to-net-zero

En+ Group publishes Pathway to Net Zero

September 20

En+ Group publishes Pathway to Net Zero


20 September 2021 – EN+ Group IPJSC (the “Company”, the “Group” or “En+ Group”) (LSE: ENPL; MOEX: ENPL), the world’s largest producer of low-carbon aluminium and independent hydropower, today published its Pathway to Net Zero Report (“the Report”), which provides in comprehensive detail the initiatives being undertaken across the En+ Group to achieve its sector-beating climate targets announced in January of this year.


The full Report is available on the Company’s website at link.


In January of this year, the Group announced its ambition to become net zero by 2050 and to reduce greenhouse gas ("GHG") emissions by at least 35% by 2030. The plan set out in the Report aims to meet these sector leading targets by reducing GHG emissions across the whole value chain in line with 1.5°C pathways. By 2050, the aim is that activities within the Group’s value chain will result in no net impact on the climate from GHG emissions (Scope 1 and Scope 2).


Lord Barker, Executive Chairman of En+ Group, said:

“In January we set sector-beating climate targets but credible targets need a credible action plan. Today we have made good our promise to come forward with a stretching and detailed route map to Net Zero. While this is only the start of the journey and our plan will necessarily be updated over time to reflect developments, we will always be guided by science-based targets and commit to openly reporting our progress.


“It is incumbent upon industry leaders like En+ to drive change. Our leadership will help transform supply chains and support a shift in mindset for consumers by offering them affordable and desirable sustainable choices. Therefore, I am delighted that getting greener is also making us more efficient, opening the way for innovative low-carbon products to become lower cost and more competitively priced for the end consumer.


“We cannot change the world in isolation - collaboration and partnerships are critical. En+ will continue to work with industry peers to promote transparency on carbon reporting and will support initiatives that will drive innovation and improve access to lower carbon metals.


“Sustainable businesses the world over need access to low-carbon aluminium. We simply can’t build a low-carbon economy without this vital green metal. Now more than ever, aluminium is the material of the future.”


Vladimir Kiriukhin, CEO of En+ Group, said:

“I am proud to present our net zero pathway, which is built on very strong foundations. As a business, we have the capability and the experience to produce a detailed plan that we are confident will allow us to meet our demanding GHG reduction targets. This is real testament to the significant work of the Group over many years to make our business both highly efficient and highly responsible. With more than 98% of our aluminium already made using hydropower, breakthrough technologies, such as our inert anode smelting process, will be critical to moving En+ to the next level of GHG reduction, and we benefit from a strong heritage in innovation leadership in our sector.


“The mission to fight climate change is a global priority which unites our employees across all regions of Group’s business. We are motivated to help the aluminium industry drive meaningful change, and I look forward to keeping our stakeholders updated on Group’s progress in the years to come.”


Overview of initiatives

Following the announcement of the net zero target, the En+ Climate Change Taskforce was formed.


Over the past few months, the Taskforce has been working on a wide range of initiatives and measures, along with a timeline for their implementation that will allow the Group to achieve its climate change ambitions.


The Report encompasses the plans at the production facilities of both the Metals and Power segments, and covers all material sources of GHG emissions under operational control.


The targets cover GHG emissions that are under our direct control (Scope 1) and indirect GHG emissions related to energy generation (Scope 2) in accordance with the GHG Protocol Corporate Standard.


Targets are set for emissions abatement, avoided emissions solutions, and compensation measures.

Abatement measures are a core element of the pathway to net zero. The Group intends to implement technologies to prevent the release of GHGs into the atmosphere by reducing or eliminating sources of emissions associated with all of the Group’s operations, products and value chain including by:

-          shifting to pre-baked anode and inert anode technologies for smelters; and

-          shifting from carbon intensive fossil fuels to liquefied natural gas (LNG), natural gas, biofuels and green hydrogen, or using renewable power for heating processes.


The Group remains committed to its industry-leading ‘New Energy modernisation programme’ which aims to improve efficiencies by increasing the energy output from the same volume of water passing through hydropower turbines at the Group’s power plants. It will also work to reduce electricity losses during transmission from generation facilities to consumption sites. Ongoing investments in the New Energy programme will total USD 284[1] million through to 2026, including funds already invested in the project (~USD 150 million). At the Group’s smelters, all new plants built or modernised as part of this new investment programme will be inert anode ready, so that production of zero carbon aluminium can be ramped up as soon as the technology is ready for production on an industrial scale.


In April 2021, En+ announced that its Metals segment had produced the world’s lowest carbon primary aluminium - less than 0.01 tonnes of CO2 equivalent per tonne of metal (Scope 1, Scope 2 - direct and indirect energy emissions) - using its proprietary inert anode technology. This revolutionary technology completely eliminates emissions of GHG from the reduction process, while reducing the cost of production by saving anodes.


The pathway to net zero also covers recycling, shipping, use of solar power and hydrogen, nature-based solutions and carbon capture. It also outlines En+ Group’s approach to working in partnership with organisations across the globe to decarbonise its ‘hard-to-abate’ industry supply chain.


Taken together, these measures will allow the reduction of the En+ Group’s absolute GHG emissions (Scope 1 & 2 & 3) by at least 60% from current levels by 2050. The residual emissions cannot be eliminated by applying existing technology – these emissions need to be compensated for by developing new technical and utilising nature-based solutions. Technical solutions are expected to be focused on carbon capture, utilisation and storage technologies. Nature-based solutions are solutions that allow the capture and storage of CO2 using natural processes. Since 2019, the Group has implemented extensive forestry projects.


The Group is committed to the highest levels of transparency and will regularly report on progress.




[1] For the purpose of this Report RUB-denominated CAPEX of Power segment is translated to USD by the rate of 74 RUB/USD.



Decarbonising aluminium will require a united front

January 20

Decarbonising aluminium will require a united front

Financial Times, 20.01.2021
The world's largest industrial polluters must transform the way they do business This week En+ Group pledged to reach net zero greenhouse gas emissions by 2050 with a reduction of at least 35 per cent by 2030, the most demanding near-term target yet set by any global aluminium company.



Read more

En+ Commits To Zero GHG Emissions By 2050

January 19

En+ Commits To Zero GHG Emissions By 2050

Aluminiuminsider

Anglo-Russian energy and metals company En+ Group IPJSC announced yesterday its intention to reduce its greenhouse gas emissions by at least 35 percent by 2030 and net zero by 2050. The firm’s board of directors signed off on the goal earlier this week and created a task force led by Chief Operating Officer Vyacheslav Solomin to determine how to achieve these lofty goals. One of its first steps will be to discuss the goals with customers, suppliers, investors, and communities.

The task force will also consult experts from around the world as it works to complete a report on implementing those goals this September, ahead of the UN COP26. The task force will report to En+ Group’s Executive Chair Lord Barker of Battle. He elaborated on the plan in an emailed statement. “Once again the En+ Group is showing ambitious sector leadership on the biggest environmental issue of our time. These climate change targets and the roll out of a detailed route map to meet them, are yet more tangible evidence of our commitment to lead the global aluminium industry into the low-carbon economy. We will achieve this transformation with relentless scientific innovation and a change programme driven right across the whole group. This will require continued investment in major scientific advances such as our pioneering inert anode technology and critical industrial process improvements, as well as implementation of net zero initiatives for the hardest ‘last mile’ emissions.”

 “The Group can draw on its long record of not just R&D but also execution excellence and experience in process optimisation: these are in the Group DNA,” he continued. “Our metals business has already massively over achieved in meeting existing carbon reduction targets.The target of emitting less than 2.7 tonnes of CO2 equivalent per tonne of aluminium (scope 1 and scope 2 from electrolysis) by 2025, was met in 2017! That is why, although I don’t underestimate the huge challenges ahead in meeting these targets, we face them with growing confidence.” Joan MacNaughton CB, independent non-executive director, said the plan is simply the next step in a longer-term goal.

 “Two years ago the reconstituted En+ Group board set a new level of ambition for environmental performance. Today we take a huge step towards fulfilling that promise. We are determined to be at the leading edge of what this sector, being one of the hardest to abate, can do to transition to a low carbon business model.” “The new En+ Board made a commitment to implement the highest levels of ESG across the company with a particular dedication to the best environmental stewardship,” explained Christopher Burnham, Senior Independent Director of En+ Group. “Today represents the result of this concerted effort led by Lord Baker, and the Board, to fulfill this commitment.”

En+ commits to become carbon neutral by 2050

January 18

En+ commits to become carbon neutral by 2050

S&P Global Platts

London — Russian energy and aluminum company En+ Group said Jan. 18 that it aims to reduce its greenhouse gas emissions 35% by 2030 and achieve carbon net-zero by 2050.
They are the most ambitious carbon reduction targets yet seen in the global aluminum industry, setting a new standard in one of the most energy intensive industries, said En+, adding that the targets are in line with the Paris Agreement and the European Green Deal, and are promotive of the global transition to a low-carbon economy.
The plan covers Scope 1 and 2 emissions across the group's entire operations, including aluminum production, heat and electricity generation, and are benchmarked against En+'s 2018 emissions.
"Our metals business has already overachieved in meeting existing carbon reduction targets," said En+ executive chairman Greg Barker. "The target of emitting less than 2.7 tonnes of CO2 equivalent per tonne of aluminium (scope 1 and scope 2 from electrolysis) by 2025, was met in 2017. That is why, although I don't underestimate the huge challenges ahead in meeting these targets, we face them with growing confidence."
Achieving the new milestones will require yet more transformations, such as inert anode technology. To plan and implement the necessary changes, the company will set up an En+ Climate Change Taskforce, led by chief operating officer Vyacheslav Solomin.
Before publishing its final net-zero strategy in September 2021 ahead of the UN COP26 in Glasgow, En+ said it will engage in consultations with relevant external stakeholders, including suppliers, customers, investors, local communities and international experts.
With an annual production capacity of 3.9 million mt, En+ is the largest aluminum producer in the ex-China world. Its 15.1 GW of installed hydropower capacity also makes it the largest independent hydropower company globally.
In 2019, the group's metals business in aluminum company Rusal, produced 6% of the world's aluminum and its power unit, EuroSibEnergo, generated more than 64 TWh of carbon-free hydropower, according to En+.
Rusal produces aluminum with the bulk of the power supplied by EuroSibEnergo. En+ says more than 98% of Rusal's aluminum production is powered by renewable hydropower, and through that it boasts one of the lowest carbon footprint among aluminum companies worldwide.