Chr. Hansen has joined the UN Climate Initiative to limit global temperature rise to 1.5oC, and commits to set ambitious carbon emission reduction targets through the Science Based Targets Initiative.
We are currently mapping the entire value chain to account for all scope 1, 2 and 3 carbon emissions to be able to set the most accurate and ambitious targets. We expect to announce the new targets at the end of the financial year 2020/21.
Improving CO2 efficiency by 25% across the entire company
A target to improve CO2 efficiency by 25%, relative to base year 2013/14, guides our efforts and actions until the extensive process of setting science based targets is finalized. As a company, we have experienced solid organic growth over the past decade and guided by this target, we have been able to ensure that, along the way, we have been able to improve CO2 emissions relative to our growing output and keep our absolute emissions stable.
100% renewable electricity by 2025
Chr. Hansen is committed to ensure that by 2025, 100% of the electricity used across all global sites are powered by renewable energy. A first and significant step towards this was taken in 2020, when Chr. Hansen entered an ambitious 10-year Power Purchase Agreement (PPA) with the organization Better Energy. This ensures that 100% of the electricity need for all of our sites in Denmark, corresponding to the usage of 15,000 Danish households, is powered by renewables. The electricity consumption in Denmark makes up 40% of our total, global consumption. We are currently exploring how to scale this model to cover all of our global sites.
Central to the agreement is our ambition to contribute to the global transition to green energy, which happens through the construction and opening of two new solar parks in Denmark. The energy supply is secured with power production from a mix of several other renewable sources such as wind or biogas, to ensure a steady supply even when there is no sunshine.
100% circular management of biowaste
Up or recycling waste streams and thinking in circular management flows ensure more efficient use of resources and avoided CO2 emissions. Looking at Chr. Hansen’s waste flows, the main left-over from our culture production is called eluate. This is composed primarily of water, nutrients and yeast, which means that it is still rich in nutrients and valuable for alternative production flows. In Denmark, Chr. Hansen has recycled its eluate for biogas and agricultural purposes for years, similarly in France. Our ambition is to ensure that all our sites are able to apply this way of managing waste. Getting there requires the right equipment and engagement of relevant local partners capable of upcycling the eluate.
See our climate targets explained at 6:37 - 7:51 in this presentation by Torsten Steenholt, EVP, Global Operations.
Carbon Disclosure Project
Each year, Chr. Hansen reports to the Carbon Disclosure Project on climate change. Our 2020 score is B. In particular the score highlights the integration of climate into our business strategy and governance. We are happy to see that our efforts materialize in progress on the CDP ranking. With our new targets and initiatives in place, we are highly motivated and committed to advance this even further.