Amazon announced that it invested in more than 100 new solar and wind energy projects in 2023, claiming the title of largest corporate purchaser of renewable energy for the fourth consecutive year, and bringing the company’s pipeline of clean energy capacity to greater than 77,000 GWh per year, roughly equivalent to the power needs of 7.2 million homes.

According to Amazon, the new projects will move the company closer to its expectation to have 100% of the electricity powering its operations be attributable to renewable energy sources by 2025, ahead of its original 2030 target. The company said that more than 90% of its operations were powered by renewables in 2023.

Over the past year, Amazon has expanded its renewables portfolio into 27 countries and more than 20 U.S. states, with new projects in Arkansas, Georgia, Maryland, Michigan, Mississippi, Missouri, Ohio, Oklahoma, and Virginia as well as Canada and Brazil. The company’s 2023 European renewable energy investments include projects in nine countries, with 15 rooftop solar installations on Amazon facilities across Belgium, France, Italy, Spain, and the UK, and 24 utility-scale wind and solar projects in Finland, Germany, Greece, Spain, Sweden and the UK.

The company also added 13 projects in the Asia Pacific region over 2023, including eight utility-scale wind and solar projects and its first in South Korea. In China, Amazon announced two new wind farms; Amazon Wind Farm China–Daqing, which began operating in March, and Amazon Wind Farm China–Bobai.

Overall, Amazon said that it now has more than 500 wind and solar projects globally.

Adam Selipsky, CEO of Amazon Web Services (AWS) said:

“Amazon’s investments in solar and wind projects are helping power our operations, while also providing new sources of clean energy to the grid, spurring economic growth, and supporting jobs in the communities where our customers live and work.”

Global commodities trading company Trafigura announced a new agreement with 1PointFive, the Direct Air Capture (DAC)-focused subsidiary of energy giant Occidental (Oxy) for the advance purchase of carbon credits to be produced from 1PointFive’s industrial DAC facility, STRATOS.

Announced at the World Economic Forum’s (WEF) Annual Meeting in Davos, Switzerland, the agreement marks Trafigura’s first transaction under its commitment as a Founding Member of the First Movers Coalition (FMC). Trafigura launched the commitment at last year’s WEF meeting, pledging to purchase at least 50,000 tons of carbon dioxide removal credits by the end of 2030.

FMC was launched at the COP26 climate conference, creating a coalition of companies committed to creating early markets for clean technologies addressing hard-to-abate sectors. By setting major advanced purchase commitments to be met by 2030, the coalition sends strong market signals enabling the scaling and commercialization of clean technologies including near-zero carbon steel, aluminum, shipping, trucking and aviation, as well as advanced carbon dioxide removal solutions.

Hannah Hauman, Global Head of Carbon Trading for Trafigura, said:

“We are delighted to collaborate with 1PointFive as we expand our global customer offering for hard-to-abate sectors. Supporting the development of large-scale removals projects demonstrates our commitment to advancing carbon sequestration technologies, underpinning demand today to enable the scaling of production for tomorrow.”

DAC technology, listed by the IEA as a key carbon removal option in the transition to a net-zero energy system, extracts CO2 directly from the atmosphere for use as a raw material or permanently removed when combined with storage. According to the landmark Intergovernmental Panel on Climate Change (IPCC) climate change mitigation study released last year, scenarios that limit warming to 1.5°C include carbon dioxide removal methods scaling to billions of tons of removal annually over the coming decades, with DAC positioned to potentially account for a significant portion of the total.

Most solutions that capture and store CO2 are early stage and currently limited in scale, including DAC. 1PointFive is currently constructing STRATOS in Ector County Texas, which it expects to be the largest DAC facility in the world to date, designed to capture 500,000 tonnes of CO2 per year when fully operational.

According to the companies, the advance purchase of credits by Trafigura will help to support the adoption of 1PointFive’s CDR credits to help hard-to-abate industries address their emissions.

Michael Avery, President and General Manager of 1PointFive, said:

“Our work with Trafigura is rooted in a shared commitment to the climate and an understanding of the critical role that durable carbon removal, specifically Direct Air Capture, plays in helping organizations address their carbon footprint. We are excited about this agreement because it establishes our collaboration with a global commodities firm focused on reducing emissions across the value chain.”

A significant majority of CEOs are planning, currently undertaking, or have already completed a series of actions to prepare their companies to address the risks and opportunities presented by climate change, including two thirds looking to upskill or reskill their workforce, and more than three quarters innovating new, climate friendly products or services, according to a new global CEO survey released by professional services firm PwC.

For the study, PwC’s 27th Annual Global CEO Survey, PwC surveyed more than 4,700 CEOs across 105 countries.

The survey indicated that CEOs are more optimistic about global economic growth than in the prior year study, with fewer than half (45%) anticipating a decline in growth over the next 12 months, compared to 73% last year, with lower perceived exposure to factors such as inflation, economic volatility and geopolitical conflict.

As perceived exposure to near-term factors have eased, however, the study found an increased focus on long-term megatrends such as climate change and technological disruption, with an increasing number of CEOs reporting that they are less confident in their companies’ viability over the next decade on their current path – 45% vs 39% last year – leading to increased initiatives to reinvent their business models.  

Bob Moritz, Global Chair, PwC, said:

“As business leaders are becoming less concerned about macroeconomic challenges, they are becoming more focused on disruptive forces within their industries. Despite rising optimism about the global economy, they are actually less optimistic than last year about their own revenue prospects, and more acutely aware of the need for fundamental reinvention of their business. Whether it is accelerating the roll-out of generative AI or building their business to address the challenges and opportunities of the climate transition, this is a year of transformation.”

Respondents listed climate change as having one of the most significant increases as a factor driving change in the way their companies will create, deliver and capture value, with 30% of CEOs anticipating a “large” or “very large” change over the next three years, compared to only 22% over the past 5 years.

Initiatives anticipated or underway by companies related to climate change reported by the CEOs included improving energy efficiency, with 65% now undertaking, 10% completed, and another 14% planning actions in this area; 58% in progress or completed and 20% planning new, climate-friendly products technologies or services; 47% in progress or completed and 21% planning initiatives to protect assets and workforces from climate risk, and 44% in progress or completed and 23% planning the implementation of initiatives to upskill or reskill their workforce.

Despite the progress on climate-related initiatives, however, the survey found that many CEOs are not likely to pursue several of these actions, including 31% who have no plans to incorporate climate risk into their financial planning, 30% not anticipating reskilling or upskilling implementation, and 29% with no plans for protecting assets and workforces from climate risk.

One of the key findings from the survey is an apparent increase in acceptance by CEOs of lower rates of return for climate-friendly investments, with over 40% of respondents reporting that their companies have set a lower hurdle rate for these, compared with other investments. Of those accepting a lower rate of return, most reported hurdle rates between one and four percentage points lower.

Moritz said:

“This year’s data suggests a high degree of CEO uncertainty ahead, but CEOs are taking action. They are transforming their business models, investing in technology and their people, and managing the risks and opportunities presented by the climate transition. If businesses are to thrive over the short and long-term, build trust, and deliver sustained and long-term value, they must accelerate the pace of reinvention.”

Click here to access the survey.

Global automotive supplier KIRCHHOFF Automotive announced today a seven-year, €130 million agreement with Swedish company H2 Green Steel for the delivery of near zero emissions steel in order to decarbonize its supply chain and achieve its sustainability goals. 

Steel is the main component of KIRCHHOFF Automotive’s supply chain, accounting for half its material purchases, with 90% of the company’s carbon footprint is originating through the use  of conventionally produced steel and aluminum.

KIRCHHOFF said that orders from international car manufacturers for upcoming generations of vehicles make it clear that the demand for safe and sustainable body-in-white parts will increase strongly in the coming years. According to Michael Rank, Global Executive Vice President Procurement at KIRCHHOFF, customers “want to see products with lower CO2 footprint.”

Rank added:

“This matches our ambitions to be in the forefront of sustainable development in the industry, as well as our legacy where sustainability has always been important. It’s great to be able to work with a new player on the market and the team at H2 Green Steel have really pushed the steel industry to do more and move faster in terms of sustainability.” 

Steelmaking is one of the biggest emitters of CO2 globally, and one of the more challenging sectors to abate, with total greenhouse gas emissions (GHG) from the sector accounting for 7% – 9% of direct emissions from the global use of fossil fuels.

Founded in 2020, H2 Green Steel is developing its flagship green steel plant in Boden, Sweden, with the project including a giga-scale green hydrogen plant as an integrated part of the steel production facility. The company employs hydrogen produced using green power to remove the oxygen from iron oxide, avoiding most of the CO2 emissions normally produced, and uses electricity from 100% renewable sources for the energy requirements generated in the manufacturing process. H2 Green Steel aims to begin production in 2025, with plans to produce 5 million tons of nearly fossil-free steel by 2030.

Deliveries of green steel from H2 Green Steel’s Boden plant to KIRCHOFF’s plants across Europe are expected to begin in 2027.  The two companies will also work together on a circularity initiative, aiming to send at least 30% of the steel scrap volumes back to H2 Green Steel’s electric arc furnaces in Boden for recycling. 

Stephan Flapper, Head of Commercial, H2 Green Steel said:

“Suppliers to the automotive industry have to follow the ambitious plans that progressive car makers have set out. However, we also have a group of companies that run before the rest as they follow their own compass. KIRCHHOFF Automotive is one such company. They combine their impressive legacy with a strong direction for the future where sustainable products are as much a competitive edge, as they are important for the climate and sustainability targets.”

Home appliance manufacturer Electrolux announced today that it has set a new science-based climate target to reduce greenhouse gas emissions across its value chain, including in its products and operations.

The new target has been approved by the Science Based Targets initiative (SBTi), one of the key organizations focused on aligning corporate environmental sustainability action with the global goals of limiting climate change. The company’s previous science-based targets, which included goals to reduce Scope 1 and 2 emissions by 82%, and Scope 3 product use emissions by 25% by 2025,  on a 2015 basis, were achieved three years ahead of schedule. 

Under the new target, Electrolux aims to reduce the company’s Scope 1 and 2 direct and indirect emissions from its own operations by 85% and to reduce the Group’s absolute scope 3 emissions, including use of sold products, materials, transport of products and business travel, by 42% between 2021 and 2030.

Electrolux Group CEO Jonas Samuelson said:

“We’re very proud to have our second science-based climate target approved at the end of 2023 by the Science Based Targets initiative after achieving our first science-based target three years ahead of plan. We’re focused on keeping up our momentum to drive climate action throughout our value chain.”

Electrolux Group was one of the first 100 companies in the world to set a climate target approved by the Science Based Targets initiative in 2018. With the new scope 1 and 2 goal, Electrolux Group is targeting a 97% emission reduction in operations by 2030 compared with 2015.

Elena Breda, Chief Technology and Sustainability Officer at Electrolux Group said:

“The new science-based target will bring us close to zero emissions in operations by 2030, despite the challenging global economic outlook and some manufacturing processes to be addressed together with our suppliers.  As approximately 85% of the global climate impact of an appliance is generated when it is in use, therefore by offering resource and energy efficient products is where we can have the greatest positive climate impact and our scope 3 target supports our work on this.”

Boston Consulting Group (BCG) announced today a strategic agreement with 1PointFive, the Direct Air Capture (DAC)-focused subsidiary of energy giant Occidental (Oxy), including the purchase of 21,000 metric tons of carbon dioxide removal (CDR) credits over three years.

In addition to the carbon removal purchases, BCG will collaborate with 1PointFive through consulting services, including on the development of business processes supporting DAC CDR credits.

DAC technology, listed by the IEA as a key carbon removal option in the transition to a net-zero energy system, extracts CO2 directly from the atmosphere for use as a raw material or permanently removed when combined with storage. According to the landmark Intergovernmental Panel on Climate Change (IPCC) climate change mitigation study released last year, scenarios that limit warming to 1.5°C include carbon dioxide removal methods scaling to billions of tons of removal annually over the coming decades, with DAC positioned to potentially account for a significant portion of the total.

The CDR credits under the agreement will be enabled by STRATOS, currently under construction by 1PointFIve in Ector County Texas, which it expects to be the largest DAC facility in the world to date, designed to capture 500,000 tonnes of CO2 per year when fully operational.

Michael Avery, President and General Manager of 1PointFive, said:

“We are pleased to enter into this strategic agreement with BCG. It builds on our existing partnership and reflects our shared commitment to the climate and the importance of DAC as an industrial-scale, durable, and verifiable carbon removal solution. As one of the global leaders in consulting, this agreement reinforces DAC’s potential and demonstrates how non-industrial companies can meet their net zero goals and sustainability initiatives.”

The agreement marks the latest in a series of DAC purchases for BCG, including a 5-year, 40,000 ton deal announced last year with DAC company CarbonCapture, and an agreement in December with DAC company Climeworks for 80,000 tons of CO2 removal over 15 years.

David Webb, BCG’s Chief Sustainability Officer, said:

“With this strategic agreement, BCG reaffirms its commitment to be an early adopter and to support the most promising CDR technologies to capture and store carbon durably. Over the past year, BCG has already supported 1PointFive in designing the required IT architecture needed for the Measurement Reporting and Verification (MRV) of STRATOS. 1PointFive has become one of the leaders in the durable removals ecosystem and is a great fit for our DAC portfolio.”

Home appliance manufacturer Whirlpool announced today that it has entered into agreements with One Energy to add onsite wind and solar power at two of its Ohio-based washing machine and dishwasher plants, enabling the creation of more than 40 MW of renewable energy, and marking one of the largest behind-the-meter renewable energy projects in the U.S.

According to Whirlpool, the new installations will support the company’s 2030 net zero goals. Whirlpool announced its 2030 commitment in 2021, pledging to reach net zero across more than 30 manufacturing sites and distribution centers around the world, spanning all direct (Scope 1) and power-related (Scope 2) emissions.

Initiatives outlined by Whirlpool to reach its goal included working towards 100% renewable energy usage through wind and solar panel installations and Power Purchase Agreements that fund wind and solar farms, as well as energy efficiency programs at the company’s plants and facilities, and offsets for remaining emissions that can’t be avoided.

The company currently has nine onsite wind turbines at four of its Ohio plants in Findlay, Marion, Greenville and Ottawa. Combined, those turbines supply 22% of the electrical needs for those facilities. The new installations will include three new turbines at the Findlay operations, as well as three turbines at its Clyde, Ohio plant, and a ground solar array at each location.

Once completed these projects will ensure the Clyde and Findlay plants receive at least 70% of their energy needs from onsite renewable energy. The solar and wind projects are expected to be online and operational by early 2025.

Pam Klyn, Executive Vice President of Corporate Relations and Sustainability for Whirlpool said:

“Our focus on sustainability goes back over 50 years, and these new onsite installations are a significant step toward achieving our net zero target by 2030 for our operations. Sustainability is deeply embedded in our values, and we’re very excited to be making this announcement today.”

BMW Group announced today that its Munich plant will be the first site in its global production network to transition to manufacturing only all-electric vehicles, with the transformation to be completed from the end of 2027.

Established in 1922, the Munich plant initially produced aircraft engines, transitioning in 1948 to producing motorcycles, and in 1952 to automobiles. The plant currently produces approximately 1,000 vehicles per day, of which roughly half are all-electric.

Beginning in 2026, the plant will produce BMW’s Neue Klasse electric sedan, which the company has said will be characterized a completely redefined IT and software architecture, a new generation of high-performance electric drivetrains and batteries, and a radically new approach to sustainability across the entire vehicle life cycle.

BMW stated that it will invest €650 million in the plant to prepare for the transformation, with investments including four buildings, including a new vehicle assembly line with logistics areas and a new body shop.

Peter Weber, Director BMW Group Plant Munich, said:

“Munich is the beating heart of BMW. The plant in Munich is innovative and adaptable. As in the 1960s, a Neue Klasse is again laying the foundation, on which our plant is reinventing itself. The fact that this comprehensive transformation is taking place at the same time as roughly 1,000 vehicles per day are currently being manufactured is common practice in Munich and is possible thanks to the outstanding performance of all our employees.”

The new announcement follows BMW’s commitment in 2021 to expand company efforts to combat climate change, including goals to significantly reduce vehicle emissions throughout the lifecycle, reduce CO2 emissions by 40% per vehicle by 2030, and make a minimum of 50% of its global sales from battery electric vehicles by 2030.

Last year, the company said that its goal to reach 50% global EV sales could be reached earlier than 2030.

Milan Nedeljković, Member of the Board of Management of BMW AG, Production, said:

“The Munich plant is an excellent example of our ability to adapt. We are investing € 650 million here and will produce exclusively all-electric vehicles in our parent plant from the end of 2027. Last year alone, six all-electric models went into production. At the same time, we also set a production record, proving that we are simultaneously able to both deliver and shape the future in our production network.”

Sustainability-focused investment manager Mirova announced today the acquisition by power company Engie of its 51% stake in the Goya project in Spain, a portfolio of seven wind farms with a total power capacity of 194 MW.

Initially awarded in 2016, the Goya project was the first renewable project in Spain to be built without subsidies. Construction on the project started in 2018, and it has been fully operational since 2020.

The project was also the first in the Spanish energy market to enter a Power Purchase Agreement (PPA) for wind farms under development in the country, signed with Engie in 2018.

Mirova acquired its 51% stake in Goya in April 2018 through its European energy transition fund Mirova Eurofideme 3 (MEF3), alongside Engie, which acquired a 15% stake, as well as General Electric at 25% and Forestalia. With the new transaction, Engie increases its stake in the project to 66%.

The companies said that the acquisition aligns with Engie’s growth strategy in Spain, adding to its existing installed renewable capacity in the country of 1.7 GW.

Loreto Ordóñez, CEO of ENGIE in Spain, said:

“For us, the Goya project is emblematic because it has demonstrated the commitment and interest of the Group in the Spanish energy sector, by promoting a long-term project that allows the generation of clean energy. With the acquisition of the stake held until now by MIROVA, ENGIE increases its ambition and commitment to actively contribute to the construction of a future in which energy is cleaner, more sustainable and more affordable. for all.”

The transaction represents the last exit of MEP3, which Mirova said will enable the fund to offer double digit return to its investors.

Raphaël Lance, Head of Energy Transition Funds of Mirova, said:

“The Goya project was a landmark transaction for Mirova Eurofideme 3 as being the first project developed by Forestalia under the new Spanish tender regime of 2016. It took a lot of dedication, creativity and energy from our investment team, industrial and financial partners to make it happen. We are pleased with this new transaction with ENGIE, a longstanding partner of MIROVA whom we have worked with on many wind, solar, and hydroelectric projects across Europe.”

Leading construction and mining equipment, engine, turbine and locomotive manufacturer Caterpillar and building materials company CRH announced today a new strategic electrification agreement to develop and deploy battery electric off-highway trucks for CRH operations.

CRH is the largest aggregates producer in North America, and the first in its industry to sign an electrification agreement with Caterpillar, the companies said.

Denise Johnson, Resource Industries Group President at Caterpillar, said:

“We are pleased to work with CRH, as our first aggregates industry customer, to expand our electrification solutions beyond mining. When it comes to sustainability, the quarry and aggregates industry requires diverse solutions. Our collaboration with CRH is an exciting opportunity to learn together and gain valuable insights into how our products can best support CRH’s long-term objectives to decarbonize its operations.”

Under the new agreement, the companies will focus on accelerating the deployment of Caterpillar’s 70 to 100-ton-class battery electric off-highway trucks and charging solutions at a CRH site in North America.

CRH will also participate in Caterpillar’s Early Learner program for battery electric off-highway trucks, testing and validating the units in real-world applications. Launched in 2021, the program focuses on accelerating the development and validation of Caterpillar’s battery electric trucks at customers’ sites. CRH will also provide insights through feedback addressing safety, performance, operational and compliance requirements for the aggregates industry.

According to the companies, the agreement will support CRH’s climate objectives, which include goals to reduce absolute carbon emissions by 30% by 2030, compared with 2021, and to achieve net zero by 2050.

Scott Parson, President, CRH Americas Materials Solutions said:

“At CRH, we recognize that collaboration and innovation are critical to delivering our industry-leading decarbonization targets and achieving our ambition of net-zero by 2050. Through this partnership with Caterpillar, we will advance the use of sustainable equipment in our operations and build on our shared commitment to a low-carbon future.”