ENGIE GOES BEYOND THE
WELL-BELOW 2°C FOR WHICH
IT IS CERTIFIED BY SBTI , BUT WITH
A TRAJECTORY THAT DOES NOT
REACH 1.5°C AT THIS STAGE
In its overall guidance (all sectors
combined – graph 1) for a 1.5°C
certification, SBTi requests a linear
reduction of 4.2% per year on scopes
1 and 2, as well as well-below 2°C
reduction on its scope 3 (2.5% per
year). ENGIE meets these criteria.
However, more ambitious targets are
required of companies in the Power
sector (graph 2) on the generation
and sales of electricity and heat, on
which ENGIE is not aligned. Below,
the gap from the Group's trajectory
with a global warming limited to 1.5°C
according to SBTi :
SBTi GLOBAL GUIDANCE,
ABSOLUTE GHG
(Mt CO
2
eq.)
CO
2
EMISSIONS VS ENGIE
2017 BASE YEAR
SBTi WB2°C ENGIE Scope 1+2
SBTi 1.5°C ENGIE Scope 3
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
0%
20%
40%
60%
80%
100%
120%
SBTi POWER SECTOR GUIDANCE,
GHG INTENSITY
(g CO
2
eq./kWh)
Carbon intensity VS ENGIE
2017 base year
SBTi WB2°C Power sector Carbon intensity Scope 1+2
SBTi 1,5 °C Power sector Carbon intensity 1+3.3+3.15
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
0%
20%
40%
60%
80%
100%
120%
CARBON INTENSITY
metric tonnes of CO
2
per Mwh electricity generation
0
01
02
03
04
05
06
2015 2020 2025 2030 2035 2040 2045 2050
National Pledges
Below 2C
15C
Electricity Utilities
sector mean
ENGIE
For energy production activities,
being aligned with 1.5°C would
require increasing the reduction
of scope 1+2 emissions related to
energy production and consumption
from -66% to around -78% between
2017 and 2030. Committing to this
reduction would require the sale of
current thermal power plants as they
are necessary, in the short term, to
the resilience of energy systems to
which they contribute. These assets
would therefore continue to emit
greenhouse gases. ENGIE is in the best
position to decarbonize these assets
given its positioning in renewable gas
technologies.
On energy sales, the 1.5°C trajectory
would require increasing the reduction
target linked to energy sales from
-56% to around -80% between 2017
and 2030. ENGIE communicated for
the first time on the emissions related
to purchased energy sold to end-users
in 2022 This indicator is therefore
recent and requires more maturity
in terms of data before exploring
potential additional decarbonization
levers.
To be noted, several benchmarks
coexist to analyze the gap with a
1.5°C trajectory. Indeed, the Group
is aligned with such a trajectory by
2030 when compared to the IEA’s
Net Zero Emissions 2022 scenario,
reference used by the Transition
Pathway Initiative to assess the
alignment of companies of the energy
sector (see graph below). This shows
the complexity of communication
on the subject, without a reference
framework commonly shared by
the entire international community.
82 - CLIMATE NOTEBOOK