In September 2021, we committed to set climate targets under the Science Based Targets initiative (SBTi). We submitted our targets to the Science Based Targets Initiative (SBTi) in July 2022 for validation, and in November 2022 our near-term targets were approved.
Having our near-term climate targets validated and approved by the SBTi will ensure that our climate actions lead to absolute reductions in our greenhouse gas emissions. The targets we submitted are broken down into sub targets for our scope 1, 2 and 3 emissions based on a detailed mapping of all significant greenhouse gas emissions throughout our value chain.
The Science Based Targets initiative is a collaboration between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF). The SBTi defines and promotes best practice in science-based target setting and independently assesses companies’ targets.
The SBTi requires all companies whose scope 3 emissions cover more than 40 per cent of their combined scope 1, 2 and 3 emissions to also set targets for Scope 3. This is different to other target-setting frameworks and previous practises.
Aligned with the requirements set by the SBTi, Danish Crown has defined two sets of near-term targets. One absolute target for Scope 1 and 2 emissions and one relative target for Scope 3 (scroll down for the full explanation of our Scope 1, 2 and 3 emissions):
- Danish Crown commits to reduce absolute Scope 1 and 2 greenhouse gas emissions 42 per cent by 2030 from a 2020 base year. This target covers 100 per cent of Danish Crown’s Scope 1 and 2 greenhouse gas greenhouse gas emissions
- Danish Crown commits to reduce Scope 3 greenhouse gas emissions with 20 per cent per kg of output produced by 2030 from a 2020 base year. This target covers approximately 88 per cent of Danish Crown’s Scope 3 emissions
*Business activities that were not included in the final Scope 3 target include activities that are not representative of Danish Crown’s overall output and/or represent only a minor share of our climate impact. The target addressing 88.0 per cent of base year scope 3 emissions meets the minimum ambition requirements of the physical intensity approach, and is therefore considered ambitious
• Optimisation of manure handling incl. increased utilisation of manure for biogas
• Field technologies that ensure feed grain with less climate impact
• Optimising feed efficiency through the "Danish Crown Data" programme
• Exclusive use of deforestation-free soy in feed
In total, Danish Crown will reduce its global emissions by 2.5 million tonnes of CO2 from 2020 to 2030. In comparison, Denmark as a whole nation must reduce by 20 million tonnes of CO2 in order to achieve the Danish Parliament's objective of reducing emissions by 70 per cent. Part of Danish Crown's reductions, however, take place abroad, and will not be counted in the Danish CO2 accounts.
Calculating scope 1,2 and 3-emissions
In line with the categorization developed by the Greenhouse Gas Protocol, in Danish Crown we are calculating and disclosing the greenhouse gas emissions in three so-called broad scopes, covering 1,2 and 3. Scopes 1 and 2 cover direct and indirect emissions from assets directly owned by us. It can, for example, be the emissions from cars owned by Danish Crown or the electricity we as a group use in processing facilities and abattoirs. Here, the goal is to reduce emissions by 42% from 2020 to 2030.
As scope 3-emmisions are outside of our control, they are the most difficult to calculate. We have completed the first calculations of our scope 3 greenhouse gas inventory during 2021, and we will work continuously on ensuring reliable data for all scope 3 categories. We have had specific focus on our farm-level greenhouse gas emissions as these account for the majority of our scope 3 emissions.
The calculations are based on our most recent life cycle assessment (LCA) calculations for different production countries and animal types. We have used physical level data (full inventory) for most scope 3 categories, including feed, meat sourced from third parties, logistics, packaging, and ingredients.
Calculations of farm-level greenhouse gas emissions are based on a combination of data from our farmers in the Climate Track and national averages for countries or animal types where the Climate Track has not been rolled out. Our logistics footprint is largely based on supplier-specific primary data from Tier 1 suppliers.
For other major categories of purchased goods and services, we have used activity data and their respective emission factors. This covers most of our scope 3. For a few small categories, we have applied industry-average emission factors on the economic value of the goods and services purchased (spend-based method).