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