Our commitments for the climate

ENGIE, a world leader in energy transition

ENGIE is a global industry leader in low-carbon energy supply and related services. Along with its employees, customers, partners and stakeholders, the Group is committed for the past twenty years to accelerating the transition to a carbon-neutral world through more energy-efficient and environmentally friendly solutions. 
Driven by its Purpose enshrined in its bylaws, ENGIE now relies on a streamlined business model, which aims to develop the renewable energy sector and local low carbon energy networks, as well as to adapt its centralized networks and thermal production activities, in particular to the phasing out of coal, the development of renewable gases and electricity storage batteries.

ENGIE’s business model is based on 4 core businesses to build tomorrow’s low-carbon energy system and achieve the Net Zero Carbon target by 2045 for the Group and its customers.

Thanks to an action plan, supplemented by objectives, operational KPIs and international commitments, which are the subject of detailed reporting, we have significantly reduced our greenhouse gas (GHG) emissions: in 2022, compared to 2017, our greenhouse gas emissions (scopes 1, 2 and 3) fell by 33%.

We have also accelerated our strategic repositioning, focusing on our low-carbon business and helping our customers to use less and greener energy. A model that covers the 3 areas of sustainable value creation: People, Planet and Economic Prosperity.

“In line with the decarbonization road map, each person is taking action at their level to reduce the Group’s greenhouse gas emissions. Establishing annual carbon budgets, implementing a CO2 management culture in all our processes and integrating CSR performance into compensation are all examples that underscore the operational reality of decarbonization at all times.” Julia Maris, ENGIE’s Chief Sustainability Officer

Our carbon footprint for 2022

ENGIE's carbon footprint on its 3 scopes (1,2 and 3) amounts to 174 Mt CO2 eq. in 2022. This represents a reduction of 86 Mt CO2 eq. since 2017, which represents 33%.

Our 2030 objectives for reducing our carbon footprint

The Group has set itself ambitious objectives for 2030, in order to materialise its CSR commitments by that date. These objectives are part of a continuous improvement process to meet the growing expectations of its various stakeholders to control CSR risks and align the company's performance with national or international sustainable development objectives. With the SBTi “well-below 2°C” certification of our trajectory, obtained in 2023, our objectives have been reinforced and now cover 99% of our carbon footprint. The 2030 objectives relating to the Group's commitment to the climate and the environment are presented in the table below.

ENGIE has  adopted a  "well below 2°C" trajectory, certified by SBTi in February 2023,  with the following objectives:  

• The reduction of greenhouse gas emissions from electricity production (scopes 1 and 3) to 43 Mt CO₂ eq., compared to  106 in 2017 and 60  in 2022. As a result, the carbon intensity of this production should reach 158g CO₂ eq/kWh in 2030, compared to 343 in 2017 and 216 in 2022.
• The reduction of GHG emissions linked to final gas sales (scope 3) to 52 Mt CO₂ eq. by 2030, compared to 80 in 2017 and 61 in 2022. 
• The reduction of other GHG emissions, including scope 3 purchases, fixed assets and the upstream chain of fuel and electricity purchases (scopes 3.1, 3.2, 3.3) to 85 Mt CO₂ eq. by 2030, compared to 126 in 2017 and 90 in 2022.
• The reduction of the carbon intensity of energy sales produced (scopes 1 and 3) and purchased (scope 3) to 153 g CO₂ eq. /kWh, compared to 348 in 2017 and 221 in 2022.
• The reduction of the carbon intensity of energy production (scope 1) and consumption (scope 2) to 110 g CO₂ eq/kWh, compared to 331 in 2017 and 156 in 2022.
• The coal phase-out by 2025 on the European continent and by 2027 for the rest of the world. 
• The increase to 58% of the share of renewable energy in the electricity generation capacity mix, compared to 23% in 2017 and 38% in 2022. More concretely, this rate corresponds to the overall objective of reaching a renewable capacities portfolio of 50GW by 2025 and 80GW by 2030, compared to 24 GW in 2017 and 38 W in 2022.  
• A production capacity of 10 TWh of biomethane in Europe by 2030, including 5 TWh in France, compared to 0.6 TWh in 2022 in France.
• An injection capacity of 50 TWh per year of biomethane in France on ENGIE networks by 2030, compared to 8.3 TWh per year in 2022 in France.
• A production capacity of 4 GW of renewable hydrogen  by 2030.
• A capacity to market 30 TWh per year of renewable gases (biomethane and/or hydrogen) by 2030 in the Group's centralized management portfolio.
• An electric battery capacity of 10 GW by 2030, compared with 50 MW in 2022.

Here is a summary of the operational levers for action to achieve Net Zero Carbon by 2045:

ENGIE has also set itself a Net Zero Carbon 2030 objective for its working practices. Raising awareness, creating momentum, taking action and adopting more environmentally-friendly ways of working are also at the heart of the Group's transformation. Business travel, IT tools and usage, office-related CO₂ emissions, home-work travel and company vehicles are all subject to a decarbonization trajectory updated and reported each year by the Group's operating entities.  
Indeed, since 2019, each of the Group's operating entities must report its emissions and draw up annual action plans to ensure that our trajectory is achieved. At the same time, Group policies are defined and applied in all entities. These were supplemented in autumn 2022 by a global energy sobriety plan.  

In terms of commitments : 

• reduce the energy consumption of its tertiary buildings by 35% by 2030 (-15% for winter 2022), 
• encourage 6% of employees to give up their car for the journey to work, 
• reduce the carbon footprint of the company car fleet by 5% by encouraging eco-driving. 

Finally, regarding its customers, the Group is committed to a program to reduce greenhouse gas emissions, with a target of 45 Mt of CO₂ eq. avoided each year.

In 2022, ENGIE consulted its shareholders at its General Meeting on the main lines of its climate transition strategy (Say on Climate), that has been approved by 96.7%.

To accelerate its transition: 

• ENGIE promotes the most efficient and virtuous technologies (energy efficiency, condensation boilers, heat pumps, renewable energy, etc.).
• The Group participates in the construction of the international framework relating to the fight against climate change by joining and supporting initiatives such as: Caring for Climate (United Nations Global Compact), Task-Force on Climate-related Financial Disclosures (TCFD*) and Task-Force on Nature-related Financial Disclosures (TNFD).
• ENGIE supports initiatives to develop carbon prices (Carbon Pricing Leadership Coalition, WEF Climate Leaders) and adopts in 2015 an internal carbon price 
• ENGIE has actual and forecast reporting of its GHG emissions, which allows for effective management of its carbon footprint and is essential to the fight against climate change. 
• Finally, ENGIE maintains a sustained dialogue on the climate issue with its long-standing NGO partners and with its investors. 

ENGIE aims to be transparent about the environmental, social and societal implications of its activities, in particular through the annual publication of the Non-Financial Performance Statement. In addition, the Group is preparing for the entry into effect of the future CSRD (Corporate Sustainability Reporting Directive), which reinforces the European Union's objectives in terms of sustainable finance while imposing the extra-financial reporting standards.

Mitigating our emissions through effective management tools

In order to achieve its CO2 emissions reduction targets, the Group has developed a dual capital financial and carbon accounting system, using steering tools for both long-term strategic projections and investment decisions, as well as infra-annual operational management.

Adapting to the consequences of climate change and preserving nature and biodiversity

ENGIE's adaptation plan aims to reduce the exposure of the Group's assets and activities to the physical risks associated with climate change. 

Furthermore, as the preservation of biodiversity and the fight against climate change are intrinsically linked, and as its activities interact permanently with natural ecosystems, ENGIE is pursuing a proactive policy to reduce and control its footprint on biodiversity. Since 2012, the Group's strategy has been based on a cross-cutting approach - avoid, reduce, compensate.

Finally, ENGIE wishes to integrate as soon as possible the future recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD) and the Science Based Targets Network (SBTN). The Group is following the work in progress and participating in the pilot phase of the SBTN, as these are two relevant tools to analyse in depth the risks and opportunities concerning nature, and to integrate the financial dimension of biodiversity-related impacts into the strategy. 

Reducing and sequestering our greenhouse gas emissions to achieve carbon neutrality

ENGIE is aiming for carbon neutrality for all its direct and indirect greenhouse gas emissions . In addition, the Group has set a target for avoided or reduced emissions from its customers.

In 2022, ENGIE is among the leaders in the energy transition and has received the CDP "A-" rating for its 2022 climate change strategy and a "B" for its forest and water strategies.
The response to the CDP questionnaire details the company's climate change governance and strategy. It also describes the risks and opportunities for the company, the actions taken to reduce its emissions and to help our customers reduce their emissions.

One source of greenhouse gas emissions is direct fugitive CH4 emissions from natural gas infrastructure, which give rise to commitments, policies, targets and action plans by infrastructure managers. In 2023, the Group has set itself the target of reducing its methane emissions by 30% by 2030, compared with 2017.

GRDF (gas distribution) and GRTgaz (gas transport) are also committed to reducing their GHG and methane emissions in France. 
Finally,  ENGIE's action to fight climate change also involves responsible lobbying.

 
Find out more:

Each year, ENGIE publishes its Integrated Report and its Climate Report, as well as a dashboard of energy transition indicators around the world. 

(*) Climate glossary

• Paris Agreement* or COP21: in 2015, the United Nations Climate Change Conference held in Paris concluded with an initial agreement to limit the temperature increase to 2° C and, wherever possible, to move towards the objective of 1.5° C by comparison with the pre-industrial era. The text considers the needs and means of the signatory countries. It is sustainable over time with ambitions that can be revised upwards from time to time.
• SBT or SBTi: the Science Based Targets initiative is a set of methodologies which make it possible to confirm on a scientific basis that the GHG emissions trajectory of a given organization is compatible with the objective of limiting the average global temperature increase to 2° C or 1.5° C. Some of these methods make use of the notion of a carbon budget divided between different economic sectors. SBTi is particularly interested in the energy sector, which accounts for a significant share of global greenhouse gas emissions and is closely linked to other industrial sectors.  
• TCFD: The TCFD was set up by the G20 in order to define recommendations relating to the financial transparence of companies with respect to the climate.
• TNFD: The framework of the Taskforce on Nature-related Financial Disclosures', driven on market, and based on science, enables companies and financial institutions to integrate nature into decision-making.
• SBTN: The Science Based Targets Network is a group of organizations working to influence the impact of the private sector and cities on nature using science-based targets.