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 2023, compared to 2017, our greenhouse gas emissions (scopes 1, 2 and 3) fell by 39%.

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.

Our carbon footprint for 2023

ENGIE's carbon footprint on its 3 scopes (1,2 and 3) amounts to 158 Mt CO₂ eq. in 2023. This represents a reduction of 102 Mt CO₂ eq. since 2017, which represents 39%.

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 107 in 2017 and 52  in 2023. As a result, the carbon intensity of this production should reach 158g CO₂ eq/kWh in 2030, compared to 348 in 2017 and 203 in 2023.
• The reduction of GHG emissions linked to final gas sales (scope 3) to 52 Mt CO₂ eq. by 2030, compared to 80 in 2017 53 in 2023.
• 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 82 in 2023.
• The reduction of the carbon intensity of energy sales produced (scopes 1 and 3) and purchased (scope 3) to 152 g CO₂ eq. /kWh, compared to 346 in 2017 and 225 in 2023.
• 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 135 in 2023.
• 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 41% in 2023. 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 42GW in 2023.
• A production capacity of 10 TWh of biomethane in Europe by 2030, including 5 TWh in France, compared to 0.7 TWh in 2023 in France.
• An injection capacity of 50 TWh per year of biomethane in France on ENGIE networks by 2030, compared to 10.8 TWh per year in 2023 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 1.6 GW in 2023.

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

Decarbonizing the way we work

Being a player in the energy transition means acting collectively and individually to contribute to the Group's decarbonization trajectory, over and above the transformation of our business. Every year, ENGIE measures the carbon footprint of its employees in their work and travel patterns, worldwide, with a collective Net Zero Carbon objective for its working practices by 2030.

GHG emissions resulting from the use of office buildings, business travel, commuting, digital tools and usages, and the use of service and company fleets are measured and reported annually by each Group entity and/or country. In total, in 2023, the working practices of Group employees generated 268 kt of CO₂eq, i.e. less than 1% of the Group's direct emissions.

To support them, ENGIE has set ambitious targets, proposed new policies, raised awareness among all its employees and implemented concrete actions:  

• Greening its vehicle fleet by encouraging the renewal of the fleet with electric vehicles by 2030;  
• Sobriety of its buildings by reducing Group-wide energy consumption by 35% by 2030;  
• Responsible digital consumption practices, for which employee training is an essential element of success.
• Moderate and responsible business travel. The business travel policy was revised in January 2024, with the aim of significantly reducing the number of trips. To achieve this, in particular, a "carbon cost" was added to travel expenses to encourage their reduction and raise employee awareness of environmental impact.  

Since 2019, ENGIE has reduced GHG emissions linked to working patterns by around 10% between 2021 and 2023. 

Decarbonizing customers through ENGIE services

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.

Mitigation: reducing our emissions using high-performance management tools 
In order to achieve its CO₂ emissions reduction targets, the Group has begun a transformation that has enabled it to shift from a reporting approach to a performance management approach, thus carrying out large-scale operational change. To this end, ENGIE has developed management tools for both long-term strategic projections and for investment decisions, as well as for infra-annual operational management. 

1. Define Group CO₂ targets: ENGIE’s management has assigned limits that must not be exceeded for the main GHG emission sources of its activities (energy generation, gas and electricity sales). They are set as milestones throughout the Group’s Net Zero trajectory (2025 and 2030) and allocated to each GBU. 
2. Allocate and manage CO₂ budgets: Since 2021, the Group has integrated non-financial items in its medium-term financial plan (MTP) to assign CO₂ budgets. The GBUs develop their operational decarbonization strategy so as not to exceed the limits set (budget N+1, 2025, 2030 and 2045). As of 2023, an infra-annual management of emissions was conducted using quarterly GHG indicators. It has been integrated in the management dialog on the operational and financial performance via the Quarterly Business Reviews (QBR). 
3. Integrate CO₂ in investment management: Each investment decision must be made respecting the carbon budgets assigned to the GBUs. To do this, the Group has developed a CO₂ budget management tool similar to the management of CAPEX budgets. It allows the remaining CO₂ budget to be tracked to avoid exceeding the limits set. In addition, an internal price of CO₂ is integrated in the financial valuation of the project. This price is based on changes in carbon pricing according to internal scenarios of market decarbonization.

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. 

Adaptation: prepare resilience by mobilizing all existing processes 
Climate change is already having numerous impacts on the energy sector, particularly with regard to asset integrity, the changing energy supply-demand balance and employees health. Alongside climate change mitigation efforts, ENGIE is therefore rolling out a process of climate change adaptation, in order to increase the resilience of its assets and operations. Analyses are carried out based on several medium- and long-term climate change scenarios (RCP 4.5 and RCP 8.5 for 2030, 2050 and 2070).

1. Model climate change: To reach a better understanding of climate change and its impacts on ENGIE, a partnership with the Institut Pierre Simon Laplace has been signed. The goal is to model, as precisely as possible, future trends in energy generation as a function of the IPCC climate change scenarios (RCP 4.5 and RCP 8.5) as well as the impact of extreme events on all the Group’s technologies in the different regions of the world. 
2. Ensure the resilience of the Strategy: The impact of climate change on the Group’s strategy is also studied as part of a country-by-country approach or through an analysis of the major climate regions that are of interest to ENGIE. The Group examines this impact according to four main factors: country risk, the value of existing assets, the strategic objectives for 2030 and strategic challenges specific to the countries studied in the context of the broad spectrum of IPCC climate scenarios (RCP 2.6, RCP 4.5 and RCP 8.5). 
3. Ensure the resilience of our sites: Physical risks linked to climate change are now part of the Group’s ERM (Enterprise Risk Management) process. Various risks are studied: 
   • changes in production / energy demand; 
   • the integrity of assets and local supply chains in relation with the evolution of extreme events ; 
   • the health of employees, particularly because of changes in thermal stresses. 
   • the global portfolio of the supply chain for fuel, products and services. Ensure the resilience of our new projects 
4. Ensure the resilience of our new projects: Adaptation to the physical risks of climate change is embedded in the Group’s investment process. Before any new investment, a sensitivity analysis has to be carried out on changes in energy generation or demand, as well as the evolution of extreme events, as part of the new project development process.

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.

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 and thus reducing its direct methane emissions to 1.45 Mt CO₂ eq. from 1.45 in 2023.

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.

Reducing our methane emissions 

The Group is targeting a reduction in methane emissions from its gas infrastructures (transport, distribution, storage and LNG terminals) linked to venting (planned and unplanned), flaring and fugitive emissions. In 2024, the Group's methane emissions amount to 1 Mt CO₂ eq. 
The year 2024 marked a major step forward in Latin America, with the Group's entities Mejillones in Chile, TAG in Brazil, and the DSO and TSO in Mexico joining OGMP 2.0 (Oil & Gas Methane Partnership), an initiative led by the United Nations Environment Program to minimize methane emissions and share an internationally recognized reporting framework. They joined the Group's French (GRDF, NaTran, Elengy, and Storengy) and Romanian (Distrigaz Sud Retele) entities already committed to this initiative.

In addition to the commitments made by these entities, ENGIE has set itself the overall target of reducing methane emissions from its consolidated global gas networks (transport, distribution, LNG terminals and storage) by 50% between 2017 and 2030.

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^{(*) 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.}