- Transition Pathway Initiative recognises ambitious new RWE strategy
Essen, 12 October 2020
Transition Pathway Initiative (TPI) – an association founded mainly by investors – has confirmed for the first time that RWE’s ambitious climate protection plans are in line with the targets of the 2015 Paris Climate Agreement. This is an important recognition of RWE's climate protection efforts. The company will be climate-neutral by 2040, while carbon emissions are to be reduced by 75% by 2030, compared to 2012. At the same time, it is investing hugely in renewables, with net investments of five billion euros by 2022.
TPI is a global initiative of asset owners and asset managers, which was set up by the pension fund of the British Environment Agency and the Church of England's investment bodies in 2017. It assesses the contribution made by companies in carbon-intensive sectors for a transition to a low carbon economy. TPI is supported by research bodies and partners such as the London School of Economics, who monitor methodology and evaluations. In view of RWE's new strategy, TPI has now confirmed that RWE’s forecast emission intensity (emissions per megawatt hour of electricity generated) and the emission target are in line with the Paris Climate Agreement benchmark of “below 2 degrees”. The approach of the company with regard to emissions as well as risks and chances related to the low-carbon transition has achieved a good rating already since the first TPI assessment was carried out in 2017.
“The new rating of RWE is further proof that we are on the right track”, Rolf Martin Schmitz, CEO of RWE AG, points out. “We fully support the Paris Climate Agreement and we contribute what is needed to achieve its targets by globally investing in renewable energies and with our ambitious emission reduction targets.”
In a separate assessment, TPI has also evaluated 163 companies from the sectors of mining and electricity generation as well as oil and gas production and distribution. Out of 66 power-generating companies, 22 (exactly one third) met the ambitious “below 2 degrees” reduction value. The ratio is significantly higher than in the other sectors that were assessed. RWE CEO Rolf Martin Schmitz: “This shows that the power producers lead the way. No other of the evaluated sectors scores better. For many years, we have taken climate related responsibilities seriously.”