Mondi has science-based targets approved on road to net-zero by 2050

Pictured: Paper production equipment at a facility in Sweden. Image: Mondi Group

Mondi has confirmed that its science-based targets, set as part of a broader net-zero target, have been approved by the SBTi.

The company set a net-zero reduction commitment in January 2022 and has now confirmed that its Scope 1, 2 and 3 targets are approved as in alignment with the 1.5C limit.

Mondi has committed to reduce absolute Scope 1 and 2 GHG emissions by 46.2% and Scope 3 GHG emissions by 27.5% by 2030 from a 2019 base year. The long-term target is to reduce emissions across the value chain by 90% by 2050.

Mondi was previously working towards targets to reduce Scope 1 and 2 emissions, on a per-tonne-of-production basis, by one-third by 2025, against a 2014 baseline and 72% by 2050.

The company’s chief executive Andrew King said: “The approval of our science-based Net-Zero targets according to SBTi’s Net-Zero Standard underlines our long-term commitment to taking action on climate. Mondi has already made significant progress, achieving a 46% reduction of our specific CO2e emissions to 2021 against our initial 2004 baseline.

“We are pleased to be among the first in our sector to have approved Net-Zero targets and recognise that much more needs to be done swiftly and urgently as we move towards a low-carbon, circular economy.”

Mondi has invested more than €650m in energy-related improvements across its pulp and paper mills since 2015.

Last year, Mondi signed a €750m revolving multicurrency credit facility agreement (RCF) that will be adjusted based on the company’s performance against its sustainability strategy that is aligned to the Sustainable Development Goals (SDGs).

The 5-year RCF has been agreed as part of a refinancing of an existing €750m loan that was set for July 2022. It includes an option to extend the RCF by up to two years based on the approval of the 10 banks that have arranged the structure of the agreement.

Under the terms of the agreement, the margin of the RCF will be adjusted based on Mondi’s performance against specified sustainability targets. The banks that arranged the RCF are: Barclays, BBVA, Bank of America, BNP Paribas, Commerzbank, Deutsche Bank, Erste Group, Raiffeisen Bank International, SEB and UniCredit.