SKF to phase out its own fossil gas use with a SEK 3 billion decarbonization investment frame
Gothenburg, 9 June 2023: SKF has decided to allocate SEK 3 billion to meet its energy and decarbonization goal by 2030, which is a key element of the Group's strategy. The Group has also decided to ban any fossil fuel investments in its own operations, as well as to replace direct fossil gas use with renewable energy or approved non-fossil fuel alternatives by 2029.
The SEK 3 billion investment frame is to be exclusively used to fund decarbonization activities, mainly energy efficiency and removal of fossil gas use for process and building heat, within the Group's operations around the world. The frame will be utilized at around SEK 500 million per year up to the end of 2028.
Rickard Gustafson, President and CEO, says: "I am very pleased to announce this next step in our Decarbonization and Net Zero approach. This is just another example of our commitment towards the achievement of the goals set out in the Paris Climate agreement. We act on this commitment both with actions like this and through all our various engagement and advocacy activities."
"The scale and urgency of the climate crisis demands an even greater focus and speed of action. These investments, coming with a clear frame, will help us reach our goal to decarbonize our own operations by 2030. To achieve this is an absolute key element of our strategy."
SKF has reduced its Scope 1 and 2 emissions by 46% since 2015. This has been achieved by focusing on energy efficiency as well as efficient production and use of materials, while continually increasing the share of renewable energy used in the Group's operations around the world. More than half of the electricity used in SKF's operations comes from renewable energy sources.