Key milestone reached for Smiths net zero transition plan
Smiths Group plc, a leading industrial technology company, today confirms validation of its net zero GHG emission targets by the Science Based Targets initiative (SBTi). Smiths targets align with the UN’s critical global climate objectives and the Paris agreement ambition to limit global warming to 1.5°C:
- Net Zero GHG emissions from Smiths operations (Scope 1 & 2) by 2040; and
- Net Zero GHG emissions from Smiths value chain (Scope 3) by 2050.
Both targets are supported by a robust and credible, bottom-up decarbonisation pathway and delivery plan using fiscal year 2021 as the baseline year and incorporating interim emission reduction targets of 50% for all reported emissions by 2032. Details of the net zero transition plan were published in October 2023 in Smiths second Sustainability at Smiths report. Both overall and interim targets in the plan have been validated by the SBTi.
John Ostergren, Chief Sustainability Officer at Smiths, said: “This milestone in Smiths journey to net zero builds on significant progress to prioritise and accelerate sustainable reductions in emissions. We’ve taken tangible actions such as introducing renewable electricity sources across the majority of our business, linking executive pay to emissions reduction targets, and transitioning to green fleets. We’re proud of our progress and we are committed to further action and investment to ensure that we achieve our net zero goals.”
To align the company behind its ambitious goals, reward incentives for both senior executives and the c.6,000 people in Smiths Annual Incentive Plan (AIP) have been explicitly linked to emission reduction targets. Smiths long-term incentive plan (LTIP) for senior executives includes a three-year target for absolute Scope 1 & 2 GHG reduction of 15-20%, in line with the trajectory required to hit SBTs, while Smiths AIP targets ongoing energy efficiency.
This focus delivered a step change in performance in fiscal year 2023 when Smiths delivered an 8% year-on-year improvement in energy efficiency, a 12% reduction in absolute Scope 1 & 2 emissions, and a 5% reduction in Scope 3 emissions.
To deliver continued annual progress, each of Smiths sites is developing specific long-term energy and emission reduction project plans. Scope 3 work is also moving forward with the introduction of a new supplier management system.
About Smiths Group
For over 170 years, Smiths Group has been pioneering progress by improving our world through smarter engineering. We serve millions of people every year, to help create a safer, more efficient and better-connected world, across four global markets: Energy, General Industry, Safety & Security, and Aerospace. Listed on the London Stock Exchange, Smiths employs more than 15,000 colleagues in over 50 countries. For more information visit www.smiths.com.
Smiths Group: Tom.Steiner@smiths.com
FTI Consulting: Smiths@FTIconsulting.com
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