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3 December 2024

Statement in response to review of validation guidance by the Science-Based Targets initiative

The Science-Based Target Initiative (SBTi) has announced a comprehensive review of its guidance for the validation of corporate emissions reduction targets, including its methodology for assessing Scope 3 emissions.

This review will have implications for how high-ambition businesses deliver upon their climate ambitions, particularly Fortescue, which has a Scope 1 and 2 target that far exceeds the requirements of a science-based target (SBT).

Fortescue’s target of Real Zero by 2030 requires 100% reduction in Scope 1 and 2 emissions across its iron ore operations, whereas a SBT would only require an approximate halving of emissions over the same time period.

Pending finalisation of the SBTi’s review, which will be available for consultation in early 2025, Fortescue has taken the decision to temporarily pause validation of its sciencebased targets. Fortescue will look to resume validation once the SBTi has finalised the framework under which high-ambition companies are assessed, including by ensuring scientific integrity is upheld with respect to carbon offsetting.

Fortescue emphasises that pausing technical validation of its targets by the SBTi does not change the emissions reduction targets set by Fortescue. These remain as communicated in September 2024 in its Climate Transition Plan.

Fortescue will continue to transparently report on its path to Real Zero emissions through its Climate Transition Plan and other transparency mechanisms, consistent with its adherence to gold-standard reporting such as through the Transition Plan Taskforce.

Fortescue remains resolutely committed to setting, validating and achieving sciencebased emissions reduction targets without the voluntary use of carbon offsets or unreliable carbon capture and storage technologies.

Attributed to Dino Otranto, CEO:

“The SBTi has for so long led the charge to hold companies accountable for the damage they are doing to the planet. The stringent targets set out by the SBTi keep businesses focused on genuinely decarbonising rather than voluntarily using carbon offsets.

“Fortescue warmly welcomes the SBTi’s decision to undergo a comprehensive revision of its standards, including its approach to Scope 3 emissions. While we have taken the decision to pause validation, pending finalisation of the SBTi’s standards, we look forward to engaging pro-actively and positively in the consultation in 2025.

“Fortescue is proof that heavy industry can be the solution to climate change, not the cause, and we look forward to continuing to support the SBTi in its critical mission to limit warming to 1.5C.”