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How is SGS Tackling Climate Change?

November 12, 2021

Protecting the environment is an essential part of our commitment to create value for society. Here’s what we are doing to tackle climate change.

Sustainability is embedded in our culture and the way we do business. With more than 93,000 employees in 140 countries, we use our scale and global reach to enable a more responsible, balanced and sustainable future.

Carbon Neutral Since 2014

We have been carbon neutral since 2014 and our carbon neutrality strategy is based on three pillars:

  1. Reducing energy consumption at source
  2. Using renewable energy whenever possible
  3. Offsetting residual emissions

Reducing Energy Consumption

We have different programs to reduce energy consumption at source. Energy efficiency is a key area of focus as the energy used in our 2,600 offices and laboratories worldwide accounts for 62% of our global energy consumption. With this purpose we have developed our Energy Efficiency in Buildings (EEB) program.

We recently launched an investment plan to finance energy efficiency initiatives in our owned and leased buildings. The investment will target our most energy intensive buildings. In 2021, we funded 43 projects in more than 10 countries.

We are also focused on sustainable transport. Our Vehicle Emissions Policy is being updated to include even more ambitious targets to further reduce the CO2 emissions from our fleet and increase the number of vehicles with low-carbon technologies.

Using Renewable Energy

95% of our total electricity consumption comes from renewable sources. We either source or produce the renewable energy we use. For example, at our Adelaide site in Australia, we have installed an on-site photovoltaic system of 115KW to produce our own energy from clean sources.

Offsetting Residual Emissions

All residual CO2 emissions we cannot avoid will be compensated through our carbon offsetting strategy to maintain our Carbon Neutral Status.

Supporting Our Customers in Their Sustainability Journey

Through our Sustainability Solutions, we provide a comprehensive range of sustainability services to organizations around the world. Many of these services enable customers to increase energy efficiency, generate or use renewable energy and reduce greenhouse gas emissions.

Our Goals for 2030: Our Sustainability Ambitions 2030

We are fully committed to supporting the transition to a low-carbon and climate resilient world. Our way forward is determined in our recently-launched corporate sustainability strategy, our Sustainability Ambitions 2030.

This new strategy is structured in three pillars (a better planet, a better society and better governance) and the first pillar (a better planet) includes our ambitious goals for 2023 and 2030 regarding climate change.

We have committed to reducing greenhouse gas emissions through the Science Based Targets initiative, which advocates the setting of targets and deadlines in line with climate science to future-proof growth.

By 2030, we commit to meeting our science-based target of reducing our CO2 emissions per revenue by 55%1 by:

  • Increasing annually the number of energy efficiency measures taken in our top 100 energy intensive owned buildings
  • Reducing the average CO2 emissions from our total car fleet by 40%
  • Ensuring that 50% of our cars have low-carbon technologies

We also commit to fully adopting the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

Our Sustainability Ambitions 2030 also include goals regarding our Sustainability Solutions. We commit to support our Support our customers on their journey to sustainability by increasing the proportion of revenue generated by our Sustainability Solutions and measure its positive impact through our impact valuation methodology.

Committed to Business Ambition for 1.5°C

In addition, we have committed to further increase ambition levels of current science-based emission reduction targets to align them with keeping global warming to 1.5°C above pre-industrial levels. We have also committed to a long-term target to reach net-zero emissions by no later than 2050.

Paula Ordoñez, SGS Global Head of Corporate Sustainability, said: “At SGS, we are aware that the transition to a net-zero economy is the way forward and are committed to taking action as a company and helping our customers in this journey. We have joined the Business Ambitions for 1.5ºC campaign and become part of the United Nations-backed campaign Race to Zero. We will continue taking ambitious actions across our value chain to tackle to climate change."

About SGS

We are SGS – the world’s leading testing, inspection and certification company. We are recognized as the global benchmark for quality and integrity. Our 93,000 employees operate a network of 2,600 offices and laboratories, working together to enable a better, safer and more interconnected world.

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