Results and targets

Results and targets

The Group’s total emissions (Scope 1 + Scope 2 + Scope 3) in 2021 were about 12,345 thousand tonnes of CO₂e.

Specifically, the emissions directly produced by the Group (Scope 1) are equal to 982 thousand tonnes of CO2e and represent 8.0% of the Group's total emissions. The Group’s indirect emissions from consumption of electricity (Scope 2), using the market-based method, amount to more than 46 thousand tonnes of CO₂e and represent 0.4% of the Group's total emissions.

The emissions indirectly caused by the Group’s activities (Scope 3) amount to 11,317 thousand tonnes of CO₂e, equal to 91.6% of the Group's total emissions. According to the "Technical Guidance for Calculating Scope 3 Emissions" published by the GHG Protocol, Scope 3 emissions can be divided into two categories: upstream (upstream categories) and downstream (downstream categories). The Hera Group's Scope 3 includes the following emission categories:

• upstream category (4,365 thousand tonnes of CO₂e, 35.3% of the Group's total emissions): production of fuels consumed for the generation of non-renewable electricity sold to customers; production of natural gas sold to customers; production of fuel consumed in industrial cogeneration plants installed at third parties; production of fuels consumed in owned vehicles; production of fuels consumed for the generation of non-renewable electricity consumed internally; network losses of electricity consumed internally; use of suppliers' vehicles for waste collection; use of Herambiente's vehicles for waste transport; production and printing of bills;

• downstream category (6,952 thousand tonnes of CO₂e, 56.3% of the Group’s total emissions): consumption by customers of natural gas sold; production of energy by joint venture plants; recycling of waste from separate waste collection.

The greenhouse gas emission reduction targets consistent with the “well below 2 °C” scenario validated by the Science Based Target initiative are:

• Scope 1+2: absolute reduction of 28% by 2030 compared to 2019 (includes biogenic emissions from bioenergy consumption and combustion of the biodegradable fraction of municipal solid waste);

• Scope 2: increase the share of certified renewable electricity purchased to cover domestic consumption from 83% to 100% by 2023;

• Scope 3 downstream sales of natural gas: absolute reduction of 30% by 2030 compared to 2019;

• Scope 3 sales of electricity: reduction of carbon intensity (t CO₂e/MWh) by 50% by 2030 compared to 2019 in line with the Sectoral Decarbonization Approach (SDA).

Based on these targets, the reduction in greenhouse gas emissions for the defined perimeter is expected to be 37% by 2030 compared to 2019.

These objectives will be achieved thanks both to the reduction initiatives described above and to exogenous aspects made explicit in the Cen energy scenario developed by Terna and Snam used as a reference for defining the targets: decarbonisation of electricity production, increase in energy efficiency, and electrification of consumption.

Below is a table showing the development over the last three years of indicators with 2030 targets validated by SBTi. The 2025 forecast as per the 2021-25 Business Plan is also shown.

* target corresponding to 100% renewable electricity purchased for internal consumption (83% in 2019).
The calculation criteria are aligned with the methodology of the Science Based Targets Initiative. The 2019 figure includes data on EstEnergy, Amgas Blu, Ascotrade, Ascopiave Energia, Blue Meta, and Etra Energia which merged into Hera as at 31/12/20

The calculation criteria are aligned with the methodology of the Science Based Targets Initiative. The 2019 figure includes data on EstEnergy, Amgas Blu, Ascotrade, Ascopiave Energia, Blue Meta, and Etra Energia which merged into Hera as at 31/12/2019

In 2021, Scope 1 and 2 emissions decreased by 9.1% compared to 2019, mainly due to the reduction of emissions from waste treatment plants (landfills and waste-to-energy plants, also thanks to the closure in 2020 of the Ravenna waste-to-energy plant) and to a lesser extent from district heating, industrial cogeneration, and the gas network in the form of leaks.

With regard to Scope 3 emissions related to the sale of natural gas (downstream) and the sale of electricity, the reduction recorded in 2021 compared to 2019 is 11.9%, mainly due to higher volumes of renewable electricity sold and, to a lesser extent, lower quantities of electricity sold. Emissions related to volumes of gas sold in 2021, on the other hand, are almost unchanged compared to 2019 (-0.8%), after the drop recorded in 2020 as a result of milder winter temperatures and lower thermal energy needs associated with the health emergency.

In short, considering the perimeter of GHG emissions for which the 2030 reduction target has been defined compared to 2019, the second annual report following the validation of the science-based targets by SBTi shows a decrease of 11.6% as a result of the trends described above.