Net Zero target

“The Hera Group is committed to achieving Net Zero emissions by 2050, by reducing Scope 1, 2 and 3 emissions by around 90% compared to 2019 and neutralising all residual emissions at the end of the path towards decarbonisation.”

Climate change is the challenge of our century. We are aware of this and we also know that, as a multi-utility, we can and must play a fundamental role. This is why, in line with our purpose and strategy for creating shared value, we have defined a path to net zero emissions by 2050, with an intermediate target by 2030.

Reaching net zero emissions implies reducing greenhouse gas emissions by 2050 in line with the indications provided by science to limit global warming to within 1.5°C at the end of the century, as foreseen by the Paris Agreement, and removing all residual emissions that cannot be reduced at the end of the path to decarbonisation.

Our goals and the path to achieve them are described in our Climate Transition Plan, which outlines the key points of our strategy for the short, medium and long term, and describes not only the goals for the future, but also the actions and levers planned or already in place to promote the transition to a low greenhouse gas emission economy.
 

Our medium- and long-term targets

Our greenhouse gas emissions are subdivided into: direct emissions (Scope 1), indirect emissions from energy consumption (Scope 2), and indirect emissions from other activities along the value chain (Scope 3 upstream and downstream). Our upstream and downstream Scope 3 emissions depend mostly on the sale of gas and electricity to customers.
To define our greenhouse gas reduction targets, we have taken 2019 as the baseline year.

In 2019, the Group's emissions included in the target boundary came to 11.8 million tons of CO₂e. Direct emissions (Scope 1) amounted to roughly 1.1 million tons, and indirect emissions from energy consumption (Scope 2) totalled approximately 48 thousand tons.
Indirect emissions from natural gas sales (Scope 3 downstream) came to about 6.3 million tons, and lastly those from electricity sales (Scope 3 upstream) amounted to approximately 4.4 million tons.

In 2021, based on our ambition to keep the earth’s end-of-century average temperature increase well below 2°C, we set medium-term decarbonization targets to 2030. These were then validated by Science Based Target initiative, an international organization that promotes corporate adoption of emission reduction targets in line with scientific indications.

In 2024, we enriched our strategy with an ambitious long-term goal: to achieve Net Zero status by 2050 with a progressive reduction of our emissions.

Working together towards net zero: our decarbonization levers

Achieving the Net Zero by 2050 goal requires a robust transition plan that takes into account both the actions under the Group’s direct control and the external factors expected to arise from changes in the national and European energy scenario.

At the level of our company, we have already defined a set of long-term actions aimed at reducing Scope 1 and 2 and Scope 3 emissions related to our customers:

• installing carbon capture and storage (CCS) technologies on several waste-to-energy plants that make up the Group’s set of facilities (Scope 1);
• maintaining full coverage of internal electricity consumption through certified renewable energy, eliminating Scope 2 emissions;
• a gradual electrification of the Group’s customer base and the offer and wider use of energy-saving solutions (Scope 3);
• constantly increasing volumes of renewable electricity sold to customers through Guarantee of origin (GO) certificates (Scope 3).

At the same time, the Hera Group will also benefit from external factors for its decarbonization and pursuit of Net Zero by 2050. Adopting more sustainable energy policies at national and European level will encourage reduced demand for fossil fuels, increased energy efficiency, electrification of consumption, and decarbonization of the energy mix, with a greater input coming from renewable and low-carbon energies. All these aspects are key elements in decarbonizing the system as a whole.

The achievement of Net Zero emissions by 2050 by the Hera Group will lead to a reduction in Scope 3 emissions for each energy customer from 3.3 tonnes in 2019 to less than 0.2 tonnes by 2050.

At present, environmental, social and governance (ESG) aspects are an integral part of our strategy.
The Climate Transition Plan is a strategic reference point for our company and will guide the development of future business plans by ensuring strict adherence between strategy and ESG factors, including Net Zero targets. In this way, we will be certain that the Group’s industrial and financial planning is developed consistently with the short- to medium-term decarbonization goals and, indirectly, with the long-term goals.

Climate transition plan: decarbonisation levers