Wärtsilä plans to reduce 25% of direct suppliers’ GHG emissions by 2030

Outlook & Strategy

Finland’s technology major Wärtsilä has reinforced its ‘Set for 30’ decarbonization targets by committing to a new goal of reducing 25% of direct suppliers’ greenhouse gas (GHG) emissions by 2030.

Credit: Wärtsilä

As disclosed, this target focuses on Wärtsilä’s Tier 1 direct suppliers and covers their scope 11 and 22 GHG emissions related to deliveries to Wärtsilä. With this, the company, reportedly, expands its decarbonization targets to scope 3 GHG emission category.

The new target is relative and its baseline is 2024 GHG emissions, the company said, adding: “The data for the 2024 baseline will be collected from Wärtsilä’s Tier 1 suppliers during 2025, while the exact methodology for following up on progress against the target is being developed.”

Jan Kåre Helgeland, Director, Supply Management, commented: “Suppliers are an integral part of the total value chain of Wärtsilä’s products and services. Supply chain’s greenhouse gas emissions are the second-biggest scope 3 category in our value chain. Therefore, including supply chain emissions into our ‘Set for 30’ targets is the logical next step on our journey to shape the decarbonisation of marine and energy industries. By focusing on our direct Tier 1 suppliers, we cover 75% of our entire supplier base spend. Also, by working together with our selected suppliers on target-setting, we ensure the largest possible impact.”

To note, Wärtsilä announced its ‘Set for 30’ decarbonization targets of becoming carbon neutral in its own operations and providing a product portfolio ready for zero-carbon fuels by 2030 back in 2021.

Since then, the company has, reportedly, been purchasing green electricity, taking low-emission company vehicles into use and reducing the time needed for R&D and factory engine testing. The tech major claimed that, by the end of 2024, it decreased its GHG emissions by 50% compared to the 2021 baseline.

To achieve a product portfolio ready for zero-carbon fuels, it is understood that Wärtsilä has been investing in and researching fuel flexibility, efficiency and zero-carbon fuels. Additionally, in 2023, it launched a 4-stroke engine-based ammonia solution, followed by announcing a deal to supply the technology for what is due to become the “world’s first” ammonia-fueled in-service supply vessel. The company also launched a concept for what is said to be the “world’s first” large-scale 100% hydrogen-ready engine power plant. Wärtsilä’s engines can now run on low- and zero-carbon fuels, such as ammonia, hydrogen and methanol.

The company’s most recent activities include the signing of a lifecycle agreement with CMA Ships, a subsidiary of French shipping company CMA CGM. As informed, under the deal, Wärtsilä will provide a full-service package for 14 large LNG-fueled containerships already in operation.

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