Climate strategy 2040+

AGRANA is committed to the goal of decarbonising its production activities (Scope 1+2) by 2040. By 2050, greenhouse gas emissions from the upstream supply chain (Scope 3) are also to be avoided, in order to achieve net CO2 neutrality along the entire value chain. The development of what are known as science-based targets that are consistent with the Paris Agreement on climate is an important focus of work on the path to climate neutrality.

25 % reduction by 2025|26

To achieve this ambitious goal, in 2020|21, AGRANA developed a phased plan and already set a quantitative target for the first stage to 2025|26. By 2025|26, AGRANA intends to invest about € 10 million per year to save 25% of the greenhouse gas emissions (Scope 1+2) caused by its production, relative to the base year 2019|20. Planned measures for this first decarbonisation stage are:

  • A package of actions to switch to electricity from renewable sources (i.e., installation of photovoltaic systems on AGRANA’s own production buildings and/or purchase of external green electricity), with implementation already begun in Austria in the 2020|21 financial year
  • The phase-out of coal as an energy source at the last two coal-fired sugar production sites in Sereď, Slovakia (2021|22) and Opava, Czech Republic (2025|26)
  • Implementation of energy efficiency measures in all business segments 

AGRANA follows the principle of complete raw material utilisation to make core products and by-products (the latter being mainly animal feed and fertilisers). In the second stage from 2026|27 onwards, energy recovery from low-protein raw material residues could be added to the existing direct material use in order to continue to utilise all raw material components not just completely, but also optimally in terms of climate protection. At AGRANA’s Hungarian sugar factory in Kaposvár, beet pulp and other beet residues have already been used for biogas production for several years. However, as the biomass utilisation for energy recovery cuts into feedstuff revenue, the right business conditions are required for it to be implemented economically. What is urgently needed in order to achieve the transformation to a low-emission society and facilitate companies’ investment decisions to this end is a comprehensive emissions trading system that transparently reveals the CO2 footprint of every consumer decision in the areas of food, housing, mobility and leisure behaviour and allows carbon-intensive lifestyles to be identified by their higher costs. Based on current assumptions, AGRANA would have to invest a total of about € 400 million by 2040 to avoid the greenhouse gas emissions (Scope 1+2) generated in its production during the processing of the raw materials used.

From 2025, in collaboration with its suppliers and partners, AGRANA will also seek to implement structured measures to reduce the greenhouse gas emissions generated in its supply chain (Scope 3 emissions) that it cannot directly influence.