(Wednesday 28th May) Today, 11 institutional investors will ask Norwegian fertiliser giant Yara International to set upstream emission reduction targets that cover the company’s purchase of fossil-based raw materials.
Responsible investment NGO ShareAction will read a statement on behalf of these investors worth $1.8 trillion at the company’s annual general meeting on Wednesday. The statement was signed by Edentree Investment Management, Ethos Engagement Pool International, Ethos Engagement Services Clients, Ethos Foundation, Greater Manchester Pension Fund, M&G Investments, MN, Pensionskasse Basel-Stadt, PGGM, PIRC, and Swiss Life Investment Management Holding AG.
The call from investors comes after a 2024 resolution asking Yara to set comprehensive, science-based targets covering the entire value chain received strong support from non-state shareholders. The vote at Yara’s AGM in 2024 signalled an increasing focus among major investors on the climate impacts of the fertiliser industry.
Penny Fowler, Head of Corporate Climate Campaigns & Co-Director of Corporate Engagement at ShareAction, said: “It’s time Yara takes responsibility for the climate impacts of the fossil gas it consumes by setting science-based, upstream scope 3 targets. Shareholders have acknowledged the urgency of acting on fertiliser emissions by supporting our resolution at the company last year, but Yara continues to delay setting the targets needed to drive timely action.
“ShareAction would like to see Yara move away faster from the use of fossil fuels and lead the way in promoting more efficient use of nitrogen fertilisers in global agriculture.”
Since 2021, investors have repeatedly called on Yara to set comprehensive, science-based scope 3 emissions reduction targets across the whole of its value chain, including upstream emissions from fossil-based raw materials.
While the fertiliser giant maintains it is working to develop upstream scope 3 targets by 2027, the support for the 2024 resolution shows many investors are not satisfied with this timeline.
Commenting on the reasons behind their support for the statement, Vincent Kaufmann, CEO at Ethos Foundation, said: “Following on from the resolution Ethos Foundation co-filed at Yara International last year, we continue to seek science-based, verifiable and comprehensive emission reduction targets. These disclosures alongside a credible transition plan are vital to assess the risks associated with climate change as well as how the company is mitigating these risks and adapt its business model to a low carbon economy.”
Notes to editors
Fertiliser production and use accounts for 5 per cent of global greenhouse gas emissions.
Scope 3 emissions are indirect greenhouse gas emissions that occur in a company’s value chain, both upstream and downstream, such as those from purchased goods, business travel, and product use. Yara’s scope 3 footprint constitutes around 73 per cent of its total emissions.
Upstream emissions are indirect emissions associated with the goods and services a company purchases. As a major fertiliser producer, Yara International purchases fossil fuels, and especially large volumes of fossil gas, to use as both an energy source and a feedstock in chemical processes. The upstream emissions are a result of the extraction, processing and transportation of the oil and gas the company procures.
