SBTi approval for HKScan’s near-term and land based climate targets

HKScan revised its climate emissions calculation and target

HKScan has updated the climate emissions calculation, climate target and timeline of its responsibility programme to better align with international climate work guidelines, calculation guidelines and reporting standards. HKScan’s revised climate target is to achieve net zero for all greenhouse gas emissions by 2050.

In recent years, legislation, international guidelines and requirements for the entire value chain have increased significantly. HKScan has therefore deepened its climate work measures, revised its emission calculation and updated the Group's climate targets in line with an international scientifically verifiable and comparable definition.

Aiming for significant cuts in greenhouse gas emissions

HKScan's primary way to reach net zero by 2050 is to significantly reduce overall greenhouse gas emissions. To achieve this goal, greenhouse gas cuts must be complemented by durable carbon removals, either through nature or technological solutions. The aim is to eliminate the remaining emissions and thus achieve a zero level of emissions impacts.

Emissions from land use and its change as well as the whole food chain taken into account

The revised climate calculation shows that about 1 per cent of HKScan's total emissions are generated by its own operations and 99 per cent by other parts of the food chain. It is therefore essential to take into account emissions from land use and its change as well as the entire food chain.

HKScan has carried out long-term and determined climate work throughout the food chain. The company’s previous climate target was a carbon-neutral food chain from farms to consumers by 2040.

“Our target has now been extended to take into account the impact of land use and its changes, and our work will continue with even greater determination. With our revised emissions calculation and climate target, we contribute to the goals of the Paris Climate Agreement and also meet the new requirements for the land use sector," says Hanna Lehtonen, VP Corporate Responsibility at HKScan Corporation. “HKScan’s climate work is guided by a comprehensive set of measures. It consists of dozens of measurable climate emission reduction measures defined by our Business Units. We are moving towards net zero climate emissions together with our contract farmers and other partners.”

Near-term and land based climate targets approved by SBTi

HKScan is among the first Nordic food companies to have specified the near-term targets both for industrial energy usage and for the land sector (Forest, Land and Agriculture =FLAG).

According to the near-tern climate targets that have been approved by SBTi, HKScan commits to reduce its absolute Scope 1 and 2 GHG emissions for energy and industrial¹ by 42 per cent by 2030 from a 2022 base year. HKScan also commits to reduce its absolute Scope 3 emissions from specific categories by 42 per cent within the same timeframe. The target also includes land-related emissions from bioenergy feedstocks.

In addition, HKScan commits to reduce land based absolute Scope 3 FLAG GHG emissions² by 30.3 per cent from a base year 2022. HKScan also commits to no deforestation across its primary deforestation-linked commodities.

“The SBTi approval of our targets is significant. The SBTi allows us to verify the relevance and results of our own climate work on an international scale and to better target and lead our own work. Climate work is a long-term process and monitoring results is difficult. International benchmarking is really important and motivates us to keep going when progress is visible and results are tangible. International recognition is especially rewarding in our challenging industry because the criteria are very strict," Hanna Lehtonen says.

The Science Based Targets initiative (SBTi) is an international organisation that helps companies establish their emission reductions in line with the targets of climate science and the Paris Agreement. The aim is to limit the global temperature rise to 1.5 degrees Celsius. SBTi extended its industry-specific climate target package for the land use sector, i.e. agriculture, forestry and other land use. The extension became effective in May 2023. The new FLAG guidance considers land use and permanent land conversion for agricultural use by, e.g. clearing the forest floor, during the past 20 years.

Responsibility work plays a central role in HKScan’s operations

Responsibility work that takes into account business needs and the expectations and requirements of key stakeholders is the basis of HKScan’s strategy. The company’s most important responsibility targets are summarised in the responsibility programme with material themes defined on the basis of a stakeholder analysis and materiality assessment. We promote responsibility throughout our long value chain in collaboration with our contract farmers and partners.

More information:
Hanna Lehtonen, VP Corporate Responsibility at HKScan Corporation, tel. +358 10 570 2701
HKScan Media Service Desk, tel. +358 10 570 5700 or communications@hkscan.com

Targets approved by SBTi

HKScan’s near-term climate targets

¹Energy and industrial
HKScan commits to reduce absolute Scope 1 and 2 GHG emissions by 42 per cent by 2030 from a 2022 base year*. HKScan also commits to reduce absolute Scope 3 GHG emissions from purchased goods and services, fuel- and energy related activities, upstream transportation and distribution, downstream transportation and distribution and investments by 42 per cent within the same timeframe*.

*The target boundary includes land-related emissions and removals from bioenergy feedstocks.

²FLAG
HKScan commits to reduce absolute Scope 3 FLAG GHG emissions by 30.3 per cent by 2030 from a 2022 base year**. Finally, HKScan commits to no deforestation across its primary deforestation-linked commodities, with a target date of no later than December 31, 2025.

**Target includes FLAG emissions and removals

With 110 years of experience, we at HKScan make life tastier – today and tomorrow. Our strategic target is to grow into a versatile food company. Our home markets are Finland, Sweden and Denmark, where around 5,400 of our professionals make responsible and locally produced food for consumers’ varied food moments. Our well-known brands include HK®, Kariniemen®, Via®, Scan®, Pärsons® and Rose®. We are developing a more climate-friendly way of producing food. HKScan is a publicly listed company, and in 2022, our net sales from continuing operations totalled over EUR 1.8 billion. www.hkscan.com