COFCO International Climate Strategy
Climate action is fundamental at a time when food production is increasingly vulnerable to extreme weather and water scarcity, and people worldwide are struggling to achieve good nutrition and afford the rising cost of living. The food and agriculture sector, in the meantime, contribute 30% of the world’s greenhouse gas emissions. Moreover, from a business perspective, Climate action will help strengthen our company for the future and ensure that we can continue to serve our customers and support global food security. Additionally, climate change is altering the competitive landscape of the market. It affects not only the core assets or operational processes of companies but also their supply chains, infrastructure, and market demand. The climate responsibility record of enterprises is increasingly drawing the attention of general investors and consumers. As the core agriculture and food business unit of COFCO Group, COFCO International believe that a strong climate strategy based on science will help us fulfil our role in mitigating climate change impacts, and further to achieve the transition to sustainable agriculture and a low carbon economy. Following the strategy of "plan first, then act," the COFCO International team has also conducted detailed research before starting to formulate climate strategies. The lack of accurate greenhouse gas emissions data and analysis capabilities, how to balance short-term profits with long-term climate goals, and the rapid changes and high uncertainty of global policy and regulatory requirements are all common challenges faced by companies when formulating climate strategies. Taking these factors into consideration can enhance the resilience of our climate strategies.
Climate And Environmental Technologies
Climate adaptation solutions
In April 2024, COFCO International's carbon reduction targets were approved by the SBTi, marking the successful completion of the first phase of climate strategy development. The second phase, focusing on carbon reduction measures, has already begun. We aim to achieve our set carbon reduction targets by 2033. We are well aware that there is no end point to climate action, and we will continue to strive towards the goal of net-zero emissions.
COFCO International's climate strategy development encompasses all the company business operations globally, internal carbon emissions, maritime transport services, and asset office. Additionally, after accounting, the majority of the company's carbon emissions come from the supply chain of soybeans and corn in Brazil, which will also become the focus of our next steps.
"Pioneering" — COFCO International is one of the first companies in the agricultural industry to build its climate strategy on the basis of science-based carbon reduction targets and actively take emission reduction actions. We have joined the "Science Based Targets Initiative" (SBTi) in 2023, which approved our near-term science-based emissions reduction targets recently in May 2024. This also makes COFCO International the first global major agri-business to have science-based targets in line with SBTi's "1.5°C-aligned" criteria. "Professional and Replicable" —Science is at the basis of in the formulating process of our climate strategy. All of our targets are based on scientific works – the GHG baseline and inventory is based on the latest available science, and we used the best international standard setting framework to set our targets. Moreover, we adhere to a well-defined strategic path: develop full GHG inventory, set our targets, take action, and monitor and disclose progress. This could provide a reference model for climate actions across the entire agricultural industry for various participants. "Raising ambitious sustainability" — The Paris Agreement, adopted at the 21st United Nations Climate Change Conference, calls on all contracting nations to keep the global average temperature rise well below 2°C above pre-industrial levels, and to pursue efforts to limit the temperature increase even further to 1.5°C. In formulating its climate strategy, COFCO International proactively target to the 1.5°C goal of temperature control, demonstrating our determination to actively address climate change, as well as our responsibility and commitment as a major agricultural commodity trader.
World Grain: https://www.world-grain.com/articles/20088-sbti-platform-affirms-cofco-emissions-targets Reporte Asia: https://reporteasia.com/economia/desarrollo-sostenible/2024/06/06/sbti-aprueba-objetivos-reduccion-emisiones-cofco-international/ Futuro Sustentable: https://www.futurosustentable.com.ar/la-sbti-aprueba-los-objetivos-de-reduccion-de-emisiones-basados-en-la-ciencia-de-cofco-international/
All of our targets are based on scientific works – the GHG baseline and inventory is based on the latest available science, and we used the best international standard setting framework to set our targets. In Argentina, COFCO and the other exporters have reached an agreement with the National Institute of Agricultural Technology (INTA) and the Argentine Chamber of Biodiesel (CARBIO) to calculate emissions in the soybean cultivation stage in Argentina. we are working with CIARA in the calculation of GHG emissions for the soybean meal.
