In 2022, we worked to develop our transition plan and a strategy to support our journey to net zero (absolute reduction) for Scope 1 and 2 by 2035 and Scope 3 by 2045. The 2035 targets for Scope 1 and 2 differ from the 2045 objectives for Scope 3, because 2023 is the first year that we were able to calculate Category 9 (Downstream Transportation and Distribution). In addition, it is partly due to the complexities associated with mitigating emissions beyond direct operational control. We analysed and improved the data for Scopes 1, 2, and 3 in accordance with the Greenhouse Gas (“GHG”) Protocol; more details can be found on page 59. Our interim targets were set to enable us to track our progress towards our long-term targets. Due to 2023 being a challenging year for the content creation market, we plan to submit our targets for SBTi validation in 2024.
Our carbon neutrality for Scopes 1 and 2 by end of 2025, will include an element of carbon offsetting, however this will be a small proportion of current emissions. The primary reduction will be through energy saving schemes and use of renewable energy contracts. For net zero objectives, at least 90% of the reduction will be through energy reduction schemes, with the remainder neutralised through carbon removal schemes. We have set several ambitious targets to manage the climate-related risks described on pages 49 to 53 of our Annual Report, and to reduce our impact on the environment. Videndum’s other environmental indicators (pages 58 and 60 to 61 of our Annual Report) on energy efficiency measures, waste reduction, product sustainability and supply chain integrity, contribute towards mitigating some transition and physical risks and capitalise on the potential opportunities in substituting products to lower emission alternatives. In 2023, we measured and monitored severe weather events across our sites, assessing the impact of typhoons and hurricanes where applicable.
We aim to repeat this process annually. We use a wide variety of metrics to measure climate-related impacts. These metrics consist of Videndum’s greenhouse gas inventory, including the Group’s Scope 1, 2 and 3 carbon emissions and our emissions reduction pathway, which is aligned with the Paris Agreement 1.5°C warming scenario.