Iron ore giant Fortescue has said it will no longer buy carbon offsets as part of the company’s ‘real zero’ carbon elimination target.
The announcement is to be made during Climate Week at the United Nations General Assembly (UNGA) this week.
All funds allocated to carbon offsets will be diverted to Fortescue’s decarbonisation plan to achieve real zero by 2030, the equivalent of more than several hundred million dollars in the next year.
“In recent months, we have all seen the harrowing images of extreme weather happening on every continent, and heat records being broken on an almost daily basis,” Fortescue Energy chief executive officer Mark Hutchinson said.
“The world is changing faster than we are, but Fortescue isn’t in that boat. Our decision to lead during the climate crisis reflects our commitment to our shareholders.
“For years we have been saying that voluntary offsets don’t work – they just pass the buck. We are here at UNGA as a heavy emitter that is saying no to a future of fossil fuels and yes to a better future for our company.”
Speaking at the launch of Fortescue’s Break Up from Fossil Fuels campaign at UNHQ, the company’s metals chief executive officer Dino Otranto said that Fortescue aims to reach its peak emissions by 2025 as part of its real zero by 2030 target.
“We are the only heavy emitter in the world to stop purchasing voluntary offsets. We will focus our efforts on eliminating the million litres of diesel we use per year, rather than offsetting them,” he said.
“Our first battery electric haul truck is now on site as we prepare to replace our fleet with zero emission trucks and equipment with battery electric and green hydrogen models. We are also ramping up our renewable power on site to replace fossil fuel power with renewable electricity.”