German industrial companies value decarbonization, but just 38% have both a goal and a clear strategy to get there, Uniper’s Index Net-Zero finds
- Uniper commissions decarbonization survey of 500 decision-makers across industrial sectors
- Almost all surveyed organizations have set carbon-reduction targets, but only 38% say that their business has a concrete strategy to achieve this goal and 40% stated that a plan is still in the works
- Most targets (52%) are focused on reducing emissions by more than 50%, with just 42% targeting net-zero
- 70% identified the availability of technology and resources as the single biggest barrier facing their decarbonization plans, with expanding the use of alternative fuels such as hydrogen ranking top (27%) of their immediate priorities.
German industry is ramping up decarbonization efforts, with almost all companies across sectors having carbon-reduction targets in place. However, according to Uniper’s Index Net-Zero – a new survey of decision-makers and decarbonization leaders across key German industrial sectors – the majority still lack a firm strategy to achieve their goals.
Index Net-Zero surveyed more than 500 decision-makers and decarbonization leaders across key German industrial sectors: automotive, chemicals, FMCG, glass and ceramics, metals, pulp and paper, municipal utilities and other energy companies. While 94% of respondents report that their business has set a decarbonization target, only 38% say that their business has a concrete strategy to achieve this goal and a further 40% stated that a plan is still in the works.
Of the organizations with decarbonization goals in place, only 42% are targeting net-zero, while the majority (52%) have set the more conservative aim of reducing carbon emissions by more than 50%. The chemicals sector is the only industry with most respondents (55%) reporting net-zero as the target, followed by glass and ceramics (45%) and automotive (44%).
Niek den Hollander, Chief Commercial Officer at Uniper, commented: “German industrial companies recognize the urgent need to decarbonize and most have made commitments to do so. But the road to get there remains less clear. Most of these industries are highly energy-intensive but cannot easily switch to alternative sources. This may explain why the research finds that the majority have not yet set dates to achieve net-zero emissions. Creating a comprehensive strategy, touching all aspects of an organization, is the best approach for decarbonizing these industries. Uniper works with its customers to develop and execute these strategies, drawing on our extensive market know-how and energy expertise covering the entire value chain, to help them change today for a clean tomorrow.”
Decarbonization drivers and barriers
Decision-makers are confident in their ability to meet their decarbonization targets, with the vast majority (77%) expecting to do so by 2035, including 43% who are hoping to do so by 2030. Nearly half (44%) of those with set decarbonization targets cite moral considerations as their primary motivation, followed by long-term cost-savings (39%), customer demands (36%) and a strive towards innovation (36%).
Multiple obstacles to decarbonization remain, with 70% identifying the availability of technology and resources as the single biggest factor, trumping internal factors such as a lack of commitment from leadership and shareholders (42%) and financial pressures (33%). Indeed, just one in five (21%) believe their company’s technologies will be entirely sufficient in achieving their decarbonization goals.
The need to adopt new solutions is also born out in businesses’ immediate priorities, with expanding the use of alternative fuels such as hydrogen ranking top (27%), quickly followed by the optimization of existing assets (26%) and achieving energy efficiency in operations (26%).
The survey can be explored in more detail – including sector-by-sector breakdowns – at www.uniper.energy/indexnetzero
About Uniper
Uniper is an international energy company with around 12,000 employees in more than 40 countries. The company plans to make its power generation CO2-neutral in Europe by 2035. With about 35 GW of installed generation capacity, Uniper is among the largest global power generators. Its main activities include power generation in Europe and Russia as well as global energy trading, including a diversified gas portfolio that makes Uniper one of Europe’s leading gas companies. In 2020, Uniper had a gas turnover of more than 220 bcm. Uniper is also a reliable partner for municipalities, public utilities, and industrial companies for developing and implementing innovative, CO2-reducing solutions on their way to decarbonizing their activities. As a pioneer in the field of hydrogen, Uniper is active worldwide along the entire value chain and is implementing projects to make hydrogen usable as a mainstay of energy supply.
The company is headquartered in Düsseldorf and currently the third-largest listed German utility. Together with its main shareholder Fortum, Uniper is also the third-largest producer of CO2-free energy in Europe.
This press release may contain forward-looking statements based on current assumptions and forecasts made by Uniper SE Management and other information currently available to Uniper. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. Uniper SE does not intend, and does not assume any liability whatsoever, to update these forward-looking statements or to modify them to conform with future events or developments.
