Kingspan, an Ireland-based building materials company, recently published its annual sustainability report, according to which the company will implement its first internal carbon fee next year, at a price of 70 euros per tonne of carbon dioxide equivalent.
The primary emissions goal for Kingspan is to cut absolute operational emissions, also known as Scope 1 and 2 emissions, by 90% by 2030, and then offset the rest to reach net-zero emissions.
The company has also committed to reducing Scope 3 emissions by 42% over the same period. To help achieve this goal, primary suppliers have been required to cut their emissions intensity in half within a decade.
Kingspan’s targets were verified last August against the pathway of the Science-Based Targets program (SBTi).
According to the sustainability report, Kingspan's internal carbon price will start at 70 euros per tonne of carbon dioxide equivalent, with the potential for future rise over time.
By making lower-carbon processes, solutions, and materials more affordable compared to high-carbon options, the new internal carbon price is expected to drive progress toward the company’s targets.
Kingspan's absolute operational emissions were only 4.3% lower in 2021 than they were in 2020, according to the report. The business growth posed a challenge for the company to achieve a higher level of decarbonization. Kingspan’s revenue climbed 42% in 2021 as governments lifted lockdown restrictions, and it also added more than 30 manufacturing sites to its portfolio in 2021, bringing the total number to 198.
Kingspan invested in H2 Green Steel in 2021, a Swedish firm developing low-impact steel manufacturing technologies using green hydrogen. By using low-emission steel, Kingspan will be able to cut the embodied carbon of its insulated panel products by up to 45%.
The built environment accounts for over 39% of worldwide carbon emissions, and high-performance insulation is one of the most effective strategies to improve building energy efficiency.
Kingspan revealed the environmental influence of the products it sold in 2021. The company expects to save 193 million tonnes of carbon dioxide throughout the lifespan of the insulation systems it sold last year.
