80% of IAI members will achieve “Zero Emissions” by mid-century

The International Aluminum Institute (IAI) has announced progress on its Aluminum Industry Greenhouse Gas Initiative, reporting on member companies’ ambitions, technology investments and reporting plans.

Launched at COP28 in December 2023, this initiative tracks and publicly reports the greenhouse gas reduction ambitions and progress of IAI member companies, encouraging additional steps in the sector’s efforts to address climate change.

What stands out is that 80% of IAI members have set long-term goals, many of them aiming to achieve net zero emissions by mid-century. Most companies aim to reduce Scope 1 and 2 emissions by 50% by 2030. To this end, the industry is investing in innovative technologies, including low-carbon energy and recycling.

Pernelle Nunez, IAI assistant secretary general and chief sustainability officer, commented that, “Our industry recognizes its responsibility in the global fight against climate change. The progress we have made demonstrates our commitment to transparency and accountability as we work towards a sustainable future.”

The Initiative has revealed encouraging trends in emissions reduction targets. Intermediate targets vary between a 10% to 50% reduction in emissions or emissions intensity, reflecting differences in the starting points of individual companies. Half of the companies explicitly apply net zero emissions targets for Scopes 1 and 2, with a small number including Scope 3. Some member companies have set emissions intensity targets alongside or instead of absolute targets, and there is variation in the way targets are structured between different companies.

Compared to the intermediate targets, the long-term goals show greater consistency, with most seeking to achieve zero emissions or neutrality by 2050, although only a few explicitly mention Scope 3 emissions. Some companies have aligned their targets with national commitments or have set specific emission intensity reduction targets rather than absolute targets of net zero emissions.

“While we are encouraged by the commitments made so far, we recognize that much remains to be done,” commented Nunez. “Setting and publicly disclosing climate goals and targets helps focus efforts and encourages accountability. As the industry moves from setting ambitions to action, it will be crucial to demonstrate real progress toward those goals and targets.”

The aluminum industry is investing in new technologies and processes, including inert anode technology, carbon capture and storage, and renewable energy sources for aluminum smelting. These innovations are crucial to achieving the industry’s decarbonization goals.

The IAI will continue to provide annual updates on member companies’ emissions reporting and targets, promoting transparency and accountability. Despite recent progress, the IAI recognizes that the industry’s current trajectory is not aligned with the Paris Agreement targets and encourages actors along the value chain to work more closely towards deeper emissions reductions to keep the Paris Agreement targets within reach.

“We are at a critical juncture,” Nunez explained. “The next decade will be crucial in determining whether we can limit global warming to 1.5°C. Our industry has a key role to play in the energy transition through the materials and products we offer, but there is also an opportunity for it to be a leading example of industrial decarbonization. To achieve this, it will take unprecedented effort and collaboration from all stakeholders.”