WEG Carbon Neutral Program
Within the context of GHG emissions and climate change, in 2022, WEG took an important step creating the WEG Carbon Neutral Program.
The program aims at making efforts to achieve the GHG emission goals established for the entire WEG group. The medium and long-term goals are to reduce 52% of its operational emissions by 2030 and reach Net-zero in 2050, using 2021 as the base year. In addition, the program sets out guidelines, actions and responsibilities, making clear to its stakeholders its commitment to work to overcome the challenges of fighting global warming and climate change, an important subject for the company.
The global goals of the WEG Carbon Neutral Program were established using internationally accepted methodological criteria and in line with the NDCs (Nationally Determined Contribution), which refer to government commitments to reduce GHG assumed by the signatory countries of the Paris Agreement.
Goals
2030 Reduce GHG emissions by 52%
2050 Reach Net-Zero
WEG Global Scope 1 and Scope 2 Emissions Base Year 2021.
Access here the GEE WEG Inventory Verification Letter (ISO 14064-1)
Main actions to reduce emissions
To choose and prioritize GHG reduction projects, WEG uses the Marginal Abatement Cost Curve (MACC) and Return on Investment (ROI) methodology. We are committed to phasing out investments in carbon-intensive assets.
In total, by 2024, more than 1,200 projects have been mapped worldwide, demonstrating the scope of the Company's efforts to achieve its goals.
Scope 1: Main reduction projects
- Replacement of gas in transformers;
- Replacement of gasoline with ethanol;
- Modernization and optimization of curing systems;
- Replacement of diesel forklifts with electric ones
Scope 2: Use of renewable energy (Forecast 2024)
It is part of the strategy of the WEG Carbon Program to have 100% renewable energy by 2030.
In 2024, 66.8% of the electricity consumed came from renewable sources with a guarantee of origin through self-production, purchase of renewable energy certificates (I-REC) and bilateral contracts.
GHG REDUCTION TARGETS AND VARIABLE COMPENSATION
Considering the scope of this challenge, the responsibility for achieving the targets involves the entire company, and is addressed at strategic, tactical and operational levels. GHG emission reduction targets are broken down annually for the business units according to the results of the previous year's inventory and are part of the WEG Quality and Productivity Program (PWQP), an internal target program that impacts the variable compensation of employees, and also the target program for executives.
Reduction Target (2024): Reduce 5.7% of Scope 1 emissions compared to 2023 emissions (approved projects)
Target status: Achieved
Reduction Target (2025): Reduce 4% of Scope 1+2 emissions compared to Scope 1 emissions of 2024 (approved projects)
Target status: In progress
