25 2021 ESG Report Introduction Climate change Appendices Transparency Healthy workforce and communities Responsible supply chain Product impact At the end of 2020, we announced our first set of targets in the climate change impact area. Reaching these targets would reduce our contribution to global greenhouse gas emissions from direct operations. Our reduction target is science-based, aligned with the 1.5°C global emissions reduction pathway. In September 2021, we strengthened our commitment to reducing emissions by joining the UN Race to Zero, via the Business Ambition for 1.5°C and Science Based Targets initiative (SBTi). Throughout FY 2021 and 2022, we are partnering with the company ERM —the largest global pure-play sustainability consultancy— to establish baseline emissions for our significant sources of Scope 3 emissions: category 1, purchased goods and services; category 4 and 9, upstream and downstream transportation and distribution; and category 11 and 12, emissions from the use of and end-of-life disposal of our products. We expect to have our science-based reduction targets verified by SBTi and published no later than end of FY 2023. Additional metrics used to assess climate-related risks include the following 2030+ goals: Transition risks Reduce energy consumption by 25% by 2030 (from 2019 baseline, normalized to cost of products sold [COPS]) Physical risks – operations Reduce water consumption by 40% by 2030 (from 2019 baseline, normalized to COPS) Physical risks – upstream ESG desktop audits for strategic, preferred and critical suppliers completed by 2023; 90% of total spend reflected in completed supplier ESG desktop audits by 2025. As we establish science-based targets for our significant sources of Scope 3 emissions, we expect that further metrics will be identified and assessed for suitability to measure climate-related risk and opportunity. Scope 1, 2 and 3 emissions data (including calculation methodology where relevant) can be found in the data tables within the appendices . We also disclose emissions annually via the CDP.
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