Our decarbonisation strategy | Rolls-Royce

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Our decarbonisation strategy

Our roadmap to get to net zero

Plotting a course for net zero

In line with the commitments we have made under the UN Race to Zero campaign, we are aligning our business model to the Paris Climate Agreement goals, to limit global temperature rise to 1.5ºC.

To do this, we have set ourselves a series of clear and trackable targets. We will become a net zero carbon company across our value chain by 2050, and play a leading role in enabling society to get there too. Our decarbonisation strategy sets out how we will achieve this, while making the most of opportunities for growth during the transition to a net zero world.

FIND OUR MORE ABOUT OUR NET ZERO COMMITMENT

A three stage decarbonisation action plan

As net zero intent gets translated into net zero action, it will become increasingly costly to be part of the problem and – we believe – increasingly profitable to be part of the solution. Our decarbonisation strategy will help us make the most of the new opportunities opening up in the transition to a net zero world.

We will achieve net zero greenhouse gas emissions from our operations and facilities by 2030.

We will achieve net zero greenhouse gas emissions from our operations and facilities by 2030.

Emissions from product development and testing do not fall within this target because international regulations require use of current generation fuels for certain activities. In keeping with our focus on delivering technologies to solve the climate crisis, we do not use carbon offsetting schemes to mitigate our emissions. We may, however, temporarily offset testing and development emissions while awaiting changes to current regulations, and expect to set a target for these at a later date.

Along our value chain, our teams will work with suppliers and partners to set net zero targets, and with logistics partners to incentivise the use of low emission transport options, including Rolls-Royce capabilities. Our resource efficiency targets will help reduce emissions from waste generated by our business activities and contribute to cutting our use of virgin materials.

We will keep innovating to enable our existing products to be used in ways that are compatible with net zero.

We will keep innovating to enable our existing products to be used in ways that are compatible with net zero.

We will also pioneer new breakthrough technologies that can accelerate the global transition to net zero. We are now setting out clear short-term targets, linked to executive remuneration, that will progress the technology levers we need to pull to meet our 2050 net zero pledge.

Most emissions associated with the use of our products and services lie outside our direct control.

Most emissions associated with the use of our products and services lie outside our direct control.

That’s why we will work with customers, regulators and policy makers to create an environment that will allow us to hit our net zero targets and help society meet the commitments made under the Paris agreement on climate change. We will actively engage with those who have the power to change policies and others involved in advocating for change, to deliver the conditions to facilitate a successful transition to a net zero carbon future.

Tracking our progress to net zero

The precise timing of some of the technology breakthroughs needed to drive decarbonisation remains uncertain. To ensure we hit our long-term emissions targets, we have set ourselves a series of tangible, trackable short-term goals.

100%

All our civil aero production engines 100% SAF compatible by 2023

35%

Reduction of lifetime emissions of new sold products from Power Systems business by 2030

100%

Show compatibility with SAFs for our in-production Defence aero-engines

2023

Certify in-production mtu Series 2000 and Series 4000 engines from Power Systems with sustainable fuels

2MW

Integrate 2MW of hydrogen fuel cells into operational microgrids

> 75%

of R&D spend on lower, net zero carbon technologies by 2025

Our short-term emissions milestones

Civil aviation engines

All current engine types to be compatible with 100% sustainable aviation fuels by 2023.

Civil aviation engines

Long-haul aviation makes up most of the emissions from our products in use today.

Based on current science and plausible technology scenarios, sustainable aviation fuels (SAFs) will play a key role in its decarbonisation. We must ensure that our products are compatible with SAFs to accelerate their take-up. That’s why we are committing to showing all our in-production commercial aero-engines are compatible with 100% SAFs by 2023. This will drive our support for the UN Race to Zero goal of 10% SAF use across aviation by 2030.

SUSTAINABILITY IN CIVIL AEROSPACE

Power Systems

We aim to make the majority of our Power Systems engines compatible with sustainable fuels

Power Systems

We expect to certify the new generation of our mtu Series 2000 and Series 4000 engines for use with sustainable fuels by 2023.

These represent the majority of our reciprocating engines and are used across a range of applications from power generation to rail and shipping. We aim to reduce emissions associated with the use of new sold products from our Power Systems business by 35% by 2030 relative to 2019. This aligns with the carbon emission cuts needed to keep the global temperature rise to well below 2°C. It represents a significant step towards our 2050 net zero carbon goal. Achieving it will require increasing sales of low and zero carbon solutions and of internal combustion engines powered by zero carbon alternative fuels.

Defence

All engines to be compatible with use of sustainable aviation fuels by 2023.

Defence

By assisting our defence customers to reach net zero, we can play a major role in assisting governments to achieve their nationally determined contributions under the Paris Climate Agreement goals, due to the fact that CO₂ emissions from armed forces are often a significant portion of state-owned emissions.

This includes working with key partners, like the UK Ministry of Defence, to support the decarbonisation of their estates, building on our experience in progressing our own 2030 operations and facilities target, and developing low and net zero carbon technology solutions to support decarbonising military operations. We will support our defence customers to achieve net zero by showing compatibility with sustainable fuels in all products by 2023, subject to customer engagement.

Marine & power gen

We aim to make the majority of our Power Systems engines compatible with sustainable fuels.

Marine & power gen

We expect to certify the new generation of our mtu Series 2000 and Series 4000 engines for use with sustainable fuels by 2023.

These represent the majority of our reciprocating engines and are used across a range of applications from power generation to rail and shipping.

Game changers in low and zero carbon power

We are developing new technologies that will take us into new markets

Game changers in low and zero carbon power

We are working to develop electric and hybrid-electric technologies in new areas. These include urban air mobility, regional aviation, small modular nuclear reactors, microgrids and fuel cells. We aim to integrate a 2MW fuel cell into a working microgrid demonstrator by 2023. We expect these and other low carbon and net zero markets to provide significant future growth opportunities.

Research and development

The proportion of our R&D budget we spend on lower, net zero and zero carbon technologies will rise

Research and development

We have already increased our R&D expenditure on net zero and zero carbon technologies to around 50%. This will grow to at least 75% by 2025. 

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Click on the diagram segments below to find out more on our three core pillars of our decarbonisation strategy.