Nexen Tire announced on September 15 that it has received approval for its short-term greenhouse gas reduction targets from the Science Based Targets initiative (SBTi).
The SBTi is a coalition jointly established by four international climate organizations: the United Nations Global Compact (UNGC), World Resources Institute (WRI), World Wide Fund for Nature (WWF), and Carbon Disclosure Project (CDP). The initiative scientifically verifies whether a company's greenhouse gas reduction targets meet the standards set by the Paris Agreement, which aims to limit the rise in global average temperature to within 1.5 degrees Celsius.
Nexen Tire has set a goal to reduce its direct emissions (Scope 1) and indirect emissions (Scope 2) by 58.8% by 2034 compared to 2023. The company also plans to cut its other indirect emissions (Scope 3) by 35%. Based on these targets, Nexen Tire will establish a carbon neutrality roadmap and actively implement it.
To achieve its greenhouse gas reduction targets, Nexen Tire has strengthened its company-wide management system. By enhancing its greenhouse gas inventory, the company has calculated Scope 1 and 2 emissions for all domestic and overseas business sites based on consolidated standards, as well as all 15 categories of Scope 3 emissions.
In addition, Nexen Tire holds monthly ESG Operations Committee meetings to establish phased greenhouse gas reduction plans, including improving equipment efficiency, switching fuels, and expanding the use of renewable energy. The company is also continuously reviewing the introduction of solar power generation and power purchase agreements (PPA) at its production facilities to further expand renewable energy use.
The company explained that with this SBTi approval, Nexen Tire expects to further strengthen its partnerships with global automakers. This is because the automotive industry is rapidly transforming to achieve carbon neutrality, and there is a growing demand for systematic and quantitative management of carbon emissions through organizations such as the SBTi.
A Nexen Tire representative stated, "The approval from the SBTi is a significant step that demonstrates Nexen Tire is establishing a climate response system that meets global standards. We will faithfully implement science-based reduction targets and lead the way in achieving carbon neutrality through company-wide efforts."
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