We are aware that the transition to a climate-neutral economy could be slowed down by locked-in GHG emissions. Regarding Scope 1 and 2, certain processes cannot be converted to electricity yet. For Scope 3 downstream, the locked-in emissions depend on how the market will evolve in the coming years, in particular on the share of BEVs (Battery Electric Vehicle). However, it is important to point out that the higher the share of BEVs, the harder it is to reach the target set for Scope 3 upstream. We are developing plans to reduce emissions from downstream ICEs, and in particular, we are evaluating various technologies, including alternative fuels.

In our decarbonization strategy, we focus on our direct emissions as well as on our indirect upstream and downstream Scope 3 GHG emissions. We believe that concentrating solely on the vehicle use phase is not enough, so in line with our holistic approach, we need to continue to focus on raw materials. Constant dialogue with partners in the supply chain is key to identifying innovative approaches to further reduce GHG emissions. Starting from 2023, together with our logistics partners we introduced for the first time Hydrotreated Vegetable Oil (HVO) fuel in most of our European outbound logistics on road. On average this allows us to reduce our GHG emissions for this sub-category by 80%. This ongoing initiative will continue in the coming years, with the number of routes involved increasing in 2024 compared to 2023, resulting in further reductions in GHG emissions. No significant operational or capital expenditures have been allocated to this action in 2024 or are planned for the future.