How is Tate & Lyle Achieving Net Zero Goals Years Early?

Tate & Lyle, one of the world’s oldest food and drinks manufacturers, has its eyes set firmly on the future.  The London-based firm has announced its plans to achieve its biggest sustainability targets five years early, sourcing 100% of its purchased electricity by the year 2025.

The fact that this goal (originally set for 2030) is set to be achieved in such good time sends a message to the rest of the industry.

Tate & Lyle’s multi-faceted approach to renewable energy

So, how exactly has Tate & Lyle done it? The key to this success story is a multi-faceted approach to energy sourcing. 

The company’s corporate strategy includes installing renewable electricity infrastructure at its facilities, entering into long-term renewable electricity agreements with providers and procuring renewable energy credits (RECs) to cover remaining requirements.

Nick Hampton, CEO of Tate & Lyle, is directing operations with an urgent focus on climate change. "Climate change is the biggest threat to the world's long-term future and so it's vital that companies accelerate the transition to renewable energy,” he says.

“I am proud that Tate & Lyle has now delivered on its commitment to procure 100% of the electricity used by its operations around the world from renewable sources, representing a critical milestone in the decarbonisation of our business."

A significant impact on greenhouse gas emissions

This new commitment is expected to reduce Tate & Lyle's global Scope 1 and 2 greenhouse gas (GHG) emissions by more than 25% from a 2019 baseline. 

These reductions are huge, showcasing the impressive results companies can see when investing big in renewables. However, it also shows that electricity consumption is not everything when it comes to emissions; there is still a long way for Tate & Lyle to go to achieve net zero.

According to recent data from the International Energy Agency (IEA), the corporate sector accounts for around two-thirds of the world's end-use of electricity, meaning its incumbent on those groups to change. The role of companies like Tate & Lyle is therefore pretty crucial in driving demand for renewable energy and supporting the global energy transition.

What is RE100?

As part of its long-term commitment to renewable energy, Tate & Lyle has also joined RE100, a global corporate renewable energy initiative led by the Climate Group in partnership with the Carbon Disclosure Project (CDP). Doing so demonstrates the company’s willingness to be observed and held to account on its sustainability targets, increasing transparency and openness.

It also couches Tate & Lyle’s efforts amongst those of other environmentally-minded businesses, taking proactive steps to mitigate climate change. "Becoming a member of RE100 is an important part of our sustainability strategy and a clear demonstration of our commitment to invest in renewable electricity,” says Anna Pierce, Director of Sustainability at Tate & Lyle.

“We are proud to join many companies across the world which are taking the lead in mitigating the impact of climate change."

A broad sustainability programme

How does this latest investment in renewable energy fit into the bigger picture of Tate & Lyle’s net zero ambition? Let’s start by looking at its broader targets on its net zero roadmap. The British company has set ambitious GHG emissions reduction targets to be delivered by 2028, which have been validated by the Science Based Targets initiative (SBTi). 

The targets are consistent with reductions required to limit global warming to 1.5°C above pre-industrial levels, aligning with the most ambitious goals of the Paris Agreement. These targets, established in 2019, aim for a 38% reduction in Scope 1 and 2 emissions, as well as a 38% reduction in Scope 3 emissions.

This newest investment in renewable energy will see the company’s Scope 1 and 2 emissions reduced by 25% against that 2019 baseline, so there is still some way to go before 2028. The need for significant upfront investments, the variability of renewable energy sources and the complexity of global supply chains will all be potential barriers to this transition, but progress is looking promising.

Tate & Lyle’s influence on the food ingredients sector

The food ingredients sector, in which Tate & Lyle operates, faces particular scrutiny due to its environmental impact. By taking decisive action on renewable energy, the company is not only reducing its own carbon footprint but also potentially influencing its customers and partners throughout the food and beverage industry.

Tate & Lyle's achievement comes at a time when businesses are under increasing pressure from investors, consumers, and regulators to address climate change. The company's success in reaching its renewable electricity target ahead of schedule may serve as a blueprint for other corporations looking to accelerate their sustainability efforts.

Nick is optimistic about the run-in to net zero. "This represents a critical milestone in the decarbonisation of our business,” he says.

“We are committed to continuing our efforts to reduce our environmental impact and support our customers in achieving their sustainability goals."

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