ENGIE has unveiled new decarbonization targets for its activities. The announcement is incomplete and will not meet the demands from the increasing number of ENGIE’s investors who want to evaluate the group’s ability to align with a 1.5°C pathway, and the risks associated with their investments. Today’s announcement is notably lacking in clarity regarding the quantification of its absolute emissions reduction targets. It is also obvious that ENGIE is planning to phase-out coal only to commit itself to new false solutions.

“Under pressure, ENGIE’s management is again trying to convince its investors that the company is fully committed to fighting climate change and has set clear targets to decarbonize its activities. But the truth is, far from being the energy transition champion it claims to be, ENGIE is not aiming for a 1.5°C target and its reliance on LNG carries a twofold risk for the climate. If investors have no choice but to accept an incomplete decarbonization strategy, they finally have answers, albeit equally lacking in detail, regarding ENGIE’s coal plants future. Unfortunately, these are far from satisfying, with two plants being sold, and four others being converted to gas or biomass. Shareholders must react when ENGIE holds its annual General Meeting this Thursday” remarks Lucie Pinson, founder and executive director of Reclaim Finance.

  • ENGIE has announced a commitment to reach carbon neutrality by 2045 on all its scopes, against a former target of 2050. However, ENGIE does not intend to align on a 1.5°C pathway, nor does it specify timebound benchmarks for absolute emission reduction targets.
  • While ENGIE is highlighting renewable gas in its public communications, the actual numbers show the reality of a sustained and costly reliance on LNG, thus creating a double climatic and financial risk.
  • Although ENGIE has increased its targets for renewable energy development, these are still well below those of its competitors like Enel. Moreover, it seems that ENGIE has forgotten about the importance of developing storage technologies such as batteries, which could reduce dependence upon gas plants.
  • While an increasing number of investors expect ENGIE to close its last coal plants, ENGIE has announced that it aims to convert four out its 10 last plants to gas or biomass, and to sell two others.

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