Trading and chartering giant Trafigura Group has revealed a new plan for shipping decarbonisation as it revealed its Scope 3 emissions target ahead of schedule.

The company, which also owns vessels, called this a "statement of intent" as it seeks to prompt industry action on emissions.

Which Scope is which?

Scope 1: Direct emissions from owned or controlled sources.

Scope 2: Indirect emissions from purchased energy sources.

Scope 3: Various other indirect emissions in a company’s value chain.

In its annual report, Trafigura said "good progress" has been made towards meeting a greenhouse gas emissions reduction target announced in January.

This involves a cut of 30% in total Scope 1 direct emissions and Scope 2 emissions from purchased energy by 2023, against a 2020 baseline.

These commitments helped Trafigura to secure sustainability-linked financing in 2021, including for its $5.5bn European revolving credit facility.

The new target is to reduce all shipping emissions by 25% by 2030, compared to the IMO's 2019 baseline.

This will cover more than 70% of Trafigura's reported indirect Scope 3 emissions, as calculated in 2020.

Well ahead of IMO

The group had intended to set the Scope 3 target by its 2023 financial year at the latest.

The new plan will reduce the emissions-intensity profile of the group's owned and third-party leased shipping fleet by 48% compared to the 2008 IMO industry baseline.

"This compares favourably to the IMO industry target of a 40% emissions intensity reduction over the same time frame," the group said.

In January, Trafigura revealed it had succeeded in cutting emissions from its owned vessels and was targeting big cuts for its vast chartered fleet.

Shipping accounts for 58% of its greenhouse gas (GHG) emissions, but 70% of Scope 3 output for the group.

The company was seeking to improve fuel performance, minimise bunker usage and improve operational efficiency across the fleet.

Trafigura's shipping desk carried out 4,834 vessels fixtures in the year to 30 September, against 4,225 in the previous 12 months.