ENGIE
Performance Score
Since 2017, ENGIE has managed to reduce its net emissions on scope1+2 (-71%) and on indirect upstream (-29%) and downstream (-25%) emissions, which demonstrates a very strong commitment. The 2030 targets have been strengthened since 2023 and supplemented with intermediate targets. ENGIE has also set itself a target of -90% of gross emissions in 2045 compared to 2017.Thanks to its robust climate governance, ENGIE's business models are in the midst of a transition. In addition to the commitment to phase out fossil fuels (coal in 2027, natural gas in 2045) and the development of renewable energies, ENGIE is continuing to develop new activities, in particular on the flexibilization of renewable energies and support for stakeholders in decarbonization. The transition plan presents the main areas of work with figures (GHG, €). However, some of the key aspects, such as phasing out coal, reducing gas sales or decarbonising uncontrolled assets, lack transparency. The transition plan for upstream emissions is generally not very detailed and the objectives are unclear.The customer strategy is well advanced and mature, while the supplier strategy is still being developed and deployed. There is a significant gap in the purchase of electricity for resale, the emissions of which have recently been calculated and which has just been integrated into the climate objectives.ENGIE shows overall support for climate policies, but inconsistencies and tensions persist regarding the place of natural gas in the energy transition. In addition, the company supports several associations whose positions are deemed harmful to the climate.ENGIE's business models are in the midst of a transition. In addition to the exit from fossil fuels and the development of renewable energies, ENGIE is continuing to develop new activities, in particular on the flexibilization of renewable energies and decarbonization consulting.
Narrative Score
More than half of the energy sold by ENGIE is based on natural gas. The company has shown a desire to reduce the share of fossil fuels in its mix and already produces a significant proportion of renewable electricity.The main energy transition levers put forward by ENGIE have moderate credibility. Decarbonisation through the exit from coal is largely based on the sale of assets which can be perceived as a "displacement of the problem", with limited details on the exit plan. The reduction in gas sales is subject to high market uncertainty, without a transparent strategy or assumptions. The levers actually controlled by ENGIE, such as the sale of green gas, are accompanied by unambitious objectives between now and 2030. Finally, ENGIE does not seem to have a detailed transition plan for the production of electricity purchased for resale (18% of total emissions) and the application of the transition plan to power generation assets (3.15, 19% of emissions) is unclear.ENGIE's business model is based on an integrated approach to energy production and sales. The decarbonisation of its various activities could be achieved by rebalancing energy carriers. However, there is still a tension between decarbonisation through electrification and gas activities, which continue to promote the role of natural gas through their support for trade associations. In addition, ENGIE has signed contracts to import shale gas until 2041, which is in contradiction with its objectives of reducing gas sales. ENGIE's involvement in the LNG Rio Grande shale gas terminal project raises a major inconsistency between its statements and its actions. According to The Guardian, this project could generate 163 million tonnes of CO₂ per year. ENGIE nevertheless justifies its involvement by explaining that these supply contracts will end before 2045 and that they do not call into question its objectives of carbon neutrality and emission reduction by 2030.Finally, ENGIE is faced with significant risks. The company faces major technological challenges to ensure the flexibility of renewable electricity, as well as regulatory risks regarding the place of natural gas in the energy transition. To deal with these uncertainties, ENGIE has set up a high-level risk management governance, with a transition plan strongly based on the results of an in-depth risk analysis.
Trend score
ENGIE's emissions trajectory is decreasing, but the company's projections for 2030 announce a slowdown in the group's decarbonization. The decarbonization potential of the remaining levers of action, as presented in the integrated report, seems quite limited between now and 2030. A rise in new technologies is envisaged thereafter, but many uncertainties remain. The reduction in natural gas sales, for example, is highly subject to market fluctuations, making its evolution difficult to anticipate. Finally, the transition plan for upstream emissions lacks details and the objectives could not be fully understood during the audit. ENGIE therefore does not seem to expect a rapid decrease in emissions over the next five years.
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