Playing our part in the energy transition

Alert

Becoming a lower carbon business

Power generation, transport and the built environment are some of the very sectors in which reducing emissions is hardest. That’s why they’re vital challenges within the energy transition.

As engineers and innovators of technology, we trust in the science that tells us we must curb global temperature rise to 1.5°C above pre-industrial levels to avoid the worst impacts of climate change.

To make sure our business and the sectors we operate in can be compatible with this future, we’re targeting net zero emissions for our operations and facilities as well as our products and technologies by 2050.

Our decarbonisation strategy

Creating a high-performing, competitive, resilient and growing Rolls-Royce, allows us to successfully develop and deliver the products that will support our customers through the energy transition.

Becoming a lower carbon business is a central pillar within our strategy.

We will reach net zero greenhouse gas emissions from our operations, facilities and product test by 2050.

We will reach net zero greenhouse gas emissions from our operations, facilities and product test by 2050.

To do this, we will deliver a 46% reduction in greenhouse gas emissions from our operations and facilities and test by 2030 (against our 2019 Baseline).

This is a science aligned commitment and – importantly – includes our engine testing and development emissions during a time when increased product testing will be required to deliver safe growth for us and our partners. Above all, our number one priority will always be safety. Secondly, engine development and performance testing is essential to maximise the efficiency of our products in operation.

Recognising the importance of decarbonising our own operations, as of 2025, 10% of our management Long Term Incentive Plan (LTIP) will be linked to delivering progress to our 2030 target.

Along our value chain, our teams work with suppliers and partners to set net zero targets, and with logistics partners to incentivise the use of low-emission transport options, including Rolls-Royce capabilities. Our resource efficiency targets help reduce emissions from waste generated by our business activities and contribute to cutting our use of virgin materials.

BECOMING A LOW CARBON BUSINESS

We are committed to supporting our customers to reach net zero by 2050.

We are committed to supporting our customers to reach net zero by 2050.

We’re already making good progress, but we continue to:

  • Make our products even more efficient:
  • Ensure our products are fully compatible with sustainable fuels:
    • After efficiency, the development and industrialisation of sustainable fuels (such as sustainable aviation fuels) is the most effective and safest route for decarbonisation of the industries we operate within.
    • Rolls-Royce is actively promoting the development and use of new fuels and has validated the use of 100% sustainable fuels across all of our in-production Civil Aerospace engines. Additionally, 80% of our Power Systems portfolio has been released for use on sustainable fuels. Our technology is not a barrier to sustainable fuel adoption.
  • Deliver new products and solutions that can accelerate the global energy transition:
    • We continue to develop technologies that can support the acceleration of the energy transition. Through the provision of low-carbon and net-zero technologies, such as our small modular nuclear reactors (SMRs) and mtu battery energy storage system (BESS), we can help to abate emissions outside of our own emissions footprint in support of national and international climate policy goals.

SUPPORTING OUR CUSTOMERS TO REACH NET ZERO




Most emissions associated with the use of our products and services lie outside our direct control.

Most emissions associated with the use of our products and services lie outside our direct control.

Our ability to deliver our strategy and to support our customers and government partners to meet their own climate goals is highly dependent upon a supportive external environment.

We continue to actively engage policy makers, regulators and others to advocate for the necessary policy and economic support we have identified.

Materiality

We seek to understand and prioritise the issues that matter most to us and our stakeholders. Our materiality assessment informs our strategy, approach and reporting.

Find out more about our materiality process

Stakeholder engagement

We understand that who we are and how we behave matters to our people and the many stakeholders that have an interest in our activity.

That’s why we ensure that we communicate and consult in a consistent manner, with fairness and integrity to build positive relationships.

We place great value in listening to our various stakeholder groups and responding to their views. Our stakeholders include customers, investors, government, employees, partners, industry and regulatory bodies, and communities local to our operations.

They include groups or individuals who:

  • Are directly or indirectly impacted by our operations, products and services, or who have the potential to impact us
  • With whom we have an economic, environmental or social responsibility or relationship
  • Can provide a diverse perspective on our operations and activities.

Governance

Sustainability and climate are embedded within our Group governance framework, risk management system and operating model.

The Board has oversight of climate-related risks and opportunities impacting the Group and all Board Committees have an aspect of climate within their remit.

The Executive Team is responsible for the delivery of our climate strategy, including associated targets and transition plan and for ensuring the assessment and appropriate response to climate-related risks and opportunities throughout our business model and activities.

Policies and certificates

Group policies and guidance

We develop Group policies that are applicable across our global operations, including controlled joint ventures, to address material issues pertinent to our operations and activities. These are publicly available in English. Key policies are translated and made available to employees in local languages that reflect our key geographies.

Our Code and Group Policies 
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Global Supplier Code of Conduct 
pdf – 697KB
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Approach to managing tax affairs 
pdf – 110KB
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Board Diversity Policy 
pdf – 54KB
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Sustaining our Culture of Integrity 
pdf – 2.3MB
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Health, Safety and Environment Policy 
pdf – 529KB
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Reporting guidance

Our approach to reporting is driven by the issues that we consider to be most material to our business. Our Basis of reporting sets out the parameters against which we measure and calculate performance data.

Sustainability Assurance statement 
pdf – 164KB
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Sustainability basis of reporting 
pdf – 320KB
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Rolls-Royce Management System

The scope of the management system applies to all the activities, products and services of Rolls-Royce plc. Specifically, the system applies to the management of environmental aspects, occupational health and safety risks and compliance obligations in the design, manufacture and service of its products and related business activities.

Geographic coverage of the system applies globally and covers people working under the direct supervision of Rolls-Royce.

The system boundaries encompass our locations and off-site activities under the direct control or influence of the company. The boundaries extend to the interface with third parties working on our behalf.

We hold third-party certification from DNV for management systems, including Quality ISO 9001 and AS 9100, Environment ISO 14001 and Occupational Health and Safety ISO 45001, representing all businesses across the world.

Global external certificate – AS9100D 
pdf – 223KB
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Global external certificate – AS9110C  
pdf – 120KB
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Scope of HS&E management system 
pdf – 94KB
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Global external certificate ISO 9001:2015 
pdf – 217KB
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Global external certificate – ISO 14001:2015 
pdf – 229KB
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Global external certificate – ISO 45001:2018 
pdf – 229KB
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