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Playing our part in the energy transition | Rolls-Royce

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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.

Focus
Playing our part in the energy transition means: decarbonising our operations and product testing; reducing consumption and reducing waste. This will help ensure our facilities and internal supply chains remain resilient in a changing external environment.

Metrics and targets

To track progress against these focus areas we have the following targets:

— reduce Scope 1 + 2 emissions by 46% by the end of 2030 against a 2019 baseline; ​
— reduce Scope 1 + 2 emissions to a net zero position by the end of 2050; ​
— reduce total energy consumption, normalised by revenue, by 50% by 2025 against a 2014 baseline;
​ — reduce total solid and liquid waste production, normalised by revenue, by 25% by 2025 against a 2014 baseline; and
— increase the recycling and recovery rate to 56.4% by 2025 against a 2014 baseline.​

Safety is our number one priority. Product testing is a critical part of our product safety assurance approach as well as a core part of the engine certification programmes that help us to deliver more efficient and lower emissions products. We recognise the potential for these activities to increase our emissions in the short term but they do not affect our commitment and our ambition to be net zero by 2050.​

Focus
We are committed to working with our customers to enable them to operate their products in a way that is compatible with net zero emissions. Beyond mitigating emissions associated with existing products and markets, we continue to develop technologies that can support the acceleration of the energy transition. Through the provision of low-carbon and net zero technologies, we can help support national and international climate policy goals.

Metrics and targets

​To track progress we have the following targets:

​— to demonstrate that all our products are compatible with net zero operations by the end of 2050; and
— to support the achievement of industry net zero Scope 3, category 11 (use of sold products) GHG by the end of 2050 in line with a science-based trajectory.

The targets above help us monitor our exposure to risks identified in our climate risk scenario analysis. They allow us to assess our ability to manage changes in customer demand and changing investment need by demonstrating that our products are aligned to the energy transition as well as our ability to attract the right talent and capability who want to help support the energy transition.

Focus

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.

​— availability of low-carbon energy infrastructure
— sustainable fuel availability and infrastructure
— availability of appropriate funding; and
— timely government decisions and long-term commitments

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 
Learn more
Global Supplier Code of Conduct 
pdf – 697KB
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Approach to managing tax affairs 
pdf – 498KB
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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 – 230KB
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Sustainability basis of reporting 
pdf – 476KB
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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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