2024 March 4 1st Week WBM News Recommendation - SKF Recognized With ‘A’ Score From CDP For Transparency On Climate Change

SKF has received an 'A', the top Climate Change rating available from CDP, the global non-profit that runs the world's largest climate and environmental disclosure system for companies, cities, states and regions. Based on data reported to CDP, SKF is one of only 346 companies out of over 21,000 assessed to achieve an 'A' score and as a result is listed on CDP's 'A List' of companies leading the way in environmental transparency and performance on climate change.

The CDP Climate Change score provides a snapshot of a company's disclosure and environmental performance. The scoring methodology provides a comparable dataset across the market. By earning leadership recognition (A/A-), SKF is spotlighted for showing environmental leadership, disclosing action on climate change, as well as demonstrating best practice in strategy and action, as recognized by frameworks such as the Task Force on Climate-related Financial Disclosures (TCFD) and others.

"We are proud to have received an A rating from CDP and it is reflective of the commitment we have for reducing climate impact, both in our own operations and in the entire value chain. It is a significant milestone for us, but to continue our journey to enable rotation for a better tomorrow, even more must be done. We all need to move towards a clean, responsible, net-zero, fully circular society – something that must happen with a speed and on a scale not seen before," says Magnus Rosén, Head of Sustainability at SKF.

"It is only by laying the groundwork of disclosure that companies can show they are serious about the vital part they play in securing a net-zero, nature-positive future. Earning a place on the A List is about more than the score. It's an indication of high quality, complete data that equips companies with a holistic view of their environmental impact, serves as a baseline for transition plans and – crucially – enables them to follow through on their ambitions," says Sherry Madera, CEO of CDP.

SKF has committed to decarbonize all its operations by 2030 and to have a supply chain with net zero greenhouse gas emissions by 2050. Work to reduce scope 1 and 2 emissions at SKF delivered an absolute year on year reduction of 15% in 2022 and SKF is on track to deliver on its 2030 target. Meanwhile, share of renewable electricity used at SKF facilities increased from 40% in 2020 to more than 50% in 2022.

A detailed and independent methodology is used by CDP to assess companies, allocating a score of A to D- based on the comprehensiveness of disclosure, awareness and management of environmental risks and demonstration of best practices associated with environmental leadership, such as setting ambitious and meaningful targets.