Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — ESG Presentation (February 2022)
27 slides from Wartsila Oyj Abp's sustainability presentation, Feb 25, 2022
Slide 1: Shaping the Decarbonisation of Marine and Energy
SUSTAINABILITY TALKS SHAPING THE DECARBONISATION OF MARINE AND ENERGY Håkan Agnevall, President & CEO Kari Hietanen; EVP, Corporate Relations and Legal Marko Vainikka, VP, Sustainability and Corporate Relations February 25, 2022 1 © Wärtsilä
Slide 2: Purpose of the event
Purpose of the event ▪ Give deeper insight on how Wärtsilä can make a difference in the decarbonisation of the marine and energy markets ▪ Elaborate on the rationale for our decarbonisation targets ▪ Continue the decarbonisation dialog with external stakeholders 2 © Wärtsilä
Slide 3: Significant value creation potential
SIGNIFICANT VALUE CREATION POTENTIAL 3 © Wärtsilä
Slide 4: Market fundamentals
MARKET FUNDAMENTALS MARINE will move with unprecedented speed towards decarbonisation ENERGY is moving towards a 100% renewables future Policies & regulations Policies & regulations ▪ IMO target ▪ EU: Carbon neutral by 2050 ▪ Access to capital ▪ USA: carbon free electricity ▪ Cost of carbon producti
Slide 5: Value creation potential based on two strategic themes
OUR VALUE CREATION POTENTIAL IS BASED ON TWO STRATEGIC THEMES 1 TRANSFORM Decarbonisation creates new business opportunities 2 PERFORM Leverage market recovery and growth 5 © Wärtsilä
Slide 6: Transform: decarbonisation creates new business opportunities
TRANSFORM Decarbonisation creates new business opportunities ▪ Maritime is going through an First Wärtsilä GridSolv unprecedented rate of 3 Quantum delivered in change, which is the USA accelerated by regulations and the demand for green transport. First real-life digital port call ▪ Also, the energ
Slide 7: Perform: ready to leverage market recovery and growth
PERFORM We are ready to leverage market recovery and growth #1-3 in global markets "SET FOR 30" DECARBONISATION TARGETS: FINANCIAL TARGETS: ▪ carbon neutral in our own ▪ 5% annual organic growth operations by 2030 ▪ 12% operating margin ▪ a product portfolio ready for zero carbon fuels by 2030 Clear
Slide 8: Supporting decarbonisation in marine
SUPPORTING DECARBONISATION IN MARINE OWNERS WILL DECIDE MOVE FROM A SINGLE-FUEL INDUSTRY TO A MULTI-FUEL ONE ON TECHNOLOGY Distribution of fuel types for Decarbonisation 2050 (1.5ºC scenario), exajoule PARTNERS NOW: Carbon neutral and zero carbon fuels in maritime ▪ Vessel life is 25-30 years HFO (H
Slide 9: Supporting decarbonisation in energy
SUPPORTING DECARBONISATION IN ENERGY ▪ Wind and solar are intermittent power sources THE KEY STEPS TO FRONT-LOAD NET ZERO Utilise Power-to-X and flexible thermal plants to provide carbon ▪ Flexible balancing power neutral long-term storage. 5 Curtailment of needed to stabilize the power renewable sy
Slide 10: Leading the decarbonisation journey with strong R&D and partnering
LEADING THE DECARBONISATION JOURNEY WITH A STRONG COMMITMENT TO R&D AND THROUGH PARTNERING FOR A BROAD SOLUTION OFFERING Proactive dialogue on customers’ KEY TAKEAWAYS specific technology roadmap ▪ Working with many of the “new” technologies for decades Competence & experience to engage in a credibl
Slide 11: The Wärtsilä Way sets the scene for profitable growth
THE WÄRTSILÄ WAY SETS THE SCENE FOR PROFITABLE GROWTH 11 © Wärtsilä
Slide 12: Decarbonising our products and operations
DECARBONISING OUR PRODUCTS AND OPERATIONS 12 © Wärtsilä
Slide 13: Ambitious decarbonisation targets for 2030
AMBITIOUS DECARBONISATION TARGETS FOR 2030 To provide a product portfolio 1 which will be ready for zero carbon fuels To become 2 carbon neutral in our own operations 13 © Wärtsilä
Slide 14: Where will we have significant impact?
WHERE WILL WE HAVE SIGNIFICANT IMPACT? Wärtsilä shapes the decarbonisation of marine and energy Decarbonising the usage Decarbonising of our products our own operations SHIPPING* WÄRTSILÄ MARINE WÄRTSILÄ’S DIRECT GLOBAL 1,1 Gt CO2e INSTALLED BASE GHG EMISSIONS GREENHOUSE 2 % of global GHG 67 GW:150-
Slide 15: Decarbonising energy sector requires thermal balancing power
DECARBONISING ENERGY SECTOR REQUIRES THERMAL BALANCING POWER Wärtsilä’s offering supports the power system decarbonisation 1 NEED 2 MEASURES 3 WÄRTSILÄ’S ROLE GHG emissions from Transition from coal Portfolio electricity and heat: to gas Engine power plants and storage supporting the integration of
Slide 16: Decarbonising marine sector requires wide range of measures
DECARBONISING MARINE SECTOR REQUIRES WIDE RANGE OF MEASURES Wärtsilä technologies have key role in decarbonising the shipping 1 NEED 2 MEASURES 3 WÄRTSILÄ’S ROLE Shipping GHG Decarbonisation of Future-proof powertrains emissions: the powertrains Engines capable of running on carbon neutral and zero
Slide 17: Core elements of Wärtsilä decarbonisation actions
CORE ELEMENTS OF WÄRTSILÄ DECARBONISATION ACTIONS PRODUCTS AND SERVICES SYSTEM LEVEL SOLUTIONS R&D Offering innovative Improving and optimising Developing technologies and lifecycle overall efficiency and sustainable and solutions with high lowering emissions future proof efficiency and low emission
Slide 18: Front-runner in technologies for decarbonisation
FRONT-RUNNER IN TECHNOLOGIES FOR DECARBONISATION ENGINES Diesel FAME/HVO1) LNG Bio-methane Synthetic methane LPG Hydrogen blends Hydrogen 100% Technical concept Ammonia Technical concept Methane Hybrid ELECTRIC Full electric FUEL CELLS SOFC, PEMFC 2) Technology evaluation ongoing ENERGY SAVING Propu
Slide 19: Accelerating decarbonisation by collaborating in an ecosystem
ACCELERATING DECARBONISATION BY COLLABORATING IN AN ECOSYSTEM MULTISTAKEHOLDER COLLABORATION CUSTOMER COLLABORATION Zero Emission Energy Wärtsilä and the Korean shipbuilding company Samsung Distribution at Sea (ZEEDS) Heavy Industries (SHI) aimed at developing ▪ a joint development programme aiming
Slide 20: Direct GHG emissions come mainly from engine testing
. WÄRTSILÄ’S DIRECT GHG EMISSIONS COME MAINLY FROM ENGINE TESTING GHG emission distribution (2019) SCOPE 1 emissions from SCOPE 2 emissions from own facilities and vehicles purchased electricity and are 57 KtCO2e. heat are 54 ktCO2e. 13% 10% Goal is to reach 11% carbon neutrality covering scope 55%
Slide 21: Decarbonising our own operations requires actions on broad front
DECARBONISING OUR OWN OPERATIONS REQUIRES ACTIONS ON BROAD FRONT OUR DECARBONISATION TOOL BOX ▪ During 2022 Energy efficiency measures Wärtsilä starts Low emission company vehicles purchasing green Self-generation and green electricity certified electricity in Finland R&D and factory engine testings
Slide 22: Wärtsilä's sustainability approach
WÄRTSILÄ’S SUSTAINABILITY APPROACH PURPOSE Enabling sustainable societies through innovation in technology and services SUSTAINABILITY STRATEGY ECONOMIC ENVIRONMENTAL SOCIAL VALUES ▪ Meeting customer ▪ Innovative solutions ▪ High ethical standards PRINCIPLES ▪ Customer and shareholder for a low-carb
Slide 23: Strong sustainability agenda focusing on core themes
STRONG SUSTAINABILITY AGENDA FOCUSING ON 3 CORE THEMES ENHANCING SAFETY, ACTIVE AND TOWARDS DIVERSITY AND RESPONSIBLE CARBON NEUTRALITY WELLBEING MEMBER OF SOCIETY “ Wärtsilä drives to decrease carbon emissions in its’ own operations and products and solutions its delivers. “ Safety is a top priorit
Slide 24: New EU sustainable finance taxonomy reporting obligation
NEW EU SUSTAINABLE FINANCE TAXONOMY REPORTING OBLIGATION Only small parts of our business activities included ▪ Wärtsilä has a strong sustainability agenda and is a key contributor for the decarbonizing the Marine and Energy sectors ▪ EU Taxonomy outcomes ▪ A common classification of economic activi
Slide 25: Wärtsilä taxonomy eligible economic activities
WÄRTSILÄ TAXONOMY ELIGIBLE ECONOMIC ACTIVITIES Summary of eligible and non-eligible turnover streams, Turnover KPI 2021 Energy Energy (6.5%) ▪ Engines ready for carbon neutral ▪ Power Plants running on biogas 8% fuels running on gas or HFO 14 % ▪ Energy storage solutions Marine Systems (0.5%) ▪ Biog
Slide 26: Wärtsilä – shaping the decarbonisation of marine and energy
WÄRTSILÄ – SHAPING THE DECARBONISATION OF MARINE AND ENERGY Wärtsilä wide product, solution and service offering is a key contributor for sustainable development MARINE ENERGY Propulsion energy saving technology Flexible Power Plants ▪ Energy saving technologies ▪ Gas and DF engine power plants prov
Slide 27: Wärtsilä
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