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MOL Group approves new strategy looking at sustainability and circular economy

Hungarian multinational oil and gas company MOL Group has approved MOL Group 2030+, an update of the company’s long-term strategy, fully integrated with a new sustainability strategy and complemented with a longer-term vision and ambitions beyond 2030.

“The MOL 2030 long-term strategy has so far proved to be progressive, credible and directionally correct,” said Zsolt Hernádi, Chairman and CEO of MOL Group. “Accordingly, MOL has taken important strategic steps in the right direction over the past five years. However, we have observed an unprecedented pace of changes around us recently, including rapid progress in the green energy transition. Our updated strategy seeks to accelerate our transformation process to enhance MOL’s resilience and our ability to shape a sustainable future. We will sharpen our focus, increase our efficiency further while seeking new opportunities with a new determination. One thing has not changed since 2016: we remain deeply committed to the transformation of our traditional fossil-fuel-based operations into a low-carbon, sustainable business model.”

With an unchanged vision of the structural, long-term decline in fossil fuel demand in Europe, MOL will continue and accelerate its fuel-to-chemicals transformation in downstream growing to become a leading sustainable chemicals company in Central and Eastern Europe.

“Sustainability and profitability are not mutually exclusive concepts: they have to go together,” continued Mr Hernádi. “You cannot be sustainable without generating revenues, nor can you be profitable without focusing on how those revenues are generated: they go hand in hand. This has been evident for some time and will increasingly be clear to everyone in the future. We all want to live in a better, safer and cleaner world. And for a better and more sustainable world, we need to shift to a low-carbon, circular economic model.”

MOL wants to significantly increase its EU Taxonomy-aligned climate-friendly investments to exceed 50 per cent of total CAPEX by 2030 and to approach 100 per cent by 2050, or earlier. MOL also wants to play a key role in shaping the low-carbon circular economy with investments in new businesses such as waste integration and utilisation, recycling, carbon capture, utilisation and storage (CCUS), advanced biofuels and potentially hydrogen-related opportunities. In the next five years, MOL will spend one billion US dollars on new, low-carbon and sustainable projects to become a key player in CEE in the circular economy.

In line with the Paris Agreement and the need for globally coordinated efforts to limit global warming and climate change, it is also the role of MOL to contribute to the decline in carbon emissions from its value chain and operated assets. Accordingly, MOL will reduce group-level emissions by 30 per cent by 2030, make both E&P and Consumer Services carbon-neutral (in terms of Scope 1 and 2 emissions) by 2030, while Downstream emissions (Scope 1 and 2) will be reduced by 20 per cent by 2030 (from a 2019 base) for existing operations.

MOL also shares the EU’s ambition to be climate-neutral by 2050 in terms of all (Scope 1, 2 and 3) carbon emissions and wishes to actively participate in the industrial revolution required to make Europe carbon-neutral, both on its own and in partnering with others.

Photo: MOL Group.
 

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