Alstom SA
Climate Impact & Sustainability Data (2022-2023, 2023-04-01 to 2024-03-31)
Reporting Period: 2022-2023
Environmental Metrics
Total Carbon Emissions:179 ktCO2 (Scope 1 & 2 market-based)
Scope 1 Emissions:94 ktCO2
Scope 2 Emissions:85 ktCO2
Scope 3 Emissions:29,000 ktCO2 (from use of sold products)
Renewable Energy Share:57%
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:4.6 gCO2/passenger-km (passenger transport), 9.2 gCO2/t.km (freight solutions)
ESG Focus Areas
- Decarbonisation of Mobility
- Care for People
- Positive Impact on Society
- Responsible Business Partner
Environmental Achievements
- Reduced energy intensity by -17% compared to 2021 consumption.
- 65% of newly developed solutions are eco-designed and use more recycled/recyclable materials.
- 59% of sales are European Taxonomy-aligned.
- Achieved 57% renewable electricity share.
Social Achievements
- Exceeded target of 250,000 beneficiaries from Community Investment programs.
- Increased percentage of women in management, engineering & professional roles to 23.9%.
- Average training hours per employee increased to 22.5.
- Total recordable injury rate decreased to 1.8.
Governance Achievements
- Published European Taxonomy-aligned sales for the first time.
- Global ISO 37001 certification.
- Maintained a Net Promoter Score above 8.
Climate Goals & Targets
Long-term Goals:
- Net zero emissions by 2050.
Medium-term Goals:
- Reduce absolute Scope 1 & 2 GHG emissions by 40% vs 2021/22 by 2030/31.
- Reduce Scope 3 GHG emissions intensity from purchased goods & services by 30% vs 2022/23 by 2030/31.
- Reduce Scope 3 GHG emissions intensity from use of sold products by 42% per passenger-km and by 35% per ton-km vs 2021/22 by 2030/31.
Short-term Goals:
- Reduce energy intensity by 25% by 2025.
- 100% renewable electricity for all facilities by 2025.
- 100% of suppliers monitored or assessed on CSR and E&C standards by 2025.
- 500 suppliers trained in sustainability and CSR by 2025.
- 28% women in management, engineering & professional roles by 2025.
Environmental Challenges
- Maintaining results and improving performance where objectives still need to be reached (e.g., gender equity).
- Approximately 25% of rail operations remain diesel-dependent.
- 46% of rail lines in Europe are still unelectrified.
Mitigation Strategies
- Working hard on gender equity by attracting and retaining more women.
- Actively supporting clients in decarbonisation efforts by providing efficient solutions.
- Working with suppliers to reduce indirect emissions.
- Focusing on electrical rail solutions and systems: electrification, bi-mode/hybrid, and catenary-free solutions.
Supply Chain Management
Supplier Audits: 74% of suppliers monitored or assessed on CSR and E&C standards.
Responsible Procurement
- ESD Charter signature as a mandatory pre-requisite for entrance to Alstom’s panel.
- Alstom Alliance™ programme for strategic suppliers.
Climate-Related Risks & Opportunities
Physical Risks
- Climate change disrupting weather patterns and balance of nature.
Transition Risks
- Regulatory changes, market shifts
Opportunities
- Development of energy-efficient products and services.
Reporting Standards
Frameworks Used: European Taxonomy
Certifications: ISO 45001, ISO 37001, Global Top Employer
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Coradia iLint™ (hydrogen-powered train)
- Coradia Stream™ (energy-efficient regional train)
- Avelia Horizon™ (high-speed train with reduced energy consumption and maintenance costs)
- Battery-electric multiple units (BEMUs)
Awards & Recognition
- Top 100 Global Innovators™
Reporting Period: 2023-04-01 to 2024-03-31
Environmental Metrics
Total Carbon Emissions:139 ktonCO2e/year
Scope 3 Emissions:4.0 GWh
Renewable Energy Share:75%
Carbon Intensity:8.4 g CO2e/ton.km and 4.0 g CO2e/pass.km
ESG Focus Areas
- Decarbonization of mobility
- Employee well-being
- Positive societal impact
- Responsible business partnerships
Environmental Achievements
- 39% reduction in Scope 1 & 2 emissions (139 ktonCO2e) compared to March 2022
- 13% reduction in CO2 emissions intensity of sold passenger transport solutions (4.0 gCO2e/pass.km) compared to March 2022
- 87% of newly developed solutions were eco-designed
- 23.4% recycled content in newly developed rolling stock
- 80% of Alstom’s electricity consumption in Europe covered by a Power Purchase Agreement focused on solar development in Spain (to begin operations early 2025)
Social Achievements
- 24.7% of manager, engineer and professional roles held by women as of March 2024
- Maintained presence in CAC40 ESG index for the third consecutive year and DJSI for the 13th consecutive year
- Improved ECOVADIS score to 77/100 and maintained AA score with MSCI
- Improved CDP rating from B to A-
- EU Taxonomy-aligned sales amounted to 60%
Governance Achievements
- Implementation of the “Autumn” restructuring plan to improve operational, commercial, and cost efficiency
- Sale of North American conventional signalling business to Knorr-Bremse AG
- Sale of 20% stake in Russian railcar manufacturer Transmashholding (TMH)
Climate Goals & Targets
Long-term Goals:
- Achieve carbon neutrality in its value chain by 2050
Medium-term Goals:
- Deliver around 5% average sales growth over the mid to long term
- Consistently deliver an adjusted EBIT margin between 8% and 10% over the mid to long term
Short-term Goals:
- Reach 28% women in management, engineering, and professional roles by 2025
Environmental Challenges
- Difficult year highlighting the need to accelerate change
- Higher interest rates and market volatility
- Negative outlook on Moody's rating (Baa3)
- Need for balance sheet deleveraging
- Integration of Bombardier Transportation
Mitigation Strategies
- Comprehensive operational, commercial, and cost efficiency plan (“Autumn” plan)
- Overhead cost reduction initiative of around 1,500 FTE
- Deleveraging plan of ca. 2 billion euros through divestments, hybrid bonds, and capital increase
- Reinforcing the Group’s balance sheet to achieve a reduction in net debt position by 2 bn euros by March 2025
Supply Chain Management
Supplier Audits: 91% of suppliers monitored or assessed on CSR and E&C
Responsible Procurement
- 182 suppliers enrolled in sustainable procurement training program
Climate-Related Risks & Opportunities
Physical Risks
- Potential increase of operating and/or capital expenditure due to climate change
Reporting Standards
Frameworks Used: SBTi
Certifications: ISO 14001, ISO 37001
Third-party Assurance: Independent third party
Sustainable Products & Innovation
- Avelia Horizon™
- Avelia stream™
- Hydrogen and Battery shunter locomotives & freight locomotives
- Coradia Stream™ range
- Citadis™ USA
- Adessia™ commuter
- TRAXX™ Multi-system 3 locomotives
- Green re-tractioning initiatives (battery and hydrogen)