Decarbonizing Our Operations and Products
Reducing CO2 emissions to limit the extent of climate change from operations and product use
We are committed to reducing CO2 emissions across our manufacturing sites worldwide to limit our impact on climate change. Smart manufacturing uses advanced technology to increase productivity while reducing energy waste and cost. Our initial priorities will focus on using cleaner energy and reducing consumption by improving operational efficiencies. The goal of our research and development efforts with respect to engines is to be a pioneer for the farmers of today and tomorrow by designing lower emission and more fuel-efficient engines.
Reduce Our Manufacturing CO2 Emissions
Our priority will be to decrease Scope 1 and Scope 2 GHG (greenhouse gas) emissions from our manufacturing sites worldwide. Our goal is to decrease operational GHG intensity 20% by 2026 from a 2020 baseline. Our renewable energy program is helping to accelerate our efforts.
Decrease GHG intensity by 20% by 2026
Using Renewable Start-Up Fuel
Neste MY Renewable Diesel, produced from waste and residues, replaced fossil fuels in all internal logistics vehicles at our Nokia engine plant in Finland, further reducing emissions by approximately 130,000 kWh.
Production Efficiencies at Fendt
Across our Fendt sites in Germany, we’ve implemented several initiatives including generating heat from locally sourced wood chips and power from a photovoltaic system. Additional energy efficiency measures include replacing inefficient equipment, installing smart lighting and ventilation systems and renovating older buildings. Our sites in Marktoberdorf, Asbach-Bäumenheim, Feucht and Hohenmölsen now run on 100% green electricity, which has cut CO2 emissions from electricity consumption to zero and significantly reduced total emissions from production activities.
Increase Our Use of Renewable Energy
On a global basis, we are accelerating efforts towards the use of 100% renewable energy across our global manufacturing footprint where possible, targeting incremental progress year over year. We are currently using approximately 42% renewable energy across our global manufacturing sites and have set an initial goal to reach 60% by 2026 from a 2020 baseline.
Reach 60% renewable energy by 2026
Making the Switch to Solar
A ground-mounted solar panel system was installed at our plant in Assumption, Illinois that rotates to track the sun throughout the day, maximizing electricity production. The new system is expected to provide approximately 20% of the site’s power requirements.
Harnessing Energy From Engine Testing
At our largest engine manufacturing plant in Linnavuori, Finland, AGCO Power invested in new AC dyno engine assembly test cells to convert energy from our engine testing facility into electricity for its buildings, generating emission reductions of approximately 553,000 kWh.
Reduce the Carbon Emissions of Our Products In-Use
AGCO continues to invest substantial resources in research and development to engineer and deploy advanced technologies and to significantly enhance traditional ones, including continual improvements in vehicle engine and transmission efficiency. In support of this, we are directing our efforts toward projects focused on alternative fuel solutions as well as accelerating electrification, natural gas, hybrid technology and fuel cells. We also are committed in the near term to improving the efficiency of vehicles that rely on the internal combustion engine. AGCO meets and, in many cases, exceeds the local emission standards where we do business. Our engines are Tier 4 compliant in the United States and Stage V compliant in Europe.
Invest in technologies to reduce carbon emissions of products in-use
Reducing NOx Engine Emissions
AGCO pioneered the application of innovative emission reduction technologies to significantly reduce NOx. We were one of the first to adopt Selective Catalytic Reduction (SCR) technology that already meets US EPA Tier 3 standards. SCR systems are highly efficient at treating the engine-out exhaust, significantly reducing NOx emissions, as well as carbon release.
Harness Advances in Vehicle Electrification and Field Agricultural Robotics for Use on Farm
We are piloting a fully electric Fendt® tractor that has market potential in livestock, greenhouse farming and specialty crops as well as municipality applications. We look to further advance this technology to develop battery-powered equipment in other agricultural applications to enable our customers to reduce the CO2 footprint in their production processes. The next step: bringing robust, battery-powered ingenuity into the farmers fields to revolutionize how crops are planted.
Commercial availability of Fendt E100 by 2025
Seed Sowing Field Robots
In Xaver, AGCO has brought sophisticated, autonomous, digital technology into the field. The latest generation Xaver is a battery-powered autonomous field robot that now includes our Precision Planting innovative vSet® seeding technology. Xaver uses 90% less energy when compared to a conventional tractor-implement combination, has zero air and negligible noise emissions and significantly reduces compaction of the soil. Xaver can be operated as an individual unit or as part of a connected swarm of robots by an app connected to the FendtONE operating system.
Grow Remanufacturing and Rebuild Business
AGCO REMAN provides an environmentally sustainable and cost-effective way to replace parts on existing machines, with a solution equivalent to—or better than—replacing with a new part. Because of this, REMAN parts are supported with the same warranty as new parts. As remanufacturing is a value-retention process supporting a circular economy, replacement parts including engines are remanufactured using the returned core material to retain and increase the value of the part.
This value-retention process requires less energy inputs and new raw material as well a reduction in production emissions and waste—up to a 90% reduction. REMAN allows us to provide the same performance and reliability standards to our customers meeting the original manufacturer’s specification at a fraction of the cost of buying new. REMAN’s product offerings include more than 6,200 part numbers globally. AGCO sees tremendous potential in remanufacturing and has set an ambitious goal to grow this business.
Increase Remanufacturing business revenue 150% by 2025
Complete a Global Climate Risk Assessment in 2021
In recent years, unprecedented wildfires, floods, freezes, and storms have put into stark relief how climate risks can reshape the landscape. With the intention of aligning our business with the Paris Agreement and the transition towards a low-carbon, climate-resilient economy, we recognize the need to take climate action and consider the impact of climate change on our business. In 2021, AGCO intends to complete a climate risk assessment aligned with the Task Force for Climate Related Financial Disclosures (TCFD) as a framework for assessing our climate governance, risk, and strategy. Findings will inform AGCO’s climate action goals, ensuring our business is both financially resilient and optimized for growth.
Publish our climate risk assessment in 2021
Integrating ESG into Our Risk Management Framework
In 2020, we made positive steps towards integrating ESG into our enterprise wide risk assessment framework. We expanded the scope of sustainability risks of material significance within our risk categories to include climate change and enhanced environmental protection, as well as adding new human capital risks, such as culture and employee engagement.