Carbon and climate - Sugar

ABF Sugar aims to reach net zero greenhouse gas emissions across its entire value chain by 2050.

British Sugar engineers with the boilers for the animal feed dryers at our factory in Wissington, UK. British Sugar engineers with the boilers for the animal feed dryers at our factory in Wissington, UK.

Climate change is affecting ABF Sugar, with changing weather patterns, extreme events, and the increasing lack of water security. To address these challenges, the division is seeking solutions to reduce its carbon footprint, understand its emissions across Scope 1, 2 and 3, and drive innovation in agriculture, transportation, and manufacturing sites.

ABF Sugar aims to reach net zero greenhouse gas emissions across its entire value chain by 2050. To reach this goal, it has set ambitious targets to reduce Scope 1, 2 and 3 and FLAG (Forest, Land and Agriculture) GHG emissions by 2030. These targets, including its net zero commitment, have been validated by the Science Based Targets initiative (SBTi).

Every ABF Sugar business has developed a plan to reduce carbon emissions as part of their five-year strategy. This plan is based on a thorough analysis and is tracked using the ABF Sugar decarbonisation dashboard. The dashboard brings together all decarbonisation plans and aligns them with the science-based targets set by ABF Sugar, allowing teams to focus on important areas and monitor progress. Monitoring progress against these decarbonisation plans is crucial for improving performance and will influence decisions about where to allocate resources and capital investments in each business. 


GHG emissions, energy and renewables 

ABF Sugar is working on projects to support the transition to a low-carbon economy. These projects focus on energy efficiency, switching to renewables, and the implementation of process improvements.

Compared with 2023, ABF Sugar’s energy consumption decreased by 2% in 2024 from 17,804 GWh to 17,534 GWh. The amount of renewable energy consumed decreased by 4% from 11,550 GWh in 2023 to 11,109 GWh in 2024. Renewable energy as a proportion of total energy decreased from 65% to 63%. The majority of this renewable energy comes from bagasse, the renewable plant-based fibre that remains after the juice is extracted from the crushed sugar cane stalks.

ABF Sugar remains focused on reducing Scope 1 and 2 emissions, which accounts for 31% of its overall GHG emissions footprint. This effort resulted in a reduction of approximately 493 ktCO2e, representing a 18% decrease compared with its 2018 baseline. British Sugar, the largest contributor to ABF Sugar’s Scope 1 and 2 GHG emissions, has reduced its emissions by 21% from the baseline year. 

Comparing 2024 with the prior year, ABF Sugar increased by 5% its Scope 1 and 2 GHG emissions from 1,973 ktCO2e in 2023 to 2,072 ktCO2e in 2024. The increase is as a result of Vivergo (our bio-ethanol plant) returning to near full operating capacity, British Sugar contending with the operational challenges due to difficult wet weather conditions and Azucarera processing more sugar beet.

Total energy consumed and proportion from a renewable source
(GWh)

energy consumed

Scope 1 and 2 (location-based) GHG emissions
(000 tonnes of CO2e)

scope 1 and 2

A crucial component of ABF Sugar’s decarbonisation strategy is replacing fossil fuels with low-carbon alternatives, particularly in Europe and South Africa. In South Africa, the Sezela and Noodsberg factories have reduced coal use in boilers by optimising the use of bagasse, a byproduct of sugar cane processing. 

Combined heat and power plants (CHP) are used across many of ABF Sugar’s sites to provide the necessary steam and electricity throughout the sugar-making process. By efficiently generating its own heat and electrical energy, the business is reducing its carbon emissions and impact on the environment. The surplus electricity is fed back to the national grid in the UK, Spain and Eswatini.

ABF Sugar has a roadmap outlining projects that are delivering impact today and that will continue to deliver key savings up to and beyond 2030, in order to achieve its GHG reduction commitments. Initiatives that have already been implemented include mechanical cane harvesting, heat recovery, steam reduction and renewable energy Power Purchase Agreements (PPAs). Towards 2030, the focus will shift to carbon capture projects, efficient drying processes, fuel switches and implementation of new farming systems. Beyond 2030, ABF Sugar plans to explore hydrogen use and further develop biomethane production and anaerobic digestion technologies.

British Sugar, the largest contributor to ABF Sugar’s Scope 1 emissions, achieved a 21% reduction in Scope 1 emissions compared with the baseline year of 1,024 ktCO2e, reducing total Scope 1 emissions to 807 ktCO2e for the year ending July 2024. Initiatives such as the energy reduction scheme at the Wissington site, which aims to cut steam usage by 25%, and ongoing investments in pulp pressing improvement processes across multiple sites, have contributed to a significant reduction in Scope 1 emissions.

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Case study - ABF Sugar

ABF Sugar’s SBTi-validated target

One of our Azucarera employees demonstrating the Visor crop monitoring platform to a sugar beet farmer on his farm, Spain One of our Azucarera employees demonstrating the Visor crop monitoring platform to a sugar beet farmer on his farm, Spain

Overall net-zero target

ABF Sugar commits to reach net-zero greenhouse gas emissions (GHG) across the value chain by 2050. 

 

Near-term targets

Energy and Industrial

  • ABF Sugar commits to a 52% reduction in absolute Scope 1 and 2 GHG emissions by 2030 from a 2018 base year*.  
  • ABF Sugar also commits to a 30% reduction in absolute Scope 3 GHG emissions from purchased goods and services, capital goods, fuel and energy-related activities, upstream transportation and distribution, waste generated in operations, business travel, employee commuting and downstream transportation and distribution within the same timeframe. 

*The target boundary includes biogenic land-related emissions and removals from bioenergy feedstocks.

Forest, Land and Agriculture (FLAG)

  • ABF Sugar commits to reduce absolute Scope 1, 2 and 3 FLAG GHG emissions 36.4% by 2030 from a 2018 base year*.  
  • ABF Sugar also commits to maintain no deforestation across its primary deforestation-linked commodities.  

*The target includes FLAG emissions and removals.

 

Net-zero targets

Energy and Industrial

  • ABF Sugar commits to reduce absolute Scope 1 and 2 GHG emissions by 90% by 2050 from a 2018 base year*.  
  • ABF Sugar also commits to reduce absolute Scope 3 GHG emissions by 90% from purchased goods and services, capital goods, fuel and energy-related activities, upstream transportation and distribution, waste generated in operations, business travel, employee commuting and downstream transportation and distribution within the same timeframe.  

*The target boundary includes biogenic land-related emissions and removals from bioenergy feedstocks.

Forest, Land and Agriculture (FLAG)

  • ABF Sugar commits to reduce absolute Scope 1 and 2 FLAG GHG emissions 90% by 2050 from a 2018 base year*.  
  • ABF Sugar also commits to reduce absolute Scope 3 FLAG GHG emissions 72% by 2050 from a 2018 base year*.  

*The target includes FLAG emissions and removals.

Case study - British Sugar

British Sugar decarbonising operations

British Sugar engineers with a new evaporator that is helping to reduce GHG emissions at our factory in Wissington, UK British Sugar engineers with a new evaporator that is helping to reduce GHG emissions at our factory in Wissington, UK

British Sugar has established a decarbonisation strategy to significantly reduce its Scope 1 and 2 emissions by 2030. The business has implemented a range of projects focusing on energy efficiency, renewable resources and fuel switching.

From the baseline year of 2017/18 through to 2023/24, British Sugar invested approximately £96 million in these initiatives, achieving a cumulative reduction of around 162,000 tonnes of CO2e.

At the Wissington site, the installation of additional evaporators, heat exchangers and other equipment significantly lowered steam usage, reducing emissions by 30,000 tonnes of CO2e annually and reducing process steam demand by 25%. Additionally, Wissington integrated an Air Liquide CO2 capture plant, utilising the CO2 from bioethanol production and reducing total Scope 1 emissions of the site by approximately 5%. Also, performance improvements to gas turbines at Wissington have reduced emissions by 10,407 tonnes of CO2e.

Across all sites, ongoing investment in pulp pressing processes has improved the efficiency of animal feed drying, reducing energy consumption. Fuel-switching projects at Newark and Bury have transitioned dryers to operate on natural gas, displacing higher carbon-emitting fuels. Similarly, the Cantley site’s shift from heavy fuel oil to natural gas has reduced carbon emissions by 1,422 tonnes of CO2e.

Upgrades at the Bury site, including replacing older slicer machines, have improved cossette quality and reduced water usage, leading to a reduction of 20,242 tonnes of CO2e due to decreased evaporation demand in the sugar extraction process.

Looking ahead, British Sugar is set to further its decarbonisation efforts with key projects at the Cantley and Bury sites. The Cantley site will see the introduction of a new modular gas-fired Combined Heat and Power (CHP) plant, scheduled for full operation by 2025. This plant, which will replace the existing coal boiler, is expected to reduce carbon emissions by around 16,000 tonnes of CO2e annually. The Bury energy reduction project, already underway, aims to mirror the success of similar initiatives implemented at Wissington, with an anticipated reduction of approximately 20,000 tonnes of CO2e per year once fully operational.

Case study - ABF Sugar

Scope 1 and 3 GHG emissions from forest, land and agriculture (FLAG)

Cane fields on the Ubombo sugar estate in Eswatini Cane fields on the Ubombo sugar estate in Eswatini

As part of its science-based targets, ABF Sugar has developed new targets covering Scope 1 and Scope 3 emissions from forest, land and agriculture activities. It is also developing plans at business unit level and gaining a deeper understanding of the emissions factors linked to its agriculture activities.

As the sugar industry faces the effects of climate change, ABF Sugar is focusing on building resilience at its own estates and with its farming partners. The aim is to maintain yields and improve them in the medium term where possible.

ABF Sugar has identified synthetic nitrogen fertilizer and field movements as the two highest sources of emissions within its agricultural operations and supply chain. Given that maximising yield is central to ABF Sugar’s agricultural strategy, reducing GHG emissions from these areas is a priority to support its ambition to maintain and improve yields. For instance, minimising field movements preserves soil structure, enhances water retention, improves air circulation and boosts organic matter, all of which contribute to better yields. Proper application of synthetic nitrogen at optimal times in the growing cycle is essential for maintaining or increasing yields.

In addition to fertiliser management and field movements, other factors affecting yield include moisture management (irrigation scheduling), timing of operations, planting at the right time, crop management and integrated pest management. Efficient use of land through best practices that maximise yields is vital for maintaining the current land footprint while expanding high-yielding crops using sustainable and regenerative agricultural principles.

Case study - Vivergo Fuels

Vivergo delivering energy savings

The Vivergo Fuels plant in Hull, UK, which converts surplus non-food-grade wheat into bioethanol and animal feed The Vivergo Fuels plant in Hull, UK, which converts surplus non-food-grade wheat into bioethanol and animal feed

Since recommissioning in 2022, a process of plant optimisation and planning efficiencies has driven substantial improvements in the energy performance of the Vivergo Fuels plant. In 2024, it has seen a 16% reduction in electricity, steam and gas usage per tonne of products made compared 2023. 

In addition, Vivergo is working with partners to explore the opportunity to displace natural gas consumed in the manufacturing process with Green Hydrogen. There are currently several projects in development in the Humber region dedicated to producing hydrogen and replacing existing sources of GHG emissions.

Case study - ABF Sugar

ABF Sugar’s transition plan

British Sugar's factory at Wissington, UK British Sugar's factory at Wissington, UK

Recognising its role in transitioning to a low-carbon economy, ABF Sugar formalised its climate transition plan, laying out the strategy for meeting its GHG emission reduction targets.

Governance

The ABF Sugar CEO and Business Unit Managing Directors are responsible for overseeing the transition plan developed to achieve the SBTi commitment, climate-related risks, opportunities and the overall strategy. Throughout the year, an increased number of cross-functional meetings have been held to ensure transition plans are progressing against targets. 

To ensure plans will be delivered and GHG emissions and monetary savings captured for all projects, ABF Sugar has developed a central system that provides up-to-date carbon information and categorises projects that will contribute to GHG emission reductions. Through this system all ABF Sugar businesses can track progress against targets and monitor their savings. 

Progress on projects contributing to the science-based targets is monitored by a defined governance structure through the establishment of a dedicated function: the Results Delivery Office. The CEO and Business Unit Managing Directors review the progress on each of the projects on a quarterly basis. The review aligns with the investment capital plan and Performance Improvement Programme of each business.  

The ABF Sugar executive team conducts regular meetings to monitor and review progress against the strategic five-year plan. Typically, three key strategy meetings take place each year:

  • Long-Term Strategy Review: The ABF executive team visited a business, gaining a deep understanding of its strategy and the status of its execution. 
  • Assumption and Parameter Alignment Meeting: In this meeting, the Finance Director, Business Intelligence team, Managing Director, and Transformation team monitor progress of fundamental KPIs, assessing how the business plans to achieve its targets. 
  • Five-Year Strategic Plan Meeting: This meeting focuses on the affordability and prioritisation of the strategic plan, ensuring that all proposed initiatives are realistic and achievable within the set timeframe. 

There are also regular meetings held between ABF Sugar and the ABF Group. These act as a forum to discuss climate-related issues, including progress on climate commitments, GHG reduction roadmaps and any additional risks or opportunities identified.

Risk management 

The CEO and Business Unit Managing Directors are accountable for effective risk management. The process for identifying, assessing, and managing climate-related risks is the same as for other risks and sits with the business where the risk resides. Each business within ABF Sugar develops action plans through a well-established governance process that examines each performance improvement proposal against internal criteria. These plans are then approved by the ABF Sugar CEO and Business Unit Managing Director.

Strategy, metrics and targets 

The current five-year planning process, initiated in 2023, involves each business unit analysing its risks and opportunities while determining the necessary approach to achieve the group science-based targets. With the guidance of relevant Group Functional Directors and facilitated by the Chief Transformation Officer, all businesses are crafting transition plans aligned with their respective five-year strategies. These plans underwent endorsement by the ABF Sugar executive team in July 2024 and subsequent ratification by the ABF board in September.

In working towards reducing GHG emissions for Scope 1 and 2 for Energy and industry, ABF Sugar has categorised proposed plans and projects into three timeframes: 

  • Immediate term: focusing on reducing operation GHG emissions, investing in energy efficiency with the aim of reducing energy consumption and eliminating the use of coal; 
  • Short-term (to 2030): targeting key sites and pairing them with key technological resources; and  
  • Long-term (to 2050): focusing on employing low emission technologies, managing climate-related risks across the value chain, and partnering to innovate at factories across the business.  

ABF Sugar will not be utilising carbon offsets in its decarbonisation strategy. 

The FLAG targets are new for the division in Scope 1 and 3 and include those emissions related to agriculture use. ABF Sugar is building plans at each business unit level based on previous programmes of work and the more detailed understanding of emissions factors. The two highest areas of emissions are synthetic nitrogen fertiliser and movements in the field. Action on these areas is the company’s top priority and will support its ambition to maintain and improve yields.

Emission reduction plan

Looking forward, there is a strong pipeline of accretive GHG reduction projects. Each business has their own environmental plan which has been categorised between short and long term.  
To achieve the targeted emissions reduction, each business will focus on the following areas:

 

Energy and Industrial – short-term: 

  • British Sugar: projects focus on smaller factory energy efficiency/steam reduction, coal elimination and reduction of energy use for pulp drying; 
  • Our sugar businesses in Africa: projects focus on energy efficiency and coal elimination/ reduction in RSA and green cane harvesting; and 
  • Azucarera: projects focus on factory energy efficiency and automation as well as a specific Guadalete project. 

Energy and Industrial  – long-term:   

  • British Sugar: projects focus on technological advancements for factory energy efficiency/steam reduction and alternate pulp drying technologies; 
  • Our sugar businesses in Africa: projects are aligned to those in the short term. However, the technology is yet to be developed; and 
  • Azucarera: projects focus on alternate fuel projects. However, current regulations present a challenge now. 

In FLAG, businesses have developed plans targeting both yield improvements with carbon reductions. 

FLAG – short-term (2023-2025 growing cycle): 

  • Azucarera: water and nitrogen reduction through precision agriculture tools; 
  • British Sugar: reducing synthetic nitrogen fertiliser for our ‘Self-Grow’ segment and reducing impurities pilot;  
  • Illovo Sugar Zambia: Nakambala New Farming System and trials reducing nitrogen; and   
  • Illovo Sugar Eswatini: rolling out the new farming system, chopper harvesting efficiency and ratoon management activities.  

FLAG – long-term (2025 onwards): 

  • Azucarera: increase yields thanks to the ‘net beet project’ which consists of sustainable fertilising, efficient irrigation, optimal crop timing and soil health surveillance using predictive tools; 
  • British Sugar: deliver plan to improve yield; 
  • Illovo Sugar Zambia: Nakambala New Farming System; and   
  • Illovo Sugar Eswatini: rolling out the new farming system, chopper harvesting efficiency and ratoon management activities. 

Projects supporting carbon reduction (Energy and Industrial )

ABF Sugar has a continued focus on Energy and Industrial Scope 1 and 2 as this is the most material risk to the business and is an area of significant spend. In 2023/24, ABF Sugar spent approximately £73m on 39 approved projects. To date, 30 of these projects have contributed a saving of 53,721 tCO2e. For its five-year plan, ABF Sugar is planning to spend 6% of its planned capex to support climate change strategy and ESG initiatives. 

Projects supporting carbon reduction

Entity British Sugar – Bury
Project Decarbonisation steam reduction [Phase 1]
Description This project replaces four existing Roberts type evaporators with three new falling-film type evaporators. This will realise a significant reduction in LP liquid prolene gas burn for sugar manufacturing (approx. 25%) as well as increasing engineering reliability of the station. The second main element of the project will be to upgrade the Raw Juice Heating Station. This project will replace the station as a whole, eliminating the planned essential replacement plan spend, and will allow the factory to realise the full gas burn reduction of the three new evaporators as well as improving engineering and process reliability of the site.
Year of approval 2023/24
tCO2e saving 19,822
Target project close-out date December 1, 2026

 

Entity British Sugar – Cantley
Project Provision of modular steam and power
Description This project will re-establish a steam generation capacity of up to 60 t/hr at the Cantley Factory to meet a range of business requirements within upcoming Medium Combustion Plant Directive emission limits. The low-pressure ‘modular technology’ utilised will deliver process/maintenance simplification, improve process safety, as well as enable operational effectiveness through ‘Industry 4.0’ methodology.
Year of approval 2023/24
tCO2e saving 16,460
Target project close-out date September 1, 2025

 

Entity Azucarera – Guadalete
Project Pre-scalders and 6th evaporation effect
Description This project reduces the global energy consumption of the Guadalete factory through the installation of pre-scalders, and implementation of evaporators. In turn, this will improve the heating steam scheme.
Year of approval 2023/24
tCO2e saving 5,202
Target project close-out date Completed

 

Entity Illovo Sugar – Sezela
Project Steam traps replacement on juice heaters
Description Over the years, the steam traps on the juice heaters were replaced with non-return valves (NRVs) which has caused excessive steam wastage. The ideal opportunity is to reinstate the steam traps on the juice heaters to allow energy savings to be made. It would look at installingwill install x13 steam traps on the various heaters and these will be placed before the NRV to ensure the energy is captured. In turn, this will reduce energy and save coal use within the Sezela heaters area.
Year of approval 2022/23
tCO2e saving 3,605
Target project close-out date July 17, 2023

 

 

Entity Azucarera – Miranda
Project Energetic improvements APRO [Phase 1]
Description The objective of the project is to modify the heating of the raw juice, improving the use of the pan vapours and reducing the consumption of steam in the heating of the purification stage.
Year of approval 2023/24
tCO2e saving 1,200
Target project close-out date December 1, 2025

 

Entity Illovo Sugar – Ubombo
Project Entry-level housing upgrade [Phase 8 – 15]
Description The project involves the phased upgrading of staff housing at agricultural and industrial villages to comply with the minimum Illovo Group entry-level housing standards. As part of the project, houses for employees at Nyetane, Majombe and Shonalanga villages will be electrified to eliminate the usage of domestic coal within the villages
Year of approval 2023/24
tCO2e saving 1,177
Target project close-out date August 12, 2024

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