DP World to invest $500m over five years to reduce carbon emissions

DP World intends to invest up to $500m to cut carbon emissions from its operations by nearly 700,000 tonnes over the next five years. The planned reduction in carbon emissions by nearly 700,000 tonnes reflects a 20 per cent cut from the levels in 2021.

Sultan Ahmed Bin Sulayem, DP World chairman and group CEO, made the announcement by video to delegates attending the United Nations Climate Conference (COP 27) in Sharm El Sheikh, Egypt.

The company plans to reduce emissions by replacing its global fleet of assets from diesel to electric, investing in renewable power and exploring alternative fuels.

Bin Sulayem said: “Our World, Our Future’ is our sustainability strategy, one that is designed to deliver responsible operations. We have already committed to becoming a carbon-neutral enterprise by 2040 and net-zero carbon enterprise by 2050. We will work with our global partners to develop an action plan to advance the goals of the GSC and encourage industry players to devise plans to address climate change.”

He added: “We’re doing this through three main pillars of activity; the electrification of our ports and terminals equipment, investment into renewable energy and research and development projects that will look into alternative fuels, vessels, and vehicles across our portfolio.

“Our ports and terminals business is making steady progress, by following the strategy of maximising efficiency, equipment electrification, supply of renewable electricity, low carbon fuels, and carbon compensation.”

Our UAE business has reduced its energy consumption by 32% in just a single year, saving a huge 17,000 tonnes in annual CO2 emissions. Thanks to our UAE team for their dedication, as we continue to chart our path towards net zero. pic.twitter.com/Z133mdVQ9A

— DP World (@DP_World) November 2, 2022

During his announcement, Bin Sulayem also reiterated DP World’s commitment to sustainability by taking on the Green Shipping Challenge (GSC).  Launched earlier this year, the challenge encourages countries, ports, companies, and other actors in the shipping value chain to come forward with concrete announcements to further ocean-based climate actions.

In January, DP World entered a strategic partnership with the Mærsk Mc-Kinney Møller Centre for Zero Carbon Shipping, an independent, not-for-profit organisation, to find practical ways to decarbonise the global maritime trade industry.

“Decarbonising the maritime industry requires the complete rewiring of the entire system, imagining new supply chains and structures. It is a huge undertaking, but one that we are ready to venture into. We bring extensive expertise in integrated logistics and infrastructure, and deep understanding of the complexity faced by the industry, having grown from a local port operator in Jebel Ali to an end-to-end supply chain solutions provider, moving around 10 percent of global cargo,” Bin Sulayem added.

DP World is also working with local communities where it operates to establish carbon offset schemes, and carbon sinks such as mangrove forests.