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Fortescue aims for carbon neutrality 10 years ahead of target

March 15 (Reuters) - Australia’s Fortescue Metals Group said on Monday it will aim to become carbon neutral by 2030, 10 years ahead of its earlier target, and tie pay across the company to emission-based targets.

The announcement comes as a swathe of companies have vowed in recent times to promote the use of clean, renewable energy, while investors increasingly clamour for accountability to ensure firms disclose, track and meet emissions targets.

The world’s fourth-largest iron ore miner said it will incorporate carbon emission targets into its formal remuneration structure, including short and long-term incentives across the company.

Fortescue said it will focus more on green energy and that its unit Fortescue Future Industries will develop green electricity, green hydrogen and green ammonia projects in Australia.

Green hydrogen is a zero-carbon fuel made by electrolysis, using renewable power from wind and solar to split water into hydrogen and oxygen. It is increasingly being touted as a way to decarbonise emissions-intensive heavy industry and transport sectors.

“While our green energy and industry initiatives may one day significantly outscale our iron ore business due to the global demand for renewable energy, our commitment to iron ore and resources globally remains indefeasible,” Chairman Andrew Forrest said. (Reporting by Shashwat Awasthi in Bengaluru; Editing by Sam Holmes)

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