Ferrexpo cut direct CO2 emissions by 9% last year

The company continues exploring new alternatives to further reduce emissions

In 2024 Ferrexpo, the London-listed iron ore producer with operations in Ukraine, achieved a 9% reduction in Scope 1 emissions on a unit base, but its overall carbon intensity rose as higher reliance on imported carbon-intensive electricity caused a spike in Scope 2 emissions. This is highlighted in the company’s Responsible Business Report 2024.

Last year Ferrexpo’s absolute Scope 1 emissions increased by 42% y-o-y, to 352.1 ths tonnes CO2e due to an increase in total production driven by renewed access to Ukrainian Black Sea ports. Absolute Scope 2 emissions rose 102% y-o-y, up to 277 ths tonnes CO2e after new Ukrainian regulations mandated that up to 80% of electricity supply should be imported to avoid power outages caused by ongoing Russia’s attacks on Ukrainian energy system. As majority of imported electricity is generated from more carbon-intensive sources compared to cleaner domestic alternatives, this has led to increasing Scope 2 emissions. Scope 1 and 2 emissions combined increased by 64% y-o-y, reaching 629 ths tonnes of CO₂ equivalent.

On a unit base, Scope 1 emissions fell by 9% compared to 2023, driven by improved volume efficiencies. However, Scope 2 emissions rose by 29% due to a higher share of electricity coming from carbon-intensive sources. As a result, total carbon intensity (Scope 1+2) increased by 5% y-o-y.

Absolute Scope 3 emissions, relating mainly to further iron ore processing in steelmaking, grew 55% y-o-y, while unit intensity improved slightly (1.30 vs 1.32 t CO₂ per tonne), supported by increased production of DR-pellets, contributing to lower emissions in steel industry.

Ferrexpo confirmed that its Scope 1 and Scope 2 emissions have been independently verified for the fourth consecutive year, while Scope 3 emissions were assured for the first time in 2024.

The company continues to use sunflower husks as a substitute for natural gas in the pelletising process and is exploring additional biofuel alternatives to further reduce emissions. Ferrexpo also aims to source as much renewable electricity as possible, though these efforts may be constrained by ongoing energy shortages in Ukraine.

As previously reported by GMK Center, Ferrexpo has become the only Ukrainian company included in the Financial Times and Statista’s Europe’s Climate Leaders 2025 list. This is the third consecutive recognition of Ferrexpo among the leaders of climate transformation on the continent. The ranking includes companies that have demonstrated the most significant reduction in greenhouse gas emissions intensity between 2018 and 2023.