Our goal is to become carbon neutral by the end of 2030 for scope 1 and 2 emissions, with 100% of our energy coming from renewable sources. Our scope 1 emissions are those that we produce on site through fuel combustion and refrigerant usage. Scope 2 emissions are those that we indirectly produce through the direct purchase of electricity and steam. Scope 3 emissions encompass a broader scope of indirect sources, such as purchased goods and services and upstream transportation and distribution.
We are identifying opportunities to reduce our scope 1 emissions by replacing fossil fueled equipment with electric and other alternatives. We have added a requirement to include scope 1 emissions criteria as part of our capital expenditure approval process.
We are also focused on reducing our scope 2 emissions by expanding our use of renewable energy resources. We signed a long-term Power Purchase Agreement (PPA) in 2025 to ensure that all our sites in Mexico are powered entirely by renewable energy. We remain committed to exploring renewable energy options across all our regions, with the goal of achieving 100% renewable electricity use at each facility.
