The Task Force on Climate-Related Financial Disclosures (TCFD) was established by the Financial Stability Board in 2015, and focused on improving the reliability of climate related risks and opportunities. The TCFD looks to enable stakeholders to access market transparency of the impact which an organisation has on global climate, in a format which allows easy comparison between different businesses.
We recognise climate change as both a risk and an opportunity for our business, and we fully support the implementation of the recommendations of the TCFD. Climate change poses challenges to our supply chain and production operations, as well as to our employees and customers.
In 2022, we focused on driving our sustainability agenda further into our organisation. We understand that engaging with and inspiring our people to create local initiatives will better enable us to reach our goals.
We are proud of the contribution Morgan is making and in particular the contribution of our people to creating a more sustainable world. For us, sustainability is fundamental to our purpose and our strategy.
Morgan’s greenhouse gas (GHG) emissions are predominantly generated by the combustion of fossil fuels at various stages of our manufacturing processes. Our absolute GHG emissions for scope 1 and 2 were down by 9% in 2022 compared to end of year 2021. This correlates to a 39% reduction compared to our 2015 baseline.
We are also focusing on water reduction in areas of high or extremely high-water stress. Water withdrawal in water stressed areas accounted for 8% of our total water withdrawals in 2022. Water withdrawal and use increased slightly from 2021, due to increased production levels and one-off incidents. Further investment is planned to upgrade key facilities and install new equipment in water stressed areas to reduce water usage and increase water recycling.
Absolute water withdrawal overall was 18% lower in 2022, when compared to our 2015 baseline. Water use in high and extremely high water stressed area is down 34%, when compared to 2015.
Scope 1 and 2 CO2e emissions continue to fall as a result of efficiency improvements and our increased renewable energy procurement. In 2022 we reached the milestone of 49% carbon free electricity. We plan to increase this further in the coming years, with a target of 65% renewable or carbon free electricity by 2025.
Our progress against our ambitions has been recognised by MSCI, Ecovadis and CDP climate change and water security, with our scores improving year on year. We have also received approval for our science-based target initiative (SBTi) targets. In 2021 Morgan committed to the science-based target initiative (SBTi). This commitment drives our governance agenda, including setting targets and monitoring progress against these.