Getlink publishes Decarbonisation Margin, a new financial indicator linking financial and carbon emissions performance
Getlink has today published its new “Decarbonisation Margin” indicator which measures the Group’s capacity to adapt to the increasing cost of greenhouse gas emissions under government policies targeting reduction in global warming.
An essential component in the connection between finance and climate protection, the Decarbonisation Margin is calculated by removing future carbon costs in Scopes 1,2 and 3 from the Group’s consolidated EBITDA and demonstrates its climate resilience.
By calculating and publishing a future carbon cost which is not yet applicable to the Group’s activities, using current audited costs, it provides the Group with a simple and transparent forecast of future carbon and financial performance.
In 2022 the Decarbonisation Margin for Getlink group reached the remarkable level of 97% of EBITDA, based on a carbon price of €197/tonne (as recommended by the American Environment Protection Agency). This high level performance demonstrates the low emissions nature of the Group’s activities.
The indicator is also a direct response to political choices in the fight against climate change: the European Fit for 55 plan (which targets a reduction of 55% in greenhouse gas emissions in 2030 compared to 1990), and in the UK to the Net Zero Strategy: Build Back Greener, which both use carbon pricing as their key lever. The Decarbonisation Margin score shows, at a business level, the impact of these policies on financial performance.
Yann Leriche, Getlink CEO, stated: “Carbon emissions are currently considered to be “free” of charge, but for our Group the production of a financial measure which takes account of future carbon costs enables us to learn important lessons regarding the role we can play in climate transition whilst providing a perspective on the sustainability of our ambitions for growth.”
Getlink SE (Euronext Paris: GET) is, through its subsidiary Eurotunnel, the concessionaire of the Channel Tunnel infrastructure until 2086 and operates Truck and Passenger Shuttle services (cars and coaches) between Folkestone (UK) and Calais (France). Since 31 December 2020 Eurotunnel has been developing the smart border so that the Tunnel remains the fastest, most reliable, easiest and most environmentally friendly way to cross the Channel. Since its inauguration in 1994, more than 481 million people and 99 million vehicles have travelled through the Channel Tunnel. This unique land link, which sees 25% of trade between the Continent and the United Kingdom, has become a vital link reinforced by the ElecLink electrical interconnector installed in the Tunnel, which helps to balance energy needs between France and the United Kingdom. Getlink complements its sustainable mobility services with its rail freight subsidiary Europorte. Committed to "low-carbon" services that control their impact on its environment (through its activities the Group avoids the equivalent of 1.4 million tonnes of CO2 per year), Getlink has placed at the heart of its concerns the place given to people, nature and places.