As part of a move to align its operations with the growing need to address the climate crisis, engineering firm COWI announced that it will no longer participate in new tenders for fossil fuel projects.
The decision will enable the Danish multinational consulting and engineering firm to achieve its goal of generating 100% of revenue within the sustainability-related fields within the next three to five years.
Today, COWI is involved in more than 10,000 projects and, owing to investments in clean solutions, reduced greenhouse gas emissions by 55% in 2020 compared to the 2019 level as the company seeks to achieve carbon-neutrality within its operations by 2050.
Commenting on the latest decision made by COWI to not to participate in new tenders within the fossil-fuel industry, COWI Group CEO Lars-Peter Søbye said: “This is one of the strongest statements in COWI history and with the decision not to take on any projects which are accommodating the exploration of fossil fuels from now on, we are accepting the role as one of the frontrunners worldwide within our line of business.”
Søbye, however, admitted that the direction taken by COWI will have an impact on some of its customers, employees, and business. Fossil fuel-related businesses made 5% of the company’s turnover in 2021 whilst 45% of the revenue made came from businesses that are not associated with the green transition, according to the CEO.
COWI says it will honour its current contracts that are within the fossil-fuel business but will maximise its investments and focus on accelerating the energy transition. The company will target areas including offshore wind and green hydrogen for growth opportunities and to beat the negative financial impact of withdrawing from fossil fuel projects.
The CEO added: “This is by far one of the boldest decisions we have made during my +30 years at COWI. But it’s the right thing to do, if we seriously want to tackle the climate crisis.
“Given the ‘EU Green Deal’ and the massive investments planned in the US, around 800 billion euros and around 1.75 trillion US dollars are allocated to investments in the green transition and sustainability. On top of this, pension funds will also invest billions in green energy and infrastructure.
“First of all, we are telling our customers that nothing will change in the short term. We are fully committed to delivering on our promises and the agreements that we already have in place. Second, we fully acknowledge that the world still needs oil and gas, and we must therefore accept that our customers will ask other consultants to help them continue their fossil fuel projects. Third, we will spend most of our time talking about all the other sustainable solutions they need, as they too must accelerate their journey to become a green company.”
COWI is not the first company to announce its transition from fossil fuels as the call for climate action within the energy sector intensifies.
Big companies including bp, TotalEnergies, and Shell are also rebranding and establishing subsidiaries that focus on sustainable businesses thereby highlighting their new business directions.
bp established Lightsource bp which focuses on solar development, Total rebranded to TotalEnergies and is investing in electric vehicle charging infrastructure development and in green hydrogen production and Shell established Shell New Energies which is also investing in renewable energy projects.
