Investors engaging with RWE AG through Climate Action 100+ (UBS Asset Management, Aberdeen, Phoenix Group, MN) have welcomed the company’s progress on its 2030 coal phase-out commitment, having closed six lignite-fired power plant units in 2024. The planned phase-out of lignite-fired generation and the transition from hard coal to biomass are the main drivers to reduce RWE’s Scope 1 emissions by approximately 65 million metric tonnes of CO₂ by 2030 — representing over three-quarters of the company’s baseline emissions.
Investors also welcome the Science Based Target initiative’s (SBTi) validation of the company targets — which cover all corporate activities (Scope 1, 2 and 3 greenhouse gas emissions) — as being aligned with the 1.5°C Paris Agreement goal. The company has committed to reduce 71 % per MWh of its Scope 1 and 2 emissions, and 42 % for Scope 3 emissions by 2030[1]. RWE aims to achieve net zero across all scopes by 2040.
In its latest annual report released in March 2025, RWE announced capital expenditure cuts of EUR 10bn (22 % of previously planned spending between 2025 and 2030), citing increased uncertainties in the policy landscape, specifically in the United States. Moving ahead, the investors continue to engage with RWE on the implementation of its climate transition and coal phase-out plans, recognising the complexities of the energy transition and the importance of supportive policy environments.
Tobias Heck, Lead Climate Change, RWE AG: “The transformation of the energy sector is pivotal in addressing climate change. At RWE, we are committed to meeting the growing energy demand with technologies that are climate-friendly, on the back of investments that deliver both social and economic value. Since 2018, we have already reduced our power plant emissions by half. The Science Based Targets initiative’s confirmation that our 2030 climate targets align with the 1.5-degree pathway is a testament to our dedication and the remarkable efforts of the RWE team in driving the shift toward a sustainable energy future.”
Xander Urbach, Climate Engagement Lead, MN:”As one of the co-lead investors engaging with RWE on behalf of Climate Action 100+ since its outset in 2018, we have been steadfast in our support for the company’s development of its net zero strategy and the 1.5 degrees aligned coal phase-out. The SBTi validation underscores RWE’s commitment to the Paris Climate Agreement. In the dynamic and complex landscape of the energy transition, one thing is clear: European coal power is nearing its end. RWE has demonstrated its ability to collaborate with stakeholders to ensure that the transition away from coal in former coal heartlands is conducted in a secure, just, and science-based manner.”
Maka Indorbaeva, Sustainable Investment Manager, Aberdeen: “We are supportive of the steps RWE has taken to achieve validation from the Science Based Targets Initiative that the company’s GHG emissions reduction targets are aligned with a 1.5C scenario, underpinned by its commitment to phase-out coal by 2030. Its strategic investments in renewables, hydrogen-ready flexible gas generation reinforce RWE’s commitment to expanding its renewable energy portfolio and broader strategy to support the global energy transition.”
Valeria Piani, Head of Stewardship, Phoenix Group: “We are encouraged to see that our sustained and collaborative engagement with RWE through Climate Action 100+ has contributed to meaningful steps toward decarbonisation. We welcome the validation of RWE’s emission reduction targets by the Science Based Targets initiative. This recognition, alongside the company’s continued progress on the phase-out of coal by 2030, underscores the effectiveness of investor engagement in driving climate ambition and corporate accountability. We commend RWE for its commitment and look forward to continued progress on its contribution to a low-carbon and resilient energy system.”
[1] Scope 3 GHG emissions from all electricity sold are to be reduced by 71.1% per MWh over the same period.