Net Zero by 2039: How JLR Tackles its Sustainability Goals

Carbon net zero by 2039 is an anchor of JLR’s Reimagine strategy, driving the business to transform across its full value chain. 

The company’s FY24/25 Annual Report and Sustainability Strategic Report shows that it is making progress across ESG. 

JLR’s Scope 1 and 2 greenhouse gas emissions increased by 1.5% and 0.3% respectively compared to FY23/24, a total 23.4% reduction compared to its FY19/20 baseline. 

However, the report says that this remains 3% ahead of the required SBTi strategy to be aligned to a 1.5°C pathway. 

Part of this increase, JLR says, is due to its strategic prioritisation of on-site renewables, moving the company away from purchasing Renewable Energy Certificates and increasing its market-based Scope 2 emissions.

“Delivering Reimagine is about becoming a more sustainable modern luxury business,” Andrea Debbane, Chief Sustainability Officer at JLR, shared on LinkedIn.

“It means minimising our environmental impact and giving back to communities so they can thrive.

“Our colleagues have also been using their passion, creativity, pioneering mindset and expertise to make a positive impact on the communities in which we operate.”

JLR’s environmental performance

Despite its increase in GHG emissions, JLR is working on a number of projects to reduce its environmental impact going forwards. 

Key initiatives include energy-saving projects such as optimising paint shop ovens in Slovakia, installing intelligent compressed air systems in China and significant upgrades to lighting across UK facilities. 

It has invested in on-site renewable energy, with 18MW of ground-mounted solar panels being installed at its Gaydon site and nearly 20,000 photovoltaic panels at Halewood.

The company’s decarbonisation strategy also extends to its product portfolio. 

JLR says more than 75% of its net zero in-scope emissions originate from vehicles in use. 

To address this, it aims for all of its brands to offer a pure-electric option by 2030 and to achieve zero tailpipe emissions by 2036. 

In FY24/25, the growth in plug-in hybrid and battery electric vehicles as a share of total sales contributed to a 6.7% reduction in use-phase emissions per kilometre compared to the FY19/20 baseline. 

The company’s Scope 3 emissions per vehicle fell to 60.51 tonnes CO₂e, a 2.8% year-on-year decrease and nearly 6% lower than the baseline year.

Circular economy and resource efficiency

JLR’s circularity strategy is built around three pillars: 

• Enabling circular value through collaboration and innovation
• Maximising resource reuse and recycling 
• Enhancing product longevity.

Its Circularity Lab serves as a hub for cross-disciplinary teams to disassemble and analyse vehicles and components, working alongside suppliers and external partners to identify barriers and opportunities for increased recyclability. 

In FY24/25, the Lab led efforts to at least double the recycled content in new products. 

JLR’s Sustainability Innovation Challenge, part of its Open Innovation Programme, attracted global interest from entrepreneurs and academics. 

The winning project, Genomines, proposed extracting nickel through botanical cultivation, offering a potential alternative to traditional mining. 

Runners-up included Circu Li-ion, focused on battery circularity, and Aircela, developing direct air capture e-fuels. 

JLR also reduced its waste generated by 5.18% compared to FY23/24, an average reduction in waste of just more than 1kg per vehicle. 

Social impact and responsible supply chains

JLR says its procurement and engineering teams have worked closely with suppliers to increase the use of recycled and low-impact materials, particularly in steel and aluminium supply chains. 

In FY24/25, more than 80% of high-impact sourcing projects were below their CO₂e targets or had mitigation plans in place.

JLR is also supporting broader decarbonisation initiatives such as HyNet, a UK government-backed project to develop low-carbon hydrogen infrastructure. 

The use of hydrogen at sites like Halewood could further reduce Scope 1 emissions, supporting the company’s net zero ambitions and contributing to regional economic development.

JLR is also focussed on social impact through its Engage for Good pillar.

This focuses on supporting youth futures, reducing inequalities and aiding vulnerable communities, reflecting the company’s belief that sustainability is not only about environmental stewardship but also about creating positive social value.

It launched the JLR Foundation, dedicated to empowering children and young people and catalysing social and environmental change. 

Adrian Mardell, CEO at JLR, said in the report: “JLR is committed to donating millions to the JLR Foundation, pledging up to £2.5m (US$3.3m) to support its charitable work in the first year, with plans to increase funding annually as the Foundation grows.”

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