Performing with impact to create long-term value

What are the takeaways from Air Liquide’s 2024 performances?

Jérôme Pelletan: We can be proud of the Group’s financial performance. We achieved solid results in a difficult market environment, once again demonstrating the strength of our business model. Our investment decisions are at record levels and passed the € 4 billion mark once again this year. Despite the challenging conditions, business opportunities abound, with investment potential running to several billion, particularly in the energy transition and electronics. The Group’s outlook holds significant potential.

Diana Schillag: Our extra-financial performance was equally impressive. By decreasing our CO₂ emissions by more than 11% relative to 2020 following three years in a row of reductions, we again reasserted our ability to combine financial growth with lower emissions. We published our first Climate Transition Plan, which details our strategy and the levers that will enable us to reach carbon neutrality by 2050. In terms of diversity, we are making progress toward our ambition of reaching 35% women among managers and professionals by 2025. To achieve this, we implemented a series of targeted initiatives in our geographies. On the social front, we achieved our objective of rolling out a common basis of care coverage one year ahead of schedule, guaranteeing each and every one of our 66,500 employees access to a minimum set of benefits that go beyond local regulations. Finally, we prepared the first round of CSRD⁽¹⁾ reporting. This was a major team effort and forms part of a long-term shift to increase the clarity and transparency of sustainability disclosures.

How do you link financial and extra-financial targets?

J.P.: In 2022, we launched ADVANCE, our strategic plan, which ties financial and extra-financial objectives closely together and sets out an ambitious trajectory combining sales growth, profitability, and a reduction in CO₂ emissions. On the last of these points, our goals are clear: we want to reduce our Scope 1 and 2 CO₂ emissions⁽²⁾ by 33% by 2035 and be carbon neutral by 2050. To do this, we are decarbonizing our operations by using low-carbon electricity, making our plants more energy efficient, and deploying our CO₂ capture technologies. At the same time, we are developing low-carbon solutions to support our customers in their own transitions. We believe that, to have a positive impact, it is critical to perform well financially, because our credibility is linked to our ability to fund our investments – including in the energy transition – and to continue operating over the long run. The same goes on the sustainability front, where our commitments bind us, while simultaneously being a source of shared progress, motivation, and pride.

In today’s environment, what are your strategic priorities for sustainable development?

D.S.: Our commitments to the environment, health, and society remain intact. The economic, geopolitical, and even regulatory landscape is shifting, certainly, but we remain ambitious and engaged, taking the long view that is our hallmark. While political climates can be hard to read and trends may vary regionally, Air Liquide has investment opportunities related to the energy transition in all geographies. In this context, we act with discernment and agility, adapting our approach to local specificities to maximize our impact. Our global presence, combined with our local roots, which keep us close to the needs of our customers, gives us valuable resilience. In addition, we are convinced of the role that large companies must play in meeting society's expectations, particularly in times of uncertainty. Our Group actively contributes to providing answers to contemporary challenges, as it has always done, by offering concrete and useful solutions.

How much do sustainability objectives influence the Group’s investment decisions?

J.P.: At Air Liquide, we take a responsible approach to investing. Every new project is assessed based on its business performance and its environmental impact. Since 2022, our investment decisions have factored in both the future financial returns of projects and their CO₂ footprints. We have set up a specific governance process to monitor our emissions reduction goals by allocating carbon budgets to each region, just as we do with investment budgets. This is helping us to stay on track, anticipate risks, and take opportunities linked to the transition to a low-carbon industry, by prioritizing projects with positive impact.

What is the Group’s strategy to combine growth and impact?

J.P.: Our vision is based on sustainable growth that combines profitability with value creation over the long term. The Group’s growth drivers, which include the energy transition, healthcare, and electronics, remain at the heart of our strategy. We are investing in the production of low-carbon, renewable hydrogen and in CO₂ capture solutions to reduce global emissions attributable to our own industrial processes as well as those of our customers. In semiconductors, we will continue to leverage our leadership position in the sector to support technological progress and the exponential rise of artificial intelligence, whose growth will be driven by mounting demand for next generation chips. In healthcare, we are pursuing initiatives to respond to the growing needs of the sector, delivering ever more personalized care solutions to the many patients treated at home and in hospital settings. We are therefore clearly positioned in growth markets where our solutions and technologies can make a positive contribution, thanks to the expertise and incredible dedication of our talented teams.

D.S.: At Air Liquide, we measure our success by our financial performance and by our ability to have a positive impact on the planet and society. Our molecules and technological solutions are vital to meeting the great challenges of our time. From fighting climate change to accelerating the energy transition, from building more resilient healthcare systems to improving the care delivered to patients, Air Liquide has a decisive part to play, alongside our customers and society as a whole. We know that a collective effort is needed to make the shift. Air Liquide is determined and already at work to seize opportunities, bring stakeholders together, and generate a positive impact for industry and wider society.