Good morning. 5 years ago, our organization embarked on a journey to establish a new mission and vision. And to me, that journey starts with asking ourselves the question, what is our purpose? Why do we exist as a company? And by asking ourselves that question, Involving a broad part of our organization and talking with external stakeholders, we concluded with a mission which is to responsibly feed the world and protect the planet.
And it is that duality of growing more food, but at the same time looking after the planet which drives our organization every day. And I believe that all of our 17,000 employees not only are able to state what our mission is, but to live that mission. And today, we are really excited to show you how we as an organization are taking significant steps towards a carbon neutral future. But first, let me set the scene by mentioning a few companies that are very familiar to all of you. Walmart just announced that they will become a regenerative company.
Unilever has set an ambition to become carbon neutral by 2,030 9 and Nestle has made commitment to become net 0 emissions. And what do all these companies have in common, and I could mention several more as well, while all of them work together with Yara to achieve these ambitions. And all of them, including Yara, Need to work according to sustainable development goal number 17, partnerships for the goals. We will only be able to achieve this if we think and work across the whole value chain from farm to consumer. Let me also take the broader view with the European Green Deal and the Farm to Fork strategy embedded in that and the fact that 30% of the economic recovery plan is earmarked sustainable action.
Let's look at Japan with their ambition for 0 emissions. And China and South Korea are doing the same. And what about the U. S? Well, The U.
S. Is rejoining the Paris Accord. So food companies want to reduce carbon emissions, Governments want more sustainable food and consumers want to know how the food is produced so that they can make the right choices when they are in the supermarket. And I believe that at the center of this It's the farmer. And we need to think about the farmer as the guardian of the soil.
And Yara, Through our farmer centric approach, we can help to enable this throughout the value chain. This is what we are positioned to do, And this is the promise that we will deliver on. To be direct, If you believe that fertilizer is just a commodity and that Yara is just Another commodity player and that government regulation will not impact our industry and that consumers don't care, well, then we will have a lot of news for you. But we do hope that you will spend the next 2 hours with us to listen to our perspectives. If, On the other hand, you believe in the push to decarbonize food and you believe that the fertilizer industry will be impacted as a result of this, You have definitely come to the right place, and I fully expect that you will find the next 2 hours to be both exciting and engaging.
Today, we will show you how we're broadening our core as a leading food solutions company with significant value creating potential. We will show you how we are ready to lead the way as the ammonia champion in the hydrogen economy and how we will drive sustainable performance, improving returns, reducing emissions while maintaining strong capital discipline. Our agenda today follows these main themes. And you will hear from 2 external speakers, Paul Paulman and Richard Mayfield, as well as several members of my management team at Yara. All over the world, consumers, retailers, Food companies, farmers, regulators and governments are all driving towards a common goal, The goal of climate neutral food.
But the question is, how do we get there? Well, first of all, agriculture has a major role to play, representing about 20% of greenhouse gas emissions. And secondly, it's about making better use of the land. About half of the emissions come from the change of land use. And getting farming right, We can reverse that.
We can turn farmland back into nature and through that abate emissions and also have a positive impact on biodiversity. Let's look at an example. Yara's products already contributed to lower the global carbon footprint of food. 1st, through more efficient operations, meaning that the emissions of our products are significantly lower than the global average. 2nd, our premium products are more efficient, meaning that they have lower emissions in the field.
Finally, our products enable farmers to produce more food per hectare of land and through that preserve forests as natural carbon sinks and ultimately reverse land use change. At this point, I would like to introduce to you Paul Polman, one of the first People I reached out to after starting in Iara in 2015 was Paul at Unilever. He wasn't necessarily the first one to embed sustainability into a company strategy, but no one had done it at his scale before. And then I'm not only talking about the size of Unilever, I'm talking about the impact that he has had on all businesses worldwide. Doing well by doing good.
In Paul's time in Unilever, the share price increased by 300% while the London Stock Exchange increased by 130%. It is possible. Since then, we worked together on several initiatives. First, in the World Business Council For Sustainable Development, as commissioners in the Business and Sustainable Development Commission And also from the private sector side in the Food and Land Use Coalition. Since retiring from Unilever, Paul Paulman has dedicated his time to change industries.
And through his Imagine collective, he has embarked on this with the philosophy that by collecting 20 to 30 CEOs across the value chain, you can create tipping points to change an entire industry. Let's listen to what Paul has to say.
Well, hello, everybody. I'm Paul Polman, the former CEO of Unilever and now the Co Founder of Imagine. I'd like to thank you for the opportunity above all to address you today. Yara's 115 year old history Speaks to its values and culture that I believe drives the right behavior. After all, few companies are built to last.
Yara is. It also speaks to its ability to be agile and adapt and change over the years to the changing demands of the marketplace and society, now probably undergoing the fastest transformation As a company, moving from a pure commodity producer to becoming a crop nutrition solutions provider, A change that positions it well for the future, I believe, in light of the fast changing external environment. In fact, Yara is not only adapting, I believe it's actually actively shaping that internal environment, which makes it a very appealing thing to me. To combat the global challenges that we have like climate change In poverty, we need to change the way we feed ourselves. That's what I'm focused on currently.
And I have a long connection with Yara actually over the years as a vital part of an industry collective, which is trying to address the current challenges. I believe that Yara has always worked to be a responsible social citizen and is well regarded across the industry. Perhaps the Norwegian mentality might have something to do with it here. I have observed Yara for a long time. First, when leading the food security task force for the G20 in Los Cabos way back in 2012, But also over the years through the various initiatives with the World Economic Forum, such as the new vision for Africa, Working with the World Food Programme and lately the Food and Land Use Coalition, which Iara helped to kick start, Especially the Food and Land Use Coalition, which brings together all the major organizations in food to get to healthier, more sustainable And equitable food systems that can feed the world's population is a key driver, I believe, behind the upcoming food summits, but also the policy thinking that we see now in many parts of the world.
And I'd like to thank Yara for its leading role that it plays in this food and land use coalition. I don't pretend to be an expert on Yara And nor am I. However, after stepping down from Unilever, I decided that my new foundation, Imagine, Had to focus on the bigger transformations that the world now needs, especially when it gets to climate change and inequality. I want to focus on where I can have the biggest impact in my short life to ensure that we have a better future of all and that we stay within the planetary boundaries. The reason I'm taking 15 minutes of your time is because I believe that Yara holds a bigger part of the solution, and they are playing a very proactive part in the food collective that we've brought together with Imagine to exactly Drive these systems changes.
We all know that COVID has been the great referrer. GDP has declined by an estimated 4% to 4.5%. 100,000,000 more people have been pushed back into poverty and 500,000,000 Equivalent jobs have been lost. And once more, it is the poor and the disadvantaged, the women and the girls That again pay again a disproportionate price. I believe we've set ourselves back about 10 to 15 years on the sustainable development agenda.
Undoubtedly, there are many lessons in COVID, but let me just mention a few. The first one is that we cannot have healthy people on an unhealthy planet. The relationships between biodiversity, climate change, human health, Economy and social inequality are now much better understood. The second learning perhaps and a positive one is that we've also seen a rapid awareness of the power of ESG, environmental, social And governance of running your businesses on a longer term multi stakeholder platform. That's now more important than ever, but also increasingly understood as being more profitable.
Not surprising that despite the crisis, We have seen a further explosion of ESG funds across the world. The opportunities to design right As we come out of this crisis are enormous. And we're seeing that already starting to reflect in valuations of companies that are well positioned as solutions providers for the future. From green energy to green infrastructure To electrifying mobility, to driving more sustainable food systems, if you are providing solutions that respond to that, I believe we are well placed. Companies that understand the power of long term multi stakeholder focus, putting purpose at the core Seem to be doing better.
Purpose defined as to profitably address the issues of people and planet. The market now increasingly selects companies that are environmentally friendly or socially minded, Realizing also that companies that impose negative externalities or others are simply poor investments. I think the final learning is that we can react fast, especially when we deal with existential threats. Although many are rising to the challenge and Yara certainly does, business cannot do it all alone. New partnerships will equally be key, partnerships that Yara is used to.
But above all, we also need governments. We need, at the end of the day, governments to put the right rules, laws and regulations in place to get us there and pivot the markets in total. Now I'm positive because we're starting to see it happen on climate change and slowly in other areas as well. Increasingly, governments are putting net zero commitments in place and broader coalitions are formed to achieve this. Together with inequality, climate change is definitely one of our most burning issues.
We now clearly understand That climate change cannot be solved without attacking our food system. Currently, about 20% of the problems And potentially 30% of the solution to climate change lie in the food system. And the system is broken, Despite numerous efforts to fix it, climate change, inequality, poverty, lack of health, Food waste, stunting, deforestation are all hallmarks of a broken food system. Now we've learned that nature provides about $125,000,000,000,000 of services to the planet if you want to in nature based services. And according to the World Economic Forum, About SEK44 1,000,000,000,000 in economic value generation is moderately or highly exposed to nature loss.
And addressing the nature crisis is not only one of the biggest business opportunities as a result of this, but also It's likely to create 400,000,000 new jobs at a time, as you agree with me, that we need it most. Companies that understand this once more do well, the ones that don't are at risk. I believe that Yara is at the intersection of the food systems transformation and well placed to capitalize on these fast changing trends. It requires like other companies to continuously pivot itself and its business model. Many might still see Yara as the old agro or chemical company from the past.
But I believe that that's grossly outdated as a perception And it's changing fast as the company is changing fast. Just as Unilever saw itself pivot To a hygiene and personal care company with dominant footprint in the emerging markets, so can Yara pivot itself to become the crop nutrition solution provider for a healthier and more sustainable wealth. From what I have seen in working with all the industry players, Yara has been one of the most progressive ag efficiency And sustainability strategies that they put in place versus its competitive set. And its competitive set, obviously, Are many of the smaller local players? I believe that global players like Yara integrated all the way from plant to farmer And globally playing are certainly well positioned.
As the big food companies are changing rapidly, They indeed will be looking for global solutions with intimate local knowledge. Leading companies understand increasingly that you don't have to compromise anymore between profits and purpose. Increasingly, they understand that economic growth Can only be successful long term if sustainable. They understand that thriving to become a net positive company In its total global footprint and working a broader transformational chains of society at the same time It's actually the best way for long term shareholder value creation. Profits through purpose, if you want.
Especially with the food revolution starting to happen, companies doing well will not only succeed, but prosper, Not different from what we see in other areas like mobility with Tesla or energy with Orsted. Yara over time is well positioned once more as food and solutions company rather than agrochemical and has started that trajectory already. And the transformation globally is happening. CEOs of the 20 biggest companies We have recently come together across the food value chain to commit to drive these systemic changes. And markets as a result are moving rapidly, perhaps at the scale, I would say, of the Industrial Revolution, but undoubtedly at the speed of the technological revolution.
Collectively, these incredible leaders Have already committed to putting an open data exchange in place, helping Europe accelerate the Green Deal and the Farm to Fork packages. And yes, restoring soil health and farmer income by moving to regenerative agriculture. Huge opportunities in all of them where Yara will have to play a leading role. From my discussions with the Yara Board, It is clear that there is an alignment on what needs to be done and that all energy now needs to go in how we are going to do this. Undoubtedly, the global focus on solving climate change will be an accelerator, but not the only one.
The world is moving fast. Consumers are asking for it. Countries are starting to move with serious commitments. And I believe The financial markets equally, the task force of financial disclosure of climate related risk just being one example. And the smart companies are responding, seeing the enormous opportunities that are there.
Over 1,000 have signed up to science based targets, D'Facto committing themselves to stay below 1.5 degrees by 2,050. Many announced carbon labeling on their products. Others are building nature based solutions into their overall strategies. Increasingly, more importantly, Commitments are made for across the value chain, not only in scope 12 of what is under direct control. There are still companies that think that they can outsource their value chain and by doing so, outsource their responsibilities as well.
The leading companies understand that that is not anymore the case. They have to take responsibility across the total value chain. With the European Green Deal, the Farm to Fork packets, the collectives we've put together in food that we talked about. The many climate commitments that are made across the world and the biodiversity that is getting higher On the agenda, including in the U. S.
With the new administration, I think we are going to see A revolution at a speed that we've never seen before. And interestingly, the solutions that we need to respond to the challenges Well within reach and well within reach certainly of Yara, who holds the key to most of them. Like we've seen disruptions of our energy systems with hydrogen, wind and solar, we will also see the same disruptions now In our food supply, Yara can easily adjust their climate change footprint by moving their energy supply to green energy, which I believe on the total system approach will soon be cheaper than the conventional methods currently being used. It will also play a leading role in carbon farming, which will change the livelihoods of smallholder farmers and restore the soil health. It will change pricing dynamics.
It will move from yield to farmers, which is the current measure, to more holistic impact measures around livelihoods. And to attack poverty, we indeed need more income stream To go to the smallholder farmers without short circuiting the citizens or consumers on the other end of the value chain. I believe it can be done. We can fund all what needs to be done by the hidden cost of our current food system, Reaping the benefits of increasing yield, reducing food waste, getting rid of porphyrous subsidies that are still around And developing a carbon market to create a healthier soils and farmer income. Yara is leading many of these efforts and is increasingly being seen as a friend of the farmers.
With 80% of investments already in green and 40% of its revenue already being there, I think Yara itself is well on its way. Now we've talked a lot about the silver linings of this broader crisis for the world. COVID has been a real trigger of change, not only reshaping businesses, but also drawing attention to sustainability, both on the human and on the climate side, among other critical societal topics that require more action. I believe once more that this is an exciting moment, a moment of opportunity, a moment of right design In a moment for companies to accelerate and increase their contributions to create the more sustainable, equitable wealth that we all aspire to. And yes, ultimately, also a more profitable world for the shareholders that understand this.
I thank you for your attention. I wish you lots of success with the rest of the conference and above all, a prosperous and hopefully healthier and safer 2021. Thanks for your attention.
Thank you so much, Paul. As he pointed out, there is a massive environmental and societal improvement potential in addressing the key aspects of agriculture. With efficient and knowledge based agriculture, we can grow more on the same area of land and thereby reducing the negative impacts of agriculture through pollution, emissions and harm to wildlife. Al Gore once said that the most efficient Technology for carbon capture and storage is already invented. It's called a tree.
And when you put several of those together, It's a forest. Returning land to nature could be an extremely powerful tool to combat climate change. If we can restore 40% of cropland, that would equate to 88 gigatons of reduced and abated emissions. That's 1.5 year of the global emissions. Agriculture can also be a very strong tool to reduce poverty.
If we could improve the livelihoods Of the rural poor that live off the land, this would add $800,000,000,000 to the world economy. But it's very clear that none of us can do this as individual companies. We have to do this together through collaboration throughout the whole value chain. And retail has a very important role to play. So I thought, why not talk with the biggest of them all?
Walmart is the biggest retailer in the world. And with $500,000,000,000 in annual turnover, they have changed and are changing industries just by their purchasing power. And when you combine that with sustainability leadership, it becomes a massive force for positive change. And that means that with the commitments from Walmart, they need and will have an opinion on what happens at the field of the farmer. So some days ago, I sat down with Richard Mayfield of Walmart to make sure that I understood that right.
Thank you so much for joining us here. And I wanted to ask you a few questions. At Yara, we see the sustainability talent, which had the drive towards climate neutral food as the single most important Issue for agriculture sector in the years ahead. I wanted to ask you what does sustainability challenge look like for the world's biggest retailer?
Yes, Sven. Firstly, thanks for inviting me. I think I'll start by saying that the evidence is really clear that we're at a moment All I'd say is climate crisis. So whether you look at the impact of wildfires that are still going on, a record hurricane season, The species loss is now 60% over the last 40 years of deforestation in Amazon. It's very clear that we've not just got to act Aggressively, but we've got to act quickly if we're going to reverse that change.
And as food retailers, our customers rely on us to Continue to produce affordable sustainable food and that's going to become impossible if we don't change our practices. And so with that in mind, you may have seen in September during Climate Week, our CEO, Doug McMillan, announced some pretty big changes in our own sustainability agenda, and those changes really Summed up to changing our company to becoming a regenerative business. And there were 2 new goals that we set that I think are important to mention. The first one It's that we are setting a goal to achieve 0 emissions across our global operations by 2,040. And then the other really big new one for us was a nature goal, which looks at protecting, managing and restoring 50,000,000 acres of land and 1,000,000 square miles of ocean by 2,030.
And I think That so that mindset, that shift to a regenerative company is probably the biggest change and that focus on nature and regeneration that goes with it.
And how do you say or how important is agriculture and the Food sector in your work to reduce emissions?
Yes, it's huge. I mean, obviously, food is a very big part of our business. If you look at the sector, so agriculture and food as a whole, it represents roughly a quarter of greenhouse gas emissions globally. It's about the same as the energy sector, so it's big. And from our perspective, our biggest impact on the environment is through our supply chain.
So One of the biggest initiatives we have is Project Gigaton, which works with our suppliers to remove a gigaton of greenhouse gas emissions by 2030 and that's through sustainable practices in areas like energy, packaging, waste, but also agriculture and forestry. And through the research we've done, we believe that with a few areas like optimizing fertilizers, feed inputs in both animal and crop agriculture, We've got an opportunity to save about 300,000,000 metric tons, so it's huge. And we're starting to see some changes. Kellogg is one example, They've just announced a goal that by 2025, they're going to support 500,000 farmers in shifting to climate smart agriculture. So we start I think this is the one that's getting started.
The focus historically has been on energy, but we're just starting to see some momentum get started Agriculture and Food, the opportunity is big and it's critical that we drive change there.
This is truly inspiring and really ambitious Just as well, and I see that you're going really deep in the value chain, Richard. And to you, what role does collaboration Across the value chain play in order to achieve all this?
Yes. Look, our view is, As I know, consistent with your spend, we're not going to achieve this without collaboration. I think that's both because of the scale of change you've got to drive and the speed we've got to drive it at And because the food chain is complex, so we're going to have to drive changes with governments, NGOs, large companies, farmers and consumers working together. And so just as a couple of examples, I mentioned gigaton. In the 1st 3 years, we've already saved 230,000,000 metric tons.
And the number of suppliers I mentioned recently has changed. It's now roughly 3,000 suppliers across more than 50 countries working together. So We're already on track on Olivia track to achieve the goal. We thought it would be much slower than that. And you know the Imagine group, we're working together, so Yara, Sales, other retailers, Unilever, Nestle, other big companies working together to drive changes to achieve climate positive agriculture.
So that's another big group. Only other one I'd mention is actually some smaller scale things. So we do a lot of work in local place based agriculture projects. So one example would be In Malaysia, in Sabah, where we're working with Unilever and Nestle to drive changes in palm oil production to stop deforestation. So there's lots of good Teams like that we're also working on, but collaboration is absolutely fundamental if we're going to drive this change fast enough.
Nick, great morning. Richard, one of my greatest ambitions for the food sector is that we can make carbon footprint measurements and labeling of products Happen, creating stronger incentives for farmers, producers and through the value chain all the way to Consumers to truly promote and reward resource and environmental efficiency, How do you rate our chance for success? Is it even achievable in your point of view?
Yes. Look, I share your ambition and I share your optimism. I think it's going to be a complex change. But just to give a couple of thoughts, if you look at the U. S.
In between 20132018, roughly half of the growth in consumer packaged goods sales came from Sustainably marketed products. So we know that consumers are increasingly interested in demanding quality Sustainably produce products rather than just focusing on price. So we know the opportunities there. We do a lot of work with our suppliers to drive standards up And to drive them to achieve certifications to communicate to customers, whether that's things like the roundtable, sustainable palm oil, Forest Stewardship Council, there's a number of those certifications. But what we're going to need to do, and I know how You're doing on this, Sven, but we're going to need to get governments together and companies together to define common standards.
A lot of work to do around data gathering because we need all of those things to be in place to put on standard labeling so that customers can easily understand the messages As we tell them. But I do think the opportunities there, I mean, I'll just give one example. We recently did a test in our U. S. Stores around Seafood, so fresh seafood, and it was just around signage communicating the benefits of sustainable quality produced seafood.
And we In that test, we saw a 25% increase in sales in the stores that had that test against the ones that didn't. So we know the opportunities There's just a lot of groundwork that's got to be done. So I share the ambition, and I'm really optimistic that we can do it.
That's great. And you on something really important in my view, and that's standards. So that we do this in a way that Supports the farmers as well and doesn't create additional complexities. And obviously, with a strong position of Walmart and what you're doing, That's really key. So Richard, thank you so much for joining.
Thank you for your leadership and thanks to Walmart for showing all of us the way forward and inspiring the further work in this area. Thank you.
No. Thanks, Sven. Thanks for your leadership. I know how much work you're doing in all of this and that, particularly that last one, I know how much effort you're putting into getting those data standards in place, and I'm delighted to
So as you can see, We are collaborating across the whole food chain to accelerate change and improvement, moving towards a climate neutral Future. In Iara, we are broadening our core to play an even stronger role in this transformation as a leading Food Solutions Company. By enabling a hydrogen economy, we're contributing to the decarbonization of Agriculture, food systems and other sectors as well. We will leverage our competitive edges to achieve this, our people, our knowledge, our connection to farm and our global footprint. So let's now move to hear more about how we're broadening our core.
And I'll hand over to our EVP of Americas, Christelle Montero.
I'm Christelle Montero, EVP America since 1st October based in Colombia. Prior to moving to Colombia 2.5 years ago, I was working at our headquarters in Oslo as value chain director, contributing to moving our company from being A producer to a solution provider. Our evolution began 115 years ago With innovative nitrogen production and nitrate based product, which quickly became valuable exports, allowing us to grow into the Global company we are today. Along the week, we have built a number of plants and acquired a number of companies giving us the most comprehensive crop nutrition product portfolio of any global player, but also Develop the world's leading crop nutrition marketing and distribution business with a strong focus on agronomy and science using our product and knowledge to provide farmer centric solutions. Farmer centric because we've learned along the way that crop had needs, but farmers may have others, in particular, financial one.
So we have worked to find the best compromise between both, but always with the objective to move farmers' practices towards in order to deliver through them and with them on the first part of our mission to responsibly feed
the world.
Our next step in our evolution has been about strengthening the environmental element into our offering and recommendations at farm In order to deliver on the second part of our mission to protect the planet, very often, the environmental 2 element was already there in our offerings but neither expressed nor valued as the world had not put climate change at the top of the agenda. Working on the environmental sustainability of food production is a natural next step for us. Naturally, this has led us to embark on discussions With food value chain from local off takers to well known global brands. The drive for climate neutral food is not Just a vision for the future. It's happening right now as a response from companies to the Paris Agreement.
In my Everyday work, I see growing focus on productivity, produce more on the same land, traceability, product Quality, environmental footprint from food chain companies. I see more and more companies in the value chain recognizing the true price of crops. This means Awareness about externalities in food production is growing. While awareness is growing, it's still sometimes challenging to make farmers change their practices Towards improved ones that do not always have immediate incentives to do so. This is a key challenge we are working on at Yara right now.
The increased focus on sustainability, in particular the environmental sustainability one from consumers, food companies and authorities Everywhere has momentum to this work. So we are confident we will get there. I really hope you share my views and I would It's a passion on those matters. Beyond being my job, working along those lines gives a purpose to what I do and what we do as a company. Not only are we contributing to feeding the world, but we are also tackling a major threat to our planet together with Key partners who share the same ambitions, all this while keeping farmers, big or small, professional or survivors, at the center of what we do.
Thank you. And I leave the screen to Terje Ignitsen.
As Christel just highlighted, Yara has already been through a substantial transformation. From being a Europe centric producer of nutrients to becoming a company with a global reach aiming to solve problems at farm with our crop nutrition solutions. As part of the regionalization that the company went through earlier this year, we established farming solutions to support The regions in the next phase of transformation. We are addressing both the downside risk, But we are obviously focusing more on the opportunities that the new technological shifts and other trends present to us. I will now present some examples of What this next phase will entail before we dive into one more specific an example which we are particularly excited about.
In short, we see the transformation along 3 dimensions. Firstly, we TIG to innovate and transform our business models to ensure that we capture a bigger portion of The value that we bring to farm. While we continue to produce and deliver high quality nutrients, We will develop models where the nutrients and the knowledge is monetized through An outcome or, if you like, yield based model instead of through the physical products as we do today. We will, in 2021, run pilots targeting specific crops and specific markets, And we have an ambition to shift a meaningful part of our revenue onto new models. Going forward, we will quantitatively report on our ability to convert existing business into such new markets.
Secondly, we will transform and expand Our offering beyond the physical fertilizer products, digital subscription Revenues is an example of this. Another example which we believe strongly in is to generate carbon credits at farm. Such credits can then be sold to buyers that need to offset their own emissions. I will in a minute come back to this specific opportunity. A third example of expanding our is within the field of organic and organomineural fertilizers, which are products that we, to a very limited extent, have in our portfolio today.
This will be core in Europe in 2021 and onwards. Thirdly, we will drive the channel disruption and go more direct to farmer and thereby shorten the channel. The channel transformation is also key to enable Us realizing the transformation of the business models. For instance, in the case of carbon credits at farm, It is important that we have the transformation in place. We see, for instance, Brazil As a key market for channel transformation, our transformation agenda is ambitious.
On the one hand, we will shift revenue from the existing business to new business models and channels. This, we will believe, will touch as much as $4,000,000,000 of our present revenues. And on top of that, we have the target to create new business generating about USD 1,700,000,000 coming from new offerings and new geographies. Combined, we have the ambition to generate additional earnings In the magnitude of $300,000,000 to $600,000,000 by 2025. Let me now explain a bit more in-depth the business opportunity by decarbonizing at farm.
For centuries, farmers have been making a real difference by providing food to all of us. Going forward, every farmer has the opportunity to also make a considerable difference in Climate action by decarbonizing their farms and thereby addressing as much as 20% or more of the global carbon emissions. We see clear opportunities To significantly contribute to a sustainable agriculture, while at the same time, we build A business not only for Yara but definitely also for the farmers. The ambition is to generate a €1,000,000 of credits within the next 2 to 3 years. I will now walk through what we are working on and how we want to progress with this initiative.
Our new business will holistically address decarbonization Station at farm level, which comprises both emission reductions as well as Carbon sequestration. The decarbonization benefits can then be converted into Value, either through carbon credits, but also through certified low carbon harvests that will enable a low carbon food through the value chain. Both of these avenues will create Value for the farmer. And we believe that Yara is uniquely positioned to succeed with this new initiative As we have a very trusted relationship with millions of farmers across the 65 countries in which we operate and also because we have the digital farming platform where we presently are connected with more than 5,000,000 farmers. We have unmatched knowledge and also an ambitious Innovation agenda in optimizing crop nutrition for carbon, which gives a unique position in Emission reductions.
We can, for instance, directly address 70% of farm emission in corn. We have already started To build our capabilities and onboard farmers in the U. S, and U. S. Obviously being one of the largest agricultural markets.
And we expect to have the first credits generated already in 2021. Farmers that are connected will get paid to adopt a set of Soil carbon sequestration practices, and that will then be backed by precision farming technology. Credits generated will be sold by Yara to buyers, and we are currently working to identify and contract with those buyers. In parallel with running the pilot in the U. S, We are preparing a fast scale up and globalization already in 2021.
For the scale up phase and to achieve our high sustainability and business ambition, We are launching our global carbon business under a new brand, the Agoro Carbon Alliance, with the ambition to build a highly scalable business and a climate positive future. Building on Yara's strengths, we are actively inviting global and local partners to jointly build the business together with us. Innovation is Absolutely key in order to succeed to decarbonize farms worldwide. And we would like to accelerate the innovation and bring game changing ideas to farms quickly. The Agoro Carbon Alliance team jointly with Radico will therefore launch an innovation challenge In January 2021, we invite start ups to join us in the journey towards a climate With that, I have finished the first part of my presentation, and I would then like to introduce Tore Andersson, EVP for Europe, who will present How we work on broadening our core in our regional segments as well as how we work with operational improvements.
Thank you.
Thank you, Talia. The transformation that Terje has just told you about will be driven by Yara Farming Solution, but in close collaborations with the regions because the regions will be responsible for commercializing the new offerings, while the region also have the role to maintain and safeguard That's why the regions have both operational and transformational focus areas as shown here. In Europe, we have just finished now a process to update our strategy where we focus on balancing the Farming Solution transformation with operational excellence. Within Farming Solutions. Our focus area is to launch climate smart solutions for our key crops.
This will typically be solutions with a mix of physical products and digital tools, all founded upon our agronomic expertise. We will also accelerate Our growth of high value products with a focus then on micronutrients and fertigation. Within operational excellence, we will build upon our productivity system And focus on how to get value out of the new regional setup. That means really working at optimizing the whole value chain. And we will have a special focus on our existing nitrate business in Europe, on how we can improve that through both commercial and operational levers.
Let me now give you some more insights into how we Drive operational excellence in Yara. On our Capital Markets Day in 2019, We extended the AI improvement program. We increased the scope and we increased the ambition level. The key elements of the improvement program is to improve reliability and efficiency at our production plants and reduce our fixed cost base. And it's all founded upon our productivity system And driving a culture of continuous improvement.
Illustrated here is our current performance. And if you look at the production performance, both on ammonia and finished products, we are not satisfied. We have had too many issues at several of our plants. In 2019, Our focus have, of course, been to maintain operations through the COVID-nineteen crisis. And I'm truly impressed by our production plants, how they have managed to do that because we have not had any significant outages due to the pandemic.
So the performance issues we have had the last 12 months are due to other reasons. However, the good thing is that the last month, we have been able to turn the trend, and we have seen significant improvements. And we have shown that here by utilizing or using the October production figure And how our annual production would have been if we were able to replicate October for the next 12 months. It shows that we know already how to take a new step in our operational performance. If you look at our energy efficiency, we have consistently improved that as well and reduced it.
And if you look at the fixed cost element of the Iara Improvement Program, we are on target. In total, we have so far delivered USD 500,000,000 in EBITA improvement from the program. But also, as you see from the targets here for 2023, there is still a significant potential. And the good thing is that we know how to achieve those targets. We know how and what we need to do to improve our operational performance.
Let me give you then a couple of examples to illustrate this. BellePlane, that is our ammonia and urea plant in Canada. They have the Technical issues, downtime, the turnaround had significant overruns. But by implementing the Yara productivity system and not only focusing on the tools but also on the people, the competence and the culture, They have really been able to turn that site around. And that site is now really a role model in Yara on productivity.
And the financial results that they have achieved is impressive. They have now improved We achieved an annual improvement, recurring improvement of USD 55,000,000 And their maintenance costs have been reduced with 40%. And also on safety, they have had a very good improvement, and they have not had A recordable injury the last 500 days. Another example is Tringen, Our ammonia site in Trinidad. Chongzhen struggle with several trips, recurring issues and significant production losses.
So last year, when we were implementing or kicking or wanted to pilot our improvement reliability improvement program, we decided to Pick Tringen as the pilot. And we have the central team working with the local team, really looking at the issues that they have had, finding the true root causes and implementing mitigating actions. And the results we have seen are very promising. Their OE, so equipment efficiency, has gone from mid-80s to now being at 92%. And if you look at their performance in 2020, their losses of production has been more than half compared to the last 5 years.
So as I said, we know what it takes to improve the performance on our sites. So the focus now for next year is really about Accelerate the implementation of our productivity system and our reliability improvement program. And as a part of that acceleration, we want to include also and integrate also digital applications. Couple of years ago, we decided to step up our efforts in digital production. So far, we have developed 7 applications or deployed 7 applications, and we have more than 15 in the pipeline.
18 of our production plants have deployed 1 or more of these solutions. And to give you some Insights into what type of applications we are talking about. First of all, I want to talk about the Golden Batch. This is an application that we have deployed at our NPK plants in Finland, Usikabunke. At an NPK plant, you produce many different grades.
And the different grades need different parameters, different set points to have optimal production. And it's quite complicated or difficult for an operator to really know what is the optimal settings. So the Golombatch is an assistant to the operator, giving advice based on With the data based on raw material data and based on technical data on how the set point should be for optimal production. And as a result, you will get additional volume. This is a tool that is easy to scale also to other NPK plants And it represents a value potential between $3,000,000 $7,000,000 annually.
Another tool is the energy low curve that we have rolled out to many of our ammonia plants. Natural gas is a key raw material and a key cost when you produce ammonia. Small improvements On energy efficiency has a significant impact on the cost base. The energy load curve display in real time The energy efficiency. And it gives advice to the operator about what changes she should do to really optimize Production.
And by that, reducing the cost and reducing the CO2 footprint. So these are a couple of examples on applications that we are deploying as part of our digital program. And there are many, many more out there. And they do represent a significant value potential also beyond what we have put into the current improvement program. That concludes my part of the presentation.
We will now enter into a break, a short break. After that, Tarek Knutsen will be back, and he will then talk about what role Iara will play in enabling a hydrogen economy. Thank
you.
Thank you, Thor. As mentioned previously by Svein Toede, we are broadening our business model, not only focusing on Food solutions, but also enabling the hydrogen economy. The Hydrogen economy is coming at scale, and we believe that ammonia will play a crucial role in enabling The hydrogen economy across a broad range of industries and applications. We see evidence that the hydrogen economy is developing faster than previously anticipated. Decarbonization has reached a point of no return, and clean hydrogen is now strongly positioned to lead the energy transition.
Ammonia is the most promising hydrogen energy carrier, Even better than hydrogen itself, ammonia is easier to transport and has a higher energy density Then liquid hydrogen. Also important to mention is that there already is a global infrastructure in place based on existing and mature production and storage technologies. Furthermore, Existing ammonia production can be scaled based on renewable electricity and clean hydrogen. We expect ammonia applications based on clean hydrogen to span multiple industries, But we believe that the shipping fuel market will be amongst the 1st to reach scale in the green ammonia market. This belief is based on IMO's greenhouse gas targets to reduce carbon intensity As well as the current trajectory for engine developments, which could put ammonia into conventional marine engines by 2023.
We see emerging and realistic Economics in the medium term for ammonia based clean hydrogen and expect that public Co funding will be in place to support 1st movers in a transition period. Time to act is now. Value chains are developing, and we want to take a leading position In hydrogen economy through our ammonia capabilities, we believe that both Blue and green ammonia will facilitate decarbonization of several industries. Low carbon blue ammonia based Carbon capture and storage is expected to play an important role in the transition phase, particularly for those Existing plants having access to carbon storage. However, green ammonia based on renewable energy And electrolysis will be the ultimate end game.
And we, as Iara, want to take a strong position. Although our core markets today are fertilizer and industrial applications of ammonia, We expect ammonia based clean hydrogen to go beyond today's ammonia applications. Ammonia as a shipping fuel and energy source represent potential end use applications that could reach Significant scale over the next decade and a half. We want to take A leading position in developing these markets. We believe that there will be value to be captured as well as clear synergies with our Existing fertilizer business simply as scale in shipping fuel and power markets would facilitate the rollout of green ammonia for green fertilizers as well.
Simply said, ammonia's chemical properties Mean it can play a key role in the hydrogen economy. It does not need to be cooled 2 extreme temperatures to be stored and has a higher energy density than liquid hydrogen, meaning it is more efficient to transport and store. Also, as a shipping fuel, It is the most promising 0 carbon alternative. This is increasingly acknowledged by major players in the shipping and energy industries and also by the scientific community. Yara has a unique starting point to capture To value as the ammonia champion.
We are a major ammonia producer with Leading operational know how. Our ammonia production spans the globe with production plants in Europe, In Australia and in the Americas, our history and track record confirms our ability to provide a Stable and reliable supply of ammonia. This can be illustrated by Sloyskill Unit D, which currently holds the world record for the longest continuous run and most consecutive days of production for Any ammonia plant in the world. Furthermore, we are the only global trader Backed by its own supply system, we have greater than 20% market share of global ammonia trade With export plants around the world to supply ammonia, including 4 fully owned ammonia Export plants in Europe. We are also able to optimize logistics to save costs by balancing imports and exports across our supply network.
Finally, we have an established and growing global fleet with marine ammonia Terminals and storage facilities located close to important bunkering hubs around the world. So in essence, we are already ready to start serving the shipping and other industries right away. In addition to our ammonia supply network, We are actively working on bringing green ammonia to the market. We have 3 ongoing pilot Enabling us to gain valuable knowledge and experience. This pilot represents A diverse portfolio.
It ranges from project at our ammonia facility in Pilbara, Australia, which we do in collaboration with the French ENGIE and where we are piloting carbon neutral ammonia Based on solar power. In Sloeskill Holland, we are partnering with the Danish Ochsted To provide up to 70 kilotons of green ammonia based on offshore wind power. Finally, in Postkoye, Norway, we are having a pilot, a 5 Megawatt Production in collaboration with NEL, which represents the 1st, electrolyzer project of industrial scale with system integration into existing ammonia plant and power grid. In addition, we are presently tendering a 20 megawatt extension of that pro pilot. Although the pilots provide us with valuable learning, it is clear that the world needs full scale green ammonia plants To reach the decarbonization targets that have been set.
In addition, We want to be able to provide major clients as food companies, shipping players and industrial producers Large quantities of green ammonia to enable them to lower their carbon footprints at scale. And that is why we are evaluating a world scale project in Porskoyn, Norway. We believe that Postkren is an attractive site to start on as the location requires relatively limited infrastructure investments compared to other sites. It is located on a deep sea coastal Location, which enables export of green products and which can enable Physical delivery on top of future ammonia certification systems. Furthermore, it is possible to ensure 100 percent utilization of the hydrogen electrolyzers through renewable Power supply from the Norwegian grid, resulting in emission savings of roughly 800,000 tonnes CO2 per year.
However, this project is only possible with the right partnerships and public funding in place. The cost of green ammonia is estimated to be 2 to 4 times That of conventional production, even if we have a world scale plant. We therefore invite the Norwegian government To develop funding mechanisms and regulations to support projects such as this. This project would enable Norway to reach its Paris Agreement commitments. We rely on strong partnerships to make this a reality, and we'll actively explore this in order to Successfully electrify Porchkund ammonia production and help pave the way for Green ammonia at scale in the clean hydrogen economy.
In summary, Yara is ready to lead the way and be the ammonia champion in The hydrogen economy. We will commercialize and drive business development in the green ammonia space to deliver value. This includes building on our global leadership in ammonia trading, distribution and storage, delivering Our pilot projects to build knowledge, to support market development and evaluate partnerships, Structures to enable quick scaling while maintaining strong capital discipline. Through these focused efforts, we will make Yara the undisputed ammonia Champion, enabling the hydrogen economy. So with this, I now hand over to our CFO, Lars Ryssegg.
Thank you.
Standing here today, we are representing an organization of 17,000 people. And if there's one thing that we all have in common, it's a fantastic desire To perform and to transparently share how we are performing and how we can further improve. Today, we are presenting our approach to sustainable performance. It is based on our belief That shareholder value creation is higher when we are able to align all aspects of performance towards the people dimension, towards the planet dimension and towards the prosperity and profit dimension. And we do that on the back of a track record of improved performance with improving sales of premium products, Reaching more farmers, turning our cash flow generation around and not the least demonstrating commitment Through our capital allocation policy and to capital discipline through improved cash flow, improved TSR and strict focus on our CapEx.
It leaves us very comfortable with the potential in our broadened business model. It leaves us with a lot of value to capture. I'd also like to make one additional point on Yara's resilience to market dynamics. And in this slide, we've taken the baseline, and we've added for illustration purposes a high case and a low case. This picture shows the resilience to market prices on gas and urea compared to our base case, I.
E, that's before even taking into consideration any of the value pockets that I described on the previous slide. What we see here is that even in a less favorable scenario, here illustrated by the low case, The current Q3 baseline would still generate an EBITDA in the range of USD 1,300,000,000 to EUR 1,500,000,000. And in the high case, as illustrated here, an EBITDA from the baseline and the market dynamics Alone, north of USD 3,000,000,000 Let me talk a bit About our journey when it comes to greenhouse gas emissions. And let me be clear, even though we've made significant improvements Over the past decade and more, we still have a long way to go to climate neutrality. We are leading in our industry when it comes to reducing Emissions through catalyst technology and our energy efficiency measures.
And we are well on track To meet EU's target of reducing emissions by 55% compared to 1990 levels before 2,030. Our new target and our commitment today is the ambition to a 30% reduction in our absolute Scope 1 and Scope 2 missions by 2,030. There are multiple paths to that target, including the one shown here: Active portfolio management and a forward leaning approach to the hydrogen economy are all believers that we will explore. Green ammonia enables us to also set new and more ambitious targets for our direct emissions, And it accelerates our contribution to the sustainable development goals on climate action. To ensure that our goals are aligned with climate science and with the Paris Agreement, we are also today announcing our commitment to establishing Science based targets.
This will accelerate our journey towards full climate neutrality in 2,050, And we are partnering up with Nutrien as well as with the World Business Council for Sustainable Development to establish a sectoral decarbonization approach, A blueprint for the nitrogen fertilizer industry, which we aim to complete during 2022. Initiatives to raise awareness and build capacity on respecting and securing human and labor rights is essential to us as a company. We are embedding human rights in our culture and policies, exercising due diligence and ensuring remediation where we have an impact. We're also focusing on identifying salient risks through human rights impacts assessments and providing effective grievance mechanisms to all affected stakeholders, Placing a commitment on our business partners to adhere to our high standards through the code of conduct for Yara's business partners is also an essential part of our commitment and providing an inclusive and responsible workplace free from discrimination and harassment. Lastly, we are deeply committed to respecting the right of freedom of association and the right of collective Bargaining.
This is a cornerstone and part of our license to operate. It often Presents us with challenging dilemmas, but we are committed to improving the societies in which we operate through dialogue and through firm action when needed. Let me spend a couple of minutes On the value of diversity, and I deliberately here choose the word value because diversity It's not something we need to do to comply. It's a mere question of unlocking value, of increasing value creation. Improving our diversity across both primary factors like ethnicity, gender and sexual orientation, But it's also along the axis of personalities, upbringing, cultural background and experience.
It's both a must to transform as a company, and it's a must for us to lead in the 21st century. Yara's organization is one of capability, loyalty, competence and sense of humor. And as a CFO, I am deeply attracted by the return potential in enabling the diversity in our organization and measure progress as we mature. In June 2019, we introduced a new capital allocation policy, And we have since then demonstrated both improved solidity and our commitment to shareholder returns. We remain deeply committed to this capital allocation policy.
The backbone of this policy is our commitment to a mid investment grade rating through net debt EBITDA, Mid- to long term in the range of 1.5% to 2%. In addition to that, we are today confirming that we walked the talk from the past couple of years indicating a max annual CapEx level of USD 1,200,000,000 per year. This does, of course, not mean that we will automatically have a CapEx of €1,200,000,000 per year. It means it demonstrates our commitment through Maximum level subject to business case after activity. And it does represent our belief that good decision Come from a need to prioritize both capital and organizational capacity to be able to swiftly execute and transform business cases into shareholder value creation.
Under this policy, as also demonstrated in recent years, improving returns and cash flow may lead to increased payout capacity beyond the ordinary dividend. What's new in this policy is that we also introduced targets for our ratings on Sustainalytics and MSCI. On Sustainalytics, we are currently at our target level and leading in our sector, while we have a clear target to lift our MSCI rating to an A level. Needless to say, these ratings represent the floor of our ambition and would, of course, not prevent us from improving further in line with what we and society expect from Yara as a company. Hopefully, we have over recent years and recent quarters through our commitment to integrated reporting And through the ongoing implementation of the recommendations from the task force for climate related financial disclosures, managed to convey Our belief in a holistic performance management approach and how it increases shareholder value creation.
It means that we look at our contribution and our value creation across all three dimensions of people, plant and prosperity, And we are taking the actual steps to implement this in how we report our business. We're also walking the talk through 3rd party assessments like Cicero and reinforcing our commitments through updating our governance and the executive compensation policies. Today's presentation shows Yara Entering into its next phase. That's not new. That's what we've been doing for the past 115 years.
But we want to make sure that we demonstrate our progress and that we remain accountable to our ambitions. It means that we will also describe and measure our progress in a new way. And as of Q1 2021, We will have fully embedded tracking of our new KPIs and the ammonia positions. We believe in walking the talk. We believe in transparency.
We believe in long term value creation through focusing on all aspects: people, planet and prosperity. We sincerely look forward to getting on this journey together with you. In fact, we've already started. And by that, it is my pleasure to hand back over to our CEO, Soren Tore Holsetter, to summarize the events of today.
I hope you have found today's seminar exciting and engaging. I certainly have. And you can count on Yara working passionately to achieve our key objectives: broadening our core as a leading food solutions company, leading the way as the ammonia champion in the Hydrogen Economy and Driving Sustainable Performance, Improving Returns, Reducing emissions while maintaining strong capital discipline. We consider our prospects attractive. Firstly, the industry opportunities with agriculture's resource and environmental challenges that create business opportunities For Yara, we have a strong competitive position with a focused and sustainable long term strategy.
And our strategy execution is already delivering increased returns and cash flow. And I want to leave you with a short film about our Action Africa initiative. Thank you. The consequences of not addressing The food system challenges is quite dire. We can change the narrative of food insecurity by enabling smallholder farmers with knowledge and technology.
The African Africa initiative is not about giving smallholders fish. It's actually about helping smallholders to know how to fish.
Bringing together All the players towards ensuring food production is happening, you create both demand and supply for goods And services. So everyone has something innate towards ensuring a food secure Africa.