Our carbon commitments
Origin is a proud member of the ‘We Mean Business' coalition, which is dedicated to accelerating corporate action on climate change. In 2015, we became the first energy company in the world to sign up to seven commitments.
We continue to make progress on key areas, such as setting a science based target and continuing to improve our public disclosures.
|Commitment1||What we did in FY2018|
|1. Publish climate change information in mainstream reports.||
Origin became a supporter of the Task Force on Climate-related Financial Disclosures (TCFD). The TCFD provides a framework for consistent and coherent disclosures on climate-related risks to help stakeholders make informed financial decisions.2
Our TCFD disclosures are located in our Annual Report.
In October 2017, and in line with TCFD guidelines, we published our carbon resilience paper showing the strength of our generation assets in relation to different climate-related scenarios.
Origin also voluntarily participates in the annual Carbon Disclosure Project (CDP) Climate Change questionnaire. We report climate change information in our annual Sustainability Report, and in our Operating and Financial Review as part of the Annual Report.
|2. Undertake responsible corporate engagement in climate policy.||
During FY2018 Origin’s corporate engagement focused on developing the proposed National Energy Guarantee. This included advocating for more ambitious targets for the electricity sector as part of the scheme, as well as a strategic consideration of the abatement potential of other sectors of the economy. Other contributions included consultation on specific technical recommendations of the Finkel Review, the evolution of the Safeguards Mechanism and policy support for electric vehicles.
|3. Adopt a science-based emissions reduction target that will see the emissions intensity of the energy we deliver through our fuel and generation portfolio reduce over time, in line with the IEA 450 Scenario.||
FY2018 was a significant year for our We Mean Business commitments, as we became the first Australian company to have our target approved by the independent Science-Based Targets initiative.3
This accreditation confirms Origin’s targets are in line with the Paris Agreement’s 2°C objective. Our targets are:
|4. Set measures to factor in a cost of carbon internally, to judge its effect on investment decisions to drive down carbon emissions.||
Origin incorporates a range of carbon prices into our annual strategic financial planning process and for specific investment and market analysis. This range enables us to test the resilience of existing assets and the strength of future investments by considering Business As Usual decarbonisation scenarios and more ambitious cases such as the Paris Agreement’s 2°C and the aggressive 1.5°C scenario. During FY2018, we analysed carbon prices up to $80 per tonne.
|5(a). Become Australia’s leading renewable and low-carbon energy provider, helping our customers to procure electricity from renewable sources.||
We have set a target for renewables to make up more than 25 per cent of our generation mix by 2020 – up from 13 per cent today.
Our customers, both large and small, continue to take up smart solar solutions. We are one of the largest contractors of solar power across Australia. In FY2018, we led the way in setting up commercial solar power and installing capacity across Australia.4 To support the uptake of solar, we also expanded our power purchase agreement offerings5 to include solar-based products and electricity guaranteed to be sourced from National Energy Market renewables.
|5(b). Procure 100 per cent of energy from renewable sources for our office premises and, where possible, all of our other operations by 2050.||
In FY2018, we purchased 100 per cent GreenPower for our eligible6 offices in Sydney, Brisbane and Adelaide.7 We also continue to pursue cost-effective ways to convert our regional operational sites to GreenPower, where available.
|6. Reduce short-lived climate pollutants (SLCPs).||
We report our SLCPs via the National Greenhouse and Energy Reporting Scheme. The majority of our SCLPs stem from our Integrated Gas business and make up approximately 1 per cent of Origin’s total emissions. During FY2018, our Integrated Gas business continued to improve its gas monitoring program. This program is designed to improve the capture of data relating to SLCPs and, where feasible, retrofit or change the design of new infrastructure to reduce these emissions.
|7. Remove commodity-driven deforestation from all supply chains.||
In FY2018, we launched a broader ethical procurement project to understand the ethical, environmental and social risks associated with our supply chain. Minimising deforestation is one element we considered in this project.
- Note: these are the original commitments Origin signed up to in 2015. There have been subsequent revisions and additions to the commitments, which Origin reviews on a regular basis for relevance and consideration in our climate change strategy.
- Refer TCFD website
- The Science-Based Targets initiative are the only WMB-authorised body able to verify the scientific and mathematical validity of decarbonisation targets – that is, they confirm our trajectory is in line with the Paris objective of a 2°C goal.
- SunWiz, July 2018.
- PPA = purchase power agreement. Our 100 per cent product combines various solar solutions with renewable-sourced NEM power to ensure full consumption from renewable products.
- An office location is eligible if it is CBD-based, the lease arrangements allow for electricity negotiations, and the building does not include an equivalent grid energy product, e.g. cogeneration plants.
- The lease arrangements for our CBD sites in Sydney, Brisbane and Adelaide require a nomination of GreenPower supply volume in advance; therefore minor differences arise between actual consumption and nominated. In FY2018, this difference resulted in Origin’s GreenPower consumption being ~95 per cent of total consumption.