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 the first seven commitments.
We continue to make progress on key areas, such as setting a science-based emissions reduction target and continuing to improve our public disclosures.
|1. Publish climate change information in mainstream reports.||
Origin became a supporter of the TCFD and began implementing the recommendations of the TCFD in FY2018. The TCFD provides a framework for consistent and coherent disclosures on climate-related risks to help stakeholders make informed financial decisions.2
Our TCFD disclosure is located in our Sustainability Report. Origin also voluntarily participates in the annual Carbon Disclosure Project Climate Change questionnaire. We report climate change information in our Sustainability Report and in our Operating and Financial Review within our Annual Report.
|2. Undertake responsible corporate engagement in climate policy.||
During FY2019, we continued to support an emissions intensity scheme and emissions reduction policy as a way for Australia to meet its decarbonisation obligations. This included advocating for more ambitious targets for the electricity sector.
We also engaged in various climate change-related policy at the State Government level, including a range of policies to support renewable energy, associated firming technologies (such as batteries and pumped hydro), energy efficiency schemes and 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.||
In 2017, we proudly became the first Australian company to have our emissions reduction target approved by the independent SBTi.3 This accreditation confirms that Origin’s emissions reduction targets are in line with the Paris Agreement’s 2°C objective.
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 businessas-usual decarbonisation scenarios and more ambitious cases such as the Paris Agreement’s 2°C and the more aggressive IPCC SR15 1.5°C scenario. During FY2019, we analysed carbon prices of 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.||
During FY2019 we made a significant step towards our target of more than 25 per cent of our owned and contracted generation capacity being sourced from renewables and storage by 2020 with the commissioning of multiple solar farms in South Australia and Queensland.
Innovative energy agreements that combine renewables with firming generation were secured in corporate power purchase agreements with the University of NSW (100 GWh), Southern Regional Organisation of Councils (SSROC) (40 GWh) and Sydney Airport (95 GWh).
Origin was the number one Commercial Installer in the 10–100 kW solar category for the second year in a row4, and in March 2019, the largest commercial office battery in Australia was installed in our Melbourne office.
We also began work on a $5 million feasibility study to nearly double the Shoalhaven pumped hydro scheme with support of the Australian Renewable Energy Agency (ARENA).5
|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.||
We purchase 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. Solar has been installed at nine of our Liquefied Petroleum Gas (LPG) terminals and we are evaluating the potential of further solar installations at both leased and owned LPG terminal sites.
|6. Reduce short-lived climate pollutants (SLCPs).||
The majority of our short-lived climate pollutants (SLCPs) are methane emissions from our Integrated Gas business and make up approximately 1 per cent of our total emissions. We report our SLCPs via the National Greenhouse and Energy Reporting Scheme (NGER) and National Pollution Inventory.
To better quantify our methane emissions, where possible we are moving away from factors to higher order National Greenhouse Emissions Reporting Act 2007 methodologies that allow us to more accurately measure our emissions. This reflects improvements to metering, measurement and calculable outcomes. We have also commenced designing and installing new infrastructure to reduce these emissions.
|7. Remove commodity-driven deforestation from all supply chains.||
The launch of our Supplier Code during the year and the supplier information gathered through our Vendor Portal self-assessment questionnaire will help target appropriate improvement actions in areas where we may have a material deforestation risk. Refer to Procurement for more details including our Supplier Code.
- 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 is 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 2018 Year in Review, February 2019.
- ARENA is contributing $2m towards the detailed feasibility assessment to nearly double the overall generating capacity via a new 235 MW unit.
- 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. Origin’s Melbourne office is exempt as it has a trigeneration unit in the building, which provides low-carbon onsite electricity, and waste heat is converted to provide heating and cooling within the building.
- 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 FY2019, this difference resulted in Origin’s GreenPower consumption being ~95 per cent of total consumption.