14 December 2017
Origin to halve emissions in line with Paris 2°C goal
Origin Energy Limited (Origin) has committed to a company-wide 50 per cent reduction in absolute scope 1 and 2 carbon emissions by 20321, becoming the first Australian company to have science-based targets recognised by the global We Mean Business (WMB) initiative.
Origin has also committed to a 25 per cent reduction in value chain Scope 3 emissions on 2017 levels over the same period.
Origin CEO Frank Calabria said, “This is a major milestone for Origin. We want to be leading the transition to a cleaner and smarter energy future and we are proud to now have a tangible commitment for emissions reduction across our business.
“We have clearly set ourselves challenging targets, yet we are confident in our ability to achieve them having already laid out the five pillars that will provide a pathway for the decarbonisation of our business over time.
“Continuing to grow renewables in our portfolio is one of the key planks of this transition, as are the closure of our only coal fired power station, Eraring, in the early 2030s, increasing reliance on gas and giving customers the technology to use energy more efficiently in their homes and businesses.
“As Australia’s leading energy company, we’re determined to help achieve the smoothest possible transition to a cleaner and smarter energy future at the lowest cost to the households and businesses that rely on the energy we produce.
“We firmly believe decarbonising our business is not only the right thing to do by our stakeholders and the planet, it also presents opportunities to create value, and Origin is well positioned on this journey having prepared for a low carbon future for many years,” Mr Calabria said.
Origin confirmed earlier this year its intention to announce emissions reduction targets, consistent with its commitments to the WMB initiative. The targets have been endorsed by the international Science Based Target initiative (SBTi). SBTi is the only body authorised by WMB to verify targets mathematically to ensure scientific alignment with the Paris target of limiting global warming to 2°C.
Scope 1 and Scope 2 emissions predominantly come from Origin’s generation business and other activities, while Scope 3 emissions are a result of gas purchases and electricity purchased from the pool.
“Setting a science-based target fulfils a commitment Origin made under the global We Mean Business initiative and we’re proud to commit to targets in line with a 2C world, solidifying our role in helping Australia reach its 2030 emissions reduction target,” Mr Calabria said.
“More can and should be done and we have also stated our belief that a long-term goal of net zero emissions for the electricity sector by 2050 is achievable.
“We will continue to work with governments on coordinated national energy policy on behalf of our customers, because it will provide the right framework and signals to help industry meet our climate change targets at the least cost to consumers,” Mr Calabria said.
1On 2017 levels, excluding Lattice Energy which is being divested.
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Redemption of Capital Securities
Origin Energy Limited (Origin) today announced that it redeemed, in whole, the €500 million Capital Securities due 2071 issued by Origin Energy Finance Limited and listed on the London Stock Exchange at their first call date (16 June 2018) in accordance with the terms of those securities.