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. Report climate change information.||
Origin began implementing the recommendations of the TCFD in FY2018.2
Our TCFD disclosure is located in our Sustainability Report. We also participates in the annual Carbon Disclosure Project Climate Change questionnaire.
We report climate change information in our Sustainability Report, in our Operating and Financial Review within our Directors' Report and in our Resilience of Origin's generation portfolio to a low-carbon economy report.
|2. Commit responsible corporate engagement in climate policy.||Origin engages with federal and state government as well as industry associations in the creation of responsible climate policy. See our Sustainability Report for more information.|
|3. Adopt a science-based emissions reduction target.||
In 2017, we proudly became the first Australian company to have our emissions reduction target approved by the independent SBTi. This accreditation confirmed that Origin’s emissions reduction targets are in line with the Paris Agreement’s 2°C objective.
Origin continues to be the only Australian company in our sector to have a SBTi approved target in place, committing to a reduction in Scope 1, Scope 2 and Scope 3 emissions. We plan to update our existing science-based target to a 1.5°C pathway when the guidance is available from the SBTi, with an aim to achieve net-zero emissions by 2050.
|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 more aggressive IPCC SR15 1.5°C scenario.
During FY2020, 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.||
For the third consecutive year Origin was the number one commercial installer in the 10–100kW solar category and was the number two residential installer in the under 10kW category.3 We installed 61 MW of solar in FY2020, up from 50 MW in the prior year.
FY2020 saw our Virtual Power Plant grow to connect more than 85 MW of distributed energy assets and IoT devices. This initiative, a partnership with the Victorian Government, uses cutting-edge technology to remotely link small energy resources like solar batteries into a web-based network.
For over 15 years we have been providing our customers with the option to choose renewable energy products with our GreenPower and Green Gas products, and have over 117,000 green energy customers.
Electric vehicles will play an important role in the decarbonisation of the transportation sector and we have started to provide charging solutions and infrastructure to customers who have electric vehicles. We are also partnering with a fleet management operator to provide an end to end EV fleet management solution for business customers to transition their fleets to electric vehicles.
|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 eligible4 offices in Sydney, Brisbane and Adelaide.5
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 during FY2020, a further five LPG terminal sites have been identified as suitable sites for solar.
We have also been evaluating all of our generation assets for their suitability for solar power. Installation of a 73 kW system was recently completed at our Mt Stuart Power Station in Queensland and we are also targeting to install solar at our Darling Downs Power Station facilities by the end of FY2021.
|6. Reduce short-lived climate pollutants (SLCPs).||
The majority of our SLCPs are methane emissions and these make up approximately one per cent of our total Scope 1 and Scope 2 operated greenhouse gas emissions. We report our SLCPs via the NGERs and NPI. We actively manage reducing our methane emissions, with methane emissions from venting and leaks reducing by 22 per cent in FY2020. For more information see our Sustainability Report.
|7. Remove commodity-driven deforestation from all supply chains.||
Origin has identified timber, paper and pulp as the group of commodities which pose the most significant deforestation risk within our supply chain. Origin does not directly manufacture any items using these commodities, therefore our efforts to remove commodity-driven deforestation from our supply chains are focused on purchasing these products from environmentally responsible suppliers and reducing our use of paper-based products.
Purchasing from environmentally responsible suppliers
Origin’s primary consumption of paper-based products is through the printing of customer bills, office supplies, stationery and other printing needs. This consumption is consolidated into three key suppliers who are either directly, or the products they provide are, certified by the Forest Stewardship Council (FSC) and/or the Programme for Endorsement of Forest Certification (PEFC).
Launched in FY2019, Origin’s Supplier Code, requires new Origin contractors to implement plans to identify, monitor and manage any potential commodity-driven deforestation within their Supply Chain. See Procurement for more details on our Supplier Code.
Reduction of paper-based products
Procurement of timber, paper and pulp goods from Origin’s main suppliers has decreased by a total of 17 per cent over the last three calendar years.
Origin will continue to look for ways to reduce its use of paper-based products.
- 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
- Sunwiz, December 2019.
- 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.
- Origin offsets its 100% electricity consumption with Greenpower for each of the WMB Sites at the end of each calendar year in line with annual GreenPower reporting. Origin’s FY2020 Greenpower surrender will be fully completed after the CY2020 GPR report is finalised in March 2021.