Origin was the first energy company in the world to sign up to seven initiatives under the global ‘We Mean Business' coalition. The collation is a worldwide group of companies, institutional investors and non-government organisations committed to leadership on climate change.
Progress against our commitments can be found below.
|Commitment||What this means|
|1. Report climate change information in mainstream reports.||Origin voluntarily participates in the annual Carbon Disclosure Project (CDP) questionnaire and we report climate change information in our annual Sustainability Report. Climate change risk is discussed in our risk disclosures in the Annual Report.|
|2. Undertake responsible corporate engagement in climate policy.||FY2017 has been a significant year for climate change policy in Australia. Origin was actively involved with State and Federal Governments, the Opposition, industry experts and NGOs to help shape Australia’s energy future. We made formal submissions to:
|3. Adopt a science based emission reduction target which 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.||
During the year, we continued our work on developing a science-based emissions reduction target. As part of the We Mean Business (WMB) commitment, the target must be formally reviewed and approved by the Science Based Target Initiative (SBTi1).
SBTi provides sector benchmarks but is yet to develop guidance for the upstream oil and gas sector. As an integrated energy company, we understand the requirements of our generation portfolio and have been working with SBTi to develop an acceptable upstream Oil and Gas methodology, which will see our emissions reduce in line with the International Energy Agency (IEA) 450 Scenario.We remain committed to formalising a target by December 2017.
|4. Set measures to factor in a cost of carbon internally to materially affect investment decisions to drive down carbon emissions.||We continue to test carbon scenarios up to $80 per tonne within our strategic planning process and for consideration in investment decisions.|
|5(a). Become Australia’s leading renewable and low-carbon energy provider, helping our customers to procure electricity from renewable sources.||(a) We are one of the largest contractors of solar power in Australia. Our FY2017 renewable capacity, owned and contracted, was 732 MW, and we signed just over 1,200 MW of additional Power Purchase Agreements which will come in to production by 2020. We are also number one in commercial solar across Australia2. We continue to pursue innovative low-carbon product solutions in the retail market.|
|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.||
(b)In FY2017, we purchased 100 per cent GreenPower for our eligible3 CBD offices in Sydney, Brisbane4 and Adelaide.In addition, we reviewed our non-CBD operational sites across Energy Markets to better understand electricity usage and green power availability. An analysis is now underway to determine the most cost-effective way to progressively convert these sites, where possible, to renewable electricity from FY2018 onwards.
|6. Reduce short-lived climate pollutants (SLCPs).||We continued to report emissions associated with our short-lived climate pollutants via the National Greenhouse Emissions Reporting Scheme. We are prioritising SCLP sources for investigation to identify what lower emissions options are feasible.|
|7. Remove commodity-driven deforestation from all supply chains.||
During FY2017, a dedicated project was completed within Energy Markets to review our largest 100 procurement (non-sales related) suppliers and their exposure to the four key commodities driving deforestation – palm oil, cattle products, timber and soy.
The review identified our primary exposure point related to timber and pulp products used in customer correspondence and office supplies. Detailed investigation confirmed that in the majority of cases these suppliers use accredited sources of renewable timber.Across Origin, we released a new Procurement Directive further encouraging ethical, environmental and socially sustainable procurement activities.
- The SBTi is the only WMB authorised body that can verify the scientific and mathematical validity of the decarbonisation targets – that is, it confirms our trajectory is in line with the Paris objective of a 2 degree goal.
- Sunwiz, July 2017.
- 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 Coronation Drive require a nomination of GreenPower supply volume in advance, therefore minor differences arise between actual consumption and nominated. In FY2017 this difference resulted in Origin’s GreenPower consumption being 95 per cent of total consumption.
 1 International Energy Agency, World Energy Outlook 2015