Energy

There’s a strong history of quality sustainability reporting across the electricity gentailers and this is seen again in this evaluation.

Many companies currently distinguish between the carbon emissions generated through their day-to-day operations and those associated with infrastructure development, such as new construction projects or facility expansions. While operational emissions are typically monitored and reported under Scope 1 and Scope 2 categories, the carbon footprint associated with infrastructure development is often not as thoroughly disclosed..

In future reporting it would be beneficial for companies to incorporate the emissions from these activities into their scope 3 reporting, which covers indirect emissions along the value chain. Alternatively, companies could establish a separate reporting category specifically for emissions associated with construction and infrastructure projects. This approach would provide a more comprehensive view of the company's overall carbon impact, enabling stakeholders to better understand the full environmental costs of business growth and development.

There is often little clarity around the use of carbon offsets and any policy involved, particularly in terms of how they are implemented, monitored, and governed by policy frameworks.

Additionally, there is frequently inadequate information that outlines the criteria used to select offset projects, the geographical distribution of these projects, and the potential social and environmental impacts on local communities.

There is a tendency by some of the reporters to position gas as important for the decarbonisation transition for Aotearoa. Gas plays a complex and nuanced role in this transition. Natural gas is a fossil fuel and contributes to greenhouse gas emissions. It can play a role in reducing carbon emissions and facilitating the integration of renewables in the short to medium term, but it is not a long-term solution. The ultimate goal of decarbonisation transitions should be to move beyond fossil fuels altogether and towards a fully renewable and sustainable energy system.

Things worth noting:

- Meridian Energy has developed a comprehensive climate action plan that outlines a strategic approach to significantly reducing its carbon footprint. This plan includes clear, science-based targets aligned with global efforts to limit warming to 1.5°C, as well as specific initiatives to transition its operations and supply chains towards greater sustainability

- OMV has a good level of transparency regarding the mechanisms and processes it has established to ensure accountability for its climate-related emissions. OMV's accountability framework is integrated into its corporate governance structure, with specific roles and responsibilities assigned to senior management and board members to oversee climate performance and strategy implementation