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October 2021

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Sainsbury’s brings net-zero target forward to 2035 for direct emissions

Sainsbury’s is bringing forward its net-zero commitment for operational emissions from 2040 to 2035, claiming that “extensive investment and innovation” will enable more rapid decarbonisation.

Sainsbury's first set a net-zero target in January 2020 

Sainsbury’s first set a net-zero target in January 2020 

The supermarket first announced its net-zero targets in January 2020 and built upon them with verified, science-based interim emissions targets earlier this year.

Originally, the aim for operational emissions – a term which covers direct (Scope 1) and power-related (Scope 2) emissions – was to deliver a 50% reduction by 2030 and a 100% reduction by 2040, without the use of offsetting. Both targets had a 2019 baseline.

Now, the 100% target has been shifted forward to 2035. Sainsbury’s has delivered a 14% reduction since 2019 and will need to accelerate progress going forward.

Plans for reducing operational emissions going forward include switching to 100% renewable electricity for the whole business and 100% LED lighting in stores by the end of 2021. The lighting scheme is set to reduce energy consumption across the Sainsbury’s retail estate by 20%

However, Sainsbury’s said in a statement that “it will need to collaborate with government, industry, suppliers and academia to share knowledge and find solutions” to deliver all of the emissions reductions needed.

“The clock is ticking; climate targets matter – but action to deliver them matters more,” said Sainsbury’s chief executive Simon Roberts.  “The progress we’ve made has enabled us to accelerate our own targets and move faster to cut our emissions.”

Sainsbury’s is not the only major British retailer to have accelerated its net-zero plans. Rival Tesco moved its 2050 net-zero target forward to 2035 late last year and has since published a new ‘climate manifesto’. Similarly, the John Lewis Partnership, which owns Waitrose & Partners, is now developing 1.5C-aligned science-based targets after moving its 2050 net-zero target to 2035.

More broadly, dozens of major players in the UK’s retail sector, under the British Retail Consortium’s roadmap, are plotting a course to net-zero by 2040.

Spotlight on Scope 3

Sainsbury’s has not updated its targets for cutting indirect (Scope 3) emissions at this stage. Its existing target is to deliver a 30% reduction in Scope 3 emissions by 2030, against a 2019 baseline – a goal verified as 1.5C-aligned by the Science-Based Targets Initiative (SBTi). This target bolsters a 2050 ambition for a carbon-neutral value chain, covering both upstream and downstream activities.

This year, the supermarket has written to some 400 of its largest suppliers asking them to set science-based carbon reduction targets and to report progress.

Roberts said: “We recognise that we not only have a responsibility to our colleagues and the communities we serve in the UK, but to those we source from globally, to reduce the impact our business has on the environment.

“We have a strong heritage in reducing our own emissions and are collaborating closely with our suppliers to ensure we’re driving positive change across our value chain too. Tackling the climate emergency requires collaborative and transformational thinking across industry and government, and a willingness to work together and share learnings globally so that we can all take meaningful, immediate action.”

Sainsbury’s’ announcement comes just days before the start of COP26. The business is the summit’s Principal Supermarket Partner – the highest level of corporate sponsorship.

Sarah George


Greenhouse Gas Levels

Greenhouse gas levels in the atmosphere rose have risen to a record high despite a drop in emissions due to Covid-19 restrictions, the UN has warned. Concentrations of carbon dioxide (CO2) and other heat-trapping gases in the atmosphere rose at a faster rate last year than over the previous decade, with the economic slowdown caused by the pandemic having no discernible impact, the UN’s World Meteorological Organisation (WMO) said. The CO2 concentration rose by 2.5 parts per million (ppm) last year, reaching a global average of 413ppm. The increase was slightly smaller than the previous year but above the average annual increase of 2.4ppm over the past decade.

Times 26th Oct 2021 read more »


Four top tips for helping your business to comply with ESOS Phase 3

Earlier this month, edie hosted a 45-minute masterclass to help businesses stay ahead of the curve with the third phase of the Energy Savings Opportunity Scheme (ESOS), featuring expert speakers from BEIS and Inspired Energy. Here, we round up the key takeaways.

The masterclass aired on 14 October and is now available on-demand

The masterclass aired on 14 October and is now available on-demand


With the publication of policy frameworks such as the Net-Zero Strategy and Heat and Buildings Strategy, the picture of how the UK Government’s long-term climate targets will impact businesses in the short and medium-term is becoming clearer.

While much remains to be seen on emerging technologies, businesses of a variety of sizes and sectors will need to take action now to measure and reduce their energy consumption, which is why the Government is planning some significant changes to ESOS Phase 3 ahead of the compliance deadline.

With this in mind, edie’s recent masterclass webinar on energy efficiency provided energy and sustainability professionals with the insights and inspiration they need to get ahead of the curve with ESOS Phase 3 compliance – and an understanding of how this can fit into a broader net-zero corporate strategy.  A Government consultation into changing the scheme for better net-zero alignment notably closed in September and the results are due out in early 2022.

Hosted in association with Inspired Energy, the masterclass also featured an expert speaker from the Department for Business, Energy and Industrial Strategy (BEIS), which collaborates with the Environment Agency to oversee ESOS in England.  

The masterclass is now available to watch on-demand, in full, for free. However, for those who are pressed for time, this article rounds up four of the speakers’ top tips for ESOS Phase 3 compliance, and their thoughts on the bigger picture regarding energy efficiency in the net-zero transition.

1) Understand whether ESOS Phase 3 applies to your business and start your surveys now if so

Inspired Energy’s client optimisation manager Emma Hird set the scene by recapping the previous two ESOS phases and the eligibility requirements for Phase 3.

Phase 3 will apply to all UK-headquartered for-profit businesses with 250 or more staff, or with an annual turnover of £44m or more and an annual balance sheet of £38m or more. Businesses that are part of a corporate group that is eligible, regardless of whether they meet these criteria as a standalone, will also need to comply.

While the compliance date may seem distant (it is 5 December 2023), Hird encouraged viewers at eligible businesses to begin the survey process now, as they will need to provide basic energy data by the end of 2022, and the data collection process can be lengthy, particularly for businesses with diverse estates or estates which have changed since the last surveys.

ESOS Energy Surveys are the most common choice for completing this process, Hird explained. Depending on how many sites your business owns and operates, you may not need to complete surveys on all of them, but the sample must be representative if this is the case. Other options include ISO 50001 surveys, which Hird recommended over GreenDeal Assessments and Display Energy Certificates (DEC), as these may soon be removed from the Government’s list of valid routes to compliance with survey requirements.

A word of warning, also: the Government is considering extending ESOS Phase 3 to medium-sized businesses. Presenters in this session were not able to provide specifics on a possible extension date, but confirmed that a different qualification date will apply to medium firms.

2) Build the business case for acting on insights

Hird noted that, once the site audits have been completed, there is no requirement for businesses to leave a “gap” before acting to reduce energy consumption in the “hotspots” identified. While there is no obligation under ESOS to act on these insights, the fact is that all UK businesses will need to meet net-zero by 2050 at the absolute latest, with the Government ramping up disclosure requirements and beginning to mandate selected firms to produce credible plans to cut emissions in the interim. Moreover, as a result of the consultation, it may soon be mandatory for businesses to act on the insights.

BEIS’s head of business and industrial energy efficiency, tax and reporting, Gary Shanahan, noted that ESOS has helped UK businesses collectively save 3TWh of energy each year, on average, since Phase 1 commenced in 2014.

Of course, energy savings and regulatory compliance are not the only angles to take to secure boardroom buy-in. Hird emphasised the opportunities for cost savings at this time of economic recovery from Covid-19. One retail client of Inspired Energy, which implemented digital monitoring and targeting services, saved £34,000 on its annual energy bill within a year, achieving £3 of savings for every £1 of investment. A Ministry of Defence (MOD) site which installed LED lighting is expecting a payback period of 2.7 years on a £65,000 investment. Looking at projects with a larger upfront cost, payback periods are also shortening as technologies improve, Hird said.

Hird also highlighted the fact that ESOS Phase 3 non-compliance will result in fines, which will likely be higher than for previous phases. The maximum fine is likely to be £235,000, when fines across all potential areas for non-compliance are added up. “Also, the reputational damage of having that published on the Government’s website and across the board is important to consider,” Hird said.

3) Assess the net-zero opportunity

Hird and Shanahan agreed that energy efficiency is a cornerstone of delivering corporate net-zero targets, which are becoming increasingly common and, in a bid to avoid greenwashing, a growing cohort of businesses are now bolstering them with science-based targets. Energy efficiency can reduce Scope 2 (power-related) emissions in and of itself, and can also ensure businesses are prepared to adopt technologies such as electric heat pumps.

For the case studies mentioned by Hird above, each business reduced its annual energy consumption by at least 5% for the site or sites. In the best-case scenario, reductions of 30% had been achieved with just one intervention. Hird said that using a net-zero lens will help businesses to “really get the most out of ESOS”.

One important factor is to consider how the scheme can help businesses measure and reduce indirect (Scope 3) emissions, which typically account for the bulk of their total footprint. Suppliers and other value chain partners, Hird explained, can be encouraged to use ESOS to measure and reduce their direct emissions, which are your organisation’s Scope 3. This will make data easier to access and higher-quality, laying the foundation for actions such as CDP disclosures and verifying science-based emissions targets. 

BEIS’s Shanahan confirmed that the Government’s consultation on ESOS Phase 3 will seek to align business actions with the national carbon budgets agreed as foundations for net-zero. These are designed to help front-load the transition and to ensure that emissions are reduced in line with climate science. Under consultation was a requirement for businesses to assess the actions needed to meet net-zero.  

4) Don’t frame ESOS compliance as a tick-box 

Several audience members asked questions about how ESOS compliance fits in with other mandatory and voluntary energy measurement and reporting schemes, voicing frustration that these can feel like box-ticking exercises and that, in some cases, actions that save energy are recommended over those that reduce carbon and vice versa (e.g. installing fossil-powered combined heat and power units).

Hird explained how completing ESOS surveys can help businesses identify “a pool of energy efficiency projects which can then feed directly into your Streamlined Energy and Carbon Reporting (SECR)”. “SECR does [require] that you report on projects being undertaken, not just what you’ve got planned or identified,” Hird noted.

“Rather than approaching net-zero in a piecemeal style, with a piece of compliance here and a piece of compliance there, you’re wanting to be looking at it all as one simple piece of not only compliance, but strategy,” she explained, encouraging listeners to combine the ESOS and SECR exercises as a minimum.

BEIS’s Shanahan explained that a requirement for businesses to assess the actions needed to meet net-zero, and an option for companies to include other net-zero and climate aspects including adaptation in their audits if they wish, will help to streamline processes and focus on the most impactful improvements. It is a question of both “sense-checking” and “joining-up” the framing, he said.


Want to learn more?

This masterclass is part of edie and Inspired Energy’s 2021 masters series on ESOS Phase 3.

The other parts of the series are a free edie-explains guide on the topic, which is available to download here, answering FAQs and spotlighting case studies; and a special edition of edie’s Net-Zero Business Podcast, featuring exclusive interviews with Inspired Energy and IHG. The podcast can be found on iTunes, Soundcloud, Spotify, Google Podcasts and here on the edie website. 

 edie Staff


Australia – Solar

Solar power has again delivered more than 100 per cent of local demand in South Australia, in what is expected to become an increasingly regular occurrence. At 12.20pm grid time (AEST, or 1250 local time in Adelaide) the combination of rooftop solar (1275MW, or 80.9 per cent of local demand) and large scale solar (331MW, or 21 per cent) delivered a combined 101.9 per cent of local state demand for a 5-minute period. At the time there was a little bit of wind generating (just 22.2MW), and about 275MW of gas generation. The state’s three big batteries were charging (72MW) and a total of 326MW was being exported to Victoria.

Renew Economy 25th Oct 2021 read more »


Hear Networks

It’s been quite a few months for the Queens Quay Energy Centre on Clydebank. After winning the European Heat Pump City of the Year award, being shortlisted for the H&V Heat Pump Project, and holding an official opening, the project has been shortlisted in 3 categories of the Scottish Green Energy Awards 2021. The Queens Quay Energy centre houses two 2.65MW water source heat pumps which takes water from the River Clyde, extracts the latent heat, and distributes heat throughout the 23-hectare site via a 5km underground district heating network. When completed, the scheme will serve over 1,200 homes, businesses and organisations and, at full build out the project will deliver circa 5,705 tonnes of CO2 reduction per year due to grid decarbonisation.

Vital Energi (accessed) 22nd Oct 2021 read more »

In a UK first, older people living in social housing in Midlothian are to benefit from reduced fuel costs thanks to a new, smart mini district heating network providing low-carbon warmth by combining thermal storage batteries with communal gas boilers and communal air-source heat pumps.

Sunamp 22nd Oct 2021 read more »


Report: UK can still meet climate ambitions if all large businesses in set 1.5C science-based targets

Unless all large businesses in the UK draw up and implement plans decarbonise in line with the Paris Agreement’s 1.5C trajectory within two years, the nation risks missing its long-term net-zero target.

UK-based businesses with 1.5C-aligned targets only account for 3% of annual national business-related emissions

UK-based businesses with 1.5C-aligned targets only account for 3% of annual national business-related emissions

That is according to a new report from Sky and WWF, produced in partnership with CDP and Natural Capital Partners. The report is entitled ‘Corporate Ambition Meets Net-Zero Mission’ and was published today (22 October).

Companies are responsible for two-thirds of the UK’s domestic land-based emissions annually, the report states, with large businesses accounting for the largest proportion.

As such, if all large businesses set science-based targets in line with 1.5C by 2023, half of the emissions reductions needed to reach net-zero by 2050 would be delivered by the private sector.

The net-zero scenario used in the report is the Climate Change Committee’s (CCC) net-zero balanced pathway, under which the transition is front-loaded in terms of absolute emissions reduction, with a 78% reduction against a 1990 baseline delivered by 2035. This pathway forms the basis of the UK’s  Carbon Budget and, in its development, the CCC considered just transition principles.

The report warns that any delay in increasing corporate ambitions and actions on the net-zero transition will risk jeapordising the nation’s progress as a whole. It states that, if all companies in the UK had adopted science-based climate targets in line with 1.5C in 2019, the nation could have achieved a 78% reduction in emissions against a 1990 baseline by 2030.

While the number of companies with science-based targets has increased rapidly in recent years – there are now more than 950 globally with ambitions for 1.5C, up from just three in 2018 – the new report states that the overall proportion of UK corporate emissions currently covered by approved science-based targets is just 3%.

UK-based firms with 1.5C-aligned, approved targets include Asos, Compass Group, Diageo, Go-Ahead, Grosvenor, EY, Tesco, AstraZeneca, British Land and Landsec.

The report implores all other corporates to follow in their footsteps by the end of 2023, and to develop transition plans as well as net-zero ambitions and supporting science-based targets. Transition plans set out how a business plans to change investments, approaches to skills, which facilities they operate and, potentially, the new business models they will adopt. They also usually include information about how workers and local communities will be supported.

HM Treasury this week confirmed that the publication of transition plans will be made mandatory for large businesses in selected high-emitting sectors. The report urges the Government to follow this pledge with a clear timetable for implementation before COP26.

WWF’s director of sustainable economy Karen Ellis said: “Companies are key to the Government keeping its climate promises. Cutting our climate emissions in line with Paris Agreement targets is still achievable but will require fast action and leadership from the Government and across all business sectors.”  

Sky’s director of Bigger Picture Fiona Ball added: “This report highlights that the fight against climate change cannot be won by a handful of companies. If we are to protect the planet for future generations, we cannot afford to delay meaningful action.”

The Science-Based Targets Initiative (SBTi) is notably increasing minimum target-setting requirements from 2C to 1.5C in light of updated climate science. All companies and financial institutions that submit targets from 15 July 2022 will need to align to the new criteria. Any corporate that had targets 2C approved in 2020 or earlier has until 2025 to update targets.

New targets

The WWF and Sky report follows a fairly busy week for SBTi approval being granted to corporate targets.

Among the businesses to have gained verification this week is the BBC, which announced plans to cut direct emissions by 46% by 2030, and indirect emissions by 28% within the same timeframe, before offsetting emissions to reach net-zero. Other target setters include:

  • Chemicals business Johnson Matthey, which will reduce Scope 1 and 2 emissions by 33% by 2030 and cut Scope 3 emissions from purchased goods and services by 20% within the same timeframe. The new targets are 2C-aligned.
  • Real estate and private wealth law firm Forsters LLP, which has pledged to halve emissions across all scopes by 2030, against a 2019 baseline.
  • Materials science and manufacturing giant Avery Denison, which will reduce Scope 1 and 2 emissions by 70% by 2030 and cut Scope 3 emissions from purchased goods and services and end-of-life treatment for sold products by 2030. The former target has a 2015 baseline, the latter, a 2018 baseline.
  • Finnish pulp and paper business Stora Enso, which will halve operational emissions by 2030, against a 2019 baseline. The same ambition has been set for all Scope 3 emissions. These targets are 1.5C-aligned.
  • Dutch multinational engineering and project management consultancy Royal HaskoningDHV, which will reduce emissions from offices and business travel by 80% by 2030.
  • Dubai-based logistics and transportation firm Aramex, which committed to set 2C-aligned targets within 24 months. Only five other firms in the UAE have made this commitment.

Sarah George


Rio Tinto announces $7.5bn plan to halve operational carbon emissions by 2030

Multinational mining giant Rio Tinto has increased its decarbonisation targets and announced a $7.5bn spending plan to support the halving of operational carbon emissions by 2030.

Image: Rio Tinto

Image: Rio Tinto

The business had, under its previous decarbonisation plans, targeted a 15% reduction in Scope 1 (direct) and Scope 2 (power-related) emissions by 2030, against a 2018 baseline.

Now, it has increased that target to 50%, after the company’s chief executive Jakob Stausholm joined 27 other mining and metals firms in committing to net-zero direct emissions by 2050 earlier this month.

A 15% reduction in direct emissions against a 2018 baseline will now be delivered by 2025.

Targets for reducing its Scope 3 (indirect) emissions from customers remained unchanged. The ambition here is for a 30% reduction by 2030, against a 2018 baseline. Solutions being explored include technologies to replace coking coal with biomass or hydrogen in steelmaking.

Speaking to media representatives as the new targets were announced, Stausholm, who took up his role this January, said they would entail a “massive shift” but be necessary for “the future of Rio Tinto”.

In a subsequent statement aimed at investors, Stuasholm added: “All our commodities are vital for the energy transition and continue to benefit from ongoing urbanisation. We have a clear pathway to decarbonise our business and are actively developing technologies that will enable our customers and our customers’ customers to decarbonise.”

Rio Tinto has stated that it will aim to double the amount it spends on growth in commodities that are vital to the net-zero transition, such as cobalt, to $3bn annually from 2023.

Other key priorities for increased funding include procuring renewable energy for mining operations and for aluminium smelters; improving energy efficiency and accelerating R&D for other low-carbon solutions.

To the point on smelting, Rio Tinto has stated that it will be ready to deploy a solution for emissions-free smelting at a commercial scale from 2024. Called ELYSIS, the solution is also being supported by Apple and the Canadian Government.

A study from the Transition Pathway Initiative back in March revealed that, while Rio Tinto has taken credible steps to align with the Paris Agreement’s ‘well below 2C’ pathway, only 14% of publicly listed companies in the steel, cement, aluminium, paper and mining sectors have done so.

Scope 1 and 2 emissions from mining are estimated to be responsible for 4-7% of global annual greenhouse gas emissions.

Sarah George


Glasgow unveils Green Deal draft to reach net-zero emissions by 2030

Glasgow City Council has unveiled its draft plan for a new Green Deal that would see the city reach net-zero emissions by 2030 while also improving resiliency and quality of living.

Glasgow is gearing up to host COP26 in November

Glasgow is gearing up to host COP26 in November

The new Green Deal document acts as a nine-year plan to transform the city and its economy in a way that combats the climate emergency and builds back from job losses and risks caused by the coronavirus pandemic.

It is headlined by a commitment for Glasgow to reach net-zero emissions by 2030. This would be delivered through an “equitable” and climate-resilient transition that would boost job growth and strengthen the city’s economy.

Councillor Susan Aitken Leader of the Council said: “The scale of change towards a net-zero carbon and climate-resilient economy is orders of magnitude greater than the challenges our ‘Glasgow Fathers’ faced. Addressing the scale of the challenge at the same time as delivering economic restructuring and recovery requires us to innovate and collaborate like never before; to tap into and harness that same, visionary, aspirational and transformative spirit which has seen Glasgow prosper successfully over hundreds of years.

“This will not be easy – and indeed no city has all the answers about what a new economic model looks like. But, acknowledging it is needed and beginning the journey is the hardest part. So, I hope this document gives you hope – hope that, along with others we can meet the defining challenge of the generation, and that Glasgow City Council is committed to playing its part. I look forward to hearing your thoughts on how we make it happen.”

Climate risks are projected to impact the city’s regional GDP by 2.5% annually by 2070. The Green Deal aims to combat this, with the draft document claiming that accelerating climate action towards the net-zero target could create more than 14,500 additional jobs for the city.

The draft Green Deal roadmap follows the launch of Glasgow’s £30bn ‘Greenprint for Investment’; a portfolio of 10 climate investment projects to boost the city’s 2030 Net-Zero goal.

The Green Deal commits the council to co-designing a full technical route map for net-zero emissions, which will be aligned to Scotland’s Nationally Determined Contribution (NDC), as part of a consultation with citizens and businesses. This will also consider adaptation and mitigation against climate risks. No date has been set for the consultation or the publication of the route map.

The timing of the document is key. Glasgow is gearing up to host COP26 in November.

It has been a bumper week of green policy announcements as the UK readies itself to host the two-week climate summit. edie has recapped the key changes from the Net-Zero Strategy, Heat and Buildings Strategy, Environment Bill and HM Treasury.

Click here to read the round-up.

Matt Mace


Bupa targets net-zero emissions by 2040

International healthcare company Bupa has joined the UN’s Race to Zero programme and has pledged to reach net-zero emissions by 2040.

The healthcare company is also joining the Race to Zero programme with Health Care Without Harm, an official partner to the global initiative

The healthcare company is also joining the Race to Zero programme with Health Care Without Harm, an official partner to the global initiative

Bupa has unveiled new commitments that are aligned to climate science that will help the company reach net-zero emissions by 2040 at the latest.

The company will strive to reduce Scope 1 and 2 emissions by 46.2% by 2030 against a 2019 baseline and reducing Scope 3 emissions from purchased goods and services, insurance underwriting, business travel, downstream transportation and distribution by 63% by 2034. 

The company has reached 100% electricity in Spain and 90% in the UK. Bupa has set up a £50m investment fund to reduce its carbon emissions.

The targets have been sent to the Science Based Targets initiative (SBTi) to be validated.

Bupa Group’s chief executive Iñaki Ereño, said: “Our commitment to the most ambitious emissions reduction pathway establishes an important path for Bupa’s future, ensuring customers across the world continue to receive high-quality healthcare and services, while we play our part in protecting the planet. 

“We understand that delivering healthcare has an environmental impact driven by the sector’s carbon contribution. That’s why we are accelerating our work to significantly reduce our own impact. We also have the opportunity, and the responsibility, to improve understanding about how human health is impacted by the environment, and we will use our global position to educate and advocate for both healthy people and a healthy planet.”

Bupa will also commit to reaching its science-based targets across corporate bonds, loans and equity by 2025. The portfolio targets cover around 40% of its total investment and lending activities. More broadly, Bupa’s investment portfolio will be aligned with a 1.5C pathway by 2040.

The healthcare company is also joining the Race to Zero programme with Health Care Without Harm, an official partner to the global initiative. Race to Zero is the largest ever alliance committed to halving global emissions by 2030 and achieving net-zero carbon emissions by 2050. The campaign represents over 4,000 businesses estimated to cover nearly 25% of global CO2 emissions and more than 50% of GDP.

Matt Mace


Offshore Wind – Wales

The Welsh first minister, Mark Drakeford, has said that devolving the crown estate to Wales could boost the country’s aspirations to become a world leader in renewable energy. One of the Labour-led government’s key strategies in tackling the climate emergency is to make the most of Wales’ extraordinary natural resources, including wind and wave power. Speaking to the Guardian during a visit to the Centre for Alternative Technology in Mid Wales, Drakeford said: “Wales’ big contribution to a carbon-neutral future is to use the natural assets we have to be at the forefront of renewable energy production, whether that is from wind or waves or water.

Guardian 21st Oct 2021 read more »

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