Category Archives: 2020

Net-zero goals – how to determine what’s in and what’s out? [with video]

Your business is considering a net-zero commitment or maybe you have just committed to net-zero emissions – so what’s next? An important part of making this commitment or of developing a net zero plan is to work out what this goal will encompass. To ensure that you are setting a credible target and to avoid reputational damage, you should be very clear in your communications what boundary your net-zero goal relates to.

A net-zero goal can relate to your operational emissions only, or it can extend to your supply chain. It could relate to your whole organisation, or only to part of it.

In this article, we will focus on whether you should include scope 3 emission sources.

You can also watch the video of my presentation on this topic here:

Should you include scope 3 emission sources?

If you are reporting under compliance-based schemes such as the NGER legislation in Australia, you will probably be aware of your scope 1 and scope 2 carbon footprint.

Please watch the video below for an explainer of scope 1, 2 and scope 3 emission sources.

However, there are many more emission sources that happen upstream and downstream in your supply chain. For many companies, more than 80% of their emissions occur outside of their own operations[1]. So, if you focus your net-zero efforts on your scope 1 and scope 2 carbon footprint only, you will neglect to address the many emission sources you have in your value chain.

Please watch the video below for an explainer of the 15 categories of scope 3 emissions.

Determining which scope 3 emission sources are relevant for you

Not all of the 15 categories of scope 3 emission sources will be relevant for you. The following is a good checklist, which we have adapted from the Greenhouse Gas Protocol:

  1. Is the emission source large relative to your scope 1 and scope 2 emissions?
  2. Does the emission source contribute to your greenhouse gas risk exposure?
  3. Do key stakeholders such as customers or investors deem the emission source critical?
  4. Could you reduce the associated emissions or at least influence emission reduction?

Steps you could take to determine what’s in and out of your scope

The following is a list of suggestions for how you could determine what’s in and out of your net-zero goal:

  1. Have a meeting with key organisational stakeholders to workshop all your emission sources
  2. Discuss whether these emission sources are relevant for your organisation as per the above checklist
  3. If the emission source is relevant, you could consider including it in your net-zero goal

How you could workshop your emission sources

To ensure that no significant scope 3 emissions sources are lost, we recommend that you go through all 15 categories. Here is how we do it at 100% Renewables:

We usually start by showing emissions sources associated with your organisation’s activities. In most cases, this consists of scope 1 and scope 2 emission sources such as the burning of fossil fuel onsite, or the consumption of electricity. Where you operate air conditioning or refrigeration equipment, fugitive emissions from hydrofluorocarbons should also be taken into account.

Scope 1 and scope 2 emissions sources
Figure 1 – Scope 1 and scope 2 emissions sources

Then, we show you upstream and downstream emissions in your value chain, such as shown below.

Figure 2 – Full value chain emissions sources

Usually, category 1 ‘Purchased goods and services’ is a large emissions source – just ask your Finance department for a General Ledger extract of your expenses and you’ll see what we mean.

It is considered best practice to include upstream fuel and energy, and you should assess whether emissions from outsourced transportation and distribution, such as couriers are relevant to you. Every organisation is generating waste, so that should be included as well. Business travel encompasses activities such as air travel and accommodation. Staff commuting is also an important emissions source, particularly if people mostly use cars to get to your place of work.

Where your products generate emissions when they are being used (say you were selling vacuum cleaners), then you should consider the relevance of this emission source as well. If you have investments in joint ventures, subsidiaries or similar that are not accounted for under scope 1 and 2, you could consider also including them in your scope 3 carbon footprint.

[1] * State of Green Business 2013, GreenBiz

If you need help with your net-zero goal, defining the scope or planning to reach net-zero, please contact  Barbara or Patrick.

Feel free to use an excerpt of this blog on your own site, newsletter, blog, etc. Just send us a copy or link and include the following text at the end of the excerpt: “This content is reprinted from 100% Renewables Pty Ltd’s blog.

Net-zero case study: Canada Bay Council and community emissions pathway

100% Renewables would like to congratulate the City of Canada Bay Council, who has committed to net-zero emissions, on winning the Local Government NSW’s (LGNSW) Excellence in the Environment Awards’ Local Sustainability Award.

100% Renewables is proud to have developed two studies which informed the City’s Emissions Reduction Action Plan (ERP), specifically:

  1. Emissions pathway study – Council operations
  2. Emissions pathway study – Community

How Council developed its Net-Zero Emissions Reduction Plan

Canada Bay Council tasked 100% Renewables with the development of two technical studies to understand how emissions can be reduced for both Council operations and the community.

The technical studies of the ERP drew on extensive analysis of Council’s emissions profile, population and urban density projections, renewable energy trends, stakeholder engagement, as well as an assessment and prioritisation of savings opportunities.

As part of this project, a community survey was run, and two workshops were held to gauge the community’s perspective on what Council and the community should prioritise with regards to climate change and reducing emissions. We also performed site visits across Council’s facilities and ran workshops with Council staff and the Environmental Advisory Committee to get input into the development of the two studies.

Target-setting approach

Council was committed to setting climate action targets which considered Australia’s global emission reduction obligations, goals set by other councils in NSW, as well as input from the community and Council staff. The ERP sets out the following ambitious, but achievable carbon reduction and renewable energy goals.

  • Corporate target: Net-zero emissions from Council operations by 2030
  • Community target: Net-zero emissions from the City of Canada Bay community by 2050

The pathway to net-zero for Councils operations

The pathway to net-zero emissions for Council’s operations is supported by 62 cost-effective actions that Council can take to reduce its corporate emissions, which include:

  • Continued energy efficiency upgrades to buildings and sporting fields, including fuel switching
  • Street lighting upgrades to LED technology
  • Increasing the amount of energy generated from onsite solar PV systems
  • Adjusting practices, basic controls and O&M procedures to reduce energy waste such as high night-time demand
  • Fleet emissions reduction from hybrid vehicles, and in future potentially electric vehicles
  • Adopting sustainable procurement policies for all capital works and purchases of energy-using equipment
  • Increasing the amount of renewable energy sourced via power purchase agreements (PPA)

The pathway to reducing Council’s corporate emissions to net-zero is illustrated in Figure 1.

Pathway to net zero by 2030 for Canada Bay Council’s operations
Figure 1: Pathway to net-zero by 2030 for Canada Bay Council’s operations

The pathway to net-zero for community emissions

Alongside the target for Councils operations, a target of net-zero emissions by 2050 for the community was set by consulting the community. Council will assist the community in achieving its target by

  • Leading by example
  • Empowering the community through initiatives and programs about buying renewable energy and energy efficiency
  • Supporting local community groups and schools to install solar PV systems
  • Advocating for sustainable transport and engagement around waste initiatives

These initiatives and programs were quantified and broken down into 33 discreet actions to reduce emissions to net-zero, as illustrated in Figure 2.

Pathway to net-zero emissions by 2050 for the Canada Bay community
Figure 2: Pathway to net-zero emissions by 2050 for the Canada Bay community

Canada Bay’s success in reducing carbon emissions

The City has a long history of emission reduction and climate change adaptation programs. Some of these initiatives are listed below:

  • Greenhouse Action Plan 2014, which highlighted 70 actions that Council could invest in to reduce emissions. The plan also suggested targets such as replacing traditional energy supply with alternative renewable sourced by 2020.
  • Community Energy Efficiency Program (CEEP) 2014 saw Council invest in major energy efficiency upgrades across four of Councils largest energy consuming sites. Collective outcomes after the completion of the CEEP saw energy use and carbon emissions decrease by almost 32%, and energy costs reduce by almost 25%.
  • Small sites LED upgrade saw LEDs replacing existing lighting across six sites resulting in a combined energy reduction of 20%.
  • Installation of 134 kW of solar PV at Concord Library, City Services Depot and the Civic Centre
  • Implementation of LED lighting at several sporting fields as part of refurbishment and new field activation works
  • In October 2018 Council committed to purchasing 20% of its total electricity consumption from the Moree Solar Farm for 11.5 years commencing 1 July 2019
  • Council is participating in the SSROC Residential Road Street Light LED Replacement Program in partnership with Ausgrid. The current spot replacement program will be augmented by an accelerated bulk upgrade program in the short term.
  • Offsetting of emissions from major Council events such as Ferragosto and Concord Carnival

In the Canada Bay community, there has also been a significant increase in emissions reduction by residents installing solar panels on houses and businesses. At the time of development of the ERP, less than 10% of dwellings in the Canada Bay LGA had solar installed, with the total capacity being 8,490 kW as of September 2019. A year later, the solar capacity had improved significantly to 12,321 kW, which is a 45% increase.

Canada Bay Council is one among many leading councils showing that achieving ambitious renewable energy and carbon reduction goals is both feasible and cost-effective. 100% Renewables is proud to have played a role in helping this leader through the development of their Emissions Reduction Plan. We look forward to Canada Bay Council’s continued success in reaching its carbon and renewable energy targets in the coming years.

pdf-iconNet-Zero Case study “Canada Bay Council and Community – Emissions pathway
Start Download

100% Renewables are experts in helping organisations develop their climate action strategies, and supporting the implementation and achievement of ambitious targets. If you need help to develop your Climate Action Strategy, please contact  Barbara or Patrick.

Feel free to use an excerpt of this blog on your own site, newsletter, blog, etc. Just send us a copy or link and include the following text at the end of the excerpt: “This content is reprinted from 100% Renewables Pty Ltd’s blog.