In 2021, we set our ambitious plans to reduce our operational carbon emissions and hit our Net Zero target by 2030. Since then, we have gone further, adding a Race to Zero commitment to reduce greenhouse gas emissions (GHG) across our entire value chain by 2045.
As a Group we have committed to near-term Science Based Targets (SBTs). Our targets were validated and approved by the Science Based Targets Initiative in May 2024 and we will now focus on delivering our targets. SBTs provide a clearly defined pathway for companies to reduce greenhouse gas emissions. Targets are considered ‘science-based’ if they are in line with what the latest climate science deems necessary to meet the goals of the Paris Agreement – limiting global warming to 1.5°C above pre-industrial levels. Our SBTs, presented below, support our water and wastewater greenhouse gas, and embodied carbon bespoke performance commitments.
- The Group commits to reduce absolute scope 1 and scope 2 GHG emissions 68% by 2032/33 from a 2021/22 base year.
- The Group commits to reduce absolute Scope 3 GHG emissions from 'well to tank' electricity and fuels, the delivery of electricity, emissions from waste, and business travel and commuting, by 30% over the same timeframe.
- The Group commits that 60% of its suppliers by emissions covering purchased goods and services, capital goods and upstream transportation and distribution will have science-based targets by FY2027/28.
- The Group commits to increase annual sourcing of renewable electricity to 100% by 2030.
Our Net Zero strategy is driven by three pillars:
Both of our regulated water businesses have published their Net Zero 2030 plans on their company websites.
For details of our latest progress with our Net Zero plans please see our 2024 Annual Report
Scope of our Net Zero targets
Our greenhouse gas (GHG) emissions are reported in our Annual Report with further details including Scope 3 GHG emissions breakdown in our ESG Databook
South West Water and Bristol Water are active members of trade organisation Water UK which we engage with collaboratively to help tackle climate-related issues including the development of the industry Net Zero 2030 routemap. Additionally, our teams are engaged in UKWIR’s water industry research programme including projects towards UKWIR’s big question: How Do We Remove More Carbon Than We Emit By 2050?
Carbon in decision-making and internal carbon price
We use carbon pricing within our plans and decision making. For example, within our Water Resource Management Plans (WRMPs1) we apply the shadow carbon pricing to assess and inform the impact of future water resource investments (for our most recent plans these prices range from £70 (2030) to £200 (2045)). Our new WRMPs are in development and will reflect the latest government guidance on carbon pricing.
In addition, we are developing different tools to assess the impacts of carbon in our business. This includes evaluating the embodied or capital carbon impacts of different projects or products (e.g. the emissions associated with the manufacture, supply and eventual disposal/recycling of a water pump).