Origin Energy Limited has released its first Climate Transition Action Plan outlining the company’s strategy and ambition to lead the energy transition through cleaner energy and customer solutions. The CTAP includes new targets to accelerate emissions reduction across Origin and create value for shareholders, towards a long-term ambition to be net zero emissions by 2050.

• New ambition of reaching net zero Scope 1, 2 and 3 emissions across the value chain by 2050
• New medium-term target consistent with the goals of the Paris Agreement to reduce Scope 1, 2 and 3 equity emissions intensity by 40 per cent by 2030, from a FY2019 baseline
• New medium-term target to reduce absolute Scope 1, 2 and 3 equity emissions by 20 million tonnes by 2030, from a FY2019 baseline
• New short-term target to reduce Scope 1 equity emissions by a cumulative 8 million tonnes between FY2021-FY2023 against FY2017 baseline, linked to remuneration
• Capital allocation supports strategy and emissions reduction targets
• Scenario analysis consistent with a 1.5°C pathway to test the resilience of the business and strategy
• Principles to support a just transition
• Strategy supported by three strategic pillars to accelerate decarbonisation and create value

Origin CEO Frank Calabria said, “As a leading Australian energy company with operations spanning retail, power generation and natural gas production, and as a major employer with a footprint in many communities across the country, we recognise we have an important role to play in the transition to a low-emissions future.

“We have a track record of action and advocacy on climate change and have made progress in several areas; and we also recognise the need for greater ambition and action.

“The release of our first Climate Transition Action Plan is an important milestone for Origin, and we believe it articulates a clear, pragmatic and ambitious pathway to accelerate decarbonisation across our business and create value for shareholders.

“We have set new emissions reduction targets, with our medium-term emissions intensity target and long-term ambition to be net zero emissions by 2050 consistent with the goals of the Paris Agreement, as set out in our CTAP.

“We are proud of the steps we have taken this year towards decarbonising our business, the most significant of which was our announcement to accelerate our exit from coal fired generation with the closure of Eraring power station by as early as August 2025.

“We are also progressing plans for a 700 MW battery on the Eraring site and have more than 1,600 MW of renewable development projects, as we aim to grow renewables and storage capacity within our generation portfolio to 4 GW by 2030.

See related article: Australia to target vehicle emissions to boost electric car supply

“We recognise that a significant proportion of our emissions result from our customers’ use of the energy products we sell, or our Scope 3 emissions, and therefore our customers are a central part of our strategy and are captured within our medium-term targets and long-term net zero ambition.  

“Our view is that gas will continue to play an important role in the energy mix for some time, to support variable renewable energy output and for customers who cannot easily electrify and for which there is no viable alternative to gas available today.

“We believe our climate plan is appropriately ambitious, and that our medium-term emissions intensity target and long-term net zero emissions ambition are consistent with the goals of the Paris Agreement, therefore, we encourage shareholders to support it,” Mr Calabria said.

Origin’s Climate Transition Action Plan will be submitted to a non-binding, advisory shareholder vote at the company’s Annual General Meeting on 19 October 2022.

Source: Origin Energy