Downer is focused on developing solutions to reduce our energy consumption and greenhouse gas emissions, while increasing our cost competitiveness. We are also committed to developing strategies that will improve the resilience of our assets and portfolio to the impacts of climate change. To fulfil our climate change commitments, we are actively developing solutions to reduce our energy consumption and greenhouse gas (GHG) emissions associated with our operations and activities.
Downer considers climate change to be one of its significant material risks and opportunities and has responded to the recommendations of the taskforce on climate-related financial disclosures (TCFD) since 2018, which demonstrates where these risks and opportunities lie and their extent.
Our most recent response is found within our standalone Climate Change Report.
We have been measuring our GHG emissions since 2009 and have established Science-Based Targets to reduce our GHG emissions reductions and decarbonise our organisation. Our ambitious Scope 1 and 2 GHG emissions reduction targets are in line with the Science-Based Target Initiative’s Net Zero Standard (1.5°C pathway), as well as a Scope 3 emissions reduction target aligned to a well below 2°C trajectory. As of FY23, our targets are:
To monitor and measure our performance against these GHG emissions reduction targets, we use a Key Performance Indicator (KPI), set for FY21 and with stretch targets through to FY26, which focuses on GHG emissions reduction efforts for Scope 1 and Scope 2 greenhouse gas emissions intensity (Tonnes CO2-e/AU$m). These KPIs are linked to Downer’s $1.4 billion Sustainability Linked Loan. In addition, we monitor Downer’s absolute Scope 1 and 2 emissions on a monthly basis to monitor and track our performance against these targets.
To achieve our GHG emission reduction and decarbonisation targets, our actions include:
Downer understands that this transition is not without broader sustainability risks, largely within its customers and supply chains. These include:
Action on climate change will create employment and economic opportunities for communities Downer works in. However, the transition to a lower carbon economy has potential impacts on workers and local communities reliant on carbon intensive industries, some of which Downer provides products and services to. Downer is committed to collaborating with our customers and communities to support decent work opportunities and livelihoods as industries change and the economy shifts to address climate change.
The Board Zero Harm (ZH) Committee has oversight of climate-related risks and opportunities.
The Committee assists the Downer Board in its oversight of Downer’s compliance with its health, safety, environment, climate change and sustainability commitments. The committee oversees the development and implementation of relevant management systems, and monitoring of climate change and sustainability performance.
Briefing papers and performance reports are provided to the ZH Committee each quarter. Meetings are attended by Chief Sustainability Officer, and Group GM of Environment, Sustainability and Reporting to discuss sustainability and climate-related information, strategy, greenhouse gas emissions performance and management response. Decision-making and endorsements provided by the ZH Committee and Board include:
The Board takes an integrated approach to managing climate risks and opportunities with oversight of climate-related issues through Downer’s governance structure and mechanisms, including:
Downer’s Board of Directors and members of the Executive Leadership Team regularly act to enhance their climate change competencies through: