Utilities Industry Emissions Reporting

Foreword by Finlay Johnson, Strategic Partnerships Director at Mobilityways

Scope 3 emissions are fundamental to Mobilityways’ mission. We specialise in providing large employers with the tools and knowledge to decarbonise the commute. So, in this guide we also offer advice on how to effectively measure and reduce commuting emissions, which often make up a significant and untapped proportion of an organisation’s scope 3 emissions. 

We have examined the sustainability reports of the largest energy and water companies and DNOs in the UK and uncovered each organisation’s net-zero target; identified whether those targets adhere to the Science Based Targets initiative (SBTi); and assessed the overall level of consideration given to Scope 3 emissions in comparison to Scope 1 and 2. 

In doing so, we have evaluated how individual utilities companies, and the industry as a whole, are progressing towards scope 3 emissions reduction. Are they adhering to reporting standards, setting viable net-zero targets, and considering all barriers to emissions measurement?  

We have seen that, while every energy and water company has at least a general net-zero target – in-line with guidance from Ofgem and Ofwat – many of these targets are not science-backed. Most companies offer detailed reporting on their Scopes 1 & 2 in step with their obligations. However, reporting on Scope 3 is much less detailed, despite accounting for as much as 95% of some firms’ total emissions. Other companies, as detailed later on, do have comprehensive reporting and feasible targets for Scope 3. 

This guide aims to give you strategies for measuring and tackling your Scope 3 emissions more effectively, so you can better understand the emissions reduction opportunity for your organisation.

What are Scope 3 emissions?

Emissions from a business are divided into three different categories – Scope 1, Scope 2, and Scope 3. 

Scope 1 emissions are direct emissions from sources that a company controls, such as fuel burned in the company’s vehicles. Scope 2 emissions are indirect emissions from the purchase and use of electricity, steam, heating and cooling – such as the energy burned to heat an office. Scope 3 emissions are all other indirect emissions, including those from purchased goods and suppliers, emissions from customers, and employee commuting.   

The significance of Scope 3 emissions

Addressing Scope 3 emissions is essential for meeting true net-zero targets, complying with regulations and sustainability requirements from Ofgem, Ofwat and the UK government, and maintaining investor and public trust.  

Proactively managing these emissions helps strengthen supply chain resilience, and support customers in their own decarbonisation efforts, reinforcing your company’s role as a leader in the energy transition.  

There are cost-saving opportunities too, with operational efficiencies covering: 

• Section 106 agreements. Green travel plan requirements are becoming an increasingly standard part of planning applications, especially where government is involved. 

• BREEAM (Building Research Establishment Environmental Assessment Method) accreditation. Specific building details are available in the BREEAM database, covering accredited projects in the UK. 

• Reducing parking demand with sustainable car park management – only issue permits to employees who require them or who carpool. 

• Improving employee recruitment and retention by making it simpler and cheaper for them to get to work with personal travel plans and viable, reasonably-priced commuting methods.  

Read the full 28-page Utilites Industry Emissions Reporting Guide now using the button below.