Clean Energy Regulator releases mixed report card on company emission reduction goals

The Clean Energy Regulator has issued a mixed report card on how some of Australia’s biggest companies are progressing with their carbon emission reduction goals.

Loy Yang power station is seen in the La Trobe Valley east of Melbourne. Picture: AAP Image/Julian Smith

The Clean Energy Regulator has been able to independently verify progress on less than two-thirds of climate commitments made by the 23 companies involved in its pilot emissions transparency program, a new report reveals.

Released on Friday, the first iteration of the Corporate Emissions Reduction Transparency report details the progress 23 large companies – accounting for 23 per cent of all Scope 1 emissions – have made in meeting their self-defined climate goals.

In total, 49 commitments to reduce emissions were included in the study, with the data on the progress of 31 of those independently verified by the regulator. Twenty-one of the companies have commitments to reach net zero emissions or 100 per cent renewable electricity.

AGL Energy, one of the 23 companies, has committed to the closure of its Liddell, Bayswater and Loy Yang A power stations, which it says will result in the elimination of emissions from its portfolio. Data compiled by the regulator shows it has moved backward by 3.1 per cent on its goal to reach net zero emissions by 2047 in the financial year.

Fortescue Metals, according to data verified by the regulator, was three per cent progressed toward its goal to hit net zero emissions by 2030 while Woodside Petroleum was 62 per cent progressed towards goal of a 15 per cent reduction in net emissions – Scope 1 and 2 – by 2025.

Other companies involved in the pilot included all four major banks. The National Australia Bank was 55.3 per cent progressed towards goal of entirely renewable electricity consumption by 2025. Progress toward its second goal – a “group wide science-based target to achieve a 51 per cent reduction in scope 1 and 2 greenhouse gas emissions by 2025 from our 2015 baseline” – could not be independently verified and was only a company assurance.

A significant number of other companies engaged in the CERT design with a view to potentially participating in the first full year, the regulator said on Friday.

Clean Energy Regulator chairman David Parker said there was also flexibility in the reporting to allow companies to provide detail on their commitments to reduce scope 3 emissions, as well as outline their efforts in reaching climate targets for overseas operations.

“Key elements of the CERT report draw on and are verified using data held by the Clean Energy Regulator. This is clearly identified in the reports for individual companies,” he said.

“Updates on progress for some other commitments is assured by the participating company, rather than the Clean Energy Regulator. As the sustainability reporting environment changes over the coming years, the CERT report may evolve alongside global carbon accounting frameworks and government policy intentions.”

The new report comes amid an increasing focus on disclosure of the progress on emissions and other sustainability targets.

In June, the corporate regulator said it is scrutinising poor reporting practices it describes as greenwashing. The Australian Securities & Investments Commission said it was attempting to lift the quality of ESG reporting from fund managers and superannuation funds.