Origin Energy sets sights on net zero by 2050

Origin Energy logo on side of corporate headquarters (profit)
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Power producer Origin Energy has set a target for net-zero direct and indirect emissions by 2050, as energy companies around the world outline efforts to curb emissions amid investor pressure, Reuters reports.

Companies are increasingly in the crosshairs of investors and campaigners over their role in promoting coal, oil and gas—the leading causes of man-made greenhouse gas emissions.

Related article: Origin profits jump 30% on back of LNG, oil prices

Origin aims to reduce scope 1 equity emissions, a type of direct carbon emissions, by a cumulative 8 million tonnes between the financial years of 2021 and 2023, with 2017 as a baseline, with a percentage of executive pay on the line.

The power producer has linked between 10% and 15% of short-term incentives of its executives, excluding those of its retail and Origin Zero divisions, to the emissions targets.

Origin aims to cut its emissions by 40% by 2030 by exiting coal and boosting investments in wind, solar and storage. However, the company has no immediate plans to scale back its interests in gas.

“Our view is that gas will continue to play an important role in the energy mix for some time,” Origin Energy CEO Frank Calabria said.

Related article: Origin hit with largest fine ever imposed for NER breach

About 10% of the CEO’s short-term incentive will be linked to a short-term 2023 goal.

Origin is aiming at a 40% reduction in direct and indirect equity emissions intensity by 2030, with 2019 as a baseline, in keeping with standards set by the Paris Agreement.

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