Our commitment to tackling climate change reflects an ambition to lead and drive the transformation towards low-carbon energy systems, provide reliable energy and enhance resource efficiency. At the heart of our strategy lies our publicly declared target to reduce our portfolio’s specific GHG intensity by 50 percent by 2030, largely facilitated by a rapidly rising share of renewables generation capacity reaching a 50/50 greenbrown ratio by 2030. We are also committed to reaching net-zero emissions from our portfolio by 2050.
We are committed to a specific GHG intensity reduction of 50 percent in our portfolio by 2030 from where it stood at the end of 2020. We believe we will achieve this target by focusing our investments on renewables and transitional low CO2 emitting assets, including capturing viable fuel-switch opportunities and increasing and optimizing the energy efficiency of our portfolio.
We monitor, measure and report, and will continue to do so, our portfolio’s absolute Scope 1 and 2 emissions and the emission intensity. While our targets are based on ACWA Power’s equity share in our projects, we will never lose sight of the total portfolio metrics and will continue to report them.
In conducting our emission calculations for 2021, we aligned with the most relevant internationally recognized GHG accounting and reporting standard for calculating and reporting emissions:
ACWA Power’s footprint is based on the equity share consolidation approach, including under Scope 1 & 2 emissions from assets based on the company’s share of equity. ACWA Power’s 2021 carbon footprint covers all our 32 assets globally, excluding offices, and includes applicable emission sources that account for more than 5 percent of the total emissions.
ACWA Power’s Scope 1 emissions include direct emissions from stationary fuel combustion from our assets. Fuels include natural gas, fuel oil, coal, and diesel. ACWA Power’s Scope 2 emissions include indirect emissions from grid supplied electricity consumption from our assets.
We excluded the scope 1 emissions from owned fleet (mobile fuel combustion emissions). Also excluded are the scope 1 emissions from fuel consumption and the scope 2 emissions from grid supplied electricity and district heating/cooling consumption, both from owned offices. These emissions are expected to represent less than 5 percent of total Scope 1 & 2 emissions. However, ACWA Power will work towards estimating these emissions in the future.