Origin Energy

Origin was the first Australian company to develop approved science-based targets s and the first energy company in the world to sign up to the first seven commitments of the We Mean Business coalition. Origin has also implemented the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). Origin has signalled its intention to update its science-based targets using the 1.5°C scenario once the methodology is available.

In 2020, Origin reduced its operated emissions from flaring by 57%. Australia Pacific LNG’s, which Origin is the upstream operator of and owns a 37.% stake in, venting and leak emissions reduced by 22% in 2020, and remained at 0.1% of Origin’s metered sales, which is already significantly lower than the target set by the Oil & Gas Climate Initiative (OGCI) of 0.25%. Since 2014 the company has reduced scope 1 and 2 emissions intensity by about 30%.

Currently, a third of Origin’s revenue is tied to gas production and consumption, the majority of its reaming revenue is from electricity generation of which more than 20%is gas-fired and 60% coal-fired. Continuing its reliance on gas into the 2040s is a risky strategy for Origin, particularly when trying to demonstrate climate leadership and decarbonising its electricity generation portfolio. Although Origin has some hydrogen production projects, these are at a nascent stage and comprise a mix of low-carbon green hydrogen production as well as the fossil fuel-based blue hydrogen production.

Origin publishes sustainability reports and has also released a scenario analysis reports in 2017 and 2019. The company’s reports are detailed and contain relevant and useful information on its emissions and low-carbon transition plan. However, the planning is more detailed around the company’s electricity generation business.. For example, Origin has set a clear coal phase-out plan for its electricity business and is targeting growth in its renewable generation portfolio. Comprehensive planning for its gas operations is more limited. Origin should bring the knowledge gained from its coal phase out plan to setting a clear phase out plan for its gas business.

Origin has committed to reduce scope 1 and 2 emissions from its electricity and gas businesses by 50% by 2032 from 2017, and scope 3 emissions by 25% over the same time-period. LNG exports and LNG from its subsidiary Australia Pacific are not included in the scope 3 target. Aside from the emissions reduction targets, the company has stated few concrete decarbonisation commitments relating to gas because it expects long-term, strong demand for natural gas in the Asia-Pacific region.

The company plans to update its targets in line with a 1.5°C scenario based on the SBTi’s target-setting guidance for the oil and gas sector. Almost all the rest of Origin’s low-carbon transition planning is focused on its electricity generation business. There is limited evidence of decarbonisation plans for its gas operations and its new business streams to replace its revenues from gas are in the nascent stages.

Origin has implemented stronger climate-related remuneration incentives for management in 2021 and plans to develop science-based targets aligned with a 1.5°C pathway. It is also working to reduce flaring emissions and is decarbonising its electricity generating assets.

Between 2014 and 2019, Origin’s scope 1 and 2 emissions intensity decreased by about 30% due to a strong focus on reducing flaring emissions. In 2020 alone, Origin reduced flaring emissions by 57%. At the same time, Origin has been increasing overall gas production from its joint venture Australia Pacific LNG.

Between 2014 and 2019, Origin’s scope 1 and 2 emissions intensity decreased by about 30% due to a strong focus on reducing flaring emissions. In 2020 alone, Origin reduced flaring emissions by 57%. At the same time, Origin has been increasing overall gas production from its joint venture Australia Pacific LNG.