Viva Energy Group

Viva Energy lacks any target to reduce greenhouse gas emissions intensity or absolute emissions. Without emissions reduction targets for its scope 1 and 2 and scope 1, 2 and 3 emissions, the company’s climate ambition cannot be assessed. To demonstrate commitment to the low-carbon transition and increase accountability for achieving emissions reduction, Viva Energy should set intermediate as well as long-term targets aligned with its 1.5°C pathway.

Viva Energy’s management of climate change issues remains weak on the whole. However, the company has been using climate scenario analysis to inform a qualitative risk assessment process The company uses scenarios with 4-, 3- and 2-degree temperature outcomes for the time frames 2023, 2030 and 2040. Viva Energy can improve its climate scenario analysis by using a 1.5°C outcome and a carbon price as conditions, alongside changes in operating conditions and sudden adverse financial impacts. The company should also clearly report the results of its climate scenario analysis in financial value-at-risk terms.

Viva Energy is piloting electric vehicle charging stations at selected sites and has also recently partnered with Hyzon Motors to offer hydrogen fuel for transport. The company also has a biofuels business, though it is not clear what feedstock it uses. Only second- and third-generation biofuels are considered low-carbon and included in this benchmark assessment. The company should increase transparency on its low-carbon business activities, particularly regarding growth targets and deployment schedules, to demonstrate the viability of these activities for a low-carbon transition.

Viva Energy does not have any emissions reduction targets or other low-carbon commitments.

Viva Energy has not set up a low-carbon transition plan.

Viva Energy has received investment from the Australian government to keep its Geelong refinery open until at least 2027. The company reports on undertaking energy efficiency improvements at the refinery, along with the installation of a solar energy farm to meet 20% of the refinery’s energy needs.

Viva Energy’s lack of transparency on emissions and activity data between 2014 and 2019 means its past performance on scope 1 and 2 and scope 1, 2 and 3 emissions intensities could not be assessed.

With no detailed low-carbon transition plan or emissions reduction targets, and with its low-carbon business activities still in the pilot stage, Viva Energy is not prepared for the low-carbon transition. The company will need to make significant strategic and business model changes to align with its 1.5°C pathway.