The ability for companies to meet Scope 2 reduction targets and goals is increasingly challenging due to macro developments outside the companies’ control. Although wind and solar power generation are at all time highs – and the growth continues – many energy experts are now saying it tends to be additive rather than displacing fossil fuel power generation. In addition, renewable energy projects globally faced major obstacles like changes in public policy and the impact of interest rates on project economics.
Banking firm Standard Chartered (StanChart) reflected just this in their 2024 Annual Report:
“We continue to work towards purchasing renewable energy in every country possible and are striving to meet our target of 100 per cent by 2025. However, due to market constraints and lack of renewable energy options in some markets within Africa and the Middle East (for example, Bahrain, Botswana, Ghana, Iraq and Tanzania), we may not be able to meet our RE1001 aspiration in 2025. We also have some countries where we purchase renewables through ‘cross-border’ grid feeds, which is recognised for our net zero target, but not recognised by RE100.”
Companies who report on potential business risks related to Scope 2 emissions may want to consider following StanChart’s lead here.
Members can learn more about emissions and reporting here.
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