National Grid

Carbon per million dollars of revenue. The legacy industry-standard reference (CDP, MSCI). Useful for cross-sector context, but distorted by margin — high-margin firms appear artificially efficient. Read alongside the operational and asset intensities for the full picture.

OpEx (operating expenditure) is the running cost of the business — staff, services, energy, materials. This shows how carbon-intensive operations are per million dollars of spend. Removes the margin distortion that revenue-based ratios introduce.

EVIC (Enterprise Value Including Cash) is the firm's total capital footprint — equity + debt + cash + minority interest. The EU's standard intensity measure (SFDR PAI 3) — answers: how much carbon does each million of capital deployed in this business produce?

PP&E (Property, Plant & Equipment) plus leased real-estate assets is the firm's physical infrastructure on the balance sheet. This shows the carbon intensity of that physical footprint — uses Scope 1+2+3 for consistency with the other headline intensities. Surfaces stranded-asset risk for asset-heavy firms.

In 2022/23 connected 686 MW of renewable capacity to networks (132 MW UK ET/ED, 554 MW US). Through National Grid Renewables (US) own 929 MW of onshore wind and solar, with 823 MW in construction. Community Offshore Wind JV with RWE for ~3 GW NY offshore wind seabed lease. Interconnectors total capacity 6.4 GW, building Viking Link to Denmark (will bring to 7.8 GW). UK ET delivering 17 ASTI projects to enable government's 50 GW offshore wind target by 2030. Renewable energy purchased: 13% of total in FY23 (16% UK, 2.4% US).

Air travel is the only area of the business currently using carbon offsets to mitigate immediate impact — all emissions from air travel (7 ktCO2e in FY23) are offset. No durable carbon removals (DAC, BECCS, biochar) disclosed. Focus is on direct reductions through leak-prone pipe replacement, SF6 reduction, EV fleet, and supply-chain engagement rather than relying on removals/offsets.

• Network electricity distribution losses reduction

  Network losses represent the largest share of NGED's carbon footprint (~782,803 tCO2e of 827,492 tCO2e total Scope 1+2 in 2023/24). NGED's Losses Vision Statement is 'to proactively manage losses, minimising them where possible'. Interventions in 2023/24 included LV cable uprating (581km from 95mm² to 185mm²), 11kV cable uprating (652km), and replacement of 81 pre-1958 GMT transformers. Higher network utilisation from electrification is expected to increase losses.

• Fluid-filled cables - oil leakage reduction

  FFC leakage in 2023/24 was significantly less than the baseline 3-year ED1 average. NGED has 683km of FFC with 1,663,150 litres of oil in service; 15,032 litres leakage reduction and 550 litres recovered. Commitment to reduce FFC leakage by 50% by 2028 and remove all oil-filled cables by 2060, supported by remote pressure monitoring, perfluorocarbon tracer detection, and replacement of high-leak circuits.

• Fleet electrification

  Commercial fleet EV share rose to 12% (from 9% in 22/23) and leased fleet to 50% (from 25%). NGED installed EV chargers at primary substations with an ambition of c.200 chargers across 92 primary substations in 24/25. Use of a Driver Behavioural System has reduced kgCO2e per operational km. Operational road emissions remain the largest non-losses Scope 1 source.

• SF₆ reduction and SF₆-free switchgear

  SF₆ fugitive emissions were 8,117.67 tCO2e in 2023/24 (vs 10,402.47 baseline). NGED is working with manufacturers (Siemens/Schneider/Hitachi/Lucy) on SF₆-free apparatus and sponsoring non-SF₆ products through the ENA Notice of Conformity process. Seven non-SF₆ 145kV Live Tank Circuit Breakers are active with an eighth ready. Target: 20% reduction in SF₆ losses over RIIO-ED2.

• Building & substation energy efficiency

  Building energy use emissions reduced to 8,516 tCO2e (from 16,910 baseline). Substation electricity dropped to 4,908 tCO2e (from 11,634 baseline). NGED continues to use local awareness initiatives and energy saving equipment installation across buildings and substations to further reduce energy use.

• Reduce fugitive natural gas emissions via network modernisation

  Investing in network modernisation to reduce fugitive natural gas emissions from US gas distribution and increase safety/reliability. Long-term goal to serve 10-20% of gas demand with renewable natural gas (RNG) by 2030, reaching 100% fossil-free gas by 2050 via mix of green hydrogen and RNG.

• Manufacturing energy efficiency and renewable energy in plants

  Manufacturing and facility emissions account for ~10-15% of value chain GHG. Example: Ballina, Ireland concentrate facility delivered 29% energy reduction (2019-2022), bringing emissions back to 2011 levels via Industry 4.0 investments. System-wide renewable electricity reached 21% in 2022.

• Reduce electricity transmission line losses

  Scope 2 emissions arise primarily from electricity network line losses. Will efficiently connect renewables and continue building interconnectors to support wider decarbonisation of electricity markets. Deploying SmartWires technology to increase UK transmission capacity by 1.5 GW. Targeting deep decarbonisation of UK electricity generation by 2035 and NY/MA by 2040 to reduce line losses to near-zero.

• SF6 leak reduction and gas alternatives

  SF6 emissions reduced 21% since 2019 against 50% by 2030 target (FY23: 278 ktCO2e). Pilot with Rawwater allows in-service leak sealing without outage. £1.9m four-year project with University of Manchester to develop retrofill solutions for SF6 replacement. World-first SF6 replacement deployed with Hitachi Energy at Richborough substation, Kent.

• Light-duty fleet electrification by 2030

  Target to move to 100% electric fleet by 2030 for light-duty vehicles. Currently 5% EV (FY23). 312 zero-emission vehicles across UK and US commercial fleets, with UK ED operating 181 electric vans + 262 electric company cars. Building UK's largest private EV charging network 2023-2028 with chargers within 10-mile radius of fleet drivers.

• Leak-prone gas pipe replacement

  Continued leak-prone pipe replacement programme in US gas distribution to reduce methane emissions from Scope 1 natural gas fugitives/venting (714 ktCO2e in FY23). Key driver of Scope 1 reductions alongside SF6 and EV programmes.

• Air travel reduction

  Target to reduce annual air miles travelled by at least 50% from 2019/20 baseline. Currently at 23% reduction vs pre-pandemic (below the 50% target), as travel rebounded post-pandemic. All air travel emissions are offset.

• Cold drink equipment (refrigeration) decarbonisation

  Refrigeration accounts for ~one third of system emissions. In 2022, 88% of all new coolers placed were HFC-free (up from 61% in 2016). Internal energy usage guidance published in early 2023 sets specific limits requiring increasing efficiency to 2030. Transition from glass-door to solid-door coolers (>20% more efficient) is being rolled out in Southeast Asia, Middle East and especially India.

• SF6 leak reduction and elimination from grid equipment

  Committed to reducing SF6 emissions 50% by 2030 from FY19 baseline. SF6 is 22,800x more potent than CO2. Pilot at Richborough 400kV substation retrofilled 755kg of SF6 with low-GWP g3 gas, achieving ~99% CO2e reduction. Identified ~28 tonnes more SF6 in same-design assets across UK network. Ambition to eliminate SF6 entirely.

• Long Island Power generation decarbonisation

  Scope 1 emissions rose 12% (from 4,727 to 5,271 ktCO2e) primarily due to increased Long Island Power Authority generation hours replacing off-island shortfalls. Working with LIPA during current generation contract (ending 2028) to reduce emissions in line with NY State's 2040 decarbonisation path. By 2040 own generation portfolio will no longer include any fossil fuels.

• Fleet electrification — 100% light-duty EVs by 2030

  Joined EV100 initiative June 2021. Committed to electrifying 2,235 UK vehicles and 2,656 US vehicles by 2030, plus 289 UK charging sites. Currently 4% of light-duty fleet is electric (128 vehicles).

• Long Island Power Authority generation fleet decarbonisation

  LIPA power generation accounts for 66% of total Scope 1 emissions. National Grid operates the plants but bidding is controlled by LIPA/PSEG into NYISO market. Current contract runs to 2028; working to facilitate further Long Island renewable generation in support of NYS 100% low-carbon by 2040 target. Increased running hours drove Scope 1 emissions up 21.1% in 2020/21.

• SF6 leakage reduction in electrical equipment

  SF6 emitted 321 ktCO2e in 2020/21 (-1.5% YoY). Trialling non-SF6 vacuum circuit breakers in US. IFA interconnector asset replacement programme expected to reduce SF6 leakage 70% by 2025. Target 50% reduction by 2030 from 2019 baseline, with ambition to eliminate SF6 by 2050.

• Fleet electrification (light-duty 100% EV by 2030)

  At year-end 2% (66 vehicles) of light-duty fleet was electric. Commitment to 100% electric light-duty by 2030 and pursue zero-carbon alternatives for medium and heavy-duty vehicles. Market developments expected to enable acceleration.

• Hydrogen Locomotive Program ($30M)

  CP is developing North America's first line-haul hydrogen-powered freight locomotive by retrofitting diesel locomotives with hydrogen fuel cells (Ballard Power Systems) and battery hybrid propulsion. Scope expanded in 2021 from one to three conversions after $15M Emissions Reduction Alberta funding matched $15M CP investment. Includes hydrogen production/fueling facilities in Calgary (powered by HQ solar electrolysis) and Edmonton. First successful movement test December 2021.

• High-Efficiency Product (HEP) grain train fleet upgrade ($500M)

  $500M multi-year investment in high-capacity grain hopper cars (10% more capacity than legacy cars) supporting 8,500-foot HEP train model. By end 2021, 5,803 new cars in service. Enables 44% more grain per unit train, reducing train starts, fuel consumption and GHG emissions.

• Precision Scheduled Railroading & fuel efficiency

  CP uses Precision Scheduled Railroading focused on operational efficiency metrics and annual fuel-efficiency targets. 2021 fuel efficiency: 0.931 US gallons/1,000 GTM — 11.3% better than North American Class 1 average, and a 44% improvement since 1990. Linked to executive STIP compensation (operating ratio metric).

• Locomotive Modernization Program ($514M to date)

  CP is upgrading its line-haul locomotive fleet with EPA-certified fuel/emissions reduction technologies (GE Trip Optimizer, Distributed Power), advanced diesel engines, and improved traction. 416 of 912 active line-haul locomotives modernized by end 2021 (30 in 2021 alone). Minimum 2.7% per-locomotive fuel-efficiency improvement; saved 2,541 tCO2e in 2021. Locomotive fuel = >95% of Scope 1+2.

• Business air travel reduction

  Annual air miles fell from 24 million to 0.7 million (COVID-driven); emissions from air travel fell from 10 ktCO2e to 0.3 ktCO2e. Commitment to reduce air miles by at least 50% from 2019 baseline on an enduring basis and offset remaining emissions responsibly to achieve zero carbon emissions from business air travel.

• Office energy efficiency and green-power procurement

  Reduce office energy consumption 20% by 2030 from a 2019 baseline through more flexible working, technology to reduce travel, building-energy efficiency, and procuring green energy where possible.

• SF6 leak reduction and SF6-free equipment

  SF6 leaks from electrical equipment are a primary Scope 1 source. National Grid commits to a 50% reduction in SF6 emissions by 2030 from a 2019 baseline and an ambition to eliminate SF6 entirely from assets by 2050, working with sector partners to develop SF6-free solutions.

• Fleet electrification (100% electric light-duty by 2030)

  Move to a 100% electric light-duty fleet by 2030 and pursue zero-carbon alternatives for medium- and heavy-duty vehicles. Employees are incentivised to buy electric vehicles. Combined with reduced business flights, this is the firm's primary lever on mobile-source Scope 1 and business-travel Scope 3.

• Fugitive gas-network leakage reduction

  Gas transmission and distribution leaks are a major Scope 1 source. The firm is replacing leak-prone gas pipelines with plastic ones and using robots travelling through pipelines to detect and reduce leakage.

• Supply chain decarbonisation (Cat 1 & 2)

  Scope 3 Cat 1+2 emissions of ~490,000 tCO2e in 2023/24 are calculated using GICS spend-based factors. NGED is moving to activity-based methodology via Anthesis project - top 5 PG&S categories (underground cabling 30%, construction 15%, dig and lay 9%, transformers 9%, tree trimming 8%) represent 70% of spend-based emissions. NGED is also requesting EPDs/LCAs from transformer suppliers and developing Project ALPACA (PAS2080-aligned) embodied carbon tool.

• Purchased goods & services — supplier engagement

  Scope 3 Cat 1 is 6,747 ktCO2e (22% of Scope 3). Working with top 250 suppliers — target 75% to have active carbon reduction targets by 2030 (54% achieved in 2021/22, up from 49%). Integrating carbon as a weighted element within design and tender decision-making (10% of supplier score). CDP Supplier Engagement Leader; 93% of suppliers requested responded to CDP Climate Change Supply Chain programme.

• Customer use-of-sold gas decarbonisation (Clean Energy Vision)

  Use of sold products dominates Scope 3 (17,973 ktCO2e in FY23 US). US Clean Energy Vision (April 2022) targets fossil-free gas system by 2050 via four pillars: energy efficiency; targeted electrification + networked geothermal; hybrid electric-gas systems; 100% fossil-free gas (RNG + hydrogen). Heat pump installations in 8,400+ homes in 2022 (2x growth). Developing clean hydrogen blending facility in Hempstead NY (operational 2025). Geothermal pilot approved by MA Department of Public Utilities.

• Use of sold product (gas & electricity sold to customers) decarbonisation

  Scope 3 Cat 11 (Use of Sold Products) is the largest Scope 3 category at 18,947 ktCO2e (63% of Scope 3). Strategy aligned to clean energy vision: efficiency programmes, fossil-free gas (RNG + green hydrogen blending), hybrid electric-gas heating, targeted electrification (heat pumps). 100% fossil-free gas network by 2050.

• Supply chain decarbonisation (CDP supply chain member)

  Engaging 250 suppliers annually on decarbonisation; target for 75% of top 250 suppliers to have active carbon reduction targets by 2030. Currently 62% (FY23, up from 54%). Working with Carbon Trust to identify most carbon-intensive suppliers and promote SBT adoption. 87% of requested suppliers responded to CDP Climate Change Supply Chain programme in 2022.

• Packaging: recycled content, lightweighting and reusables

  Packaging accounts for ~30% of carbon footprint. World Without Waste targets: 100% recyclable by 2025; 50% recycled content by 2030; 25% refillable/returnable by 2030; reduce virgin plastic from non-renewable sources by 3M MT cumulatively 2020-2025. In 2022, 25% recycled content achieved across all materials; 15% for PET. More than 40 markets offer at least one brand in 100% rPET bottles.

• Sustainable agriculture / supply chain ingredients

  Ingredients account for ~10-15% of value chain GHG. Coca-Cola works with agricultural suppliers via Principles for Sustainable Agriculture (PSA) covering energy management, conservation of forests/habitats, soil management. In 2022, 89% of orange ingredient volumes were sustainably sourced. Updating SBT to FLAG methodology will account for land use change and sequestration.

• Supplier engagement via Supplier LoCT and SBTi commitments

  Joined Supplier Leadership on Climate Transition (Supplier LoCT) in 2022 with 56 sponsored suppliers (94 system-wide). More than 160 suppliers have set or committed to SBTi-approved emissions targets (up from 119 in 2021). Major bottling partners (CCHBC, CCEP, AB InBev, Swire Coca-Cola, Coca-Cola FEMSA, Arca Continental) have SBTi commitments. 378 of 495 requested suppliers provided CDP climate data in 2022.

• Supplier carbon-reduction target engagement (Scope 3 Cat 1)

  Purchased goods/services emissions of 6,570 ktCO2e (23% of Scope 3). Target: 75% of top 250 suppliers to have active carbon reduction targets by 2026. At year-end 49% (122 suppliers) reported active targets. 87% of suppliers asked responded to CDP Climate Change Supply Chain programme vs 68% average response rate.

• Scope 3 — decarbonisation of US sold natural gas

  Use of sold products (US gas + electricity) at 18,235 ktCO2e is 63% of Scope 3. Five-point 2050 plan for US gas network: RNG/hydrogen integration (Newtown Creek RNG project; HyBlend DOE hydrogen blending); heat pumps and geothermal networks; energy efficiency/demand response; methane leak reduction; large-scale CCUS and offsets. Short term emissions may rise as customers switch from heating oil to gas.

• Modal shift: customer freight from truck to rail

  Rail is 3-4x more fuel-efficient than highway transport with ~75% fewer GHG emissions per ton-mile per AAR. CP markets this as a low-carbon supply chain offering — engaged with 8% of freight revenue customers on climate in 2021 (target: 30% by 2025). Developed online customer-facing carbon calculator. Intermodal services = 22% of revenue and classified as low-carbon under LCI Registry Taxonomy.

• Waste rail tie beneficial reuse to renewable fuels

  CP generated ~1.3M waste rail ties in 2021 (90% of operational waste mass). Engages 10 tie processors and 13 downstream cogeneration/industrial facilities to divert from landfill. Partnered with Cielo Waste Solutions since 2018 to evaluate processing ties into renewable naphtha, kerosene (aviation jet fuel) and diesel.

• Sold-product emissions: electricity & gas to customers (-20% by 2030)

  Sold electricity and gas to customers represents ~80% of Scope 3 emissions. National Grid commits to reduce this 20% by 2030 from a 2016 baseline (SBTi 2C-aligned), through grid decarbonisation, supporting heat electrification (heat pumps), renewable natural gas/hydrogen network options, and US energy-efficiency programmes for residential, commercial and industrial customers.

• Net-zero UK construction supply chain by 2026

  Achieve net zero emissions from Scope 3 construction activities in the UK by 2026; in the US the firm will develop a construction carbon-intensity target by 2022. Suppliers are also being engaged through the CDP supply-chain programme to set their own carbon-reduction targets.