These emissions have been classified by their source and fall into four areas:
- Stationary combustion (power plants, compressors, electricity consumed)
- Escapes (natural gas, SF6)
- Controlled Venting (gas pipelines and equipment)
These four areas provide a robust basis for estimating and managing our performance to reduce our emissions, as well as benchmarking our emissions against our industry peers.
The audit gives an indication of the carbon footprint for each line of business (Transmission, Gas Distribution, Non Regulated Businesses, and Electricity, Distribution and Generation) Together these estimations total around 11.5 million tonnes of carbon dioxide equivalent (CO2e) for 2009/10. This has enabled us to implement annual carbon budgets from 1 April 2009, alongside customer service, reliability, safety and financial performance targets, and aligned with executive director compensation.
FACT: Since 1990, National Grid has reduced its greenhouse gas emissions by around 30%.
How will the carbon budgets work?
- For the first year (2009/10), carbon budgets will be based on the 2008/09 emission figures provided by each line of business which will include reduction programmes already planned. This ‘business as usual’ strategy for the first year will provide an opportunity for each line of business to better understand the sources of their emissions, identify reduction opportunities and propose a more ambitious target for 2010/11.
- 5-year rolling budgets will be set based on the Company’s drive to meet the 80% reduction target by 2050. The 5-year rolling budgets will smooth annual fluctuations in emissions caused by factors such as changing energy demands due to colder or warmer than average winters.
- Executive compensation will be linked to achieving the agreed carbon budgets.