Sector introduction: Electric utilities (EU)
Climate change is a strategic issue for the electric utilities sector, as power generation is the single largest emitter of CO2, accounting for around 25% of global emissions (IPCC, 2014: Climate Change 2014: Synthesis Report. Contribution of Working Groups I, II and III to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change). With the increasing commercialization of renewable energy sources and the advent of decentralized power production, the electric utilities sector has the potential to undergo a key transition to low-carbon energy sources (IIGCC, 2016: Investor Expectations of Electric Utility Companies: Looking down the line at carbon asset risk).
CDP’s electric utilities sector questions are based on research and frameworks relevant to this sector, including CDP’s ACT pilot project which focused on this industry. The questions focus on the following topics:
- Methane emissions reduction;
- Scope 1 emissions breakdown by sector production activities;
- Power generation capacity;
- Global transmission and distribution business;
- CAPEX plans for power generation and products and services; and
- Investments in low-carbon R&D.
This CDP sector aligns with the TCFD’s Energy group along with coal (CO), electric utilities (EU), and oil & gas (OG).
