Climate change poses a threat to the economy, our health, our communities and our future. Downer’s commitments are aligned with a 1.5°C pathway and support the transition to net zero emissions by 2050.
Downer is investigating solutions to reduce our energy consumption and greenhouse gas (GHG) emissions, in an economically efficient manner. Efforts are also underway to explore strategies that strengthen the resilience of assets and the broader portfolio to climate-related impacts. To support progress in this area, various initiatives are being developed to lower energy use and GHG emissions across operations and activities.
Downer aims to consider the risks and opportunities related to climate change as part of its strategic planning and business management processes. Starting 2024 we have been disclosing climate-related information in accordance with the Aotearoa New Zealand Climate Standards (NZ CS). Our most recent climate disclosure is integrated into our Sustainability Report and can be found on the Sustainability Report 2024 page.
Targets
Downer supports the science on climate change and is committed to taking action to decarbonise its operations to help play its part in reducing global temperature rise.
Downer has set a near-term Scope 1 and 2 GHG emissions reduction target, utilising the Science Based Targets Initiative (SBTi) Corporate Near-Term Target Setting Tool, and a net zero Scope 1 and 2 GHG emissions reduction target, utilising the SBTi Corporate Net-Zero Tool. Downer’s Scope 3 component of the targets is currently under review.
Downer’s near-term Scope 1 and 2 GHG emissions commitments are aligned with a 1.5°C pathway and support the transition to net zero emissions by 2050.
Downer’s GHG emissions reduction targets are:
- 50% reduction by 2032 across absolute Scope 1 and 2 emissions against a 2020 baseline
- Net zero by 2050 across Scope 1 and 2 emissions against a 2020 baseline, noting that Downer’s near-term Scope 3 target and associated baseline are under review.
The development of our Climate Transition Plan is currently in progress. It will be disclosed in due course alongside the updated Decarbonisation Plan, reflecting our ongoing commitment to transparent and sustainable climate action.
Climate governance
Downer’s corporate governance framework provides the platform for the identification and management of key risks, including those relating to environment and climate, across the Group.
The Downer EDI Ltd Board is the body with oversight of climate-related risks and opportunities across Downer. The Board is responsible for the approval of Downer’s climate strategy, elements of which are integrated into Downer’s overall strategy, however, this remains a work in progress. The Board is also responsible for approving Downer’s climate targets, comprising of its near-term and long-term emissions reduction targets, and its disclosures. Metrics and targets are considered annually, with management providing information to the Board around sufficiency and reasonableness of environment and climate-related targets, informing the Board’s approval process.
The Board exercises oversight over climate-related risks and opportunities through its various Board committees and reporting from management. These committees include:
- Zero Harm Committee
- Audit and Risk Committee
- People and Culture Committee
- Project Governance Committee.
Downer’s Executive also reports climate-related information to the Board in monthly reporting, which where relevant will include:
- GHG emissions performance, relative to Downer’s science-based aligned target performance
- Decarbonisation initiatives and their progress
- Business Unit climate change and decarbonisation plans, including Business Unit specific climate-related risks and opportunities
- Policy changes relating to climate change
- Customer obligations relating to climate change
- Areas of the business impacted by physical risks
- Opportunities to support our customers’ mitigation and adaptation efforts.
For detailed information on Downer's Climate Governance, please refer to the Sustainability Report 2024.
Climate Risks & Scenario Analysis
A core focus of Downer’s strategy is to capture opportunities to help our customers deal with the energy transition and decarbonisation.
Climate change exposes our business, customers and communities to a range of acute and chronic physical risks, and exposes society and Downer to transition risks. It also presents opportunities to develop climate adaptation and mitigation services, as well as low emissions products and services.
Downer conducted scenario analysis to identify these climate-related risks and opportunities and has considered them in testing the viability of Downer’s strategy, as well as impacts on the execution of its strategy.
Downer’s ongoing processes for identifying and assessing climate-related risks occur in accordance with our overarching risk management framework across our entire value chain.
More detailed description of the climate-related risks & opportunities management, as well as the outcomes of the scenario analysis, can be found in the section ‘Climate Change and Environment’ in our Sustainability Report 2024.
Local commitment and industry participation
In Australia and New Zealand, we participate in communities of knowledge to ensure that our climate and sustainability efforts are purposeful and aligned to national and international best practice and approaches. The examples of external stakeholders that Downer engages with are:
- The Australian and New Zealand Climate Leaders Coalitions, where we join a community of practice to help Australia and Aotearoa to transition to a low emissions economy that will create a positive future legacy.
- The Business Council for Sustainable Development Australia (BCSD Australia) and the Sustainable Business Council of New Zealand, the organisations with businesses and non-governmental bodies working together to accelerate the transition to a sustainable world by aligning with the Sustainable Development Goals (SDGs) and acting on climate change.
- Professional communities, such as the Green Building Council and the Infrastructure Sustainability Council, that guide and promote sustainable practices in the construction and infrastructure sectors, aiming to ensure that projects deliver meaningful social, cultural, environmental, and economic benefits.
In 2022, Downer released its first standalone Climate Change Report, which remains accessible via the link below.
Click here to read Downer’s 2022 Climate Change Report
For the latest climate-related information, please refer to the Downer’s Climate Statement within the Sustainability Report 2024.