Telstra updates climate targets, moves away from carbon credits
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The news: Telstra plans to ramp up its climate change commitments by increasing its scope 1 and 2 emission reduction targets, funded by moving away from the purchase of carbon credits.
The numbers: From 1 July, the telco will increase its scope 1 and 2 carbon emission reduction target from a 50% reduction to a 70% reduction by 2030, while retaining its aim of reducing scope 3 emissions by 50% within the same timeframe.
Scope 1 emissions cover those from sources that an organisation owns or controls directly, including using fuel for vehicles or power generators. Scope 2 emissions are those that a company causes indirectly, such as the generation of electricity for its buildings.
Scope 3 covers emissions that a company is indirectly responsible for across its entire value chain.
The context: Telstra confirmed it will move away from using carbon credits to offset its residual emissions in favour of direct investments to reduce its carbon footprint.
As part of this decision, the company will no longer seek certification from Climate Active, the government program that supports Australian businesses to make voluntary climate action. It will also remove references that its plans are "carbon neutral" or "carbon offset".
To date, Telstra's use of carbon credits has formed part of its climate change strategy, having sourced credits from projects related to renewable energy development, First Nations savanna burning activities and restoring biodiversity. However, the company said it will now look to drive more investment in reducing the emissions from its operations rather than offsetting what remains.
This will include exploring more technology-related opportunities, such as piloting green hydrogen cells, installing more solar and battery solutions, and using data analytics and AI to improve the efficiency of its network equipment.
The source: Telstra media release
