Sse Plc · LSE:SSE
Sse — ESG Presentation (June 2023)
32 slides from Sse's sustainability presentation, Jun 28, 2023
Slide 1: Progressing the Net Zero Transition Plan
Progressing the Net Zero Transition Plan ESG Virtual Event 28 June 2023
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by SSE plc solely for use on 28 June 2023 during the ESG Virtual Event for the company. This presentation may not be disclosed or published, nor used by any other person or entity, for any purpose other than with the express and prior written consent of
Slide 3: Agenda
Agenda SSE HOST Michael Livingston Progressing the Net Zero Transition Plan Head of Investor Relations 1. A Strategy with a 2. The Net Zero 3. The ‘S’ in ESG Q&A Purpose Transition Plan and Please submit questions to [email protected] Progress 3
Slide 4: Strategy with a purpose
Strategy with a purpose Alistair Phillips-Davies Chief Executive 4
Slide 5: An affordable transition to net zero
An affordable transition to net zero Security Carbon of Impact Supply Affordability 5
Slide 6: SSE supporting the future energy system
SSE supporting the future energy system Decarbonising generation and enabling electrification 1 Creating renewable energy at home and abroad 2 Transporting electricity to power society 3 Providing flexible energy 4 to ensure energy security Enabling a smooth, fair and just transition 6
Slide 7: A Sustainability Hierarchy
A Sustainability Hierarchy The strategic hierarchy of sustainability within SSE 7
Slide 8: 2030 Business Goals
2030 Business Goals Stretching goals for an accelerated path to Net Zero Progress in 2022/23 • Carbon intensity of electricity generated 254g/kWh (baseline 307g/kWh in 2017/18) • Flagship renewables construction projects progressed • Secured contracts for two new low carbon biofuel plants • Advocate
Slide 9: Investment closely aligned with EU Taxonomy
Investment closely aligned with EU Taxonomy Upgraded NZAP Plus focusses investment towards taxonomy-eligible activities £18bn net investment >£16bn Taxonomy aligned > 90% investment expected to align with EU Taxonomy NZAP Plus EU Taxonomy Investment Alignment Residual <10% represents legacy asset ma
Slide 10: However, the transition will not be linear
However, the transition will not be linear The energy transition in a volatile market requires a long-term strategy to deliver Adjusted Operating Profit as classified by the EU Taxonomy Illustrative expected near-term transition pathway 22% ~20% 49% 84% ~85% 55% +ve 0 -ve FY22 FY23 FY24 FY25 FY26 FY
Slide 11: SSE plc – ESG credentials
SSE plc – ESG credentials Aiming for leading ESG performance Rating provider Minimum possible score rating ♦ Maximum possible score Sector ranking1 CCC ♦ AAA 89th percentile Severe risk ♦ Negligible risk 88th percentile 0 ♦ 100 86th percentile D- ♦ A Sector leading 0 ♦ 100 Top decile 0 ♦ 100 Advance
Slide 12: Say on climate
Say on climate A non-binding advisory resolution on climate NET ZERO TRANSITION REPORT 17: Resolution To 17: Net Zero receive SSE’s To receiveReport Transition SSE’sfor Netthe Zero year Transition ended Report 31 March for the year 2023 ended 31 March 2023 Availableat: Available at: https:www.sse.co
Slide 13: Net Zero Transition Plan and Progress
Net Zero Transition Plan and Progress Martin Pibworth Chief Commercial Officer 13
Slide 14: A net zero transition plan
A net zero transition plan Themes of the plan INTEGRITY ACTION TARGETS 2022 Annual General Meeting, Resolution 21: “to receive SSE’s Net Zero Transition Report for the year 98.92% of shareholder ended 31 March 2022.” votes in favour 14
Slide 15: Transition Plan Taskforce
Transition Plan Taskforce Development of “gold standard” for climate transition plans launched by HM Treasury SSE an early adopter of net zero transition planning with framework still developing • HM Treasury launched Transition Plan Taskforce (TPT) in 2022 focussed on informing international disclo
Slide 16: Net Zero Transition Plan on a page
Net Zero Transition Plan on a page SSE’s Short-, medium- and long-term carbon targets, plus key actions to achieve them Short term (to 2025) Medium term (2025 - 2035) Long term (2035 - 2050) 2025 2035 2050 Target Engage with 50% of Reduce the carbon intensity of Reduce absolute scope 1 Reduce absolu
Slide 17: SSE's Targets
SSE’s Targets Setting out clear and ambitious targets to progress decarbonisation Engage with Reduce the carbon intensity of Net zero for SSE’s scope 50% of scope 1 GHG emissions by 80% by 1 and 2 emissions by suppliers by 20301 20402 spend to set Reduce absolute scope 1 and 2 Net zero for all SSE’s
Slide 18: Climate performance to date
Climate performance to date GHG emissions by scope since 2017/18 base year 18
Slide 19: FY23 carbon emissions
FY23 carbon emissions Falling Scope 1 emissions from declining thermal output and change in JV arrangement 2017/18 2021/22 2022/23 6.24 6.52 11.06 MtCO2e MtCO2e MtCO2e Scope 1 Scope 1 Scope 1 6 months of operational control of and scope 1 50% of Seabank’s emissions accounted in Operational control o
Slide 20: FY23 carbon emissions
FY23 carbon emissions Transparency over expanding Scope 3 emissions FY23 Scope 3 GHG emissions FY23 GHG emissions Other Scope 2 Raw fuels Scope 1 Scope 3 purchased Gas sold 11.3 MtCO2e 4.8 MtCO2e Joint Venture investments Triton Power and Seabank: non-operational equity investments in gas generation
Slide 21: Decarbonising with the lights on
Decarbonising with the lights on A planned, orderly transition that secures electricity supplies SSE actual and illustrative future electricity output (2007–32) 60 ~15% lower- carbon thermal* 50 Generation output (TWh) 40 30 ~80% renewable and battery 20 10 Actual output Illustrative future output 0
Slide 22: Integrity: Emissions Transparency
Integrity: Emissions Transparency An emissions spectrum for 2035/36 Importance of transparency • Open and honest approach to challenges faced by SSE and energy system participants • Provides backdrop for constructive discussion with policymakers and regulators SSE’s absolute scope 1 and 2 GHG emissi
Slide 23: Integrity: Listening to the Climate Science
Integrity: Listening to the Climate Science Climate Change Committee’s report on decarbonising the power sector March 2023 CCC report outlines what a decarbonised power sector could look like in 2035, finding that “The Government must give equal focus to low-carbon flexible solutions as to the full
Slide 24: Integrity: Neutralisation
Integrity: Neutralisation Transparent about uncertainties but guided by best available science PRIMARY FOCUS: When abatement is maximised, Explore options for mid- REDUCTION OF UNABATED deploy technological or nature- 2030s for neutralisation of SCOPE 1 GENERATION based solutions to neutralise resid
Slide 25: Action In Progress: Low Carbon Generation
Action In Progress: Low Carbon Generation Tarbert in Ireland a microcosm of the next generation of low carbon power GROWING PIPELINE OF LOW CARBON REPURPOSING HIGH CARBON ASSETS AT TARBERT GENERATION PROJECTS ACROSS SSE FOR IRISH ENERGY SECURITY Between FY21 and FY23 SSE has seen 150MW Emergency 300
Slide 26: The "S" in ESG
The “S” in ESG Rachel McEwen Chief Sustainability Officer 26
Slide 27: SSE and the Just Transition
SSE and the Just Transition Moving from principles to action Publication of third just Publication of SSE’s Just Publication of second just transition transition report, focusing Mar AGM question Transition Strategy report, focusing on workers on consumers 2019 Apr about Nov 2023 developing a 2021 M
Slide 28: Workforce Development
Workforce Development A workforce delivering net zero 2022/23 PROGRESS Investment in learning, training Investment in pipeline and development programmes £10.4m Developing Building a £12.8m existing pipeline of Average number of training workforce talent Individuals on pipeline hours per full-time e
Slide 29: Inclusion and Diversity
Inclusion and Diversity Powering tomorrow through inclusion GENDER PAY GAP WORKFORCE REPRESENTATION TOTAL WORKFORCE WOMEN IN LEADERSHIP UK gender pay gap UK bonus gender pay gap Median Median 15.3% 14.7% (2022: 18.0%) (2022:17.6%) UK gender pay gap UK bonus gender pay gap Mean Mean 12.1% 44.3% (2022
Slide 30: Closing Summary
Closing Summary Michael Livingston Head of Investor Relations 30
Slide 31: Conclusion
Conclusion Net Zero Transition Plan at heart of company strategy Strategy Performance Just transition Goals Action Integrity Cut Carbon Increase Moving from principles to actions intensity by renewable INCREASE THE EASE OF RELEVANT 80% energy output SKILLS TRANSFER fivefold TARGET SKILLS DEVELOPMENT
Slide 32: Q&A
Q&A Please email questions to [email protected] 32