Sse Plc · LSE:SSE
Sse — ESG Presentation (June 2022)
34 slides from Sse's sustainability presentation, Jun 23, 2022
Slide 1: Progressing Towards Net Zero
PROGRESSING TOWARDS NET ZERO Virtual ESG Investor Event 23 June 2022 Event will commence shortly Please e-mail any questions to [email protected]
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by SSE plc solely for use on 22 June 2022 during the Virtual ESG Investor 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 c
Slide 3: Progressing Towards Net Zero
PROGRESSING TOWARDS NET ZERO Virtual ESG Investor Event 23 June 2022
Slide 4: Agenda
AGENDA Progressing towards to Net Zero SSE HOST Michael Livingston Head of Investor Relations 1. Strategy 2. NZTP and Progress 3. A focus on the 4. Q&A “S” in ESG Sir John Manzoni Martin Pibworth Rachel McEwen Please submit Chair, Chief Commercial Officer, Chief Sustainability Officer, questions to
Slide 5: Strategy
STRATEGY Sir John Manzoni Chair SSE Group 4
Slide 6: SSE: A Purposeful Business
SSE: A PURPOSEFUL BUSINESS Supporting the transition to net zero hardwired into our purpose, vision and strategy OUR STRATEGY OUR PURPOSE To create value for shareholders and To provide energy needed society in a sustainable way by today while building a better developing, building, operating and wo
Slide 7: ESG Disclosures Becoming Mandated
6 HM Government: Greening Finance An evolving landscape ISSB Exposures Drafts EU Corporate Sustainability Disclosure ESG DISCLOSURES BECOMING MANDATED
Slide 8: A Sustainability Hierarchy
A SUSTAINABILITY HIERARCHY The strategic hierarchy of sustainability within SSE SDG 13: SDG 7: SDG 9: SDG 8: Climate Action Affordable and Industry innovation Decent work and clean energy and infrastructure economic growth SDG 12: SDG 14: SDG 15: Responsible Life below Life below consumption water w
Slide 9: 2030 Business Goals
2030 BUSINESS GOALS Stretching goals for an accelerated path to Net Zero 8
Slide 10: ESG Governance
ESG GOVERNANCE SSE’s sustainability governance structure 9
Slide 11: SSE's ESG Ratings 2021/22
SSE’S ESG RATINGS 2021/22 Aiming for leading ESG performance ESG Score: 67/100 ESG Rating: AAA Score: A 66/100 Scored as ‘Advanced’ In the top 8% of 139 Scored as ‘Leadership’ In the upper quartile of global utilities for climate change Electric Utilities industry Oct 2021 Sep 2021 Feb 2022 Nov 2021
Slide 12: Say on Climate
SAY ON CLIMATE A non binding advisory resolution on climate 21: Available at: https://www.sse.com/sustainability/ 11
Slide 13: Net Zero Transition Plan and Progress
NET ZERO TRANSITION PLAN AND PROGRESS IMAGE TBC Martin Pibworth Chief Commercial Officer SSE Group 12
Slide 14: A Net Zero Transition Plan
A NET ZERO TRANSITION PLAN Themes of the plan Targets Action Integrity 13
Slide 15: Base Year Inventory
BASE YEAR INVENTORY Composition of Scopes 1, 2 and 3 SSE’s 2017/18 total GHG emissions by scope (MtCO2e): 26% 6% 68% SSE’s 2017/18 reported scope 3 GHG emissions by SSE’s 2017/18 scope 1 GHG emissions by category category (MtCO2e) (MtCO2e) 14
Slide 16: Targets
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 an Sc
Slide 17: Plan on a Page
PLAN ON A PAGE Net Zero Transition Scope 1 Scope 2 Scope 3 1. Reduce emissions from unabated gas generation 9. Reduce electrical losses 11. Support customers to fuel switch and 2. Develop new low-carbon flexible generation from SSEN Distribution consume less gas 3. Transparent advocacy in favour of
Slide 18: Actions
ACTIONS Defining the deliverables to achieve Net Zero 68%* 6%* 26%* S1 Scope 1 S2 Scope 2 S3 Scope 3 1. Unabated gas 9. Electrical losses 11. Fuel switch, consume 2. Flexible generation 10. Net zero property less 3. Advocacy 12. Decarbonised heat 4. Residual emissions 13. Supplier collaboration 14.
Slide 19: Action in Progress: Emerging Technologies
ACTION IN PROGRESS: EMERGING TECHNOLOGIES Developing the next generation of low carbon flexible generation and renewable energy Carbon capture and storage • Keadby CCS (JV with Equinor) proposed within Track 1 cluster (Humber-Teesside) • Peterhead CCS (JV with Equinor) proposed within Reserve Track
Slide 20: Performance Summary to FY22 - Scope 1 & 2
PERFORMANCE SUMMARY TO FY22 - SCOPE 1 & 2 SSE’s progress against plan 19
Slide 21: Performance Summary to FY22 – Scope 3
PERFORMANCE SUMMARY TO FY22 – SCOPE 3 SSE’s progress against plan 20
Slide 22: Decarbonising with the Lights On
DECARBONISING WITH THE LIGHTS ON A planned, orderly transition that secures electricity supplies SSE actual and illustrative future generation output (2007–31) c.50% of thermal 60 generation lower carbon 50 Generation output (TWh) 40 > 90% renewables 30 and lower- carbon flexible 20 generation 10 Ac
Slide 23: Emissions Transparency
EMISSIONS TRANSPENCY An emissions spectrum for 2035 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 emissions 30 Spectrum
Slide 24: An Affordable Transition to Net Zero
AN AFFORDABLE TRANSITION TO NET ZERO Continuing to invest to maximise social value SSE’s response to macroeconomic backdrop • Continue to pursue investment programme at pace Security of Supply • Increasing workforce and bolstering supply chain • Investing to deliver transition to net zero maximise v
Slide 25: A Focus on the "S" in ESG
A FOCUS ON THE “S” IN ESG Rachel McEwen Chief Sustainability Officer SSE Group 24
Slide 26: A Decade of Focused Social Impact
A DECADE OF FOCUSED SOCIAL IMPACT Fair tax and a living wage 25
Slide 27: Socio Economic Impacts
SOCIO ECONOMIC IMPACTS Contribution to UK and Irish economies 26
Slide 28: SSE and the Just Transition
SSE AND THE JUST TRANSITION Nov 2021 Developing thinking on influencing a just transition Publication of second just SSE ranked transition report, top company Mar Publication of focusing on in the world in 2019 Nov SSE’s Just workers the World 2020 Transition Benchmarking AGM question about Strategy
Slide 29: Worker Report
WORKER REPORT Detailed insights former high-carbon employees 120 7,974 > 1 in 5 100 Employees Had made responded the transition 80 TOP 5 REASONS FOR 60 CHANGING CAREER 40 1. Better long-term career prospects (51%) 2. Environmental considerations (49%) 20 3. Opportunity to work on exciting projects (
Slide 30: Practical Actions
PRACTICAL ACTIONS 20 commitments for SSE, 10 recommendations for industry and 10 for Government EMBED A JUST TRANSITION STRATEGY WITH ONGOING ACCOUNTABILITY INCREASE THE EASE OF TARGET SKILLS PROVIDE ATTRACTIVE CREATE DOMESTIC RELEVANT SKILLS DEVELOPMENT EMPLOYMENT PACKAGES JOB OPPORTUNITIES TRANSFE
Slide 31: What's Next?
WHAT’S NEXT? SSE’s future focus Nov 2021 Publication of second just Publication of SSE ranked transition report, Nov SSE’s Just top company 2020 focusing on Transition in the world in workers Strategy the World Benchmarking Sep 2021 Alliance’s just transition assessment Publication of third just tra
Slide 32: Closing Summary
CLOSING SUMMARY IMAGE TBC Michael Livingston Head of Investor Relations SSE Group 31
Slide 33: Conclusion
CONCLUSION Net Zero Transition Plan at heart of company strategy Strategy Performance Just transition Goals Action Integrity Cut Carbon Increase SSE’s absolute scope 1 From principles to actions: intensity by renewable and 2 GHG emissions 30 INCREASE THE EASE OF 80% energy output RELEVANT SKILLS TRA
Slide 34: Q&A
Q&A Please email questions to [email protected] 33