A Science based approach

Scope 1 emissions are direct emissions such as using diesel in back-up generators, refrigerants in chillers and fuel used by our fleet vehicles.

Scope 2 are emissions associated with the use of electricity to power our network as well as our corporate and retail sites.

Scope 3 are indirect emissions associated with our supply chain including the goods/services we procure to run our business, the waste we generate, the flights our people take, the emissions from the use and disposal of products we sell.  Importantly, there are 15 categories of Scope 3 emissions.

For Optus, while Scope 1 & 2 are important in ensuring our operations and the decisions we make support our emission reduction targets, our Scope 3 emissions make up 80% of our total emissions which is why we are focussing more on working with our suppliers in 2024 and beyond.

Singtel Group (which includes Optus) is committed to reduce Scope 1 and 2 emissions by 55% and Scope 3 emissions by 40% between 2023 and 2030. The SBTi team has also validated our net-zero goal of 2045, which Singtel Group had brought forward from 2050.

A PPA or a Power Purchase Agreement is a contractual agreement between energy buyers and sellers. They come together and agree to buy (this could be a corporate like Optus, a trader or a utility) and sell (the generator, the producer or supplier) an amount of energy which is or will be generated by renewable assets such as wind, hydro or solar projects.  PPAs are usually long-term agreements, ranging from 5 years and up to 20 years.

In 2023, Optus signed its first PPA with Red Energy which will mean that 42% of our energy will be from renewable sources from January 1st, 2025.

The Science Based Targets initiative (SBTi) defines and promotes best practice in emissions reductions and net-zero targets in line with climate science. It allows for target setting methods and guidance for companies to set science-based targets in line with the latest climate science. Science-based targets show companies how much and how quickly businesses need to reduce their greenhouse gas emissions to prevent the worst impacts of climate change, leading them on a clear path towards decarbonisation. SBTi also includes a team of experts to provide companies with independent assessment and validation of targets.

Optus as part of the SingTel Group will be the first Australian telco with a net-zero target by 2045 approved by SBTi.

Optus’ Scope 3 emissions make up over 80% of our total emissions which is why we are working towards greater supplier engagement. A total of 40 suppliers represents over 91% of our upstream Scope 3 emissions and we have commenced plans to engage these suppliers through a framework approach that includes training, targeting, and tracking.

We have seen an overall reduction of our Scope 3 emissions of 67% between FY21 and FY23 due to improvements in the methodology Optus used to estimate the emissions in Category 1 (Purchased Goods and Services) and Category 2 (Capital Goods)

Yes, the environment data published in the annual Singtel Group Sustainability Report (which Optus contributes towards) receives limited assurance by EY every year for key metrics. In addition, Internal Audit conducts internal assurance and controls reviews.

Optus is committed to reduce its emissions in line with global ambitions and targets.  The transitioning of our energy needs to renewable sources is an essential part of the strategy, which also includes decommissioning the more energy intensive legacy systems as well as implementing other energy efficiency measures.

We are guided by our main emission reduction targets where we have short, mid and longer-term targets:

1. Short term: To reduce our Scope 1 and 2 emissions by 25% (from a 2015 baseline) and to meet an increasing proportion of our electricity needs from renewable based sources.
2. Mid-term targets: contributing to the Singtel Group’s Scope 1 & 2 emissions reduction of 55% between FY23 and FY30.
3. Long term targets: Net zero across all scopes by 2045 as part of the SingTel Group’s targets (from a 2023 baseline, advanced from 2050)