Mott MacDonald highlights need for strong strategies to achieve net zero in the water sector

Mott MacDonald has published a paper comparing the net zero definitions, strategies, and carbon maturity of key Victorian and UK-based water companies. The findings of the paper were presented at the Ozwater’22 Conference in Brisbane and show how Barwon Water, Yarra Valley Water, Anglian Water and Scottish Water have defined net zero, how they intend to achieve it, and identified opportunities for improvement in the water sector.

Key findings in the paper include:

1. The depth of decarbonisation varies: In addition to operational net zero targets, UK-based water companies have also set targets to reduce capital carbon.
2. Being involved in industry initiatives such as the publication of the UK’s Infrastructure Carbon Review, and PAS 2080, the global Standard for Managing Infrastructure Carbon, have driven the UK-based companies to adopt a whole-of-supply-chain approach to emissions.
3. The Victorian companies have set earlier dates for their decarbonisation targets.
4. There is an opportunity for state, territory, and federal government policies in Australia to play a greater role in achieving nation-wide consistency in target setting.
5. Companies that scored highly in an assessment of carbon maturity also exhibit a high level of ambition in decarbonisation, emphasising the importance of carbon maturity in reducing whole-of-life emissions as much as possible before offsetting.

David Johnson, managing director of Mott MacDonald’s Asia Pacific, New Zealand and Australia business said: “The paper demonstrates the considerable variability in target setting and approaches to net zero and a correlation between an organisation’s carbon maturity and its level of ambition in decarbonisation.”

“Whilst the Victorian water companies involved in the study have set earlier targets for scope one and two emissions, the involvement of the UK-based companies in key industry carbon initiatives has accelerated their review of emissions within their supply chain and across capital carbon (scope three).”

Government policies and regulations play a key role in encouraging organisations to decarbonise, and an Australian nationwide policy approach could be useful in harmonising the approach adopted by Australian utilities.

Mott MacDonald has been at the forefront of leading decarbonisation efforts and has worked with water companies for many years, most notably through involvement in the UK Water Net Zero 2030 Routemap and PAS 2080, the global standard for managing infrastructure carbon. The paper builds on this considerable experience and was produced in collaboration with Yarra Valley Water and Barwon Water.

“We hope that our findings will inspire more discussion around decarbonisation and the sharing of best practice across the water sector in Australia and globally,” David Johnson said.

Access the full paper here.