Reaching Net Zero
An update on our science-based targets and progress towards Net Zero.
Octopus is a group of companies that exists to solve some of the world’s biggest challenges. We believe increasingly people want to work for, buy from and invest in companies that understand what it means to make the world a better place, and that behave in a way that is reassuringly human. We hold ourselves to high standards and have set ambitious targets when it comes to the climate crisis. We want to be a catalyst for change and encourage other businesses to follow in our footsteps, because it’s going to take a host of companies taking brave action to change the course of our planet.
Why are we taking action?
We are thrilled to announce that Octopus Group’s near-term science-based targets have been approved by the Science-Based Targets initiative (SBTi)!
After taking part in the pilot for the development of the SBTi guidance for financial institutions (SBTi Near-Term Criteria for Financial Institutions, Version 2.0), in January 2024, we set our targets using this guidance (once it was released in May 2024), as well as the SBTi Private Equity Sector Guidance, Version 1.0, and the SBTi Buildings Criteria for our real estate assets.
We had the chance to feed into the guidance to ensure it was fit for purpose and made sense for our complex organisational structure.
We are proud of our contribution to the standards and continue to engage with the SBTi to ensure it remains fit for purpose and encourages other organisations to make similar commitments.
Our Science-Based targets (SBTs):
We aim to reach Net Zero by 2040 or sooner, across our operations and financed emissions (Scope 3 Category 15).
| Near-term target using a baseline year of 2023 | |
| Our operations This refers to the running of the office | Reduce Scope 1+2 emissions by 90% by 2030 |
| Increase sourcing of renewable electricity from 87% in 2023 to 100% by 2030 | |
| Our leased assets This refers to the care homes we own and lease | Reduce Scope 3 Category 13 emissions by 66% per m2 by 2030 (baseline year of 2024) |
| Our investments Our near-term 2030 targets include 82% of our total assets under management (Scope 3 category 15 emissions) as of 2023 (the rest are optional to set targets on according to the SBTi guidance) | Real estate debt: Reduce in-use operational GHG emissions by 50% per m² by 2030 from a 2023 base year. |
| Private equity: 45% of eligible private equity portfolio (by invested value) will have SBTi-validated targets by 2030 from a 2023 base year. | |
| Listed equities on the Alternatives Investment Market (AIM):Portfolio temperature will reduce from 3.09°C to 2.44°C (Scope 1+2) and to 2.54°C (Scope 1+2+3) by 2030, from a 2023 baseline. | |
| Project finance: We will provide electricity generation project finance only for renewable electricity through to 2030. | |
More information on our SBTs and our emissions inventory can be found here:
*A reminder of the Scopes:
Scope 1: direct emissions controlled by Octopus Group companies.
Scope 2: indirect emissions from purchased electricity, steam and cooling.
Scope 3 Category 1-15: indirect emissions resulting from our activities. Category 15 emissions are from our investments which are by far the most material, forming around 70% of our footprint.