Our Net Zero commitments
“We believe that how a company behaves is just as important as what it does. That’s why, as well as investing billions of pounds in companies that are helping to build a sustainable planet, we’re also setting out a plan that will take Octopus to Net Zero before 2030.”
Simon Rogerson, CEO of Octopus Group
Why Net Zero?
Humanity is under a code red warning. Extreme weather events are becoming more frequent, yet we’re still not making the sacrifices needed to stop climate change.
The bathtub is filling faster than it drains.
And a minority can’t tackle climate change alone – our power is collective action.
Individuals, companies, governments and countries, uniting to solve this collective problem together.
50% of 16–23-year olds think that humanity is doomed.
Around 40% of animals are facing extinction.
The last decade was the hottest in 125,000 years.
Our investment focus
In today’s hyper-transparent and connected world, employees and customers now hold all the power; they want to work for, buy from and invest in ‘good’ companies.
This creates huge opportunities for investors. We manage over £12.5 billion, £6.2 billion of which is helping to build a more sustainable planet, with investments in renewable energy, sustainable infrastructure, green real estate, and climate technology.
One company we’ve invested in
Minimum, provides a platform to help other companies measure their carbon footprint and set a reduction pathway. So, we’re providing free licenses for the Minimum platform to all our portfolio companies.
Octopus commitments
In February 2021 we signed up to the B Corp Climate Collective and set a 2030 Net Zero target. To get there we’re focussing on four core objectives:
1. Measure
Measure our total carbon footprint*. In 2021 = 2,672 tCO2e**.
2. Set
Set interim emissions targets. 30% reduction by 2025, 90% by 2030.
3. Reduce
Reduce our emissions in line with a 1.5 degrees pathway.
4. Offset
Offset any carbon we do emit through solutions that capture carbon from the atmosphere.
*Our net zero commitments include Octopus Investments, Octopus Ventures, Octopus Real Estate, Octopus MoneyCoach, Octopus Wealth and Seccl. We have not included Aurora, Octopus Energy or our investment products because we intend to sign up to the Net Zero Asset Managers Initiative this year, and will be making a separate commitment for them.
2021 carbon footprint
In 2021 our carbon footprint was 2,672 tonnes of CO2 That’s equivalent to powering 337 homes per year or having 576 cars driven per year. Here’s how that gets broken down across our business:
7%
Building and office
3%
Business travel
3%
Commuting
9%
Marketing
40%
Software and Tech Services
38%
Other Goods and Services
Our roadmap to Net Zero
We have set an interim target of a 30% reduction by 2025 inline with a 1.5 degrees pathway, and we need to reduce our absolute emissions by 90% by 2030 to be verified by the Science Based Targets initiative as Net Zero.
| 2021 (tCO2e) | 2025 target (30% reduction) (tCO2e) | 2030 target (90% reduction) (tCO2e) | |
|---|---|---|---|
| Total operational emission reduction† | 193 | 135 | 19.3 |
| Total supply chain emission reduction‡ | 2,479 | 1,735 | 247.9 |
| Total | 2,672 | 1,870 | 267.2 |
† Scope 1 & 2 emissions.
‡ Scope 3 emissions – we’re committed to offsetting our remaining emissions through projects that capture carbon from the atmosphere. We’re looking at a whole host of projects from restoring mangroves, seagrasses and kelp, to peatlands and saltmarshes and we hope to begin these projects in 2022.
The journey so far
We’ve identified the areas where reduction can have the most material impact:
1. Third party suppliers
- We’re working with the 20 highest emitting companies in our supply chain to report their emissions, set targets and reduce outputs.
- We’ve implemented a sustainable procurement policy encouraging our teams to work with businesses who report on their emissions and align with our values.
2. Software and tech services
- We’re streamlining internal business processes and data systems to improve energy efficiency and reduce usage.
3. Business travel
- We’re implementing a travel policy that limits how our employees travel, encouraging them to use trains and electric vehicles.
4. Our current office
- We’ve made all the possible adjustments to our office and operations to improve our footprint and energy efficiency:
- Our water usage is a low as possible:
- Reduced amount of water coming out of taps in bathrooms.
- 100% dual flushed toilets.
- Sensors on urinals and taps to minimise water use.
- Our waste system has improved:
- Zero waste to landfill process.
- We make sustainable purchasing decisions:
- Paper, pens, teabags, cups etc.
- Our electricity consumption is at a minimum:
- Office operating at 100% renewable energy.
- Air conditioning systems set at most energy efficient temperature.
- 100% of office lights have been dimmed by 20%.
- Censored lighting to reduce time it’s turned on.
- Bulbs changed to daylight bulbs and LED lights installed.
- Printers reduced from 16 to 2 to minimise printing.
- Moving online:
- Most client communications have moved online to our Octopus Online platform.
- Introduction of digital business cards
- Our water usage is a low as possible:
5. Our new office
- We’ve done everything we can to make our existing office as energy efficient as possible, but we’ve hit a glass ceiling. That’s why we’re exploring all opportunities to lease one of the most sustainable offices in London.
What we’re doing to build a more sustainable planet
Hear from people across the business
Laura Halstead, Octopus Energy Generation
Benjamin Davis, Octopus Real Estate
David Sykes, Octopus Energy