Avangrid sets new carbon neutrality targets

Published on November 18, 2022 by Dave Kovaleski

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Sustainable energy company Avangrid is furthering its environment, social, and governance (ESG) commitments by expanding its carbon neutrality targets.

The company is now planning to reach carbon neutrality in scopes 1 and 2 by 2030 and is developing a strategy to address scope 3 emissions. Avangrid is one of only three energy company peers to set 2030 carbon neutrality goals and is aligned with the country’s target to decarbonize the U.S. power sector by 2035.

Additionally, its parent company, Iberdrola, recently reaffirmed its target to become carbon neutral by 2030 in scopes 1 and 2 and reach Net Zero in all 3 scopes by 2040. Scope 1 emissions include all direct greenhouse emissions from sources owned or controlled by Avangrid. Scope 2 emissions include indirect greenhouse emissions associated with the generation of purchased energy consumed by Avangrid.

“Our sustainability goals have continued to evolve since 2017 when we became the first U.S. utility to commit to carbon-neutral goals and set our target to reach generation carbon neutrality by 2035. We’ve strengthened our emissions goals and social commitments, laid the groundwork to transition our fleet to cleaner energy vehicles, committed to increasing our purchases with diverse suppliers, and more. We not only continue to evolve and accelerate our commitments but also have innovative initiatives underway to meet our goals,” Pedro Azagra, CEO of Avangrid, said.

To reach carbon neutrality in scopes 1 and 2 by 2030, Avangrid plans to increase renewable installed capacity by 190 percent by 2030 versus 2015, supported by investing $1.8 billion in its renewables business through 2025. Also, the company is exploring new technology solutions such as hydrogen and storage. In addition, it plans to decrease greenhouse gas emissions intensity from generation sources by 35 percent by 2025 and 70 percent by 2030 versus 2015.

Further, it is committed to having 100 percent renewable energy in its corporate buildings by 2030 and converting 100 percent of its light-duty vehicles to cleaner energy by 2030. Also, it will continue to develop a plan for the company’s one thermal unit, its Klamath gas generation facility. It will also continue to invest in gas leak prevention with pipeline replacements.

“Avangrid has and continues to demonstrate leadership in all aspects of ESG,” Laney Brown, vice president of sustainability at Avangrid, said. “We analyzed a select number of our ESG goals against our peer’s, and the breadth and depth of our ESG commitments in comparison demonstrates our ESG leadership and reflects our unique ESG position.”

In addition, the company has expanded its commitment to gender diversity. Last year it signed on to the Paradigm for Parity, which aims to achieve 50 percent women in senior leadership positions by 2030. Avangrid has set an additional goal of having 35 percent of women in executive positions by 2025.