Climate Change Data

National Gas Transmission plc

Climate Impact & Sustainability Data (2021-04 to 2026-03, 2023-04 to 2024-03)

Reporting Period: 2021-04 to 2026-03

Environmental Metrics

ESG Focus Areas

  • Air quality
  • Climate change
  • Responsible asset use
  • Caring for the natural environment
  • Leadership for change

Environmental Achievements

  • Achieved carbon-neutral construction for major projects, offsetting 26,000 tonnes of CO2e emissions by 2026.
  • Delivered a 10% minimum net gain in environmental value on all construction projects.
  • Reduced NOx emissions per hour of gas turbine running by the end of RIIO-T2.
  • Reduced methane emissions from leaks on the network.
  • Reduced carbon emissions from office energy use by 20%.

Social Achievements

  • Educated the public about environmental issues through outreach linked to major compressor emissions projects.
  • Engaged employees on environmental issues through a comprehensive program.
  • Implemented a comprehensive employee-engagement programme on environmental issues including emissions, waste, reduction in plastics and employee travel.

Governance Achievements

  • Embedded sustainability in decision-making.
  • Produced an Annual Environmental Report (including Business Carbon Footprint reporting).
  • Increased transparency on capital carbon and natural capital, using data and tools to collaborate and drive environmental progress.

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero emissions by 2040.
Medium-term Goals:
  • Establish a National Hydrogen Transmission network by 2045.
Short-term Goals:
  • Develop a science-based target for carbon reduction by 2023.
  • Achieve 1GW of hydrogen production capacity by end of 2025.

Environmental Challenges

  • Reducing greenhouse gas emissions in line with the UK's net-zero target.
  • Developing a science-based target for carbon reduction in a sector with uncertain decarbonisation pathways.
  • Addressing redundant assets and sites responsibly.
  • Managing climate change risks to assets.
  • Reducing waste intensity of construction projects.
Mitigation Strategies
  • Developing a science-based target for carbon reduction by 2023.
  • Addressing 84 redundant assets, asset groups, or sites.
  • Assessing and reporting climate change risks on assets.
  • Implementing new mobile and fixed natural gas recompression technologies to reduce methane emissions.
  • Replacing older compressors with cleaner technology to improve air quality.
  • Implementing circular economy principles for raw materials, goods procured, and existing assets.
  • Reducing waste intensity of construction projects year-on-year.

Supply Chain Management

Responsible Procurement
  • Implement ISO 20400 sustainable sourcing process.
  • 75% of top suppliers (by category/spend) will have carbon reduction targets.

Climate-Related Risks & Opportunities

Physical Risks
  • Warmer temperatures
  • Coastal and river flooding
Transition Risks
  • Policy decisions impacting a future hydrogen economy
Opportunities
  • Repurposing network to transport hydrogen

Reporting Standards

Frameworks Used: PAS 2080, ISO 20400, BS 8001

Reporting Period: 2023-04 to 2024-03

Environmental Metrics

Total Carbon Emissions:381.4 ktCO2e/year
Scope 1 Emissions:343.1 ktCO2e/year
Scope 2 Emissions:37.4 ktCO2e/year
Scope 3 Emissions:0.9 ktCO2e/year

ESG Focus Areas

  • Climate change
  • Safety
  • Diversity, Equity, and Inclusion

Environmental Achievements

  • Compressor station and terminal NOx emissions for 2023/24 were 5.42 kilogrammes per compressor unit run hour, a decrease of 0.86kg/hour from 2022/23.
  • Scope 1 and scope 2 carbon emissions reduced to 381 ktCO2e from 405.8 ktCO2e in 2022/23.
  • Achieved 100% hydrogen flow for the first time into FutureGrid test facility.

Social Achievements

  • Over £35,000 donated to Barnardo’s.
  • Over 1,900 colleague volunteering hours delivered.
  • Over £36,000 invested in local communities through the Community Grant Fund.
  • Employee Net Promoter Score (eNPS) improved to +22.
  • Established a new Belonging Hub for DEI resources.

Governance Achievements

  • Established a new Safety and Sustainability Committee.
  • Improved the risk management framework.
  • Implemented a new system for managing risk centrally.

Climate Goals & Targets

Long-term Goals:
  • Create a core hydrogen network across Great Britain.
Medium-term Goals:
  • Achieve net zero emissions by 2050 (ambition of 2040 for scope 1 and 2).
Short-term Goals:
  • Reduce NOx emissions from compressor unit combustion to 6 kg/hour.

Environmental Challenges

  • Ageing assets and complex systems pose challenges to meeting net-zero targets.
  • Supply chain disruptions due to geopolitical factors.
  • Maintaining network reliability in the face of climate change.
  • Achieving diversity targets.
Mitigation Strategies
  • Investing in asset maintenance and upgrades.
  • Developing alternative sourcing strategies.
  • Implementing robust risk management and internal control systems.
  • Launching diversity and inclusion initiatives.

Supply Chain Management

Supplier Audits: 76% of top 50 suppliers have carbon reduction targets.

Responsible Procurement
  • Implementing ISO 20400 sustainable sourcing process.

Climate-Related Risks & Opportunities

Physical Risks
  • Coastal and inland flooding
  • Extreme temperatures
Transition Risks
  • Failure to manage climate change impacts and meet net-zero targets.
  • Reputational damage and fall in investor confidence due to failure to meet net-zero ambition.
Opportunities
  • Development of hydrogen and carbon capture and storage (CCS) networks.

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 22301

Third-party Assurance: Deloitte LLP

Sustainable Products & Innovation

  • Hydrogen transportation network

Awards & Recognition

  • 2023 Project of the Year award at the Gas Industry Awards (FutureGrid)