National Grid is increasing its target of reducing company-wide greenhouse gas emissions from 60 percent to 80 percent by 2050.
It will also adopt carbon budgets across its UK and US electricity and gas businesses from April 2009, integrating them into the management of its day-to-day business operations and company performance process.
“Adopting carbon budgets and integrating them into our business performance process will encourage our employees to identify new ways to achieve the challenging 80 percent reduction target, and ensure emissions reductions remain at the heart of our operational decision-making,” National Grid’s chief executive, Steve Holliday, said.
National Grid will review its operations and set annual and five-year emissions targets, measured in tonnes of carbon dioxide equivalent, for each business. The targets will be integrated into the company’s performance process alongside customer service, reliability, safety, operational and financial targets.
The company says that adopting carbon budgets will allow National Grid to calculate a “shadow price” of carbon and determine emissions costs for future design, construction and maintenance of its electricity and gas networks, management of its fleet and facilities, and any potential new investments.