Our strategy ‘Driven to make a difference’ was launched in 2022, setting the ambitious goal of achieving net-zero carbon emissions across our operations by 2040. Through our objectives of decarbonising electricity generation, future-proofing our network infrastructure, and empowering customers on their net zero journey, we have been working to eliminate carbon from the electricity system – an essential step in helping Ireland reach its national climate target of net zero by 2050.
We have made significant progress towards these aims. The emissions intensity of the electricity we produce has also been steadily declining, from 440g CO2e/kWh in 2021 to 362 g CO2e/kWh in 2024. Our portfolio of renewable generation and storage capacity has grown from 1.3 to 1.8 GW, while ESB Networks has now connected a total of 6.3 GW renewables to the grid – a 34% increase over 2021.
2030 is the next crucial staging post for our ambitions. The ESB Net Zero Pathway Report, published in early 2024, set out concrete 2030 targets for Scope 1, 2 and 3 emissions, and outlined the steps we will take to deliver on these. To get an external perspective on our progress, we commissioned Moody’s Investor Services to carry out a third-party assessment of our emissions reduction pathway, using their ‘Net Zero Assessment’ (NZA) methodology.
The NZA has three components: Ambition, Implementation, and Greenhouse Gases (GHG) Governance. The assessments are expressed on a five-point scale that represents gradations of meaningful carbon transition profiles. Moody’s does not provide NZAs to entities whose carbon transition profiles are not meaningful, which they define as an implied temperature rise of 2.5 degrees Celsius or below relative to pre-industrial levels.
Moody’s has assigned ESB an overall NZA score of NZ-3, based on the following assessment:
Ambition: Moody’s have stated that ESB’s ambition score is aligned with the ‘well below 2 degrees Celsius’ planetary warming scenario (that is, within a 1.5-1.8 degrees Celsius range), consistent with Paris Agreement goals.
Implementation: ESB’s implementation score was moderate, driven by a credible action plan on Scope 1 and 2 emissions in the short term. Higher uncertainties exist however around long-term targets, especially for Scope 3 emissions.
Governance: ESB was scored at the highest Moody’s tier for governance, which includes metrics around targets and transparency.
“It is encouraging to receive this third-party view on our net zero ambitions. We believe it shows we are on the right track as we drive forward to net zero by 2040,” remarks Sharon McManus, Group Head of Sustainability at ESB. “The NZA also provides confirmation of the key issues that we had already identified as challenges that must be addressed as we approach 2030.”
At the outset of our strategy, ESB initially committed to achieving a science-based emissions target for 2030 and engaged with the SBT Institute (SBTi) to that end. However, a number of factors have meant we are not currently in a position to set a target for 2030 through SBTi. These are discussed in detail in our Net Zero Pathway Report (Section 4.7.4).
“Since we launched our strategy in 2022, we have seen many changes to the economic and geopolitical landscape – and ESB, like others, is adapting to this new environment,” concludes Sharon McManus. “One thing that has not changed is our commitment to achieving net zero by 2040. We understand the challenges facing us both within our business and externally and will continue making every effort to overcome these and deliver on our ambition.”
To view Moody’s full assessment, visit the Sustainability section of our website here.