Our Net Zero Carbon Strategy - Arup

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A B E T T E R W AYOur net zero carbon strategy

INTRODUCTIONO U R S T R AT E G YTOWARDS NET ZEROOUR JOURNEYClimate change is ourgreatest challengeAlan BelfieldChair, Arup GroupHuman activities are estimated to have alreadycaused 1 C of global warming above preindustrial levels and unless drastic action istaken, we will surpass the 1.5 C threshold inthe next 30 to 50 years. The risks associatedwith global warming above 1.5 C representsignificant risks to the systems upon whichwe depend.Global emissions over the next few decadeswill shape our planet for centuries to come. Asdesigners of the built environment, we have avital role to play in both mitigating the impactson these systems and enabling infrastructure andurban development to adapt to ongoing change.At Arup, we make a significant impact throughour projects, but we have a duty to practice ouradvice to clients in everything that we do.As a firm, we have made a commitment tobe a net zero organisation by 2030 and tocontribute meaningfully to the UN SustainableDevelopment Goals, creating shared valuefor our clients and our communities whilesafeguarding our planet.Our Net Zero Carbon Strategy sets out howwe will achieve the 1.5 C aligned sciencebased target for our full value chain emissionsand compensate residual hard-to-decarboniseemissions with certified greenhouse gasremoval. We will monitor progress andregularly revisit this plan to ensure we are ontrack to meet our net zero commitment by 2030.ACTIONSTIME TO ACT

INTRODUCTIONO U R S T R AT E G YTOWARDS NET ZEROOUR JOURNEYACTIONSTIME TO ACT“By setting targets thatare grounded in climatescience, Arup is showingthat ambitious climateaction and good, resilientbusiness go hand in hand.”Cynthia Cummis,Director of Private Sector Climate Mitigation at World ResourcesInstitute, one of the Science Based Targets initiative partners

INTRODUCTIONO U R S T R AT E G YTOWARDS NET ZEROOUR JOURNEY“Our industry is responsiblefor 40% of global carbonemissions. It is ourresponsibility to reduceemissions and contribute toa sustainable future.”Jo da SilvaGlobal Sustainable Development Leader, Arup FellowACTIONSTIME TO ACT

INTRODUCTIONO U R S T R AT E G YTOWARDS NET ZEROOur strategyArup has madea commitmentto be a net zeroorganisationby 2030.OUR JOURNEYACTIONSTIME TO ACT

OUR JOURNEYACTIONSTIME TO ACTC A R B O N R E D U C T I O N TA R G E T S ( T C 0 2E )160,00030% reductionNet Zero140,000Scope 1Scope 2120,000Scope 3: Business travel100,000Scope 3: Purchased goods andservices and capital goods80,000Scope 3: Wastegenerated in operations60,000Scope 3: Employee commuting40,00020,000From a 2018 emissions base line: Reduce scope 1 and 2 GHG emissions 30% by 2025 Reduce scope 3 emissions 30% by 282026202402022We will achieve this by pursuing an ambitious1.5 C aligned science-based target for ourfull value chain emissions and compensatingresidual hard-to-decarbonise emissions withcertified greenhouse gas removal.TOWARDS NET ZERO2020Net zerocarbon strategyO U R S T R AT E G Y2018INTRODUCTION

INTRODUCTIONTOWARDS NET ZEROOUR JOURNEYOur project work has greater impact on carbonemission reduction than our own operations– but we are taking steps to reduce emissionsin both contexts. By demonstrating ourcommitment through action, we can give betteradvice to our clients.CONTROLTIME TO ACTH Y 4 H E A THYDROGENMETHANGA SINFLUENCEACTIONS ArupOur impactO U R S T R AT E G YEThe 25m Hy4Heat innovation programme,funded by the UK Government, is exploringwhether it is technically possible, safeand convenient to replace natural gas(methane) with hydrogen in residential andcommercial buildings and gas appliances.The Department of Business, Environmentand Industrial Strategy (BEIS) is using thestudy to establish if hydrogen could be partof a plausible potential pathway to helpmeet heat decarbonisation targets. Arupleads Hy4Heat’s Programme and TechnicalManagement, collaborating with industrypartners, specialists and experts toensure delivery whilst engaging withrelevant stakeholders.UNKNOWNGlobal projectsArup projects1 . 2 1 M t C O 2ELondoninfrastructureprojects Arup0 . 1 4 M t C O 2EBIRMINGHAM INTERCHANGED E S I G N C A R B O N I S AT I O NArup worked on the scheme design ofthe Euston and Birmingham Interchangestations as part of Phase 1. With a carbonmanagement process integrated with themulti-disciplinary design development, theproject teams identified significant carbonreduction opportunities across the wholelife of the stations – both from capital andoperational emissions.

INTRODUCTIONO U R S T R AT E G YTOWARDS NET ZEROTowards net zeroOur aim is to reduceemissions by 30%,which is equivalentto 40,800 tCO2e.OUR JOURNEYACTIONSTIME TO ACT

CTISONATCOULD REDUCE EMISTIME TO ACTCLICK ONTHE ARROWST O N AV I G AT 4We will reduce purchasessuch as catering,stationery and eventsby 50%, which will cutemissions by 4%.2019In addition to financial savings there arebenefits from taking actions that go muchwider than emission reductions. Factors suchas social value, and health and wellbeing cansee a marked improvement, for instance, fromincreasing active travel, reducing flying, andallowing people to work flexibly to meetother responsibilities.THACTIONS00AOUR JOURNEY202If Arup implements ambitious actions to meetthe global targets, we could achieve greater than30% reduction from our baseline emissions, inless than five years. This requires concerted andcoordinated effort across our Regions to changebehaviour and implement best practice in actionareas; energy, waste, purchasing and travel. Thecost savings associated with meeting the targets,particularly cutting business travel and reducingour purchase of goods and services, couldsave millions of pounds a year. We also needto maximise key opportunities - such as officemoves - to make big changes.TOWARDS NET ZERO8Global targetsRoute mapfor reducingemissionsO U R S T R AT E G Y201INTRODUCTION2020ROUTEMAP FOR2021REDUCING EMIONSSI2022SBY20252320

ACOUR JOURNEYTISON00NSBY3000%00tCO802e10s targetssionemi2500000SIO512LD REDUCE EMIS2%0000COU20214ATTIME TO ACT2024By implementing flexibleworking, we aim to cutcommuting by 20%. Thisequates to 2% of our2025 emissions target.2019In addition to financial savings there arebenefits from taking actions that go muchwider than emission reductions. Factors suchas social value, and health and wellbeing cansee a marked improvement, for instance, fromincreasing active travel, reducing flying, andallowing people to work flexibly to meetother responsibilities.THACTIONS20If Arup implements ambitious actions to meetthe global targets, we could achieve greater than30% reduction from our baseline emissions, inless than five years. This requires concerted andcoordinated effort across our Regions to changebehaviour and implement best practice in actionareas; energy, waste, purchasing and travel. Thecost savings associated with meeting the targets,particularly cutting business travel and reducingour purchase of goods and services, couldsave millions of pounds a year. We also needto maximise key opportunities - such as officemoves - to make big changes.TOWARDS NET ZERO8Global targetsRoute mapfor reducingemissionsO U R S T R AT E G Y201INTRODUCTION2020ROUTEMAP FOR2021REDUCING EMIONSSI2022SBY20252320

ACOUR JOURNEYTISONATCOULD REDUCE EMISSIONSBY30TIME TO ACT%000002e80tCO000000s targetssionemi251012520214000010%2024Reducing businesstravel by 50% willaccount for a 10%reduction in emissions.2019In addition to financial savings there arebenefits from taking actions that go muchwider than emission reductions. Factors suchas social value, and health and wellbeing cansee a marked improvement, for instance, fromincreasing active travel, reducing flying, andallowing people to work flexibly to meetother responsibilities.THACTIONS20If Arup implements ambitious actions to meetthe global targets, we could achieve greater than30% reduction from our baseline emissions, inless than five years. This requires concerted andcoordinated effort across our Regions to changebehaviour and implement best practice in actionareas; energy, waste, purchasing and travel. Thecost savings associated with meeting the targets,particularly cutting business travel and reducingour purchase of goods and services, couldsave millions of pounds a year. We also needto maximise key opportunities - such as officemoves - to make big changes.TOWARDS NET ZERO8Global targetsRoute mapfor reducingemissionsO U R S T R AT E G Y201INTRODUCTION2020ROUTEMAP FOR2021REDUCING EMIONSSI2022SBY20252320

ACOUR JOURNEYTISONATCOULD REDUCE EMISSIONSBY30TIME TO ACT%0000000Only electric carswill be used forbusiness travel as faras practically possible,equating to 1.5% ofour 30% emissionsreduction target.UTEMAP FOR2021REDUCING EMI2024002e80tCO001210Os targetssionemi252020R52021400001.5%2019In addition to financial savings there arebenefits from taking actions that go muchwider than emission reductions. Factors suchas social value, and health and wellbeing cansee a marked improvement, for instance, fromincreasing active travel, reducing flying, andallowing people to work flexibly to meetother responsibilities.THACTIONS20If Arup implements ambitious actions to meetthe global targets, we could achieve greater than30% reduction from our baseline emissions, inless than five years. This requires concerted andcoordinated effort across our Regions to changebehaviour and implement best practice in actionareas; energy, waste, purchasing and travel. Thecost savings associated with meeting the targets,particularly cutting business travel and reducingour purchase of goods and services, couldsave millions of pounds a year. We also needto maximise key opportunities - such as officemoves - to make big changes.TOWARDS NET ZERO8Global targetsRoute mapfor reducingemissionsO U R S T R AT E G Y201INTRODUCTIONONSSI2022SBY20252320

ACOUR JOURNEYTISONATCOULD REDUCE EMISSIONSBY30TIME TO ACT%000002e80tCO000000s targetssionemi25101252021400006%2024We are aiming toprocure electricity inour offices from 100%renewable sourcesby 2023.2019In addition to financial savings there arebenefits from taking actions that go muchwider than emission reductions. Factors suchas social value, and health and wellbeing cansee a marked improvement, for instance, fromincreasing active travel, reducing flying, andallowing people to work flexibly to meetother responsibilities.THACTIONS20If Arup implements ambitious actions to meetthe global targets, we could achieve greater than30% reduction from our baseline emissions, inless than five years. This requires concerted andcoordinated effort across our Regions to changebehaviour and implement best practice in actionareas; energy, waste, purchasing and travel. Thecost savings associated with meeting the targets,particularly cutting business travel and reducingour purchase of goods and services, couldsave millions of pounds a year. We also needto maximise key opportunities - such as officemoves - to make big changes.TOWARDS NET ZERO8Global targetsRoute mapfor reducingemissionsO U R S T R AT E G Y201INTRODUCTION2020ROUTEMAP FOR2021REDUCING EMIONSSI2022SBY20252320

CTISONATCOULD REDUCE EMISSIO30%0000000tCO802e10s targetssionemi252020OUTEMAP FOR2021REDUCING EMIONSSI20222024When we reduce theemissions of goodsfrom our top 20 suppliersby 20%, we will reachour 2025 emissionsreduction target.R52012000000BY20214NSTIME TO ACT6.52019In addition to financial savings there arebenefits from taking actions that go muchwider than emission reductions. Factors suchas social value, and health and wellbeing cansee a marked improvement, for instance, fromincreasing active travel, reducing flying, andallowing people to work flexibly to meetother responsibilities.THACTIONS00AOUR JOURNEY%If Arup implements ambitious actions to meetthe global targets, we could achieve greater than30% reduction from our baseline emissions, inless than five years. This requires concerted andcoordinated effort across our Regions to changebehaviour and implement best practice in actionareas; energy, waste, purchasing and travel. Thecost savings associated with meeting the targets,particularly cutting business travel and reducingour purchase of goods and services, couldsave millions of pounds a year. We also needto maximise key opportunities - such as officemoves - to make big changes.TOWARDS NET ZERO8Global targetsRoute mapfor reducingemissionsO U R S T R AT E G Y201INTRODUCTIONSBY20252320

INTRODUCTIONTo achieve net zero by 2030, our primary focusis to reduce our emissions.For residual, hard-to-decarbonise emissions, wepropose to compensate by investing in initiativesto reduce greenhouse gas in the short-term andremove in the long-term.We are applying a carbon levy of 40/tCO2e onall our flights, setting up the Arup Carbon Fundto offset our travel at market rates and investingin other efforts to decarbonise.C L I M A T E - F R I E N D LYC O O K S T O V E S I N K E N YASince September 2017, Aruphas supporting the fundingof more sustainable cookingpractices for 100,000 peoplein Kenya, by providing 20,000lower emission cookingstoves. The programme hasalready helped Kenyans avoid42,000 tonnes of carbonemissions, as verified by ourpartners Climate Care.TOWARDS NET ZEROOUR JOURNEYACTIONSTIME TO ACT Burn/ClimateCareArup Carbon FundO U R S T R AT E G Y

INTRODUCTIONO U R S T R AT E G YTOWARDS NET ZEROOur journey so farOur steps to reducecarbon emissionsacross the firm.OUR JOURNEYACTIONSTIME TO ACT

INTRODUCTIONO U R S T R AT E G YTOWARDS NET ZEROOUR JOURNEYACTIONSTIME TO ACTOur journey to net zeroSEPTEMBER 2020JAN 2019Arup sets out toachieve net zero by2030 and a sciencebased emissionsreduction targetArup publishes the NetZero Carbon Strategysetting out actions toachieve net zero by 20302023MAR 2020Science-based targetverified by the ScienceBased Target Initiative2020Aim to achievescience-based targetset in 2020, reducingtotal emissionsby 30%20232025PUSHING THE BOUNDARIESArup is on track to continue makingambitious emissions reductions, andpush the boundaries of GHG removaltechnology and related solutions2030ENTEERSYWGL AT E 2 0 2 0Updated emissions report, trackingprogress towards our target2020-2025ACTIONAREASCARBON FUND INVESTMENTS ANDT R A N S PA R E N T E M I S S I O N S R E P O R T I N GPUCAHContinuous and transparentemissions reporting trackingprogress towards our targetsLRArup Carbon Fund will invest in cutting edgeprojects to reduce and remove our carbonemissions and those of our clients and partnersEJAN 2020Arup baseline emissionsreport published (this willbe periodically revisited aswe learn more about our‘real’ emissions)ASEP 2019Arup Carbon Fundestablished. Levy onbusiness air travelset 40/TonneCO2e.Offsets purchased forArup’s AGAM 2019NETZEROSIV20192025Arup offices aimto use 100%renewableelectricityNGTRA

INTRODUCTIONO U R S T R AT E G YTOWARDS NET ZEROHow has COVID-19affected our actionsand targets?OUR JOURNEYACTIONSWE NEED REDUCEOUR EMISSIONSB Y AT L E A S T0.5%MONTH ON MONTHTO REACH OURTA R G E TThe impact of COVID-19 was felt across thebusiness, significantly reducing business traveland reshaping our business operations. Ouraim is to align our business recovery strategy,and the advice we give to our clients, withemission reductions to keep consumption lowand sustainable.If we continue to operate flexible home/officeworking, we will also need to consider otherfactors, such as the displacement of emissions.For example, increased energy use in employeehomes due to greater heating or cooling needsand increased electricity use to enable homeworking. On this basis, we will revisit ouremissions boundary within the next year toaccount for the displacement of emission.1. taking a snapshot of emissions at a single point in April 2020 and estimating the likely impact of a reduction in various activities and operations e.g. travel,catering, commuting, office supplies.W E E S T I M AT ECOVID-19 COULDH AV E R E D U C E DOUR EMISSIONST E M P O R A R I LY 1 B Y46%TIME TO ACT

TACTIONSEENTIME TO ACTERSOUR JOURNEYGYCLICK ON ANACTION AREA TOFIND OUT MOREPUCELRHASVAction areasHow toreduce carbonemissions acrossour operations.TOWARDS NET ZEROAO U R S T R AT E G YWINTRODUCTIONINGTRA

OUR JOURNEYACTIONSTIME TO ACTCLICK ON THEACTION AREATO FIND OUTMORETEENERSGY7%ENERGYEnergy includes electricity, gas andsteam consumed by our offices,but also the direct emissions thatarise from our fleet vehicles andrefrigerant losses.PUCELRHASVAction areasHow toreduce carbonemissions acrossour operations.TOWARDS NET ZEROAO U R S T R AT E G YWINTRODUCTIONINGTRA

INTRODUCTIONOUR JOURNEYACTIONSTIME TO ACT ArupArupArup commits to occupying buildings withonly the highest sustainability ratings, ensuringthat the portfolio’s performance improves overtime. Alongside this, we make a commitmentto careful monitoring and continuousimprovement, showing reductions in energyconsumption on a like-for-like basis, year-onyear.TOWARDS NET ZERO ArupEnergy accountsfor 7% of our2018 baselineglobal emissionsO U R S T R AT E G YSome Arup offices already procure renewableelectricity and we aim to make this the casefor all of our offices. The selection of officesfor priority renewable electricity procurementwill depend on multiple criteria, includingexisting supply (or lease) contract duration andavailability of optimal renewable power.The option to procure renewable electricity, aswell as the energy performance of the building,must be factored into decisions on renewal ofleases and new office procurement.ONE MELBOURNEQUARTERThe Arup office at One MelbourneQuarter sets a new benchmarkfor leading workplace design.Designed by HASSELL with Arup,the three-level office embodiesthe principles of sustainability,wellness, connectivity and flexibility.The 13-level building targets asix star Green Star rating and fivestar NABERS energy rating. Italso features an airtight buildingenvelope, 200 kW PV roof arraywith a white roof to reduce theurban heat island effect and arainwater capture system.

TACTIONSEENTIME TO ACTERSOUR JOURNEYGYT R AV E L%Travel emissions are split into businesstravel and employee commutes.3PU0CELRHASVAction areasHow toreduce carbonemissions acrossour operations.TOWARDS NET ZEROAO U R S T R AT E G YWINTRODUCTIONINGTRA

INTRODUCTIONSustainable travel is about making the bestchoices in line with the travel hierarchy. Thefirst step is reducing travel across all modes.Beyond which choosing active or low carbontransport are preferential. There are numeroushealth and wellbeing co-benefits of reduced andotherwise active travel.TOWARDS NET ZEROOUR JOURNEYACTIONSTIME TO ACT Karen Hoe/ArupTravel accountsfor 30% of our2018 baselineglobal emissionsO U R S T R AT E G YTo encourage the most sustainable modes oftravel this hierarchy must be embedded intravel plans, travel assistance and behaviour toencourage and enable our staff, and clients, tomake the best choices about travel – for bothcommuting and business purposes.Each of our offices will develop a holistic travelplan for commuting, visitor travel, travel toclients and other business travel. This shouldinclude setting targets and monitoring progress.Actions to reduce the need to travel will beof greatest priority. Where travel is necessary,steps will be taken to ensure that sustainableoptions are selected as frequently as possible.ELECTRIC VEHICLESArup’s Cardiff office provides anelectric car for staff to use for thepurpose of business travel. Thecar sits in our undercroft car parkwhere it is charged over night. Fornow, the car is for short distancemeetings and cannot be keptovernight as it is exclusively forbusiness travel.This car not only has carbonbenefits, but also benefits for healthand safety.

TACTIONSEENTIME TO ACTERSOUR JOURNEYGYPURCHASINGPurchasing includes our soft andhard goods and services, includingsoft serv

Our Net Zero Carbon Strategy sets out how we will achieve the 1.5 C aligned science-based target for our full value chain emissions and compensate residual hard-to-decarbonise emissions with certified greenhouse gas removal. We will monitor progress and regularly revisit this plan to ensure we are on track to meet our net zero commitment by 2030.

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