Achieving net zero is tough. In the face of a developing business, an expanding office footprint, and a growing workforce, reducing emissions is no easy task. Nor is the tracking and monitoring of this data, particularly as the detail and complexity of reporting becomes more onerous and more technical. That said, the value of our net zero journey, the learning and the collaboration involved over the past five years has been immense. While the destination remains challenging, the progress made so far reinforces our commitment to keep pushing this agenda forward.
Looking back, here are some key points that we’ve learnt to date:
- Get your baseline right
- Start planning for renewable energy
- Use technology where possible
- Make sure leadership is involved
- Engage with employees
- Monitor and understand trends
- Start working with your suppliers
- Plan for the long term
Get your baseline right
Having a clear starting point, covering scope 1, 2 and 3 emissions, is crucial to understanding what actions need to be taken and the organisation’s overall level of ambition. Using FY19 as our baseline helped us understand the source of our emissions and which areas merit most focus. At this point, data quality and availability posed the first big problem, particularly for scope 3, since most emissions typically lie in the value chain.
Start planning for renewable energy
A core part of a net zero strategy will likely relate to sourcing an ever increasing share of renewable energy, whether this is through self-generation or other procurement methods. Making this switch takes time and planning and often depends on specific market realities that differ by geography (with Malta having very unique market dynamics). As from FY25, we are committed to sourcing 100% renewable electricity, partly through our on-site renewables, and partly through Energy Attribute Certificates.
Use technology where possible
New systems in our building help us track energy use and avoid waste. Digital tools, such as Power BI, support detailed monitoring by identifying anomalies and highlighting areas for improvement. These insights help inform corporate policy, enable quicker responses and more efficient energy management across our operations.
Make sure leadership is involved
No strategic action can be taken in the absence of approval and buy-in from top management, particularly since actions related to net zero are sure to merit investment. Support from local leadership and frequent quarterly reporting within the Green Committee has made it easier for us to prioritise sustainability, monitor progress against targets, and take actions across the firm. Upskilling senior leadership on concepts of carbon accounting and net zero are also imperative.
Engage with employees
Everyday choices by our people (how they commute, how often they travel, how they use energy within the building) affect our emissions. Sharing information and involving internal stakeholders builds trust and helps change habits. In this respect, training, communication, and transparency are vital.
Monitor and understand trends
Electricity consumption and business travel remain the largest sources of emissions. Continual investment in our premises and expansion of our on-site PV panels are planned to help tackle our scope 2 emissions. In terms of business travel, in FY25, our travel related emissions are expected to return to FY19 levels, driven by recruitment and international work which underpins our business growth. We continue to track how and why we travel, with a view to make better decisions and reduce emissions where possible.
Start working with your suppliers
Part of any net zero target will likely warrant engagement with stakeholders and the decarbonisation of the value chain. In FY25, 10% of our purchased goods and services, based on emissions, are expected to come from suppliers who in term have their own science-based target. While most of our suppliers are local and still building ESG capability, early engagement helps move things in the right direction.
Plan for the long term
Reaching net zero takes time and is a continuous improvement loop, not a one-time project. While some emissions are hard to curb, we are taking steps to measure them accurately, reduce where we can, and offset the rest through investment in trusted projects.
Scope 1 and 2 emission profile
In line with our target, absolute scope 1 and 2 emissions need to be reduced by 50% from a 2019 baseline. In line with prior years, Scope 2 emissions are expected to make up around half of our total emissions Scope 1, Scope 2, and business travel emissions. As a result, we continue to implement measures to reduce our impact. This includes smart controls embedded within a new building management system, investment in energy efficient HVAC and lighting solutions, and on-site renewables to source renewable energy directly.
Scope 3 profile
Business travel is expected to remain our largest source of (controlled) emissions, contributing around 50% of our combined Scope 1, Scope 2, and business travel emissions. This includes air travel, land transport (such as rental cars, fuel, taxis, and trains), and overnight accommodation used during business travel. As an island nation with strong overseas links, cutting these emissions remains challenging. However, we continue to monitor travel and manage emissions carefully, by focusing on travelling smarter, by choosing more efficient travel options, and opting to travel less, by planning trips better and using a mix of in-person and virtual meetings.
From FY25, we will begin reporting employee commuting emissions, recognising their material impact. These include travel between employees’ homes and our offices using cars, buses, and other forms of transport.
Reducing emissions from the goods and services we purchase is another focus area. We are working with key suppliers to support their efforts to cut emissions, while continuing to improve our own operations. This forms part of a broader commitment to decarbonise our supply chain and drive progress beyond our direct footprint. As part of the PwC network, we aim for 50% of our purchased goods and services suppliers, by emissions, to have science-based targets in place to reduce their climate impact.
Offsetting our emissions
We continue to take action to reduce the climate impact of our operations. To address remaining emissions, we support high-quality, independently verified carbon reduction and removal projects. By FY30, we aim to transition our carbon credit portfolio fully to carbon removals.
We offset emissions across Scope 1, Scope 2, and Scope 3 business travel through a centralised purchasing process led by the PwC network. This gives us access to a range of verified carbon credits from different regions.
We have also partnered with Climeworks, a Direct Air Capture (DAC) facility in Iceland that removes carbon dioxide from the atmosphere. This partnership helps support the development of important net zero technologies worldwide.
How can we help?
Beyond supporting your existing or planned sustainability initiatives, our teams can assist your organisation in meeting reporting and strategic requirements. This could include support with identifying material sustainability issues, conducting carbon footprint assessments with a focus on Scope 3 emissions, reviewing ESG data and systems, and delivering targeted ESG training.
In addition, we can help organisations align sustainability goals with business strategy, leverage data analytics to monitor progress, and develop effective ESG approaches. If you are interested in exploring these opportunities, please reach out to our dedicated teams.
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