Supplier name: Octopus Energy Group Limited

Publication date: 18th October 2024

Octopus Energy Group Limited (OEGL) is committed to achieving Net Zero emissions by 2040.

This commitment is shared by all 100% owned subsidiaries of OEGL - the main subsidiaries being Octopus Energy, Kraken Technologies Limited, Octopus Electric Vehicles, Octopus Renewables, and Octopus Services.

Baseline emissions are a record of the greenhouse gases that have been produced in the past and were produced prior to the introduction of any strategies to reduce emissions. Baseline emissions are the reference point against which emissions reduction can be measured.

Baseline Year: FY2024 (1st May 2023 - 30th April 2024)

Additional Details relating to the Baseline Emissions calculations.

As Octopus Energy Group has grown so rapidly over the past few years, FY2024 is the first time we have set an emissions baseline.

Our baselining has been completed in accordance with best industry practice, using the best and latest data we have available. We have measured our scopes 1, 2, and 3 emissions in line with the Greenhouse Gas Protocol’s Corporate Accounting and Reporting Standard, with our measurement partner Altruistiq. The Altruistiq platform is ISO 14064-1 recognised as assured by Lloyd's Register Quality Assurance.

We’ve used the Operational Control Approach to account for GHG emissions, as we believe it is the most valuable in helping business leaders make impactful and sustainable decisions. This means we have measured and included emissions from all our facilities (UK and international) and operations over which we have control. This includes Octopus Energy limited, Octopus Electric Vehicles, Octopus Energy Services, and Kraken Technologies.

We do not have operations that fall under categories 5, 8, 9, 10, 12 & 14, so we do not have emissions associated with these categories.

As we have recently completed baselining, the below emissions are the same as our Current Emissions Reporting.

Baseline year emissions: 12,129,024tCO2e

Octopus Energy Group Limited (OEGL) has committed to setting net-zero targets through the Business Ambition for 1.5˚C campaign.

We have submitted 5 science-based targets to the Science-Based Targets Initiative (SBTi) which are pending verification. Our near-term targets aim for FY2030 and FY2034, with our long-term net zero target being 2040. Our targets are based on:

• Emissions intensity from wholesale electricity
• Absolute emissions from wholesale gas
• Absolute Scope 2 market-based emissions
• Absolute Scope 1 emissions
• Absolute Scope 1 - 3 emissions

Our science-based targets (SBTs) will be the foundation of our net-zero target and strategy. We’re committed to annually reporting our progress against these commitments in our Annual Report.

All these targets will also apply to 100% owned subsidiaries of OEGL.

We have implemented several environmental management measures and projects before completing our baseline, and we will continue to monitor their impact on reducing emissions.

We submitted our ESOS phase 3 compliance in August 2024. We have collaborated with Planet Mark and engaged in site audits to understand where we can make energy saving opportunities across our UK facilities. We are implementing the opportunities outlined in our ESOS report which will help reduce our Scope 1 and 2 emissions.

100% of our electricity comes from zero carbon sources. As well as purchasing energy certificates we buy renewable electricity directly from nearly 700 producers in the UK via Power Purchase Agreements (PPAs). We also run one of Europe’s largest operators of renewable generation Octopus Energy Generation (OEGEN), which manages 240 large-scale green energy projects with 4GW’s either operating or under construction spanning 10 countries, 8 technologies, and ~£7 billion worth of green energy producers.

In terms of our products and services, we are already a leading driver of heat pump related technology and innovation in GB. Since 2021, we have invested over £50m to drive the rollout of heat pumps and help decarbonise the UK. We have invested in the manufacture and design of our own air-source heat pump product which will be available to more households at a lower price point than other heat pumps on the market. Plus, we have set up a training facility to train heat pump engineers, in an effort to minimise potential skills gaps. These are crucial steps in making heat pumps available for everyone and accelerating the electrification of heat.

Alongside heat pumps, we offer a range of other low carbon technologies (such as home controls system and room temperature sensors) and a smart tariff, which together make the running costs of a heat pump attractive and easy for consumers, making becoming a low-carbon household as easy as possible.

We also install smart meter, batteries, solar panels and EV chargers, in FY24 we installed 779,000 low-carbon technologies (an increase of 150,000 on the previous year) across UK homes, and the more nascent international services businesses in Spain and Germany gaining traction. In the last year, we have also quadrupled the size of our UK OES fleet to install these low carbon technologies up and down the country. In addition, Octopus Electric Vehicles (OEV) has an ambition to reduce carbon emissions by making it easy for drivers to switch to electric vehicles and move away from polluting fuel-powered cars. The fleet of electric vehicles in the UK reached over 16,000 in April, growing by 9000 last year. OEV now counts a total of 4,800 companies amongst its client base, representing over 920,000 employees who can access salary sacrifice tax benefits to decarbonise their transportation through OEV’s offerings. We expect the range of our offerings to expand in future, and all of these products and services are designed so that they can scale internationally alongside our retail presence.

To accompany our deployment of low carbon technology we are driving the use of consumer flexibility - harnessing the ability of households to shift when they consume electricity to support a decarbonising system, and to reduce system costs. Through our range of smart products and services we are already a leading provider of domestic flexibility in GB and expanding this internationally. We’ve launched “Zero Bills Homes” - a world-first smart proposition that allows customers to move into homes which are fully kitted out with green energy technology and with no energy bills for ten years. We have a goal of 100,000 'Zero Bills' homes across the UK and beyond by 2025.

Our impact is amplified through our advanced data and machine learning platform, Kraken, which is licensed to support 50 million accounts worldwide. We have always pushed - and will continue to advocate for - a range of policy and regulatory changes that will support the decarbonisation of heat. These include pushing for initiatives like confirmation that electrification is the preferred zero carbon solution to home heating, breaking down problems in the planning system, driving improvements in home energy efficiency standards and advocating for accelerated low carbon technology adoption to ensure customers can benefit from demand and flexibility services. We are active and loud advocates for these policies and more in all the markets we operate in, and in multilateral forums such as the European Commission, COP and Davos. We have chaired a project for Clean Tech Homes under the Sustainability Markets Initiative to gather sector stakeholders together to remove barriers to the deployment of electrified heating. In addition, we were members of the Transition Plan Taskforce working group for the power and utilities sector, helping inform the guidelines that will accelerate the decarbonisation of the sector. Through a combination of clear signals, and removing obstacles, consumers and industry will have the confidence to support the electrification of heat and transport and enable demand flexibility to be part of the power system.

In addition, all of OEGEN’s UK-based wind and solar projects consider biodiversity net gain and will purchase statutory biodiversity credits when necessary, in line with UK government guidance.

We are also on a mission to electrify our OES fleet as quickly as possible, in order to decommission existing ICE vehicles. As most of our scope 1 emissions are from mobile combustion, they can be eliminated by switching petrol and diesel vehicles for electric vehicles charged with renewable electricity. In addition, we install home chargers for our engineers and equip them with Electroverse top-up cards to ensure they’re using green electrons. We are working with vehicle manufacturers to deliver this fleet transition as soon and as smoothly as we can, and intend to scale this approach in line with international growth.

To reduce our market-based Scope 2 emissions we plan to switch all our facilities to 100% renewable electricity by 2030. We are working with our facility managers at all our sites globally to deliver this.

Lastly, we prioritise green purchasing for our Octopus-branded merchandise, and as much as possible purchase from suppliers with transparent sustainability credentials for their materials and product life-cycles.

In the future we hope to implement further measures such as:

• Reducing the emissions related to gas, reducing scope 3 emissions from categories 3 and 11, by driving the electrification of heating in the retail markets we operate in.
• Investing $20 billion into offshore wind globally which will go towards the generation of 12 GW of renewable electricity capacity; enough power for 10 million homes.
• Investing £2 billion in UK renewable electricity projects by 2030
• Delivering 100,000 “Zero Bills” homes by 2030
• Working to expand the number of charge point operators (CPOs) Octopus supplies with 100% renewable electricity. This alone will help decarbonise the fuel mix of the public charging network and encourage uptake of electric vehicles (EVs).
• Looking to directly fund community and impact-based projects that provide additional sustainable infrastructure to communities that need it most. We will do this through our continued support of Renewable World. Customers can engage with their projects by donating a small amount alongside their monthly energy bill. We are constantly exploring product innovations that support, accelerate and reduce the cost of the world's shift to a 100% renewable system, through closer matching of local renewable generation and real time customer demand.

This Carbon Reduction Plan has been completed in accordance with PPN 06/21 and associated guidance and reporting standard for Carbon Reduction Plans.

Emissions have been reported and recorded in accordance with the published reporting standard for Carbon Reduction Plans and the GHG Reporting Protocol corporate standard and uses the appropriate Government emission conversion factors for greenhouse gas company reporting.

Scope 1 and Scope 2 emissions have been reported in accordance with SECR requirements, and the required subset of Scope 3 emissions have been reported in accordance with the published reporting standard for Carbon Reduction Plans and the Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Standard.

This Carbon Reduction Plan has been reviewed and signed off by the board of directors (or equivalent management body).

Signed on behalf of the Supplier:

Date: 18th October 2024