Downer has announced ambitious greenhouse gas emissions reduction targets, aiming for a 50% reduction by 2032 and net zero emissions by 2050, as part of its commitment to decarbonisation. The company’s principal ESG development focuses on reducing its Scope 1 and 2 emissions, aligning with a 1.5°C pathway under the Paris Agreement.
Material actions and disclosures
Downer has already achieved a 28% reduction in Scope 1 and 2 emissions in FY26 compared to FY20. The company has also abated 902 tCO₂-e through renewable energy initiatives, 3,953 tCO₂-e through fleet rationalization and conversion, and 532 tCO₂-e through energy efficiency upgrades in production processes. Additionally, Downer has abated 561 tCO₂-e through energy efficiency upgrades in fixed assets and 1,137 tCO₂-e through the procurement of renewable energy certificates in New Zealand.
Downer’s FY26 emissions intensity was 25.55 tCO₂-e/$AUDmil for Scope 1 and 2 (market-based), with total Scope 1 and 2 emissions of 249,017 tCO₂-e (market-based). The company’s emissions breakdown includes 1% from transport, 4% from energy and utilities, and 77% from facilities.
Forward commitments
Downer aims to further reduce its Scope 1 and 2 emissions by 90% from a 2020 baseline, with the remaining 10% offset by certified carbon removal credits, likely Australian Carbon Credit Units (ACCUs) or equivalents, which decarbonisation pathway modelling indicates may be purchased in the 2040s. The company also plans to continue focusing on strengthening critical risk controls and verification, enhancing mental health and wellbeing programs, and improving safety outcomes embedded in performance management, remuneration frameworks, and leadership evaluation.
Downer’s decarbonization initiatives include transitioning to electric and alternative fuel vehicles, improving energy efficiency, and using renewable energy sources. The company aims to support customers in the delivery of energy transition infrastructure and to participate materially in the substantial growth opportunities emerging from the energy transition.
Downer’s targets were set having regard to a 1.5°C-consistent pathway under the Paris Agreement, informed by Australia’s commitment to net zero emissions by 2050 and the Science Based Targets initiative’s (SBTi) methodology which operationalises the Paris Agreement temperature goal.
Downer’s Zero Harm Committee reviews the company’s progress against its decarbonisation pathway and emissions reduction targets annually to assess that both targets remain appropriate.