L1 Group’s latest sustainability report outlines its approach to managing greenhouse gas (GHG) emissions and climate-related risks, focusing on Scope 2 emissions and the development of emissions data capabilities. The Group applies the operational control approach when defining its GHG emissions boundary for Scope 1 and Scope 2 emissions, aligning with operations over which management has the authority to introduce and implement operating policies and directly influence emissions outcomes. This approach excludes direct sources of GHG emissions arising from stationary and mobile combustion of fuels (Scope 1) within its operational boundary.
The Group purchased and retired nature-based carbon removal credits from the Landari Yea Plantation Forestry project in Victoria, Australia, to offset residual emissions. Scope 2 GHG emissions refer to indirect GHG emissions from the generation of electricity purchased and consumed by the Group’s owned or controlled sources, including grid electricity consumed in the three premises in Australia under the Group’s operational control.
Material actions and disclosures
The Group did not identify any direct sources of GHG emissions arising from stationary and mobile combustion of fuels (Scope 1) within its operational boundary. The Group is developing emissions data capabilities through integration of third-party data providers and the build-out of internal look-through reporting workflows for the purposes of AASB S2 climate reporting.
The Group aims to progressively refine the physical risk metric by transitioning away from headquarters-based proxies toward asset-level data as it becomes commercially available. The Group’s business strategy includes actions which mitigate against climate risks, including an established integration approach to climate considerations in the investment decision-making processes of the Group’s equities funds.
Forward commitments
The Group aims to establish a Scope 3 and financed emissions reporting framework aligned to GHG Protocol and PCAF methodology. The Group will continue to give its investment teams the ability and resources to pursue short, medium, and long-term investment strategies, either within existing mandates or to develop new ones.
The Group will continue to mature its approach to climate scenario analysis to better understand how different climate outcomes could affect the business over the short, medium, and long term. The Group will continue to refine the physical risk metric by transitioning away from headquarters-based proxies toward asset-level data as it becomes commercially available.
The Group will continue to develop emissions data capabilities through integration of third-party data providers and the build-out of internal look-through reporting workflows for the purposes of AASB S2 climate reporting. The Group will continue to explore ways to strengthen resilience, including evolution of how ESG considerations are integrated in investments, enhanced sustainability governance in response to emerging compliance requirements, and improving climate-related disclosures.
Attributed to the L1 Group’s Annual Sustainability Report.