ENGIE Impact has set a goal to be carbon negative by 2021. While ENGIE Impact offset all of its emissions already in 2019, our carbon goal calls for increased methodological rigor, science-based reduction of our carbon footprint, and an innovative strategy to compensate for our residual emissions. In 2020, we aim to reach carbon neutrality, and by 2021, we aim to be carbon negative by avoiding or removing more carbon from the atmosphere than we emit. Leading this strategy are some of the world's foremost sustainability consultants on carbon markets and greenhouse gas accounting across voluntary and regulated markets.

Steps to reach our carbon-negative goal:

1. Exhaust all internal carbon reduction opportunities. By evolving our policies and programs to implement more efficient ways of working, we will make every effort to first reduce our emissions.
2. Adopt leading sustainability standards. We follow the Greenhouse Gas Protocol to measure our Scope 1, 2 and 3 emissions footprints, as well as leverage our advanced digital tools, greenhouse gas accounting expertise and financial incentives to set and meet data-driven targets rooted in science.
3. Become carbon negative in 2021. We will invest in high-quality greenhouse gas reduction projects and clean energy certificate products to compensate for our remaining emissions. We are still exploring which opportunities exist, such as direct investment in carbon capture and utilization and storage (CCUS) technologies and projects, purchasing more Verified Emission Reductions (VERs) than we emit, or other approaches to supporting global reductions in emissions.
4. Build and serve the markets of tomorrow. ENGIE Impact works in partnership with our clients and other leading institutions to shape emerging carbon markets. We are working actively to inform new guidance and approaches to support our clients, our communities and ourselves to advance science-based, credible and robust pathways to decarbonization, leveraging both market- and non-market-based approaches.

ENGIE Impact is pleased to announce that in 2021 we achieved our goal of becoming carbon-negative. By first reducing our emissions by 21% compared to 2020, as well as purchasing both electricity certificates and carbon offset credits for the emissions we couldn’t reduce, we brought our carbon footprint down to zero—becoming carbon neutral. Going one step further, we purchased more offsets to ultimately achieve our carbon-negative goal.

Reaching our carbon-negative goal was only possible due to the hard work of employees, subject matter experts, and internal volunteers who helped measure, monitor, and reduce emissions across the business.

To become carbon negative:

1. We measured our emissions. Led by our carbon team and supported by our carbon accounting experts, we collected and analyzed data across our worldwide operations to define the scope and calculate our 2021 carbon footprint. We focused on emissions categories most closely linked to our employees’ ways of working, including the entirety of our Scope 1 and 2 emissions—as well as emerging areas like business travel, commuting, fleet, work from home, and digital.
2. We audited our footprint. We contracted an external auditor, Optera, to verify our 2021 carbon footprint, ensuring our emissions are reported accurately and in a consistent and transparent way.
3. We sourced green electricity certificates. We addressed 100% of the emissions associated with electricity consumption (Scope 2) from our offices, servers, and from employees working at home through the procurement of Energy Attribute Certificates (EACs) sourced specifically from renewable energy providers in the respective country of operation.
4. We procured high-quality carbon offsets. We leveraged ENGIE Global Energy Management & Sales (ENGIE GEMS) expertise in the voluntary carbon market to source high-quality carbon offsets that fit our requirements for additionality, quality, and locationality.

ENGIE Impact is committed to sourcing high-quality carbon offsets, reflecting GHG reductions, avoidance, or removals with a focus on additionality, permanence, and a principle of no significant social and environmental harm. As a result, ENGIE Impact has invested in two projects to offset its 2021 carbon footprint: a reforestation project in Panama and a methane capture-and-use program in the United States.

Project 1: CO2OL Tropical Mix. The reforestation project in Panama is a nature-based carbon removal solution, independently certified by a third party to an internationally recognized standard, creating employment and positive livelihood impacts for low-income communities through sustainable timber production and cocoa cultivation. The main reasons behind our decision to invest in the project:

• Importance of natural carbon sinks. The latest IPCC report identifies natural carbon sinks as an important long-term climate change mitigation pathway.

• Social and environmental co-benefits. Associated with the project are employment opportunities for rural families, knowledge transfer opportunities for communities, and the protection of biodiversity and habitat of endangered indigenous species.

Project 2: AR-Joy Farm Dairy Digester. The methane project in Pennsylvania is a carbon reduction solution, certified by the Climate Action Reserve, based on the capture and use of an alternative and renewable fuel source. The main reasons behind our decision to invest in the project:

• Immediacy of action. The latest IPCC report calls for methane emissions reduction via existing technologies and practices, as this will benefit both climate change and ecosystem conservation, slowing the current rate of warming by up to 30%.
• Geographical proximity to our operations. The majority of ENGIE Impact’s emissions are generated in the United States.
• Supporting alternative fuels. As an energy firm, we want to support alternative fuel sources to align our offsetting strategy to ENGIE Group’s axis of operation.

Steps to reach our zero waste goal:

1. Set ambitious, data-driven targets to reach zero waste. Using findings from waste audits at our 13 largest offices and waste invoice data to build an agile, evidence-based roadmap to drive down a waste generation and increase diversion.
2. Leverage technology and high-quality data to gain granular diversion insights. Pilot sensor technologies and mobile applications to remotely audit waste and diversion rates. Launch a comprehensive regulatory and bill management tracking program to understand additional variables in each location.
3. Build a best-in-class employee engagement program to minimize downstream waste. Through employee training, instructional office signage, and regular data-driven communication, our employees will be essential drivers of our zero-waste efforts.
4. Minimize upstream waste. Develop cross-functional teams to identify upstream opportunities to minimize waste generation by evolving our purchasing practices and engaging our supply chain.

As we moved into 2022, we have continued to focus on collecting waste data. This has included weighing waste streams on a monthly basis at our largest office in Spokane. Lessons are being learned as we refine the process and collect the data. We plan to implement these data collection processes in other offices by Q3.

We continue to compile more complete data on the company’s e-waste, which allows us to create purchasing and end-of-life processes—aimed to launch first in the U.S. and then deploy company-wide at all international locations.

Many companies are dealing with what the new normal will look like as we start to come out of the pandemic, and ENGIE Impact is among them. We will continue to focus on engaging our workforce, whether at home or in the office, with learning opportunities and activities. This will include our Earth Week celebrations, during which we will host both a virtual lunch and learn, and an Earth Day booth where employees will learn about zero-waste products, composting, and what they can do to reduce waste in the office.

Our Next Steps to Accelerate Progress to Zero Waste:

1. Expand the use of our remote waste audit app: the remote waste audit app will be morphing into a tool that can be used by waste champions in the offices.
2. Launch employee engagement campaigns: We are building a network of local Waste Champions in our largest offices, which will help support our zero waste ambitions through monthly waste audits and employee campaigns. Our champions will drive the effort at the local level to increase the rate of diversion from landfills.
3. Gather e-waste data: As part of our aim to reduce our digital footprint, we will work with ICT hardware providers to understand the lifecycle assessment of the products we purchase and establish purchasing and end-of-life processes as we work toward standardizing green purchasing by the end of 2022. As a result, for the first time, e-waste will be included in our 2021 greenhouse gas inventory.
4. Waste stream data collection and periodic waste auditing at large offices. As part of our goal to reduce the amount of trash while increasing recycling, monthly waste stream weights are being collected in Spokane. The first waste audit in Spokane has also been conducted with the goal of conducting quarterly audits. As more employees return to other offices, waste weight collection and audit activities will be cascaded to other offices as well.