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 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 requirement 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 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 ecosystems 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 Unites 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 water balance goal:

1. Assess global water risks and key local issues. We will analyze our water footprint and local risks facing our global offices, aligning our investment to areas facing the greatest threats.
2. Identify high-impact water stewardship programs to balance our water footprint. Conduct deep analyses of local projects that restore natural ecosystems and watersheds. Ensure that every project we pursue directly addresses the most relevant local issues.
3. Catalyze collective action. Partner with global water stewardship partners to bring clean and healthy water to our highest-risk communities and ecosystems. Work closely with these partners to establish high-quality programs that can be leveraged by our network of international clients.

In Q1 2022, we are pleased to announce that we have balanced our 2021 water consumption in our U.S. offices through the purchase of Water Restoration Certificates (WRCs) from the Bonneville Environmental Foundation (BEF). ENGIE Impact purchased 1,816 WRCs, which represents 1,816,000 gallons of water restored to critically dewatered rivers and streams. These Certificates help to restore the ecological, recreational and economic health of critical freshwater ecosystems. All WRC projects are certified by a qualified third party against a strict set of criteria to ensure flow is restored to the environment in locations and at a time that will have optimum environmental benefit.

Although we have operations across the U.S., we are focusing our water restoration efforts on the State of California where water scarcity is a growing concern. The Certificates purchased by ENGIE Impact will benefit the Mill Creek, which begins in Shasta County and flows into Tehama County. It is a major salmon-supporting tributary to the Sacramento River. This creek regularly goes dry during summer months when the natural flow is diverted for agriculture. The Nature Conservancy (TNC) is leading efforts in implementing a pilot Environmental Water Trust. They will acquire and manage a portfolio of water assets, which will then be used to restore and protect instream flows on priority river systems. A primary goal is to deliver water to create vital wetland habitat for migratory birds downstream.

The implementation of our Water strategy began in 2020 with a review of our water footprint and a scan of our water risks across North American and global locations to create a water baseline for office locations. In 2021, we collected cost and consumption data and reviewed historical data on water consumption at ENGIE Impact’s main office locations.

The biggest challenge in 2021 was to understand how to account for the water use of our employees, with a vast majority of our workforce working from home due to the COVID-19 pandemic. To capture this, we developed the following methodology.

Our Next Steps to Achieve Water Balance by 2023

1. Continue to improve our data collection to have direct measurement or billed data for more offices.
2. Work with the biggest offices to identify ways to reduce our water use.
3. Continue to collaborate with industry leaders to explore water restoration project opportunities at our global locations.
4. Develop international water restoration projects. We will set ambition proportional to the magnitude of the water challenge through the lens of risk, availability, quality and reputation.

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 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.