Climate Strategy Market Opportunities
In FY22 we established an ESG and Climate Advisory growth platform , bringing thought leadership together to address decarbonization and resiliency advisory services and implementation for clients , with cross-connections throughout our Infrastructure , Power , Environmental and Digital business units . This coordinated approach leverages the full Company ’ s knowledge and resources to cover a broad array of climate challenges . We also established an ESG SteerCo to help guide TRC ’ s climate strategy moving forward .
Climate change and the resulting energy transition has created the opportunity for TRC to grow its service offerings to clients . Decarbonization is accelerating at all levels as businesses and government are increasingly and publicly expressing commitment to proceed with GHG mitigation efforts in alignment with the Paris Agreement and a net zero economy . TRC partners with government agencies , utilities , businesses and investors to provide strategic advisory support as well as implementing decarbonization projects and programs . Energy efficiency , electrification of vehicles and buildings , renewables integration , fuel switching ( e . g ., RNG , SAF , biomass , hydrogen ) and CCUS , are all areas where we are leading the movement towards a deep decarbonization by midcentury .
Our approach to resiliency continually evolves to remain ahead of emergent challenges . From advisory services and tools to assess physical risk at scale , to designing and implementing solutions to address climate-related hazards , we are helping clients create more resilient assets and operations .
Longer-term transitional climate-related opportunities outside our traditional 5-year strategic planning process are informed using IEA ’ s Stated Policies Scenario ( STEPS ) and the Net Zero Emissions by 2050 Scenario ( NZE ) scenarios . These scenarios are used to review current policies in place that will shape decarbonization and resiliency strategies for our clients as well as our own operations . The scenario analyses also provide insight into additional technologies that could emerge short and longer term that intersect with TRC ’ s climate solutions offering ( e . g ., CCUS , RNG , hydrogen , etc .).
Longer-term physical climate-related opportunities are informed using RCP 8.5 ( more pessimistic scenario ) and RCP 4.5 ( net zero scenario ). Viewing conditions under these scenarios provides insights into physical risks to our clients ’ assets over longer timeframes .
Net Zero Transition Plan :
To support Net Zero by 2040 target , we developed our 2030 transition plan in FY22 for our near-term Scope 1 + 2 target . This target covers all Scope 1 and 2 emissions from our offices ( purchased electricity and natural gas heating ) as well as Scope 1 emissions from our company-owned fleet vehicles . Our model includes assumptions for business growth , utilizing both the NZE and the STEP scenarios . We modeled implementation rates for office space reductions , energy efficiency projects , renewable energy purchases , electric grid transition to renewables , fleet efficiency and electrification , idling reductions and changes in miles driven .
Our transition plan focuses on the following :
■ Enhance energy management . We anticipate additional reductions over the next 3 years as we optimize our portfolio , while continuing our growth strategy . We lease all our offices and have implemented Green Lease Guidance for all new leases & renewals . We conducted an energy intensity evaluation of current space and are working with property managers on energy efficiency options to address opportunities for reductions in existing leased space .
36 2022 Sustainability Report