■ We are committed to purchasing 100 % renewable energy in FY23 .
■ Optimize fleet , including use of lower-emitting fuels and electrification . We are optimizing our fleet , starting with shifting more efficient vehicles to practices with higher use needs . Supply chain constraints in the past two years has disrupted our annual fleet upgrade cycle where older vehicles are phased out ; however , we expect this constraint to be resolved in the next two years as supply bottlenecks ease . All new vehicle requests are currently evaluated for efficiency criteria . Due to supply constraints , purchase of EVs has also been challenging . However , we have set a target to have our fleet 20 % electric by 2030 . We are also exploring biofuels as an interim solution . We have increased our employee awareness campaign on vehicle idling , with a target of a 4 % per year reduction in idling , as measured through our telematics system .
We have committed to purchasing 100 % renewable energy in FY23 .
Our Scope 3 emissions are predominantly associated with business travel , but we also measure those emissions tied to employee commuting , purchased goods and line loss . Our focus is on promoting efficient travel modes and reducing indirect travel where possible .
Risk Management
Transitional and physical climate-related risks and opportunities are evaluated by our VP Corporate ESG / Sustainability and reviewed at least annually with the Chief Risk Officer . This assessment includes all stages of the value chain over the short , medium- and longer-term timeframe .
While we have identified potential climate-related risks to our business , none of these meet our definition of significant financial or strategic impacts to the business , which would be a risk / opportunity resulting in greater than 20 % decrease / increase in net revenue over 2 consecutive quarters or an impact where practices in an entire geographic region are shut down for more than one consecutive month . This is based on the following :
■ Climate risks faced by our clients translate into significant business opportunities for TRC , as our strategic focus is on helping our clients adapt and mitigate climate risk through transformative solutions that further the global Energy Transition . We are helping our clients plan and implement decarbonization strategies for their operations ; explore and implement new technologies ( e . g ., hydrogen , RNG , CCUS ); design and implement resiliency strategies and solutions and navigate the challenges of various voluntary and mandatory climate disclosures .
■ We announced a Net Zero by 2040 target in April 2022 for Scopes 1 , 2 and 3 with interim 2030 targets aligned with climate science and we publicly support TCFD . Leading with our own commitments further strengthens our market credibility to support our clients with this critical work .
■ Due to the diversification of our business , we do not expect significant financial risks related to productivity from severe weather impacts and heat / cold stress because the potential loss of project work or productivity would be offset by opportunities in storm response , clean-up and restoration activities , flood mitigation protection , safety services , etc .
37