Telstra is Australia\u2019s leading telecommunications and technology company. In 2021, Telstra set a science-based target to reduce its scope 1, 2 and 3 emissions by 50% by 2030, from a FY19 baseline. <\/p>\n\n\n\n
In 2023, Telstra broadened the performance measures for its Executive Variable Remuneration Plan (EVP) performance scorecard to include scope 1, 2 and 3 absolute emissions reduction targets for FY24, making it a component of senior executive short-term incentives under its remuneration structure. This recognises the critical nature of this target to Telstra\u2019s success and the role of senior leaders in achieving it. <\/p>\n\n\n\n
As with many companies in the telecoms industry, scope 3 represents Telstra\u2019s largest emissions source, making up 67% of its total footprint. Of total scope 3 emissions, approximately 73% comes from Telstra\u2019s supply chain. Therefore, working with suppliers to reduce their emissions is key to achieving Telstra\u2019s 2030 target. <\/p>\n\n\n\n
In partnership with CDP, Telstra delivered training, tools, and support on environmental disclosures to over 400 suppliers in 2023 \u2013 an increase from approximately 200 suppliers in 2022. <\/p>\n\n\n\n
Most of Telstra\u2019s emissions are concentrated across its top-100 suppliers. This covers approximately 78% of Telstra\u2019s total annual supplier spend. Meaningful decarbonisation targets and plans from these suppliers will contribute greatly towards Telstra achieving its scope 3 target. <\/p>\n\n\n\n
At the end of 2022, Telstra rolled out a new standard emissions reduction clause and guidance for purchases. This new clause requires suppliers to understand, report, verify, reduce and track their climate change impacts in support of Telstra\u2019s 2030 target. As of December 2023, 43 suppliers had signed up to these new clauses which contractually committed them to disclosing and reducing their absolute emissions. <\/p>\n\n\n\n