A report on the carbon footprints and mitigation strategies of Distribution System Operators
Distribution system operators (DSOs) play a crucial role in the global transition by facilitating electrification, thereby enabling homes, industries and transport to reduce their greenhouse gas (GHG) emissions. DSOs also contribute by actively committing to environmental targets and reducing their own greenhouse gas emissions. Moreover, the recent update to the Corporate Sustainability Reporting Directive (CSRD) has mandated new transparency standards on company reporting, particularly concerning carbon footprints.
This report analyses various DSO carbon footprints, highlighting their main emission sources from direct and indirect emissions. While the relative impact of emission sources may vary between DSOs across Europe, generally the indirect emissions in scopes 2 and 3 constitute the largest share of the emissions, mainly linked to grid components and electrical losses. The report showed that for the average DSO, the relative scope 1 emissions are 4%, scope 2 are 43% and scope 3 are 54%. The data represents DSOs which connect to 106 million customers, which translates to 40% of the customers in the EU.
DSOs are committed to reducing their direct emissions inter alia through sustainable development plans and innovative solutions, such as the decarbonisation of their vehicle fleet needed to operate or reducing gas leakage in certain grid components. In addition, they are committed to reducing their indirect emissions through the reducing network losses, procuring sustainable components and recycling waste. To illustrate the different ways to reduce scopes 1 through 3 emissions, DSOs have shared their best practices through 8 case studies.
- Any sustainability initiative should encompass a life cycle approach involving the entire value chain, minimising the demand for raw materials and with this contribute to a circular economy vision.
- Sustainability initiatives should promote the optimal use of existing assets, not incentivising premature decommissioning.
- Regulation should incentivise sustainable asset acquisition where feasible, prioritising long-term environmental and social benefits alongside cost efficiency for the customer.
- The climate targets set for 2030, 2040 and 2050 should remain a priority, while focusing on using the most sustainable materials and chemicals when viable.
- For reporting emissions for electricity losses and electricity consumption under the GHG Protocol, DSOs should have the possibility to opt for the most appropriate methodology.
For more details on each recommendation, please see the last section of the report.