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Consulting firm AECOM has committed to delivering net zero operations and a net zero value chain by 2030 as part of a comprehensive new ESG strategy this year.

Pictured: The AECOM offices in Markham, Canada

The climate commitments described in the new strategy, entitled “Sustainable Legacies,” build on AECOM’s membership of Amazon Climate Pledge and its work in co-founding Pledge to Zero for the environmental advisory sector.

This includes the obligation to achieve net-zero operation by the end of 2021, which builds on earlier internal reductions and expands nature-based compensation schemes. AECOM will then aim for a net-zero value chain in the longer term by 2030 and develop 1.5C-aligned science-based targets to ensure that the reductions in all areas are achieved in line with climate science.

AECOM has not yet published numerical estimates for scientifically based targets. However, several main priorities for decarbonization have been outlined. Operationally, the company will work to switch to an electric fleet and purchase renewable power, while mandating a 50% reduction in business travel compared to 2019.

In order to combat embedded and in-use carbon from projects, which makes up a significant proportion of the (indirect) emissions of Scope 3, AECOM has introduced a new accounting method to track and reduce carbon in the life cycle. It will use the tool called ScopeXO to support the supply chain and cut the carbon footprint of all projects in half this decade. In addition to goals related to resilience and social value, customers also receive net zero goals.

ESG pillars

Net-Zero is one of the four pillars of AECOM’s new strategy. The other pillars include sustainable development and resilience. improved social outcomes and diversity; and improved governance.

Customer goals make up the largest part of the pillar for sustainable development and resilience. AECOM President Lara Poloni said the company’s customers have “new, evolving priorities that are sustainable and have a social impact through their projects and services.”

As part of the “Social Results” pillar, AECOM is working to ensure that women make up 20% of managers and at least 35% of the total workforce this year. It also includes commitments to ensure that all projects are more accessible, inclusive, and maximize positive outcomes for the communities in which they are located.

The Improved Governance Pillar requires AECOM to review the ESG objectives and metrics every year to ensure they are in line with best practices. The board of directors will also receive more frequent reports from the company’s safety, risk and sustainability committee.

After Covid-19, the ESG will become a central topic of conversation in the area of ​​corporate sustainability – both in terms of finance and in terms of the reformulation of roles and reporting, which was previously labeled as “sustainability, responsibility” or “CSR” .

According to Moody’s, sustainability bond issuance hit a record high in 2020. Issues increases were more pronounced for bonds related to societal outcomes than for bonds with a climate or nature focus.

For the latter, some companies appoint Chief Value Officers, while others are creating their first ESG-specific roles, including Kao Corporation and Kraft Heinz.

Sarah George