This sector relates to the following sub-sectors: Electric Utilities & Power Generators, Gas Utilities & Distributors, Water Utilities & ServicesEngineering & Construction ServicesReal Estate, and Waste Management.

Gas Utilities & Distributors

Each section below relates to the TPT Disclosure Framework principles of Action and Accountability. The below provides further guidance for sub-elements 4.1 and 4.3. The TPT welcomes comments on this guidance to ensure it is as useful as possible for preparers and users. The text is open for comment until Friday, 24 November. Please select the feedback form at the bottom of the page. The final text will be updated in February.

This industry includes gas distribution and marketing companies. Gas distribution involves operating local, low-pressure pipes to transfer natural gas from larger transmission pipes to end users. Gas marketing companies are gas brokers that aggregate natural gas into quantities that fit the needs of their different customers and then deliver it, generally through other companies’ transmission and distribution lines.

1. Advance methane management1, 2, 4, 6, 10

  • implement regular and advanced leak detection technologies (e.g., drones or infrared cameras) to rapidly identify and address leakage driven methane emissions;
  • upgrade older pipelines and infrastructure with materials resistant to corrosion and leaks; and
  • educate and train employees on best practices to prevent and manage methane leaks.

2. Strengthen demand-side management1, 2, 10, 11

  • establish energy efficiency programs targeting residential and business customer energy use (smart meters and demand response systems);
  • support fuel switching for customers, such as transitioning from gas boilers to electric heat pumps, hybrid solutions combining electric heat pumps with gas appliances, or clean hydrogen boilers;
  • provision of green tariffs to residential and business customers; and
  • engage in advocacy and policy dialogues for enabling policies and renewable heat standards to accelerate demand-side management.

3. Increased low-GHG emissions capacity1,4, 6, 10, 11

  • upgrade pipeline infrastructure to allow replacement of natural gas with RNG and/or green hydrogen;
  • integrate targeted electrification and geothermal systems within the network.

4. Invest in Carbon Capture, Usage and Storage (CCUS) technologies10, 12

  • explore and implement CCUS technologies to capture CO2.
  • medium-term targets for shifting natural gas transmission/distribution networks to Renewable Natural Gas (RNG) and/or green hydrogen (m3) 1, 11
  • customer energy usage savings from efficiency measures (MWh) 1, 7, 11
  • electrification or hybrid heating systems target 1, 11
  • target for integration of geothermal networks 1, 11
  • up/reskilling grid planners, control-centre operators and engineers to align with new electricity consumption requirements4
  • whole building energy intensity broken down by sector and country 3
  • % of floor area electrified 3
  • scope 3 emissions per MWh of energy used (tCO2e/MWh)1, 8, 11, 11
  • methane leakage reduction target (m3)1, 3, 11
  • absolute emissions of gas sales (tCO2e)1, 7, 8, 9, 11
  • carbon intensity of customer energy usage (tCO2e/MWh)1, 7, 11
  • share of RNG/blue hydrogen/green hydrogen within distribution network (m3)1, 11
  • pipeline methane leakage (kTCO2e)1, 6, 7
  • methane leak rates as a percentage of overall throughput1, 3, 7
  • ­­total operational GHG emissions (including associated portfolio data coverage); 3

Gas Utilities & Distributors literature

  1. CDP Global, Climate Change 2022 Reporting Guidance, 2022
  2. Climate Action 100+, Electric Utilities | Climate Action 100+, 2021
  3. Climate Bonds Initiative (CBI), Buildings Criteria, 2020
  4. Global Methane Initiative, Global Methane Initiative
  5. International Energy Agency (IEA), A new era for CCUS – CCUS in Clean Energy Transitions – Analysis – IEA
  6. IEA, Fuels & Technologies – Gas
  7. IFRS, [Draft] Industry-based Guidance on Implementing IFRS S2, 2022
  8. Science Based Targets Initiative (SBTi), Guidance on setting science-based targets for Oil, Gas and Integrated Energy companies, 2020
  9. Science Based Targets Initiative (SBTi), SBTi Criteria and Recommendations, 2021
  10. UK Committee on Climate Change, Sixth Carbon Budget, 2020
  11. UN-convened Net-Zero Asset Owner Alliance, Target Setting Protocol, 2nd Edition, 2022
  12. UK Government, British energy security strategy, 2022
People stacking hands together in the park

Your feedback

The TPT welcomes comments on the Sector Summary to ensure it is as useful as possible for preparers and users. The Sector Summary was open for comment until Friday 24 November and, following consideration of the feedback received, will be updated in February. Thank you to the industry experts who provided comments.