Greenhouse gas emissions

Prudential plc - Greenhouse Gas Emissions Statement

We have compiled our greenhouse gas emissions data in accordance with the Companies Act 2006 (Strategic and Directors’ Reports) Regulations 2013.

We have included full reporting for Scope 1 (direct emissions such as combustion of gas for heating fugitive emissions and emissions from owned vehicles) and Scope 2 (indirect emissions for consumption of electricity, heat or steam) emissions where operational control of the emissions of the sources concerned was demonstrated.

We have also reported on a number of Scope 3 emissions as a matter of best practice. These are emissions arising as a consequence of the activities of the company, but occur from sources not owned or controlled by the company. For the purpose of 2016 report, these Scope 3 emissions include: business travel booked from the UK, global water consumption (occupied and investment properties) and waste. The waste reporting covers, all investment properties with operational control, UK and US occupied properties. We do not currently collect waste data for our occupied buildings in Asia, and Continental Europe. We are continuously working with our business units to review the extent of our Scope 3 reporting and increase where practicable.

Assessment parameters

Baseline year: 01 October 2014 - 30 September 2015
Reporting year: 01-October 2015 - 30 September 2016

Assurance Deloitte LLP has provided limited assurance over selected environmental metrics in accordance with the International Auditing and Assurance Standards Board’s (ISAE3000 (Revised)) international standard.
Consolidation approach Operational control.
Boundary summary All entities and all facilities under operational control (including those owned) were included.
Consistency with the financial statements The reporting period (01 October 2015 - 30 September 2016) does not correspond with the Directors’ Report period (01 January 2016 to 31 December 2016). The reporting period was brought forward by three months to improve the availability of invoice data (which often lags by one month or more after the usage period) and reduce the reliance on estimated data.  Prudential owns assets, which are held on its balance sheet in the financial statements, over which it does not have operational control. These are excluded from the data below. Assets not included on the balance sheet but held under an operating lease and where we have operational control are included.
Emission factor data source We have used the UK DEFRA 2016 GHG Conversion Factors for Scope 1 and 3 reporting and the IEA GHG 2016 conversion factors for global Scope 2 reporting.
Assessment methodology

The Greenhouse Gas Protocol Corporate Accounting and Reporting Standard 2004.

In 2016 Prudential reviewed its reporting methodology for Scope 2 (electricity) emissions in recognition of the release of the revised GHG Protocol Scope 2 Guidance that requires both location and market-based reporting. As the Group operates in a number of mature and emerging markets, the availability of market-based factors that met the necessary quality criteria was deemed insufficient for reporting and as such our 2016 reporting continues to use the location-based factors already available.   

Materiality threshold Five per cent
Intensity ratio Kilograms of Carbon Dioxide Equivalent per metre squared (Net Lettable Area)

Greenhouse gas emissions source

Emissions source 2016 2015
Scope 1(Tonnes CO2-e) Occupied estate 10,155 8,409
Investments 7,559 8,845
Scope 2 (Tonnes CO2-e) Occupied estate 62,413 62,695
Investments 20,973 28,691
Scope 1 and Scope 2 Emissions (Tonnes CO2-e) Occupied estate 72,568 71,104
Investments 28,532 37,536
TOTAL SCOPE 1 AND 2 (Tonnes CO2 -e) 101,100 108,640
Normalised Scope 1 and 2 (kg CO2-e/m2)* Occupied estate 123 132
Investments 14 18
TOTAL SCOPE 1 AND 2 (kg CO2-e/m2)* 38 42
Scope 3 (Tonnes CO 2-e) Occupied estate 11,253 13,664
Investments 386 418
TOTAL SCOPE 3 (Tonnes CO2-e) 11,639 14,082
Total Scope 1, 2 and 3 Emissions (Tonnes CO2-e) Occupied estate 83,821 84,768
Investments 28,918 37,954
TOTAL SCOPE 1, 2 and 3 (Tonnes CO2-e) 112,739 122,722
Normalised Scope 1, 2 and 3 (kg CO2-e/m2)* Occupied estate 142 157
Investments 14 18
TOTAL SCOPE 1, 2 AND 3 (kg CO2-e/m2)* 43 47

*Comparative prior year data for normalised emissions have been restated due to a methodology change for accounting for floor area. Please refer to the Basis of Reporting for further detail.

Total Prudential Group scope 1 and 2 GHG emissions have reduced by 6.9 per cent from 2015 levels.