Core to our ESG program is the imperative to address our GHG emissions as we globally transition to a low-carbon economy. WSP first set reduction targets in 2018, but given the pace at which climate science has evolved since then, this year we raised the level of our ambition. Our updated targets, approved by the Science Based Targets initiative (SBTi), align WSP with the most ambitious aim of the Paris Agreement, to limit global temperature rise to 1.5°C. We have committed to reduce absolute scope 1 and 2 market-based GHG emissions by 60% by 2030 from a 2018 base year, and scope 3 emissions by 30% over the same timeframe. We also aim to be net zero across our value chain by 2040.
In addressing our scope 1 and 2 emissions, we will focus on the energy efficiency of our global facilities and target vehicle fleet emissions. For example, by the end of this decade we are committed to sourcing 100% renewable electricity.
In terms of indirect upstream scope 3 emissions, we will be engaging with our suppliers, contractors and sub-consultants on their own carbon reduction targets. Our business travel footprint will also be evaluated to identify potential reduction opportunities.
Each of our operating regions is updating its plan to reduce emissions, to match or exceed our global GHG reduction aspirations, tailored to local operations and context.
How is WSP evaluating its climate risks and opportunities?
In 2020, we undertook a thorough, qualitative analysis of climate-related physical and transition risks and opportunities regarding our offices, employees, services, markets and host communities. The approach we took aligns directly with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). We have begun to integrate the climate-related physical and transition risks into our Enterprise Risk Management (ERM) program, to minimize the impacts of these risks on our business and people. The ERM team will work in tandem with other members of the Global ESG Committee to begin to evaluate these risks on a regular basis.