Metlifecare’s ambitious emissions reduction targets are validated by SBTi
10 February 2023
Metlifecare is Australasia’s first retirement village and aged care operator to have its sustainability targets validated by the global Science Based Targets initiative (SBTi). This global body is focussed on enabling businesses to set ambitious emissions reductions targets in line with the latest climate science. And Metlifecare’s three targets are ambitious.
Achieving validation is a challenging process with a high bar set by SBTi. Metlifecare has now achieved that validation and in doing so joins 4,000 companies globally and 26 other companies across Aotearoa who are each driving their sustainability programmes to significantly decrease emissions before 2030. Of the 26 companies in New Zealand, only 11 have set such ambitious targets as Metlifecare to keeping global warming within 1.5 degrees. This is an important milestone for Metlifecare.
The three validated targets comprise of Metlifecare’s commitment to
- reduce its absolute greenhouse gas emissions by 42% by 2030, from a 2021 baseline
- increase annual sourcing of renewable electricity from 0% in FY2021 to 100% by FY2030
- reduce scope 3 GHG emissions by 51.6% per m2 by FY2030 from a FY2021 base.
Science-based targets, validated by the SBTi, provide companies with a credible and clearly defined path to reduce emissions that align with the Paris Agreement goals to tackle climate change and its negative impacts.
Metlifecare’s Sustainability Manager, Ranjana Lal, says while the SBTi validation is a significant achievement, the real work is just beginning.
“Achieving target validation from SBTi is a rigorous process so we’re incredibly proud to have achieved this important milestone in our programme of work. However, to achieve our targets by 2030, we have a lot of work in front of us over the next few years.
“Essentially, we have committed to reducing our electricity and energy use by almost half within the next seven years, and this is during a period of significant growth for Metlifecare. We will be continuing to buy land, construct, develop and acquire villages, while at the same time significantly decreasing our greenhouse gas emissions.
“With the ongoing commitment from Metlifecare’s owners EQT and guidance from sustainable transformation specialists Tadpole, we’re committed to becoming an industry leader in sustainability. Our ambition is to be a business that is enterprising and adaptive to global sustainability challenges. Confirming our science-based targets genuinely underpins our commitment to this,” says Ranjana.
Metlifecare’s full near-term science-based targets:
Metlifecare commits to reduce absolute scope 1 and 2 GHG emissions 42% by FY2030 from a FY2021 base year, aligned to a 1.5-degree trajectory.
Metlifecare also commits to increase annual sourcing of renewable electricity from 0% in FY2021 to 100% by FY2030.
Metlifecare further commits to reduce scope 3 GHG emissions 51.6% per m2 by FY2030 from a FY2021 base year.
Sustainability Linked Loan (SLL)
In December 2021, Metlifecare announced that it had completed a re-financing of all bank loan facilities into Sustainability-Linked Loan (SLL) facilities tied to ambitious social and environmental goals. The NZ$1.25bn Sustainability-Linked Loan comprises NZ$600m of existing debt and NZ$650m new debt.
Metlifecare was the first operator in the New Zealand and Australian retirement village and aged care sector to be fully debt funded by sustainable financing and this announcement marked New Zealand’s largest-ever sustainable re-financing commitment.
Establishing our science-based targets (now validated by SBTi), implementing, and achieving emissions reduction is a key performance indicator of our SLL.
The Science Based Targets initiative (SBTi)
The SBTi is a partnership between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF).
- defines and promotes best practice in emissions reductions and net-zero targets in line with climate science,
- provides technical assistance and expert resources to companies who set science-based targets in line with the latest climate science,
- brings together a team of experts to provide companies with independent assessment and validation of targets,
- is the lead partner of the Business Ambition for 1.5°C campaign (https://sciencebasedtargets.org/business-ambition-for-1-5c/) - an urgent call to action from a global coalition (https://www.unglobalcompact.org/take-action/events/climate-action-summit-2019/business-ambition) of UN agencies, business and industry leaders, mobilising companies to set net-zero science-based targets in line with a 1.5°C future.
The change has already begun and action is gaining pace. Over 2,000 organisations worldwide are leading the transition to a net-zero economy by setting emissions reduction targets grounded in climate science through the SBTi.
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