Every year we measure and report our greenhouse gas (GHG) emissions and produce an annual GHG inventory report in accordance with the International GHG Protocol, ISO 14046-1, and Aotearoa New Zealand Climate Standards.
For a detailed breakdown, read our FY26 GHG Inventory Report here.
Our emissions reduction target
In FY2025, we revised our short-term Scope 1 and 2 emissions target and set new targets for our long-term Scope 1 and 2 emissions, our Scope 3 emissions, and overall emissions. We also reset our baseline year for all targets, which has moved from FY06 to FY21. The table below sets out how we are tracking against each of our targets for FY2026:
Target type | Target | Current position against target | Progress trajectory |
|---|---|---|---|
| Scope 1 and 2 short-term | 44% reduction of Scope 1 and 2 GHG emissions (excluding transmission loss emissions) by FY30 | 66% of target achieved | Not tracking to meet target |
| Scope 1 and 2 long-term | Net-zero Scope 1 and 2 GHG emissions (including transmission loss emissions) by FY40, with an absolute target of a 90% reduction | 67% of target achieved | Tracking to meet target |
| Scope 3 short-term | Less than a 64% increase of Scope 3 emissions by FY30; this is also a 35% reduction against Transpower’s forecast FY30 Scope 3 emissions | Overshooting target | Not tracking to meet target |
| Scope 3 long-term | Net-zero Scope 3 emissions by FY50, with an absolute target of a 90% reduction of Scope 3 emissions by FY50 | Overshooting target | Not tracking to meet target |
| Overall short-term | 15% reduction of overall Scope 1, 2, and 3 GHG emissions by FY30 | Ahead of target | Ahead of target |
Our FY26 GHG emissions
Our total emissions were calculated at 147,903 tonnes of carbon dioxide equivalent (tCO2e), a decrease of 76,453 tCO₂e (or 34%) from FY25. This decrease is primarily due to a significant decrease in transmission loss emissions.
Scope 1: 4,197 tCO2e
Scope 1 emissions arise directly from our operations, including our use of fugitive gases and fuel in vehicles. In FY26 our Scope 1 emissions were calculated at 4,197 tCO₂e, a 9% increase from FY25.
Transpower is the country’s largest holder of sulphur hexafluoride (SF6), which is used as an insulating gas in our essential high-voltage switchgear. In FY26, our emissions from SF6 and other fugitive gases increased 10% from FY25. Managing SF₆ emissions remains a key focus for Transpower, supported by initiatives in our Sustainability Strategy and SF₆ Management Strategy to improve SF₆ handling, strengthen maintenance programmes, and progressively replace lower-voltage SF₆ switchgear in support of our FY30 and long-term emissions reduction targets.
Emissions from Transpower’s fuel usage, including from fleet vehicles, increased 3% from FY25 figures (a total of 378 tCO₂e reported in FY26). As outlined in its Sustainability Strategy, Transpower continues its long-running work programme to switch to electric vehicles where suitable options exist.
Scope 2: 76,834 tCO2e
Scope 2 emissions relate to electricity usage in our buildings and non-controllable transmission losses associated with operating the national grid. In FY26 Transpower’s Scope 2 emissions were calculated at 76,834 tCO₂e, a 50% decrease from FY25.
Transpower’s emissions from electricity usage in its buildings and retailer-metered substations decreased from 383 tCO₂e in FY25 to 203 tCO₂e in FY26 (a 47% reduction). Although electricity consumption increased slightly during the year, a higher proportion of renewable generation reduced the emissions intensity of grid electricity, resulting in lower Scope 2 emissions.
Transmission loss emissions were calculated at 76,631 tCO₂e, a 50% decrease from FY25, which was driven by the generation mix. Transmission losses remain Transpower’s largest emissions source and arise from electrical resistance in national grid assets. These emissions are largely outside our control, but we continue to monitor and report them and explore where we may be able to influence outcomes. Annual fluctuations are driven by climatic conditions and generation dispatch decisions, which determine the type and location of generation and the distance electricity travels, and the changing mix of generation connected to the national grid. Hydrology, plant availability, major outages, and newly connected renewable generation also affect the generation mix and resulting emissions.
As a State-Owned Enterprise, we are investing significantly in upgrading the national grid to support Aotearoa New Zealand’s electrification goals and the growth of renewable generation. We are focused on promptly connecting new renewable generation, and electrification load. While expanded and larger-scale infrastructure will increase physical transmission losses, the associated emissions are expected to decline over time as the electricity supply becomes increasingly renewable.
Scope 3: 66,872 tCO2e
Scope 3 emissions arise from work carried out by our service providers, as well as the other services, goods, and materials purchased to enable the delivery of this work. Our Scope 3 emissions in FY26 were calculated at 66,872 tCO₂e, a 1% increase from FY25. As these emissions include those arising from our service providers as they undertake Transpower’s work programmes, we are working closely with our service providers and suppliers to achieve a relative reduction in our Scope 3 emissions and to develop the national grid sustainably.
Enabling the transition to a renewable electricity system is the biggest contribution we can make to reduce emissions. As we enable Aotearoa New Zealand’s electrification by building new connection points and upgrading the national grid, our Scope 3 emissions are set to increase due to the increase in embodied carbon and associated delivery works resulting from the physical construction and upgrade of infrastructure. This expected near-term increase in Scope 3 emissions is an essential byproduct of Aotearoa New Zealand’s electrification and will ultimately be offset by the net benefit of electrification to the country. We continue to improve the accuracy of Scope 3 reporting by increasing the use of supplier emissions data, helping us better understand emissions trends and identify opportunities for reduction.
You can read more about our carbon footprint reduction initiatives in our Sustainability Strategy.