What's Octopus Energy doing to reach Net Zero targets?
We’re driving the global energy transition to help our customers lower bills, reduce emissions and fight climate change. That’s why we’ve committed to reaching net-zero greenhouse gas emissions across our value chain by FY2040.
In September 2025, the Science Based Targets initiative (SBTi) validated our targets against the global effort to limit global warming to 1.5°C, the most ambitious goal set out by the Paris Agreement. As wholesale energy represents the majority of our carbon footprint, we’ve set near and long-term targets using the SBTi’s Power sector guidance.
Octopus Energy Group Limited commits to reach net-zero greenhouse gas emissions across the value chain by FY2040
Scope 1 & 2:
Reduce absolute Scope 1 and Scope 2 GHG emissions 42% by FY2030 from a FY2024 base year.
Scope 3:
Reduce Scope 3 emissions from all sold electricity 88% per MWh by FY2030 from a FY2024 base year.
Reduce absolute Scope 3 GHG emissions from the use of sold products (natural gas) 59% by FY2034 from a FY2024 base year.
Scope 1 & 2:
Reduce absolute scopes 1 & 2 (market-based) GHG emissions 90% by FY2040 from a FY2024 base year.
Scope 3:
Reduce absolute scope 3 GHG emissions 90% by FY2040 from a FY2024 base year.
Reduce absolute emissions associated with the sale, transmission and distribution of fossil fuels by 90% by FY2040 from a FY2024 base year.
Reduce scope 3 GHG emissions from all sold electricity 88% per MWh from FY2034 through FY2040 from a FY2024 base year.
Our carbon footprint
Our operational emissions (Scope 1 and 2 in the table below) are associated with our fleet and facilities globally. We continue to electrify our fleet, as a result we reduced our Scope 1 and 2 emissions by 29% compared to FY25.
As the UK’s biggest energy supplier, and expanding globally, wholesale energy accounts for 95% of our footprint. Gas represents the most significant part of this, making up 92% of our footprint. The rest of our emissions come from investments in renewable energy through OE Gen, the leasing of electric vehicles through OEV and the installation of LCT’s through our Services team. As well as what it takes to run our business, what we purchase and how our team travels to and from work.
| Scope | FY2024 baseline emissions (tCO2e) | FY25 emissions (tCO2e) | FY26 emissions (tCO2e) |
|---|---|---|---|
| 1 | 2,721 | 4,790 | 2,719 |
| 2 location-based | 814 | 2,498 | 2,810 |
| 2 market-based | 938 | 1,228 | 1,574 |
| 3 | 14,828,588 | 17,496,550 | 20,393,183 |
In FY26, we onboarded a new emissions measurement solution. To ensure we're comparing our year-on-year emissions accurately we have updated our previous FY24 and FY25 Scope 3 GHG emissions, as well as our FY25 Scope 1 and 2 emissions. In addition, we have excluded Kraken from our FY26 carbon footprint following its demerger.
How we'll get there
Electrifying our fleet vehicles and facilities
We want our entire fleet to run on clean energy – so we’re swapping out the last of our petrol and diesel vehicles for electric ones and in the UK we’ve hit over 96% so far. We install home chargers for our engineers and give them Electroverse top-up cards, so they’ve always got easy access to low carbon electricity.
On top of that, we’re teaming up with building managers (both internal and third-party) to electrify heating, reduce energy consumption, and move all our facilities to 100% renewable electricity by 2030. In FY26, 74% of electricity supplied to our global sites from clean sources. In the UK we reached 92% clean electricity supply, showing a 31% increase from FY25.
Driving heat pump innovation and rollout
Gas is the biggest driver of our carbon emissions because it's still used to heat most homes. We want to give customers cleaner and cheaper alternatives and we’re now the largest heat pump installer in the UK on the Boiler Upgrade Scheme (based on Octopus benchmarking against Ofgem reports from 2024). We design, build, and install our own innovative Cosy heat pump, and we’ve created a special Cosy Octopus tariff to help customers save money and make the most of renewable energy when it’s plentiful.
Offering smart energy solutions
We’re more than just an energy supplier (even if that’s what most people know us for). We install a wide range of low-carbon tech too – from heat pumps, batteries, and solar panels to EV chargers and smart meters – with our brand-new, cutting-edge home Nook battery range coming soon.
All that clever tech pairs perfectly with our one-of-a-kind smart tariffs. These reward customers for shifting energy use to the greenest times of day, unlocking hundreds of pounds in savings every year.
Taking the lead on flexibility
We’re driving flexibility through initiatives like Free Electricity and Saving Sessions, which reward customers for reducing, shifting, or even using energy at specific times of day. Together with our smart tariffs, these initiatives help us harness renewable energy when it’s most plentiful and contribute to Octopus having the largest flexibility portfolios in the world (MW under management) – helping cut costs and end reliance on dirty fossil fuels.
100,000 Zero Bills Homes
Zero Bills Homes are fully powered by green tech – solar panels, heat pumps, and batteries – with zero home energy bills for ten years. This isn’t some far-off idea. People are already living in them today, and by 2030, we plan to have built at least 100,000 of them. It’s a world-first smart proposition, with over 5,000 homes committed across 4 countries in partnership with more than 60 leading housing developers, that saves both money and carbon.
Expanding renewable generation
Through Octopus Energy Generation, one of Europe’s largest renewable energy investors, we manage more than £8.5 billion in assets, with a combined capacity of 5.7GW. That’s enough to power 2.8 million homes every year – and we’re not stopping there.
Electrifying transport
We offer battery electricity vehicles through OEV’s salary sacrifice offering, and design our own chargers for home installation. We also enable customers to charge on the go using any of the 1.4 million EV chargers across 40 countries on the Electroverse network.
We also want to support the trucking industry to decarbonise, and have launched a new joint venture ‘Swaptopus’ to roll out ultra-fast battery swapping technology that allows electric lorries to get back on the road in minutes instead of hours..
Advocating for cheaper, greener energy
We’ve always spoken up for changes that’ll help decarbonise heating – and we’re not stopping anytime soon. That means pushing for clear backing of electrification as the go-to zero-carbon way to heat our homes, fixing bottlenecks in the planning system, raising home energy efficiency standards, and speeding up the rollout of low-carbon tech so customers can get great value from our demand and flexibility services.
We also push for fairer energy prices that optimise clean energy. This includes advocating for the decoupling of wholesale electricity prices from gas prices to insulate customers from fossil-fuel driven shocks, utilising flexibility to overcome wind curtailment costs, and publicly challenging the industry to do more to make power cheaper and cleaner.