New Aspects of Trading to Understand Risks to the Environment (NATURE)

Completed

Other Power and Storage Technologies(Electricity transmission and distribution)
Other Cross-Cutting Technologies or Research(Environmental, social and economic impacts)

Applied Research and Development

BIOLOGICAL AND AGRICULTURAL SCIENCES
ENGINEERING AND TECHNOLOGY (Electrical and Electronic Engineering)

Not Cross-cutting

Project Contact
National Grid Electricity Transmission

Network Innovation Allowance

Ofgem

01 June 2024

31 December 2024

ENA months

£197,950

Power

London

Network Innovation Allowance

Project Contact, National Grid Electricity Transmission

To facilitate the decarbonisation of the UK Energy Network, as a sector we must work together to ensure that we meet our Net Zero commitments whilst taking steps to reduce our collective impact on Nature and the fundamental benefits and services it provides to the global population.We have an innovation-led approach to sustainability, bringing together design thinking approaches with significant investments in acquiring quality nature datasets and developing 15+ best-in-class nature accelerators. Our Data & AI capabilities, including experience in operating clean rooms, can ensure insight generation whilst protecting any commercially sensitive procurement / finance data across the Network Partners. The project will involve several innovative elements, including:Co-creation of a first-of-its-kind, bespoke solution for the electricity T&D sector, consolidating relevant datasets and nature measurement frameworks into a streamlined toolkit.Mapping of the upstream supply chain for material focus areas, by bringing together leading-edge data sets, or potentially using Accenture"s innovative supply chain mapping tool.Expansion of Accenture"s collaborative nature risk and opportunity identification approach and innovation methods, to co-create a set of T&D sector-wide risks and actionable opportunities.Extensive socialisation of the outcomes and learnings within NG, SPEN and SSEN, and broader industry fora (e.g. via the ENA) if desired, catalysing broader innovation and nature action. The scope of the work is detailed below to be completed in several stages:Stage 0: DiscoveryThe aim of this stage is to kick off the project and prepare for the data collection period. This involves:Prepare and mobilise: Identify relevant stakeholders, review the latest nature guidance, and prepare for kick-off workshop.Kick off project: Conduct kick-off workshop to align on outcomes, plan, and governance, define the data requirements and issue the data requests.The Network Partners will have a 6-week period to collect the requested data, with the Accenture team on hand to answer any questions and guide the Networks to support the data collection.Stage 1: Design and DevelopThe aim is to design the innovative approach and assessment tool, and to conduct the materiality and location assessment. This involves:Design and develop innovative approach and methodology:Ideating use cases and metrics and agree on user requirements.Exploring options to map electricity T&D sector"s upstream value chain based on available supply chain data.Developing approach, via 2 co-creation workshops, for:- Identifying and prioritising focus areas, suppliers, risks and influential factors for further assessment.- Assessing nature dependencies, impacts, risks and opportunities, and agree actions to address.- Integrating relevant learnings from other sectors.Develop assessment tool:Conceptualising and building assessment tool, based on defined use cases, requirements, and method.Conduct nature materiality and location assessment:Identifying priority focus areas, suppliers, risks, and influential factors for further analysis, using agreed method.Gathering feedback from network partners (and integrate learnings into nature materiality assessment tool).Stage 2: Evaluate, assess, and SocialiseThe aim of this stage is to use the tool developed in Stage 1 to evaluate and assess nature-related impacts, dependencies, risks, and opportunities, and to socialise the results. This involves: Use of innovative tool developed in Stage 1 to evaluate the size and scale of nature dependencies and impacts for priority focus areas, suppliers, risks, and influential factors.Assessment of upstream nature-related risks and opportunities and refining via validation workshop with network partners and key suppliers.Refining the assessment approach, methodology and tool based on evaluation and assessment, and feedback from teams.Ideating and prioritising actions to reduce nature-related dependencies, negative impacts and risks, and capture nature-related opportunities.Developing recommendations on high-level targets, metrics, strategy and reporting implications, in line with GBF, TNFD, and other sustainability frameworks (to be explored and agreed upon with NG, SSEN and SPEN teams).Run up to 3 end-of-project knowledge sharing sessions with NG, SSEN and SPEN teams, key shared suppliers, and broader industry fora if desired (e.g., via the ENA), to disseminate project conclusions and agree on next steps. Stage 0: DiscoveryTo reach a unified vision on the project outcomes and data-sharing approach.To gain an understanding of the key stakeholders across the Network Partners.To gather the data requested, ready for the subsequent analysis.Stage 1: Design and DevelopTo design an innovative, holistic, and transferrable approach, methodology and tool for assessing material supply chain nature impacts and dependencies.To draft a list of material focus areas, suppliers, risks, and influential factors for the electricity T&D sector.To agree on potential assessment metrics for use in Stage 2, in alignment with key nature frameworks.Stage 2: Evaluate, assess, and SocialiseTo produce a detailed assessment report of material upstream nature dependencies and impacts.To produce a list of near- and long-term nature-related supply chain risks (physical and transitional) and opportunities, including consideration of risks arising from the energy transition.To develop recommendations on nature actions, strategies, high-level targets, and associated metrics, to support T3 planning.

Following the UN Biodiversity Conference (COP15) and the subsequent approval of the Post 2020- Global Biodiversity Framework (GBF) in Dec 2022, there will be more stringent requirements on business to assess and disclose their impacts and dependencies on Biodiversity. This project aims to examine the supply chain risks and dependencies in terms of its impacts on nature across the full value chain. As an Electricity Transmission and Distribution sector, National Grid, SSEN and SPEN will draw from many of the same global suppliers, and therefore share many of the risks, upstream and downstream impacts to nature. There is an ambition as part of this project to develop a consistent approach and robust methodology for assessing the biodiversity impacts risks and dependencies across the global supply chain (supplying UK based activities) using innovative approaches that align with best practice frameworks in this area.

02/10/24