Codan Limited reported 1,603.14 tonnes of carbon dioxide equivalent (tCO2-e) in combined Scope 1 and Scope 2 location-based greenhouse gas emissions for FY26. These emissions were independently assured for the first time as part of Codan’s inaugural mandatory climate-related financial disclosures.
Codan has disclosed its greenhouse gas emissions in previous years through its voluntary sustainability reporting. However, those earlier emissions disclosures were unaudited.
Codan’s Scope 1 emissions were 487.08 tCO2-e, comprising direct emissions from sources including fleet fuel combustion, stationary fuel combustion and refrigerants. Its Scope 2 location-based emissions were 1,116.06 tCO2-e, primarily arising from electricity purchased from the grid.
Together, Codan’s Scope 1 and Scope 2 location-based emissions totalled 1,603.14 tCO2-e in FY26. Codan prepared its emissions inventory using the operational control approach under the GHG Protocol.
Codan applied the transition relief available in its first annual sustainability reporting period and therefore did not include Scope 3 emissions or comparative emissions figures in its FY26 Sustainability Report. The absence of comparatives in that report does not mean that Codan had not previously measured or disclosed its emissions.
Codan will separately disclose its FY26 Scope 3 emissions on an unaudited basis in its FY26 Annual Report. Scope 3 emissions cover indirect emissions across Codan’s value chain and are expected to comprise a substantially greater proportion of its overall emissions footprint than its direct operational emissions.
Codan Renewable Energy and Rooftop Solar
During FY26, Codan purchased renewable energy for two facilities—one in the UK and another in Denmark.
The Sustainability Report does not quantify the volume of renewable electricity purchased in megawatt-hours or its percentage contribution to Codan’s total electricity consumption.
Codan has rooftop solar and electric vehicle charging infrastructure at its Mawson Lakes facility. Other emissions-management initiatives include a preference for electric and lower-emission transport, the gradual transition of fleet vehicles to lower-emission alternatives and increased use of lower-emission freight options.
The company is prioritising sea freight over air freight where operationally feasible and working with contract manufacturers on efficiency initiatives. Codan is also assessing embodied carbon in its products to identify opportunities to reduce lifecycle greenhouse gas emissions.
These initiatives do not form part of a Codan group-wide emissions-reduction target or transition plan.
DTC UK Targets Net-Zero Emissions by 2040
Codan has not established a group-wide net-zero commitment, emissions-reduction target or transition plan. However, Domo Tactical Communications (DTC) Limited (DTC UK) has established entity-specific emissions targets through its Carbon Reduction Plan, including a commitment to achieve net-zero emissions by 2040.
DTC UK’s near-term targets include reducing Scope 1 and Scope 2 emissions to zero by 2030 and reducing Scope 3 emissions by at least 42% by 2030.
The Scope 1, Scope 2 and Scope 3 reduction targets are defined on a gross emissions basis. For its longer-term net-zero objective, DTC UK plans to neutralise residual emissions using verified carbon offsets.
DTC UK’s baseline reporting period, from 1 July 2022 to 30 June 2023, recorded total greenhouse gas emissions of 3,727.2 tCO2-e.
Its baseline carbon intensity was 86.44 tCO2-e per US$1 million of revenue on a market-based basis. The quantitative targets are based on absolute emissions and are intended to align with the scale of reductions required to limit global warming to 1.5°C above pre-industrial levels.
DTC UK’s targets apply specifically to that entity and should not be characterised as commitments or targets adopted by Codan Limited or the broader Codan Group.
Codan Uses Net Zero 2050 Scenario for Climate Assessment
Codan used the Network for Greening the Financial System Net Zero 2050 scenario alongside the Current Policies scenario for its FY26 climate analysis.
The Net Zero 2050 scenario represents an orderly transition pathway consistent with limiting global warming to 1.5°C, while the Current Policies scenario represents a higher-emissions pathway. Codan primarily used qualitative scenario analysis to assess the resilience of its operations, supply chain and business model.
Codan’s FY26 disclosures indicate that its direct operational emissions are relatively limited compared with the emissions arising across its broader value chain. Codan’s sustainability activities include renewable energy procurement, rooftop solar, lower-emission transportation, supply-chain engagement and lifecycle emissions assessments.
The key distinction is that Codan does not currently have a group-wide net-zero commitment or emissions-reduction target. The net-zero and emissions-reduction targets disclosed in the Sustainability Report belong specifically to DTC UK and do not apply to the Codan Group as a whole.
SHAFANA FAZAL
