Getting to Net Zero with SBTi (Science Based Targets-Initiative) & Climate Actions
👉 𝗪𝗵𝗮𝘁 𝗰𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 𝘀𝗵𝗼𝘂𝗹𝗱 𝗱𝗼 𝗮𝗻𝗱 𝗿𝗲𝗽𝗼𝗿𝘁 𝗼𝗻 𝗖𝗹𝗶𝗺𝗮𝘁𝗲 – 𝗮𝗻 𝗼𝘃𝗲𝗿𝘃𝗶𝗲𝘄: The climate crisis is the mother of all crises. The future of human civilization and ecosystems depends on keeping planet heating within 1.5° celsius. Therefore climate has a key role in CSRD and ESRS reporting requirements for companies and in other standards such as the EU Taxonomy, the FSB Task Force on Climate-related Financial Disclosures (TCFD), or the Science Based Targets initiative (SBTi).
1️⃣ 𝗖𝗮𝗿𝗯𝗼𝗻 𝗙𝗼𝗼𝘁𝗽𝗿𝗶𝗻𝘁𝘀: 𝗖𝗖𝗙, 𝗣𝗖𝗙 & 𝗦𝗰𝗼𝗽𝗲 𝟭/𝟮/𝟯
The basis for climate action is a carbon footprint for the company (CCF) or specific products (PCF). Both measure greenhouse gas emissions expressed in CO2 equivalents (CO2e) emitted within the company (Scope 1), for energy procured (Scope 2), or in the upstream or downstream value chain (Scope 3) using the Greenhouse Gas Protocol or other calculation-standards.
2️⃣ 𝟭.𝟱° 𝗖𝗲𝗹𝘀𝗶𝘂𝘀 𝗦𝗰𝗶𝗲𝗻𝗰𝗲-𝗕𝗮𝘀𝗲𝗱 𝗧𝗮𝗿𝗴𝗲𝘁𝘀
If you have your company’s carbon footprint, the EU expects you to set reduction targets and emission pathways in line with the 1.5° Paris Agreement. The Science Based Targets initiative can check and certify if your reduction plans are compliant with the science-based pathways.
3️⃣ 𝗖𝗹𝗶𝗺𝗮𝘁𝗲 𝗠𝗶𝘁𝗶𝗴𝗮𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗘𝗺𝗶𝘀𝘀𝗶𝗼𝗻 𝗥𝗲𝗱𝘂𝗰𝘁𝗶𝗼𝗻 𝗔𝗰𝘁𝗶𝗼𝗻𝘀
Next, you need to take action on reducing your greenhouse gas emissions, be it with energy efficiency, renewable energy, emission-free production processes or emission-free transport and mobility. Your company needs a calculated plan with short, midterm and long-term actions to prove that your actions are sufficient to meet reduction targets.
4️⃣ 𝗖𝗢𝟮 𝗢𝗳𝗳𝘀𝗲𝘁𝘁𝗶𝗻𝗴 𝗮𝗻𝗱 𝗥𝗲𝗺𝗼𝘃𝗮𝗹𝘀
CO2 offsetting and carbon removal actions should be reported, but always kept separated from carbon footprint and reduction actions. Companies should report, if they buy carbon offset credits from certified projects, if they have solutions that help to reduce emissions at customers or if they apply carbon removal technology such as Carbon Capture and Storage/Use.
5️⃣ 𝗖𝗹𝗶𝗺𝗮𝘁𝗲 𝗥𝗶𝘀𝗸 𝗔𝗻𝗮𝗹𝘆𝘀𝗶𝘀 & 𝗔𝗱𝗮𝗽𝘁𝗮𝘁𝗶𝗼𝗻 𝗔𝗰𝘁𝗶𝗼𝗻𝘀
Climate risks are of specific interest to investors, who want to prevent damage to invested assets. Companies need to quantify climate-related risks such as climate damage risks, stranded asset risks, and asset transition risks. Companies also need to take adaptation actions and report on how climate risks can be mitigated to be more resilient to climate change.
👉 Mid-sized companies should get started with foot-printing and target-setting. They are an important part of the solution, contributing green technology to reduce emissions and helping large corporations to decarbonize operations and the supply chain. Still, they need to prepare for taking green investments to modernize and decarbonize their own operations.