Net Zero – How to !

28.10.2022

Getting to Net Zero with SBTi (Science Based Targets-Initiative) & Climate Actions

๐Ÿ‘‰ ๐—ช๐—ต๐—ฎ๐˜ ๐—ฐ๐—ผ๐—บ๐—ฝ๐—ฎ๐—ป๐—ถ๐—ฒ๐˜€ ๐˜€๐—ต๐—ผ๐˜‚๐—น๐—ฑ ๐—ฑ๐—ผ ๐—ฎ๐—ป๐—ฑ ๐—ฟ๐—ฒ๐—ฝ๐—ผ๐—ฟ๐˜ ๐—ผ๐—ป ๐—–๐—น๐—ถ๐—บ๐—ฎ๐˜๐—ฒ – ๐—ฎ๐—ป ๐—ผ๐˜ƒ๐—ฒ๐—ฟ๐˜ƒ๐—ถ๐—ฒ๐˜„: The climate crisis is the mother of all crises. The future of human civilization and ecosystems depends on keeping planet heating within 1.5ยฐ celsius. Therefore climate has a key role inย CSRD andย ESRSย reporting requirements for companies and in other standards such as the EU Taxonomy, theย FSB Task Force on Climate-related Financial Disclosures (TCFD),ย or theย Science Based Targets initiativeย (SBTi).

1๏ธโƒฃ ๐—–๐—ฎ๐—ฟ๐—ฏ๐—ผ๐—ป ๐—™๐—ผ๐—ผ๐˜๐—ฝ๐—ฟ๐—ถ๐—ป๐˜๐˜€: ๐—–๐—–๐—™, ๐—ฃ๐—–๐—™ & ๐—ฆ๐—ฐ๐—ผ๐—ฝ๐—ฒ ๐Ÿญ/๐Ÿฎ/๐Ÿฏ
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.

2๏ธโƒฃ ๐Ÿญ.๐Ÿฑยฐ ๐—–๐—ฒ๐—น๐˜€๐—ถ๐˜‚๐˜€ ๐—ฆ๐—ฐ๐—ถ๐—ฒ๐—ป๐—ฐ๐—ฒ-๐—•๐—ฎ๐˜€๐—ฒ๐—ฑ ๐—ง๐—ฎ๐—ฟ๐—ด๐—ฒ๐˜๐˜€
If you have your company’s carbon footprint, the EU expects you to set reduction targets and emission pathways in line with the 1.5ยฐ Paris Agreement. Theย Science Based Targets initiativeย can check and certify if your reduction plans are compliant with the science-based pathways.

3๏ธโƒฃ ๐—–๐—น๐—ถ๐—บ๐—ฎ๐˜๐—ฒ ๐— ๐—ถ๐˜๐—ถ๐—ด๐—ฎ๐˜๐—ถ๐—ผ๐—ป ๐—ฎ๐—ป๐—ฑ ๐—˜๐—บ๐—ถ๐˜€๐˜€๐—ถ๐—ผ๐—ป ๐—ฅ๐—ฒ๐—ฑ๐˜‚๐—ฐ๐˜๐—ถ๐—ผ๐—ป ๐—”๐—ฐ๐˜๐—ถ๐—ผ๐—ป๐˜€
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.

4๏ธโƒฃ ๐—–๐—ข๐Ÿฎ ๐—ข๐—ณ๐—ณ๐˜€๐—ฒ๐˜๐˜๐—ถ๐—ป๐—ด ๐—ฎ๐—ป๐—ฑ ๐—ฅ๐—ฒ๐—บ๐—ผ๐˜ƒ๐—ฎ๐—น๐˜€
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.

5๏ธโƒฃ ๐—–๐—น๐—ถ๐—บ๐—ฎ๐˜๐—ฒ ๐—ฅ๐—ถ๐˜€๐—ธ ๐—”๐—ป๐—ฎ๐—น๐˜†๐˜€๐—ถ๐˜€ & ๐—”๐—ฑ๐—ฎ๐—ฝ๐˜๐—ฎ๐˜๐—ถ๐—ผ๐—ป ๐—”๐—ฐ๐˜๐—ถ๐—ผ๐—ป๐˜€
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.

NetZero

๐Ÿ‘‰ 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.