SBT4utilities and SDG Sector Roadmap · SBT4utilities and SDG Sector Roadmap Global Opportunities...
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SBT4utilities and SDG Sector RoadmapGlobal Opportunities for Utilities
3 April 2019Liaison Delegate Meeting
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SBT4utilitiesHelping electric utilities to set science-based targets
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1) Introduction
2) Presentation• The SBT4utilities project• Science-based targets and the SBT initiative • Experiences and challenges with Scope 3 targets
3) Facilitated group discussion• 1.5°C SBTi targets• Scope 3: electricity and gas trading
4) Next steps
SBT4utilities: session outline
38%Total:
33.1 Gt CO2
The electric utilities sector
= 13 Gt CO2
- 95%
Energy-related CO2 emissions Carbon intensity reduction
Electricity sector
Source: IEA, GECO 2019
Electricity production
Source: IEA, 2014
Total emissions
Carbon intensity
SBT4utilities (Science-based targets for utilities)
ValueUtilities have a stronger
understanding of science-based
targets and develop methods for
setting Scope 3 emissions targets
ImpactEngagement with peers and
the guidance document will
enable utilities to set ambitious
emission reduction targets
VoiceUtilities exchange
experiences and create a
common voice in external
engagement
Ambition: Helping electric utilities set science-based targets, in particular addressing
Scope 3 emission targets
Enhance understanding about SBT Scope 3 emissions targets Alignment within the sector
Objectives of the guidance
Objectives:
• Provide a better understanding of science-
based targets
• Collect sector experience and challenges
about target setting and Scope 3 emissions
Target audience:
• Electric utilities an any stage of their
SBT journey
• SBT initiative and reviewers
• Consultants to electric utilities
Guidance reviewers:
• First draft: SBT4utilities project members
• Second draft: broader utilities and SBTi
1 Executive summary2 Project introduction
3 Science-based targets (SBTs)4 Approaches to setting SBTs
5 Electric utility sector experience with SBT
6 Addressing Scope 3 emissions7 Sector experience with Scope 3
8 Suggested approaches for setting Scope 3 targets
9 Recommendations
Guidance outline
Background
Findings
Suggestions
Benefits of setting SBT
“Setting an SBT is a strategic decision that future-proofs the company, mitigating risksand setting a clear path to capture low-carbon transition opportunities”
Science Based Targets - Overview
What are science-based targets?
“GHG emissions reduction targets
that are consistent with the level
ambition that, according to climate
science, is required to meet the
long-term temperature goals set in
the Paris Agreement”.
Consistent with the long-term vision of
reaching net-zero emissions in the 2nd
half of the century;
Covering the most relevant sources of
emissions within the corporate boundary
(95% of direct and electricity-related
emissions; 2/3 of value-chain emissions);
Timeframe that drives short-term action
and enables accountability (5 to 15
years).
Science Based Targets - Overview
1.5ºC
Well-below 2ºC
From To
Global goalCompany specific
target
Temperature goalGHG emission
reduction target
Long-term
Timeframe that
enables action and
accountability
Science Based Targets - Overview
550+• More than 550 companies in nearly 40 countries
around the world are developing new business
strategies that are aligned with climate science.
• Directly responsible for nearly 1,000
MT CO2e, roughly equal to Brazil’s
annual emissions.
• US$10+ trillion in market value,
comparable to the value of the
second largest stock exchange in
the world, NASDAQ.
• Nearly a fifth of Fortune Global 500
companies are committing to set science-
based emissions reduction targets.
• 21 electric utilities have committed to
SBTi. Of these, 10 have had their targets
approved.
Science Based Targets – Ambition update
◥ Raising ambition: Minimum level of ambition for
new targets will be raised from 2°C to well-below
2°C.
◥ Disclosing ambition: SBTi will publish levels of
ambition of all approved targets against
temperature goals on the website: 1,5°C, well-
below 2°C and 2°C.
◥ Target revalidation: Companies will be required to
review, and if necessary revalidate, their targets
every five years from the date of target approval
(starting in 2025).
Science Based Targets – Ambition update
Science Based Targets – Ambition update
Science Based Targets – Ambition update
Science Based Targets – Ambition update
2020-2035 linear reduction
Final scenario envelope (n=17,
including hybrid scenarios):
Minimum: 4.1%
Median: 4.4%
Maximum: 5.1%
For comparison:
S1: 4.2%
S2: 3.3%
Implications for utilities
Implications for utilities
Implications for utilities
Implications for utilities
Implications for utilities
Local context
• Energy trilemma(Security, equity, sustainability)
• Public mandate
Structural challenges
• Long-term assets• Ownership vs Shared
Low-carbon
• Recognize improvement but not current low-carbon
Frequent updates
• SBTi criteria updates• Understanding the criteria
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Related to business
Related to SBTi
SBT: recurrent challenges
Preliminary information based on the first draft of the guidance
Equity in fossil
fuel plants
Gas trading
Electricity
trading
Construction
of new plants
Purchase of
fossil fuels
Scope 3 emissions
Scope 1 priority
• Central for economy decarbonization
Screening and reporting
• Full screening• Consistent reporting
SBTi for Gas
• Methodology not available
Meaningful impact
• Limited capacity to change
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Related to measurement and reporting
Related to Scope 3
emissions
Use of reporting
• Qualitative and not mandatory
Suppliers
• Limited suppliers• GHG information
Scope 3: recurrent challenges
Preliminary information based on the first draft of the guidance
1.5°C targets for utilities Scope 3 challenges
Facilitated discussion
Guidance:
first draft
CM19
LisbonCOP24
Sept Oct Dec
End
April
End
May
Outreach
Deadline
member
feedback
MarchEnd
June
UNSG
Engage wider stakeholders
Integrate feedback
Guidance:
second
draft
Integrate feedback & finalize document
Deadline
broader
feedback
Early
Sept
Guidance:
publication
Timeline
Provide feedback
WBCSD actions
Member actions OutreachProvide feedback
Our contact
Luca De Giovanetti Manager, Science-based Targets
E-mail: [email protected]
Main: +41 (0)22 839 31 61
World Business Council for Sustainable Development (WBCSD)
Maison de la Paix l Chemin Eugène-Rigot 2B
CP 2075 l 1211 Geneva 1 l Switzerland
Mariana HeinrichManager, Climate & Energy
E-mail: [email protected]
Main: +41 (0)22 839 31 40
SDG Sector Roadmaps
Engagement Proposal
Utilities Sector
As global business faces new and complex challenges and opportunities, our science-based approach and targeted business solutions aim to scale up business impact.
WBCSD’s Approach
We target the realization of the Sustainable Development Goals (SDGs) through six work programs to achieve systems transformation.
WBCSD’s Targeted Solutions
James GommeDirector, SDGs
Filippo VeglioManaging Director
Uta JungermannManager, SDGs
WBCSD & the Sustainable Development Goals
WBCSD’s SDG Team
Provides platforms to showcase progress and advance dialogues.
Bring companies together to explore ways to
maximize SDG impact.
Provide timely updates on latest trends, insight and
best practice.
SDGs Program Area
VoiceVoiceValue Impact Voice
SDGs will not be delivered
without business
Technology & Innovation
Engine of Employment
Source of Finance
Sustainable Development Goals
The Critical Role of Business
Implications for Business
Collaboration
Opportunities
Governance & Transparency
Cost of inaction
Importance of appropriate partnerships to realizing transformation
Company Action
Business & the SDGs
Collaboration at different levels
Strategic Partnerships
Sector-level Partnerships
Systemic Partnerships
Background
Recommendations of the BSDC
• In April 2018 WBCSD launched
a framework for SDG road-
mapping which is applicable
across industries and
geographies
• Collaborative effort with ERM,
and piloted by WBCSD chemical
sector members.
Background
SDG Sector Roadmap Guidelines
Players in all sectors will benefit
from developing detailed
“roadmaps” to guide their
sector’s shift to sustainable
development in line with the
Global Goals.
“
”Business & Sustainable Development Commission
SETS A
COMMON
VISION
MAPS
CURRENT
SDG IMPACT
EXPLORES
OPPORTUNITIES
FOR IMPACT
IDENTIFIES
ACTIONS
Enhances license to operate Helps to manage risks Opens up new growth markets
Background
SDG Sector Roadmap Guidelines
SDG Sector Roadmap Guidelines
Three step framework
• Map SDG impacts across the value chain
• Prioritize SDGs for the sector
• Identify key opportunities to impact the SDGs
• Assess sector apportionment
• Identify barriers, potential solutions and impact accelerators
• Identify short-, medium- and long-term actions to advance SDG impactopportunities
• Monitor, measure and report progress
Implementation
Chemical Sector SDG Roadmap
Explores most substantial
opportunities for impact across the
priority SDGs.
Includes SDG prioritization where
the sector can minimize negative
and maximize positive impact.
Chemical Sector SDG Roadmap
SDG Prioritization & Impact Opportunities
23 actions identified across 18 impact opportunities and five systemic themes
Chemical Sector SDG Roadmap
Impact Pathways
• Launched 17 July 2018 at the SDG Business Forum.
• Highlighted by CEO of Solvay during high-level plenary panel in front of 800 business, UN and government representatives.
• Details provided during WBCSD / UNDESA side event for 130 sustainability professionals.
Chemical Sector SDG Roadmap
Roadmap Launch: High-Level Events at UN
• Chemical sector group are now continuing efforts to advance specific actions identified.
• The group continue to convene regularly.
• The group have also set up a roadmap microsite where they can report monitor and report on implementation progress.
Chemical Sector SDG Roadmap
Roadmap Implementation: Ongoing Efforts
Implementation
Forest Sector SDG Roadmap
Implementation
Indian Cement Sector SDG Roadmap
A Utilities Sector SDG Roadmap
Why undertake an SDG Roadmap?
An initiative undertaken by a selection of leading utility companies (and potentially industry associations or additional stakeholders) to illustrate the potential of the sector to leverage its influence and innovation to significantly contribute to the realization of the SDGs agenda. The project will focus in on areas where the sector can have the most impact and explore key opportunities and pathways to accelerate and optimize this impact on the road to 2030, while also presenting a strong business case.
What would the project
be?
Who would it be
targeted at?
The Utilities IndustryConversations will help companies involved identify potential opportunities for collaboration but will also benefit the wider sector and inspire action from the industry as a whole.
Wider Stakeholder GroupsThe report will also provide a window into the potential of the sector to contribute to the SDGs for interested groups of stakeholders and will help to start important conversations around new partnerships
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A Utilities Sector SDG Roadmap
What would be the output?
Demonstrate generally how the
utility industry interacts with the
wider SDG agenda and which
Goals it can impact the most
Identify key impact opportunities where
the companies involved believe they can
have the most significant impact in terms
of contributing to realizing the SDGs while
unlocking business opportunities
Explore actions that players within the
sector can begin to take to move towards
advancing these impact opportunities and
make sure potential is fulfilled
Key Output: An accessible roadmap document (of around 30-40 pages) to be released and promoted in 2020.
Report will seek to:
A B C
A Utilities Sector SDG Roadmap
What would it involve?
A series of interviews with each participating company to collect inputs and view points on key SDGs for the sector as
well as most significant impact opportunities
A two-day face-to-face workshop to confirm
priority SDGs for the sector and narrow down a list of impact opportunities for
the sector
An additional workshop, complemented by a series
of calls if necessary to confirm key action points
associated with each impact opportunity.
Phase one
Phase two
Phase three
Ongoing research, drafting and project management (WBCSD and consulting partner)
Project kick-off
Project Sign-off