Science-based targets & CDP scoring · Yes, but this target has not been approved as science-based...
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www.cdp.net | @CDP Science-based targets & CDP scoring Nicole Labutong, Technical Manager Erin Callahan, Manager, Global Initiatives
Transcript of Science-based targets & CDP scoring · Yes, but this target has not been approved as science-based...
www.cdp.net | @CDP
Science-based targets & CDP scoring
Nicole Labutong, Technical Manager
Erin Callahan, Manager, Global Initiatives
www.cdp.net | @CDP
Science-based targets I Presentation outline
• The need for science based targets• What are science based targets?• The Science Based Targets Initiative• How can companies participate?• Why should companies engage?• Science-based targets and CDP scoring• Criteria & methods• Resources• Q&A
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Science-based targets I The need for science based targets
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Science-based targets I The need for science based targets
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• Greenhouse gas emissions reduction targets aligned with the latest climate science for keeping warming below 2°C
• A clear vision for companies of where they need to be in the future• A challenge to companies to transform their business and help
create and prepare for a low-carbon economy.
Science-based targets I What are science-based targets?
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• The Science Based Targets initiative supports companies to set targets consistent with limiting global warming to well below 2°C.
• Collaboration between some of the leading global organizations working on the climate change challenge:
•
Science-based targets I The Science Based Targets Initiative
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Science-based targets I How can companies participate?
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• Download Commitment Letter from sciencebasedtargets.org
• Submit signed Commitment Letter to [email protected]
• Be featured as a CommittedCompany on SBT and WMB websites
Science-based targets I How can companies participate?
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• Review target setting resources• Draft science based target setting
Manual• SBTi Criteria and Recommendations• GHG Protocol Corporate Standard
• Work internally to develop an SBT• Test different methods • Use most ambitious scenarios• Consider submitting draft targets for
an unofficial validation before seeking management approval
Science-based targets I How can companies participate?
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• Fill out the target submission form as completely, clearly and accurately as possible by April 15, 2017 for CDP scoring. Two versions:
o V1.0 “Target Check Form” still accepted until April 15th
o V2.0 New form HIGHLY RECOMMENDED• Responders will receive results by June 29, 2017 • Submit final target for validation to
Science-based targets I How can companies participate?
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• When your target is approved it will be featured on the SBT website
• The SBTi will invite your company to speak at events and be quoted in media pieces based on your preference
• You will receive the SBTi welcome pack which explains how you can use the SBTi logo
Science-based targets I How can companies participate?
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1. Drive innovation2. Demonstrate leadership
3. Build credibility and reputation4. Secure long-term competitive advantage
and protect future profitability5. Unlock Financial Returns
Science-based targets I Why should companies engage?
“By doubling the efficiency of our U.S.fleet from 2005 to 2015, Walmartavoided the emission of nearly 650,000metric tons of CO2, while also savingnearly $1 billion in the past fiscal year.”
- RobWalton,Walmart
“the energy efficiency actions we havealready taken over the last 4 years, whichwill help reduce our GHG emissions, havesaved $500 million – and there are moresavings to come.”
- Procter & Gamble
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Since officially launching in June, 2015, up to 7 March 2017:
215Companies
have formallyjoined the SBTi
38Companies
have approved targets
Companies joining the initiative on
average every week
~2
Science-based targets I Growing momentum
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Globally recognized companies have already set targets
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More companies are joining the initiative each month
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111 12
1 5 2 3
19 19 21 21
3 2 2
29
9 8 6 5 6 8 7 4 4 4
112
24 25 30 32 35
54
73
94
115 118 120 122
151160
168 174 179 185193
200 204 208 212CompaniesjoiningtheSBTieachmonth
Science-based targets I Growing momentum
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Companies from all sectors are joining
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22
710 9 10 8 7 9
58 7 7 5 7 6
3 4
7 32 1 2 3
4 23 2
0
5
10
15
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SBTi Companies by Sector
Committed Set targets
Science-based targets I Growing momentum
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Questions in CC3.1a and CC3.1b: Is this a science-based target?
Dropdown options Disclosure Points
Awareness Points
Yes, and this target has been approved as science-based by the Science Based Targets initiative 0.5 1
Yes, but this target has not been approved as science-based by the Science Based Targets initiative 0.5 1
No, as there is currently no established science-based targets methodology in this sector 0.5 0.5
No, but we are reporting another target which is science-based 0.5 1
No, but we anticipate setting one in the next 2 years 0.5 1
No, and we do not anticipate setting one in the next 2 years 0.5 0
Science-based targets I CDP Scoring
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LeadershipPoints
OR
{ Targets that pass the SBTi official target validation will automatically qualify for leadership.
{ The target must be submitted for validation with all information needed to assess the target by midnight UTC-12 April 15, 2017.
{ Missing/disorganized information may cause significant delays and may result in the assessment not being recognized for scoring in the CDP questionnaire.
{ Must meet all of CDP’s target leadership criteria for question CC3.1a.
SBTi Official Validation CDP Questionnaire
Science-based targets I CDP Scoring
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SBTi Official Validation CDP QuestionnaireBoundary • C1 - Scopes: The targets must cover company-wide scope 1 and
scope 2 emissions, as defined by the GHG Protocol Corporate Standard.
• C2 - Significance thresholds: Companies may exclude up to 5% of scope 1 and scope 2 emissions combined in their inventory and target.
• C3 - Greenhouse gases: The targets must cover all relevant GHGs as required per the GHG Protocol Corporate Standard.
• At least 70% of emissions per scope must be covered. Must cover scopes 1 and 2.
Science-based targets I Criteria & methods
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SBTi Official Validation CDP QuestionnaireTimeframe • C4 - Base and target years: All targets must cover a minimum of 5
years and a maximum of 15 years from the date the target is submitted to the SBTi for an official validation.*
• C5 - Progress to date: Targets that have already been achieved by the date they are submitted to the SBTi are not acceptable.
*For targets submitted for an official validation in first half of 2017 the valid target years are 2021-2031 inclusive. Those submitted in the second half of 2017 must be between 2022 and 2032. Additional targets are okay as long as one target is within the timeframe above.
• Must have mid-term target (ending between 2020 and 2035 inclusive) and long-term target (ending after 2035).
Science-based targets I Criteria & methods
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SBTi Official Validation CDP QuestionnaireAmbition • C6 - Level of ambition: At a minimum, the target will be consistent
with the level of decarbonization required to keep global temperature increase to 2°C compared to pre-industrial temperatures, though we encourage companies to pursue greater efforts towards a 1.5° trajectory.
• C7 - Absolute vs. intensity: Intensity targets are only eligible when they lead to absolute emission reduction targets in line with climate scenarios for keeping global warming below 2°C or when they are modelled using an approved sector pathway or method approved by the Science Based Targets initiative (e.g. the Sectoral Decarbonization Approach).
• Meets at least a 2.1% average year-on-year absolute emissions reduction between base year and target year for both mid- and long-term targets together.
• Absolute targets can qualify. We are unable to assess intensity targets via this route.
Science-based targets I Criteria & methods
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SBTi Official Validation CDP QuestionnaireScope 3 • C11- Boundary: Companies must complete a scope 3 screening for
all relevant scope 3 categories in order to determine their significance as per the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard. If a company’s scope 3 emissions are at least 40% of total scope 1, 2, and 3 emissions, a scope 3 target is required. The scope 3 target boundary must include the majority of value chain emissions; these are the top 3 categories or 2/3 of total scope 3 emissions.
• C12 - Ambition: Scope 3 targets should clearly demonstrate how the company is addressing the main sources of GHG emissions within their value chain in line with current best practice.
• Ambition of scope 3 is not assessed at this time.
• Certain sectors that don’t have an available SBT methodologymay qualify as ambitious scope 3 targets are not assessed at this time, for example financial institutions.
Science-based targets I Criteria & methods
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Absolute-based Economic-based Sector-based
• Greenhouse Gas Emissions per Value Added (GEVA)
• Carbon Stabilization Intensity (CSI)• Context-based carbon metric (CSO)
• Sectoral Decarbonization Approach (SDA)
• 3% Solution
• Linear approach / absolute contraction
Met
hods
Appr
oach
es
C7 - Absolute vs. intensity: Intensity targets are only eligible when they lead to absolute emission reduction targets in line with climate scenarios for keeping global warming below 2°C or when they are modelled using an approved sector pathway or method approved by the Science Based Targets initiative (e.g. the Sectoral Decarbonization Approach).
Science-based targets I Criteria & methods
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When the target being validated is an:
The technical reviewer checks against:
Linear SDA GEVA
Absolute Absolute, if covered in a heterogeneous or homogenous sector
Intensity, if covered in ahomogeneous sectors
Economic Intensity
Absolute target N/A
Activity-based intensity target
Look at expected change in absolute emissions
Look at expected change in absolute emissions
N/A
Economic-basedintensity target àconvert values to check against other methods
Look at expected change in absolute emissions
Look at expected change in absolute emissions If doesn’t pass Linear
or SDA, only passes if previously passed unofficial check
Power Generators N/A N/A
or
or and
and
andor
and
Science-based targets I Criteria & methods
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Available now Coming very soon
• Draft Science-based Target Setting Manual
• Sectoral Decarbonization Approach (updated tool
V8 now available)
• Sector Development Framework (new)
• CDP SBT scoring methodology
• Refined SBTi criteria (new)
• Target submission form and guidance (new)
• SBTi newsletter
• SBTi Call to Action: Guidelines
• CDP Technical Note on Science-Based Targets
Science-based targets I Resources
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Dell commitstoreduceGHGemissionsfromtheirfacilitiesandlogisticsoperations50%by2020,usinga2010base-year.Dellalsocommitstoreducetheenergyintensityoftheirproductportfolio80%by
2020,usinga2011base-year.
EDP commitstoreducescope1and2emissionsfromelectricityproduction
55%perTWh by2030,from2015levels.Thecompanyalsocommitstoreduceabsolutescope3emissions25%over
thesametimeperiod.
Enel commitstoreduceCO2emissions25%perkWhby2020,froma2007base-
year.Thetargetincludesthedecommissioningof13GWoffossil
powerplantsinItaly,andisamilestoneinthelongtermgoaltooperateincarbon
neutralityby2050.
KonicaMinoltacommitstoreduceabsolutegreenhousegasemissionsfromacrossitsvaluechain(scopes1,2and3)60%by2030,from2005levels.Thescope3reductionscoverpurchasedgoodsandservices,upstream
transportationanddistribution,andtheuseofsoldproducts
Science-based targets I What are science-based targets?
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Learn: www.sciencebasedtargets.org
Questions: [email protected]
Set up a call: [email protected]
