Science Based Targets

Call to Action Commitment Form

Version 1.1, July 2015

IntroductionScience Based Targets is a joint initiative by CDP, the UN Global Compact, the World Resources Institute and WWF that raises the ambition of corporate mitigation efforts and drives bolder business solutions by identifying and promoting innovative approaches to corporate greenhouse gas (GHG) target setting.

Join the Call to ActionThe Science Based Targets Initiative is calling on companies to demonstrate their leadership on climate action by publicly committing to science-based greenhouse gas reduction targets. We plan to enlist at least 100 companies in 2015; all companies will be recognized at sciencebasedtargets.org. To join the movement and become one of the first 100 companies to take this important action towards the low-carbon economy, complete the following three steps:

Step 1. Complete the commitment letter formCompleting this form indicates a commitment to set a science-based target if one does not already exist at your company. Your company will be listed as “in process of setting a science-based target” at sciencebasedtargets.org.

If your company already has a science-based target, completing the form indicates interest in joining the Call to Action and having your existing target reviewed for consistency with the SBT’s eligibility criteria.

Step 2.  Develop a targetIf your company is setting a new target, you will have up to 24 months to develop and announce a science-based target. The Science Based Targets initiative will be sending you a reminder 6 months prior to the deadline.

Step 3. Announce your targetOnce a proposed target has been developed, your company must submit the ‘Science Based Target Form.’ The information provided enables the Science Based Targets team to review the target against the eligibility criteria. On confirmation that the criteria have been met, the company will be listed and showcased on the Science Based Targets website and in other communications.

An initiative by

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The Science Based Targets initiative defines a science-based target as follows:Targets adopted by companies to reduce GHG emissions are considered “science-based” if they are in line with the level of decarbonization required to keep global temperature increase below 2°C compared to pre-industrial temperatures, as described in the Assessment Report of the Intergovernmental Panel on Climate Change (IPCC).1

Criteria for setting a science-based target and joining the Call to Action include:

Boundary: covers company-wide Scope 1 and Scope 2 emissions and all GHGs as required in the GHG Protocol Corporate Standard.

Timeframe: commitment period must cover a minimum of 5 years from the date of announcement of the target.

Level of ambition: consistent with the level of decarbonization required to keep global temperature increase below 2°C compared to pre-industrial temperatures

Scope 3: an ambitious Scope 3 target is also required when Scope 3 emissions cover a significant portion (greater than 40% of total scope 1, 2 and 3 emissions) of a company’s overall emissions.

Reporting: disclose GHG emissions inventory on an annual basis.

Additional recommendations include: Companies are encouraged to develop mid- term(e.g. 2030) and long-term goals (e.g. 2050) along

with their respective interim milestones. Companies are encouraged to express their targets on an absolute AND intensity basis. To ensure consistent tracking of performance over time, the SBT should be recalculated, as

needed, to reflect significant changes that would compromise its relevance and consistency. A target recalculation should be triggered by significant changes in growth projections and other assumptions used with SBT-setting methodologies and significant changes to your business or data and emissions factors used in your inventory process. ; the latter will also require recalculation of the base year inventory. Companies should check the validity of their target projections annually.

Guidance on Scope 3: Companies should complete a Scope 3 screening before setting their GHG emission reduction

targets. Scope 3 is considered significant when it represents more than 40% of the total GHG

inventory of the company. If Scope 3 is significant, an ambitious target must be developed covering the most relevant

(e.g. top three) emission categories as per the GHG Protocol – Corporate Value Chain (Scope 3) Accounting and Reporting Standard.

1 This definition applies either for the Fourth or Fifth Assessment Report of IPCC, as well as the modeling of the International Energy Agency.

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Financial institutionsFinancial institutions are welcome to express their intention to set science-based targets for scope 1 and 2 and for their investment activities under the Call to Action, through signing the commitment letter. However, considering that there is not sufficient development yet as to how to assess financial institutions against a 2°C trajectory, the partners of the Science Based Targets initiative will not be able to assess or confirm adequacy of the targets for the time being.

Financial institutions that sign the commitment letter will be invited to participate in future developments in this area.

Submit your target for quality checkOnce a proposed target has been developed, it needs to be submitted for a quality check. The quality check consists of a review of the proposed target to determine whether it is in line with the above-mentioned criteria. Companies should complete the form below and submit it along with any supporting background information to info@sciencebasedtargets.org .

The quality check of the target will be performed by the Technical Working Group of the Science Based Targets initiative, which submits a recommendation to the Steering Committee of the initiative. A confirmation will be sent to the company upon approval of the Steering Committee.

1. Company information>> Please indicate name of the company, company website and company social media links.

2. Contact details>> Please insert name, email and job title of the contact person.

3. Description of company>> Please include a short description of the company, including its main functions, ownership structure and other relevant information.

>> Please state the main sector(s) or sectoral activities your company is operating in.

4. Target base-year GHG emissions inventory and activity information

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Scope Total emissions in tonnes of CO2e

Base Year (e.g. 2010) Total Activity (if proposing an intensity target (e.g. revenue, volume/mass of products sold)

Scope 1Scope 2Scope 3 by category (according to the Corporate Value Chain (scope 3) Accounting and Reporting Standard of the GHG Protocol, indicate which categories are not applicable)

>> Please break down emissions by sector, sectoral activity or geographic location where relevant to the target setting method.>> Please list any additional information used in the calculation of your target (e.g. change in market share, % gross margin, electricity consumption).

5. Description of GHG inventory>> Please explain the organizational boundaries of the GHG inventory and which consolidation approach was used. Please explain the primary operational activities included in each scope and explain any deviation from GHG Protocol requirements. Also indicate which scope of emissions are included in the proposed target.

6. Targets information

Scope 1 & 2:>> Please provide details of the scope 1 & 2 targets in the table below and describe the methodology used to calculate the targets if any.

>> Please break down by sector, sectoral activity or geographic location where relevant to the target setting method

Absolute or intensity

Scope Target year % reduction relative to base year

Activity growth projection relative to base year (% change or units)

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Example:

Scope 3: Has the company completed a scope 3 inventory? ________ Please indicate percentage of scope 3 emissions in relation to the overall emissions (scope 1, 2 &

3 combined): _________

>> If scope 3 covers a significant part of the company’s emissions, please include details about the scope 3 target in the table below and describe the methodology used to calculate the targets if any.

>> Please break down by sector, sectoral activity or geographic location where relevant to the target setting method.

7. Justification of alignment with the Call to Action criteria>> Please include a brief description of how the target satisfies the Call to Action criteria.

8. Supporting documentation>> Please insert a list and short description of any background information submitted with this form.

Absolute or intensity Scope 3 category

Target year % reduction relative to base year

Activity growth projection relative to base year [% change or absolute value? For the latter include units]

Absolute or intensity

Scope Target year % reduction relative to base year

Activity growth projection relative to base year

Absolute Scope 1 2020 20% 110Absolute Scope 1 2030 40% 120Absolute Scope 1 2050 90% 150Absolute Scope 2 2020 20% 110Absolute Scope 2 2030 40% 120Absolute Scope 2 2050 90% 150