Adapting science-based climate action under The Science Based Targets initiative (SBTi)
Since the industrial revolution, man-made greenhouse gas emissions have increased dramatically. At current rates, our emissions will raise global temperatures by 4 to 5 degrees Celsius over the course of this century resulting in catastrophic floods, droughts, rising sea levels, and extreme weather events. In order to avoid the most disruptive consequences of climate change, world governments have agreed to limit warming to well below 2 degrees Celsius which means dramatically reduced annual emissions to the point of net greenhouse gas removal from the atmosphere during the second half of the century. There's a yawning gap between our current emissions path and the one we need to be on. In 2015, more than 180 national governments gathered in Paris to write a global climate change agreement which was named the Paris Agreement. The Paris Agreement is an agreement within the United Nations Framework Convention on Climate Change (UNFCCC), dealing with greenhouse-gas-emissions mitigation, adaptation, and finance, signed in 2016. The Paris Agreement's long-term temperature goal is to keep the increase in global average temperature to well below 2 °C above pre-industrial levels; and to pursue efforts to limit the increase to 1.5 °C, recognizing that this would substantially reduce the risks and impacts of climate change. In this agreement, 195 of the world’s governments agreed for reducing emissions within its borders.
Five scenarios are shown in the above graph:
1. No climate policies: projected future emissions if no climate policies were implemented; this would result in an estimated 4.1-4.8°C warming by 2100 (relative to pre-industrial temperatures)
2. Current climate policies: projected warming of 3.1-3.7°C by 2100 based on current implemented climate policies
3. National pledges: if all countries achieve their current targets/pledges set within the Paris climate agreement, it’s estimated average warming by 2100 will be 2.6-3.2°C. This will go well beyond the overall target of the Paris Agreement to keep warming “well below 2°C”.
4. 2°C consistent: there is a range of emissions pathways that would be compatible with limiting average warming to 2°C by 2100. This would require a significant increase in the ambition of the current pledges within the Paris Agreement.
5. 1.5°C consistent: there is a range of emissions pathways that would be compatible with limiting average warming to 1.5°C by 2100. However, all would require a very urgent and rapid reduction in global greenhouse gas emissions.
Combined these plans are helping us to close the emissions gap but not entirely. The private sectors also have to play their part to help close the emissions gap and lead the transition to a low carbon economy. Many companies are already demonstrating they have the skills, expertise, and ingenuity to make this a reality – but need ambitious emissions reduction targets that ensure the transformational action they take is aligned with current climate science. Companies can help prevent the worst impacts of climate change by aligning their emissions reduction targets with the global carbon budget. This is called science-based targets. Science-based targets provide companies with transparent and credible foundations for their corporate climate action plans to achieve ambitious emissions cuts. According to the corporate climate action plans, businesses decide whether to use efficiency improvements, cleaner energy, new low carbon business models, and or other company-specific solutions. The Science Based Targets initiative supports companies by providing guidance, targets setting methods, and recognition for actions that align with the global two-degree pathway. This initiative champions science-based target setting as a powerful way of boosting companies’ competitive advantage in the transition to the low-carbon economy. It is a collaboration between CDP, the United Nations Global Compact (UNGC), World Resources Institute (WRI), and the World Wide Fund for Nature (WWF) and one of the We Mean Business Coalition commitments.
According to The Science Based Targets initiative, 63% of company execs say science-based targets drive innovation, 35% of company execs have increased regulatory resilience due to science-based targets, 52% company execs have seen investor confidence boosted by science-based targets, 55% of company execs have gained competitive advantages from science-based targets.
Till now 885 companies are taking science-based climate action and 373 companies have approved science-based targets.
There are three science-based target (SBT) setting approaches:
1. Sector-based approach: The global carbon budget is divided by sector and then emission reductions are allocated to individual companies based on its sector’s budget.
2. Absolute-based approach: The percent reduction in absolute emissions required by a given scenario is applied to all companies equally.
3. Economic-based approach: A carbon budget is equated to global GDP and a company’s share of emissions is determined by its gross profit, since the sum of all companies’ gross profits worldwide equate to global GDP.
Committed companies have 24 months to have their targets approved and published by the SBTi, or they will be removed from the SBTi website, unless specific circumstances apply. See the protocol to manage expired commitments for more information. All committed companies before April 8th, 2020, have been offered extensions as per the first version of the Protocol to manage expired commitments.
All scope 1 and 2 targets are classified under one of three categories: 2°C, well-below 2°C and 1.5°C. The assessment does not include a classification of scope 3 targets. As of October 15th 2019, the SBTi will only accept target submissions of scope 1 and 2 targets that are in line with either well-below 2°C or 1.5°C trajectory.
Large multinational companies like Mahindra Sanyo, Microsoft Corporation, Yamaha Corporation,Toyota Motor Corporation, Mercedes-Benz AG, Maersk, Deutsche Post DHL Group, Australian Postal Corporation, The Port Authority of New York and New Jersey, Heathrow Airport, Auckland Airport, Zurich Insurance Group Ltd, YES Bank, Standard Chartered Bank, MetLife, Inc., London Stock Exchange, HSBC Holdings plc, Hitachi Capital Corporation, Bank Australia, TATA Chemicals Limited, Ecolab, LafargeHolcim Ltd., HeidelbergCement AG , Ambuja Cement Ltd, AECOM, Philip Morris International, British American Tobacco, Schlumberger Limited, Pearson PLC, The Coca-Cola Company, SANOFI, Pfizer Inc., Novo Nordisk A/S , GlaxoSmithKline, Woolworths Group Limited, Wal-Mart Stores, Inc., Tesco, Starbucks Coffee Company, Arla Foods have already joined this initiative and committed to play their part by setting targets and measuring progress against environmental performance, embedding sustainability into the business model, improving operational efficiency, focusing on cutting greenhouse gas (GHG) emissions and reducing fossil fuel-based energy consumption.
About the Author
Sayeed Mahadi works at Viresco Solutions Inc. as Sustainability Specialist. Viresco Solutions Inc. is an international environmental consulting firm that helps clients strategically navigate the complex and evolving world of sustainability and develop science-based metrics and solutions that enhance the clients’ social license to operate. The company works at the intersection of agriculture, waste, bioenergy, clean technology, greenhouse gases, and sustainable supply chains.
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Chief Scientist at Viresco Solutions Inc.
4 年Excellent overview!