SBTi Net-Zero Standard Transition Target Setting Steps One Page Summary
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The document outlines the steps for companies to set science-based targets for net-zero emissions, emphasizing the requirement of a thorough emissions inventory covering at least 95% of scope 1 and 2 emissions and a full scope 3 screening. Companies must establish a base year, set ambitious near-term and long-term targets, and ensure alignment with their GHG inventory boundaries while adhering to specified methodologies for calculation. Key deadlines include setting near-term targets 5-10 years from submission and long-term targets by 2050, with specific ambition levels for each scope.
SBTi Net-Zero Standard Transition Target Setting Steps One Page Summary
- 1. SBTi Net-Zero Standard Transition Target Setting Steps One Page Summary Edited by Alex G. Lee (https://www.linkedin.com/in/alexgeunholee/) 1. SELECT A BASE YEAR 2. CALCULATE YOUR COMPANY’S EMISSIONS 3. SET TARGET BOUNDARIES 4. CHOOSE A TARGET YEAR 5. CALCULATE TARGETS Companies need to establish a base year to track emissions performance consistently and meaningfully over the target period. Companies that have already set near-term science-based targets must use the same base year for their long-term science-based target. Key elements of the Net-Zero Standard Companies are required to have a thorough emissions inventory that covers at least 95% of company-wide scope 1 and 2 GHG emissions and a complete scope 3 screening. Companies are required to calculate emissions that are reported separately from the GHG inventory. • Scope 1, 2, and 3 emissions data should be accurate and verifiable. • Base year emissions should be representative of a company’s typical GHG profile. Companies may use a multi-year average base year approach, as described in Chapter 5 of the Greenhouse Gas Protocol Corporate Standard • The base year should be chosen such that targets have sufficient forward-looking ambition. • The base year must be no earlier than 2015. Companies must set near-term targets with a minimum ambition of 1.5°C for scopes 1 and 2 and a minimum ambition of well-below 2°C for scope 3. Long-term targets must have a minimum ambition of 1.5°C across scopes. • Ensure the target boundary is aligned with the GHG Inventory boundary • Determine how to treat subsidiaries • Exclude the use of carbon credits • Exclude avoided emissions • Include all mandatory scope 3 emissions • Determine how to treat indirect use-phase emissions • Review any sector-specific guidance Near-term science-based targets must cover at least 95% of company-wide scope 1 and 2 emissions. Long-term science-based targets must cover at least 95% of company-wide scope 1 and 2 emissions and 90% of scope 3 emissions. Consider additional required science-based target coverage. Companies often set several targets that collectively meet the boundary requirements. Near-term targets must have a target year 5- 10 years from the date of submission to the SBTi, while long-term targets must have a target year of 2050 or sooner (2040 for companies in the power sector). Target methods are used to calculate near- term and long-term targets based on a mitigation pathway and company inputs. Companies may choose from the following science-based target methods to calculate their targets. Ambition ranges for target classification of near-term science-based targets Calculation Methods Eligible for scopes 1+2 (both near-term and long-term science-based targets) • Absolute contraction • Physical intensity convergence • Renewable electricity (scope 2 only) Eligible for scope 3 (both near-term and long-term targets) • Physical intensity contraction • Economic intensity Eligible for near-term scope 3 targets only • Engagement targets (scope 3 near-term targets only)