sbti Archives - Simply Sustainable

Simply Sustainable

Part of our 4-part net zero series

It is all about keeping 1.5°C alive. By this we mean stopping the average global temperature from increasing by more than 1.5°C.

Globally this equates to reducing emissions by 45% by 2030 and reaching net zero no later than 2050 from levels in 2010. Over the course of this insight, we will set out what this means for companies and how they can help to avoid the worst impacts of climate change. For more information on the significance of, and the science behind 1.5°C please, see our first insight in the net zero series.

Is it too late for 1.5°C?

The notion of keeping average global temperature increase below 1.5°C (from pre-industrial levels) is a concept that came out of the Paris Climate Change Agreement. The worrying thing is, that in February 2024 in Europe, we exceeded this 1.5°C warming limit over a 12-month period. This is the first time on record that this has happened. Does this mean that it is already too late?
The good news is that the 1.5°C threshold is a temperature average, measured globally over decades, which means we still have time to limit warming and keep within the parameters set out in Paris. However, we must rapidly accelerate action. For more information on this please read our is it too late for 1.5°C insight.

Aligning to the science, keeping within 1.5°C

As more companies join the journey to net zero, it is more important than ever that their targets are robust, credible and in line with the science. The good news is that there is plenty of guidance out there to help you set a 1.5°C aligned target. However, as more and more guidance is released, it can become difficult to navigate. This insight aims to outline, the key requirements to ensure your net-zero target is set at the right level of ambition. It is important to note that the guidance will vary from sector to sector.

There are three overarching requirements from The Science Based Targets initiative (SBTi) when considering a net-zero target:

1. Set near- and long-term targets.

• Near-term targets must be 5-10 from your base year. It is advised, as best practice, to use your most recent year as your base year.
• Long-term targets must achieve a minimum of 90% absolute reduction on or before 2050.
• Both near- and long-term targets must be consistent with the level of decarbonisation required to keep global temperatures below 1.5C.
In addition to near- and long-term targets covering your scope 1, 2 and 3 emissions, companies can set additional targets covering the following areas:
• Supplier and customer engagement (working with suppliers and customers to set their own net-zero targets)
• Renewable electricity (e.g. 80% renewable electricity by 2025 and 100% by 2030)

Forestry, Land and Agriculture (FLAG) Targets

For companies with land intensive activities in their value chain they must now set separate targets for their FLAG emissions. These targets can be at a sector or a commodity level and must result in a 72% reduction in FLAG emissions in line with your long-term net zero date (i.e. on or before 2050). There are also other requirements, such as zero deforestation by 2025 across primary deforestation-linked commodities. For more information on FLAG emission please see our insight here.

2. Focus on rapid, deep emissions cuts.

In order to meet the scale and pace required to reduce emissions in line with the science, SBTi require a focus on immediate decarbonisation. This means that organisations cannot wait until 2049 to reduce their emissions by 90% in order to hit their 2050 target.
Scope 1 and 2 emissions must reduce at a rate of 4.2% linear reduction year on year in the short term. This needs to be absolute reductions, not just intensity. Over the long term emissions must reduce by 90% or more.
When it comes to scope 3 reduction, these emissions must reduce at a rate of 7% year on year in emissions intensity in the short term. Over the long term these must result in an absolute reduction of 90% and an intensity reduction of 97%. These are challenging and stretching targets!

3. No net zero claims until long term targets are met.

Unlike with carbon neutral, net zero cannot be claimed until the required reduction in emissions have been achieved and targets have been met. Then, and only then, can an organisation claim to achieve net zero. That is why net-zero target dates are often set out over decades (e.g. net zero by 2040), whereas there are many organisations now who are claiming carbon neutrality without making any significant reductions in their carbon footprint.

4. Go beyond the value chain.

Essentially this aspect of a net-zero target is why it is a net zero, and not an absolute zero target. SBTi recognises that it is impossible to eliminate 100% of emissions in an organisation and its supply chain and therefore the guidance allows for some “offsetting” of residual emission. Unfortunately, but importantly, it is not a simple case of offsetting any remaining emissions as SBTi include additional requirements to not only look at carbon sequestration, but also other factors such as social impact. Perhaps the topic for a future insight!

The use of offsets must not be counted as emissions reduction towards the progress of a companies’ science-based target. These can only be used to finance additional emission reductions beyond their science-based target.

Not as simple as you were hoping!

Whilst we hate to over complicate things, there is a lot that sits behind a simple notion such as Net Zero. Approaches to setting a target will be different for every organisation. Our role at Simply Sustainable is help you understand the most plausible path for your organisation to reach net zero, whilst ensuring that your level of ambition is in line with the science on climate change.
If you want to talk to us about how we can help, please get in touch with Henry, our Head of Climate and Carbon.

Net zero is a vast topic and one that is impossible to cover in any depth in just one insight. Please see other net zero insights from the series:

• Part 1: What is net zero and why is it important?
• Part 2: How to approach setting a net-zero target (baseline carbon footprinting and understanding)
• Ensuring your target is robust, ambitious and in line with the science on climate change
Our final insight in the series will cover:
• Validating your target through SBTi and integrating and communicating your net-zero target

Additional guidance, links and tools

The best guidance and tools come from the Science Based Targets initiative (SBTi). SBTi are the global authority on net zero. They have developed sector specific guidance and requirements for many companies to follow when setting a net-zero target including a target setting tool and a net-zero tool. However, as more and more guidance is released it can become challenge to wade your way through it all, and that is where our Climate and Carbon Team comes in to help!

Author: Henry Unwin, Head of Climate and Carbon, Simply Sustainable


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