science-based target setting METHODOLOGYOVERVIEW & CONSULTATION An initiative

science-based target setting METHODOLOGYOVERVIEW & CONSULTATION An initiative

science-based target setting METHODOLOGYOVERVIEW & CONSULTATION An initiative by Agenda & Objectives objectives agenda An initiative by To present an overview of the science-based target setting initiative To present an update on the sectoral decarbonisation approach (SDA) developed by Ecofys To discuss next steps with this initiative and opportunities to get involved a) b) c) d) About this initiative (5 min) Sector-decarbonisation approach (SDA) overview (25 min) Next steps (10 min) Questions & Answers (20 min) Mind the Science, Mind the Gap - Overview

goal To raise the ambition of corporate GHG reduction targets to support a transition to a low carbon economy and keep the planet below a 2 degree temperature rise objective Enable science-based GHG reduction targets to become standard business practice for businesses expected outcomes a) By the end of 2015 a group of leading multinational companies will have commited to adopt science-based emissions reduction targets. b) This initiative will also demonstrate to policy-makers the scale of ambition among leading companies to reduce their emissions and act as a positive influence on international climate negotiations. An initiative by Mind the Science, Mind the Gap - Overview An initiative by mind the science mind the gap Mind the Science, the first phase of this initiative, intends to provide tools & guidance for companies

to set emission reduction targets in line with climate science. Mind the Gap, the second phase of the initiative, intends to encourage businesses to adopt emission reduction targets that are consistent with a 2C threshold. Mind the Science, Mind the Gap - Overview steering committee technical advisory group Bill Baue Bryan Jacob Chris Tuppen Edward Butt Edward Cameron Emma Stewart Geoff Lye Guy Rickard Heidi Huusko

Jed Davis Jeff Gowdy An initiative by Kevin Moss Kevin Ravinovitch Larry Merritt Mark McElroy Mario Abreu Michael Alexander Tim Juliani Stweart van Horn technical consultant supporter Mind the Science, Mind the Gap - Overview methodology An initiative by high level exec. summary website Science-based target setting overview Global Emissions

49 G tC O 2 ss ine Bus U) (BA l a su as u Business as usual scenario emissions increased by 2.2% on average every year reach 3.7 to 4.8C of global warming by the end of the century 2C em issi on s tr 14 to 29 aje c to G tC O 2 ry 2C Carbon Budget 2010

An initiative by Time 2C scenario In 2050, 41 to 72% lower emissions than in 2010 2C carbon budget for the period 2011-2050 is in the range of 530 1300 GtCO2 (144 354 GtC) 2050 Science-based target setting overview 1. Absolute targets 2. Value-added approach C arbon GDP 14 to 29 tra jec tor G tC O 2 y 2C Carbon Budget (530 to 1300 G tC O2) 2010

Time 10 18% per decade (compared to 2010) based on IPCC AR5 An initiative by C 2C Carbon Budget 2050 2010 Time Intensity Sec tor i Ca rbo n In ten sity Global Emissions 2C em issi on

s Ca rbo n (tC Inten 2C O2 s em / U ity issi SD) on s tr aje c to ry Global Emissions Global Emissions 49 G tC O 2 3. Sectoral decarbonisation approach ar bo n

In te ns ity 2C Carbon Budget 2050 Generic decarbonisation pathway based on 2C carbon budget and expected economic growth 2010 Time Sec tor j Se ct or k 2050 Sector-specific decarbonisation pathway based on 2C carbon budget, expected sector activity

and mitigation potential Sectoral Decarbonisation Approach Overview This methodology provides a sector-based approach for companies to set GHG reduction targets necessary to meet a global 2C temperature rise. An initiative by The Sectoral Decarbonisation Approach (SDA) is a freely available open-source methodology that allows companies to set emission reduction targets in line with a 2oC decarbonisation scenario. It is based on the 2oC scenario (2DS) developed by the International Energy Agency (IEA) as part of its publication, Energy Technology Perspectives 2014 (IEA, 2014). Sectoral Decarbonisation Approach Overview Highlights: Temperature inc rease threshold

Representative C onc entration Pahway Global C arbon Budget Sec toral C arbon Budget SDA Approac h (Methodology & Tool) Science-based targets An initiative by Sec toral Ac tivity Projec tions Sec toral Intensity Input entered by the company 2C as temperature threshold for the methodology 450 ppm as emissions threshold from RCP 2.6 GTCO2e as

cumulative 1055 budget (2010-2050) From IEA ETP 2014 Sector-specific budget & activity projections are obtained from 2DS modelling (peak & decline) Sectoral Decarbonisation Approach Assumptions 1. The carbon intensity of each company in a homogeneous sector will converge with the sectoral carbon intensity in 2050. 2. The SDA methodology intrinsically accounts for regional differences regarding level of activity and carbon intensity but not explicitly in relation to historical responsibility 3. Economic growth is decoupled from demand for energy and materials. 4. Added value of individual heterogeneous sectors is assumed to grow proportional to GDP growth. 5. Added value is defined as gross profit, which equals revenue minus cost of sold goods and services. 6. Emissions from heat, steam, and cooling are negligible compared with those of electricity; this also holds for the longer term. 7. Road vehicles are assumed to have a lifetime of 15 years; the carbon efficiency of new vehicles is calculated based on this assumption. An initiative by Sectoral Decarbonisation Approach Coverage About 60% of the global GHG emissions are covered by the SDA methodology. Fossil fuel extraction and production not covered

Emissions from the residential sector (buildings) not covered LULUCF emissions not covered (in version 1) An initiative by Sectoral Decarbonisation Approach 2DS Decarbonisation Pathway 1055 GTCO2e SDA coverage An initiative by Sectoral Decarbonisation Approach Sectoral Breakdown Services Services / C ommerc ial buildings Heterogenous Other transport Aviation Transport Homogenous Heterogenous

Industry $ value-added $ value-added Passenger-kilometer Rail passenger transport Passenger-kilometer Heavy road passenger transport Passenger-kilometer Light road passenger transport Passenger-kilometer Other Proc essing & Manufacturing Industries $ value-added C hemicals & Petrochemic als $ value-added Pulp & Paper Tonne of paper & cardboard Aluminium

Tonne of aluminium Iron & Steel Tonne of steel C ement Tonne of cement Power generation MWh Homogenous Energy An initiative by Sectoral Decarbonisation Approach Compression & Convergence Homogenous Heterogenous An initiative by The methodology assumes that the carbon intensity for the companies in all homogeneous sectors tend to converge in 2050. The rate of convergence depends on the differential between the carbon intensity of the company and the 2C carbon intensity of the sector. This differential declines linearly over time until 2050,

when the carbon intensity of all companies is the same as the 2C carbon intensity for the sector. For more heterogeneous sectors the methodology uses valueadded as an indicator of activity in the sector. Gross profit is used as a proxy for value-added. In the absence of more sectorspecific decarbonisation pathways, a reasonable alternative is to depict how the carbon-intensities of different companies would compress in order to be within a broad 2C carbon budget. Sectoral Decarbonisation Approach Scope 2 Target Consumption of electricity represents the vast majority of Scope 2 emissions and the lack of 2C decarbonisation models for the heat and steam sectors, the indirect GHG emissions from consumption of purchased electricity is used as a proxy for Scope 2 emissions Taking the total electricity consumption at the sector level, the 2C budget for the generation of this electricity (i.e. using the 2C carbon intensity indicator for the power sector), and the total sectoral activity, it is possible to estimate the Scope 2 carbon intensity for a sector. Scope 2 emissions (and carbon intensity) for a company can be derived using the principle of compression (heterogenous sector) or convergence (homogenous sectors) An initiative by Sectoral Decarbonisation Approach Scope 2 Target Consumption of electricity represents the vast majority of Scope 2 emissions and the lack of 2C decarbonisation models for the heat and steam sectors, the indirect GHG emissions from consumption of purchased electricity is used as a proxy for Scope 2 emissions

Taking the total electricity consumption at the sector level, the 2C budget for the generation of this electricity (i.e. using the 2C carbon intensity indicator for the power sector), and the total sectoral activity, it is possible to estimate the Scope 2 carbon intensity for a sector. Scope 2 emissions (and carbon intensity) for a company can be derived using the principle of compression (heterogenous sector) or convergence (homogenous sectors) An initiative by Sectoral Decarbonisation Approach Scope 2 Target 2CCarbonIntensity - AluminiumSector- Scope2(IEA2DS, 2014) 8 7 Consumption of electricity represents the vast majority of Scope 2 emissions and the lack of 2C decarbonisation models for the heat and steam sectors, the indirect GHG emissions from consumption of purchased electricity is used as a proxy for Scope 2 emissions 6 5 Power intensity (TWh / Mt aluminium) 4 Scope 2 Carbon Intensity (tCO2 /

tAluminium) 3 Taking the total electricity consumption at the sector level, the 2C budget for the generation of this electricity (i.e. using the 2C carbon intensity indicator for the power sector), and the total sectoral activity, it is possible to estimate the Scope 2 carbon intensity for a sector. 2 1 0 2011 2020 2025 An initiative by 2030 2035 2040 2045 2050 Scope 2 emissions (and carbon intensity) for a company can be

derived using the principle of compression (heterogenous sector) or convergence (homogenous sectors) Sectoral Decarbonisation Approach Scope 3 Target An initiative by Scope 3 category Direction to set targets in line with a 2C pathway Category 1: Purchased goods and services A target can be set based on the 2 C pathway of the applicable supplier sector (e.g. the chemical sector for companies purchasing chemical compounds). Category 6: Business travel A target can be set based on the 2C pathway of the light passenger transport and aviation sector. Category 8: Upstream leased assets A target can be set based on the

2C pathway of the service buildings sector. Sectoral Decarbonisation Approach Step by Step Select base-year and target-year Scope 1 Scope 2 Estimate the c arbon intensity of the company using activity data and Sc ope-1 emissions in the base-year* Forec ast ac tivity in the base and target year for eac h sec tor where the c ompany operates Estimate the c arbon intensity of the company using ac tivity data and Sc ope-2 emissions in the base-year Estimate the target c arbon intensity (Sc ope 1) based on the 2C sec tor intensity (Equation 1)

Indic ate elec tric ity c onsumption in base year Estimate the target c arbon intensity (Sc ope 2) based on the 2C sec tor intensity (Equation 1) Estimate the 2C carbon budget (Sc ope 1) by multiplying the target c arbon intensity times the activity forec asted Add Sc ope 1 and Sc ope 2 budgets to estimate the overall (Sc ope 1+2) budget in the target year Estimate the 2C c arbon budget (Scope 2) by multiplying the target carbon intensity times the ac tivity forec asted *A c ompany should disc lose all G HG emissions in base year. An initiative by

Identify sector(s) applic able to the c ompany Update target periodic ally to reflec t c hanges in the c ompany struc ture / growth predic tions Sectoral Decarbonisation Approach Areas for further development Structural parameters within sectors to more accurately account for deviations from a sectors average structure Additional scope 3 emissions categories Additional sectors that have sectorspecific science-based 2C decarbonisation pathways This methodology provides a sector-based approach for companies to set GHG reduction targets necessary to meet a global 2C temperature rise. An initiative by Sectoral Decarbonisation Approach Public Consultation October 23rd www.sciencebasedtargets.org An initiative by

Sectoral Decarbonisation Approach Engagement Opportunities Comment Test the methodology Challenge its assumptions Suggest improvements Share Share the methodology Invite other businesses to use it Let peers know about the public consultation Inspire Opportunities to showcase companies already setting science-based targets (e.g. website, webinars, video, side-events, etc.) We are looking for funds to support this work through the different activities that have been planned (guidance, monitoring, benchmarking,

capacity building, etc.) Support An initiative by discussion METHODOLOGYOVERVIEW & CONSULTATION An initiative by

Recently Viewed Presentations

  • BUS 200 - Amelia County High School

    BUS 200 - Amelia County High School

    Corporate-Level Strategies. Portfolio Strategy and Grand Strategies. Industry-Level Strategies. Five Industry Forces, Positioning Strategies, and Adaptive Strategies ... Job Design. Specialization, Rotation, Enlargement, Enrichment, and Job Characteristics Model. Intra-organizational processes.
  • Counting to 10 - thegrid.org.uk

    Counting to 10 - thegrid.org.uk

    by Swallow Dell Primary School. Counting to 10 By Fred Your Mission Get rid of the extras. One There is 1 cat. Two There are 2 dogs. Three There are 3 balls. Four There are 4 pigs. Five There are...
  • SCSU Technology Update Spring 2003 Resources for All

    SCSU Technology Update Spring 2003 Resources for All

    SCSU Technology Update Spring 2003 Budget Cut Implications Potential cuts to: Minitex Higher Education Services Office (HESO) Children Families & Learning (CFL) MnSCU Project for Automated Library Services (PALS) Will require increase in SCSU costs to retain access to resources...
  • Brand Audit: Pt 2 - Google Groups

    Brand Audit: Pt 2 - Google Groups

    Brand Audit: Pt 2. Blackberry Inventory. Gina Clementi, Kari Kahlenberg, Brooks Albrecht, JP Stuessi, Amanda Junentun, and Jordan Sipe
  • Block Template - in

    Block Template - in

    The problem of infant mortality is one of the great social and economic problems of our day. A nation may waste its forest, its water power, its mines and to some degree even its land, but if it is to...
  • Rainer_6e_Chapter6_Slides - City University of New York

    Rainer_6e_Chapter6_Slides - City University of New York

    Portal: offers a personalized, single point of access through a Web browser to critical business information located inside and outside an organization. These portals are also known as enterprise portals, information portals, and enterprise information portals.
  • Five Parts of a Complete Sentence - RCAS

    Five Parts of a Complete Sentence - RCAS

    A sentence is incomplete if it does not contain a complete thought. "The car drove." is an example of an incomplete sentence because it does not contain a main idea. This example contains a subject - car, a predicate -...
  • FACULTY F A C U L OF T

    FACULTY F A C U L OF T

    When half the illuminated side is visible form your angle, you see a half-moon. Comments Solution Comments Comments Extend Your Learning: Video Title: Bill Nye - Phases of the Moon Comments Comments Phases of The Moon Simulation This simulation will...