Carbon Footprint Management Strategy

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Questions and Answers

What is the deadline for companies to reach net-zero GHG emissions?

2060

2030

2050 (correct)

2040

What does Google's net-zero strategy primarily focus on for emission reductions?

Achieving 50% reduction in combined Scope 1, 2, and 3 emissions (correct)

Switching to natural gas for energy needs

Investing exclusively in technology-based carbon removal

Reducing Scope 1 emissions only

Which of the following is NOT a measure to support accountability in long-term net-zero targets?

Corporate investment in fossil fuels (correct)

Emissions consistent with Paris-aligned pathways

Interim science-based emission reduction targets

Alignment with corporate planning cycles

What approach does Google take to ensure its carbon neutrality efforts?

Taking a science-based approach and sharing progress Signup and view all the answers

Which of the following strategies can be applied when emissions cannot be feasibly abated?

Investment in carbon removal measures Signup and view all the answers

What is required from companies in their progress reports regarding net zero targets?

Interim targets and strategies for achieving these targets Signup and view all the answers

Which statement represents a misconception about net zero evaluation?

Third-party audits are optional for net zero strategies. Signup and view all the answers

What is a key feature of the 'Say on Climate' resolutions in company AGMs?

They enable shareholders to vote on climate policies annually. Signup and view all the answers

Which of the following best describes the role of the FIR in the context of climate resolutions?

To promote the adoption of 'Say on Climate' resolutions among investors. Signup and view all the answers

What must companies align their lobbying actions with?

The Net Zero commitment Signup and view all the answers

Which element is NOT a part of measured company trajectories toward net zero emission targets?

Predicted market share growth Signup and view all the answers

The petition signed by 46 signatories in March 2023 aimed at:

Formalizing essential climate strategies in carbon-heavy sectors. Signup and view all the answers

Why is establishing interim targets important for companies aiming for net zero?

They help track progress and adjust strategies as necessary. Signup and view all the answers

What is the primary objective of the Science Based Targets initiative (SBTi)?

To promote innovative approaches for setting GHG emission reduction targets Signup and view all the answers

Which of the following is NOT a recommendation for corporate net-zero targets by the SBTi?

Maintain a flexible approach to emissions accounting Signup and view all the answers

How is the method of setting carbon targets by SBTi determined?

Using a global scenario disaggregated into specific scenarios Signup and view all the answers

What does net-zero aim to achieve in relation to global temperature rise?

Limiting the rise in average global temperature to below 1.5°C Signup and view all the answers

Which statement best differentiates net-zero from carbon neutrality?

Net-zero focuses solely on emission reductions while carbon neutrality includes offsets. Signup and view all the answers

What role do compensation and neutralization measures play during a company's transition to net zero?

They are supplementary but not a substitute for reducing value chain emissions. Signup and view all the answers

What is a key benefit of harmonized methods for defining carbon strategies among companies?

They help maintain a temperature increase below 1.5°C. Signup and view all the answers

Which of the following actions is consistent with the SBTi's recommended pace for abatement?

Eliminating emissions at a pace aligned with limiting warming to 1.5°C Signup and view all the answers

Study Notes

Carbon Footprint Accounting Management and Strategy

This module covers carbon accounting, carbon mitigation principles and strategies, and net-zero definitions and evaluations.
Carbon accounting is a process that quantifies greenhouse gas (GHG) emissions produced directly and indirectly by an entity (organization, product, project, or individual).
Carbon accounting involves calculating the amount of carbon emitted into the atmosphere due to human activities.
Carbon accounting provides a framework to assess and manage carbon-related environmental impacts.

Key Dates in Carbon Footprint History

1988: The Intergovernmental Panel on Climate Change (IPCC) was created.
1997: The Kyoto Protocol introduced targets for reducing greenhouse gas emissions and market mechanisms such as emissions trading.
1998: The Greenhouse Gas Protocol was launched, becoming a global standard.
2004: ADEME launched its carbon assessment.
2005: The European Union (EU) launched the EU Emissions Trading System (EU ETS).
2006: The ISO 14064 standard was developed.
2015: The Paris Agreement was adopted at COP21, aiming to limit global warming.

Objectives of Carbon Accounting

Measure GHG emissions: Quantify GHG emissions produced by an entity (company, municipality, product, service), including both direct and indirect emissions (supply chain).
Identify source of emissions: Determine the main sources of emissions within an organization or process to target effective reduction efforts.
Monitor progress: Track the effectiveness of GHG reduction strategies over time and communicate to stakeholders.

Benefits of Carbon Accounting

More targeted actions towards sustainability.
Enhanced brand identity, accountability, and transparency.
Optimization of processes and increased financial profitability.
More efficient talent recruitment and retention.
Compliance and anticipation of legislation.
Managing the risks and opportunities of the transition to a low-carbon economy.
Meeting stakeholder expectations by communicating commitment to sustainability and environmental performance.
Complying with growing regulatory requirements for climate legislation.
Developing a competitive advantage, which is key for winning tenders.

GHG Protocol

The Greenhouse Gas Protocol is a set of internationally recognized standards for accounting and reporting GHG emissions.
It was developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD).
This protocol defines how organizations can measure, report, and effectively reduce their GHG emissions.
It covers a wide range of emissions from direct production processes to indirect emissions associated with the supply chain and product use.
By 2016, 92% of the 500 largest US companies had adopted the GHG Protocol.

GHG Protocol Methodology

Define scope, activities, sources and GHGs to be included.
Gather data on energy consumption, industrial processes, product use and other activities that generate GHGs.
Select appropriate calculation methods and emission factors.
Use emission factors to convert activity data to GHG emissions.
The GHG Protocol Methodology is based on 5 key principles of Accuracy, Transparency, Completeness, Consistency and Relevance.

Scopes

Scope 1: Direct GHG emissions occurring from sources owned or controlled by the entity.
Scope 2: Indirect GHG emissions from the consumption of purchased electricity, heat, or steam.
Scope 3: Other indirect emissions across the entire value chain (not included in scope 1 or 2), requiring wide-scale collaboration.

Focus Scope 3

Upstream categories: Purchased goods and services, capital goods, fuel and energy, transportation.
Downstream categories: transportation, product processing, use of products, end-of-product life treatment, downstream assets, franchises, investments.

Case Study: Car Manufacturer

Scope 1: Emissions generated during manufacturing and assembly.
Scope 2: Emissions from electricity used at the assembly plant.
Scope 3: Emissions from upstream material sourcing (aluminum, zinc, rubber, etc.), delivery of parts, and end-of-life use of the car.

Case Study: Danone Supply Chain

Rationale: Danone's focus on its agricultural supply chain, which accounts for a significant portion of its carbon footprint.
Action: Promoting regenerative agriculture across its supply chain, including relationships with over 58,000 farmers.
Challenge: Regenerative agriculture goes against long-standing industry practices in many developed economies.

Case Study: Philips Transformation

Rationale: Philips' own calculations revealed lighting's significant role in global electricity consumption.
Challenge: Overcoming technical barriers and engaging policymakers to accelerate the industry-wide uptake of LEDs.
Business Model Innovation: Shifting to LED technology and digital solutions and offering a light-as-a-service model.

Carbon Mitigation Levers

Energy Mix: Green the energy mix by using renewable or low-environmental-impact energy.
Energetic Sobriety: Eliminate and adapt certain uses to reduce energy consumption.
Energy Performance: Reduce energy consumption while maintaining constant activity, ensuring operational efficiency.
Carbon Compensation: Offset CO2 emissions through financing emission reduction and carbon sequestration projects.

Carbon Reduction at a Company Level

Two key levers for achieving global net-zero: reducing the company's emissions and reducing other emissions.
This also involves removing CO2 from the atmosphere (negative emissions).
Actions may include: Direct emission reductions, indirect emissions reductions, emissions avoided by goods and services, and financing reduction project.

Carbon Mitigation Strategy

Scope of climate impacts: CO2, all GHGs, other climate impacts.
Scope of activities: operations, value chain, products, others.
Mitigation Strategy: abatement of emissions, negative emissions, carbon finance, and avoided emissions.
Timeframe: short-term and long-term.

Carbon Mitigation Hierarchy

Eliminate: Through design.
Reduce: Through efficiency.
Substitute: Through alternatives.
Compensate: Through offsets.

Case Study: Amazon Sustainability Report

Goal: Net-zero carbon emissions by 2040, across the entire supply chain.
Actions: Updating Supply Chain Standards to require suppliers to share carbon emission data, setting carbon goals, and promoting energy transition with a focus on renewable energy and electric delivery vehicles.

Case Study: L'Oréal Environmental Commitments

2030 Goals: 100% recycled water, 50% reduction in CO2 emissions, 95% bio-based ingredients, and 100% packaging recyclable or compostable.
Actions: Working with suppliers to ensure sustainable ingredients, investing in programmes to make packaging recyclable, and achieving carbon neutrality across all its sites

Case Study: Circular Economy

Definition: Sharing, leasing, reusing, repairing, refurbishing, and recycling existing materials and products in a closed-loop system.
Practices: Minimum waste, materials kept in the economy and used again and again; a departure from the traditional linear 'take-make-consume-dispose' model.

Net Zero Trajectories

Global carbon neutrality is balancing anthropogenic CO2 emissions and absorptions.
Achieving this is crucial for stabilizing future temperatures.

Net Zero Maths

Emissions must be balanced by equal amounts of emissions removal.

Net Zero Validation By SBTi

The Science Based Targets initiative (SBTi) is a collective of organizations committed to validating carbon reduction targets, which must align with global climate targets.
Validation methods are used, in combination with metrics, to ensure that science-based carbon reduction strategies are effective and measurable.

Case Study: Google Net-Zero Strategy

Goal: Achieve net-zero emissions across operations and value chains by 2030.
Actions: Reduce combined Scope 1, 2, and 3 emissions, invest in nature-based and technology-based carbon removal solutions, create a science-based approach, and share lessons and progress with others.

Measure of Company Trajectory: Temperature

Measuring carbon emission reduction trajectory and its impact on temperature rise in alignment with goals.
Data collection and analysis is crucial for assessing progress in various regions.

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Description

Explore the essential principles of carbon accounting and the strategies for carbon mitigation. This module also covers key historical milestones in carbon footprint tracking and assessment. Join us in understanding efforts towards achieving net-zero emissions.