CDx Seminar: Achieving Your Initial Climate Goal
In the ongoing fight against climate change, setting an emissions baseline and climate target is a strategic next step for companies. This article outlines a practical approach for companies with limited data and in-house expertise to establish their first emissions reduction target.
- Leverage Sectoral Benchmarks
Begin by identifying emissions intensity benchmarks relevant to your industry sector. These benchmarks, derived from comparable companies, provide typical emissions values per unit of production, revenue, or activity. By using these benchmarks, companies can estimate their emissions where direct data is lacking.
- Apply Estimation Tools
Utilize free greenhouse gas (GHG) calculation tools and protocols such as those provided by the Greenhouse Gas Protocol (GHG Protocol). These tools guide on estimating Scope 1 (direct emissions), Scope 2 (indirect emissions from purchased energy), and Scope 3 (value chain) emissions using activity data or financial proxies. The GHG Protocol offers detailed methodologies for companies with limited measurement capacity.
- Adopt Free Reporting Frameworks
Use accessible frameworks such as the CDP (Carbon Disclosure Project) platform for initial disclosure and benchmarking, and Science Based Targets Initiative (SBTi) resources for target-setting guidance. SBTi distinguishes near-term targets (5-10 years) focusing on feasible, measurable reductions, which are appropriate first steps for companies building capacity.
- Set Near-Term Targets
Target first the most significant emissions scopes – typically Scope 1 and 2—and include material Scope 3 emissions if they represent a large share (above 40%) of total emissions. Near-term targets should be specific, time-bound (5-10 years), and aligned with global net-zero goals to ensure credibility.
- Develop an Implementation Roadmap
Define practical actions to reduce emissions based on highest-impact areas like energy efficiency upgrades, waste reduction, and supply chain engagement. This roadmap should translate estimated targets into concrete operational measures and track progress over time.
- Leverage ESG and Carbon Accounting Software
Tools like EcoOnline's ESG software can automate data collection, emission calculations, and reporting, making the process more manageable even with limited internal resources.
This approach offers a credible, accessible starting point for structured climate action, grounded in tools, not perfection. By the end of this process, companies will have set their first emissions reduction target.
The webinar, focusing on practical pathways to setting the first emissions reduction target, includes exploration of sectoral benchmarks, estimation tools, and free frameworks. Speakers for the webinar include Tirapon Premchitt, Principal Technical Consultant at Sustainability and Climate Change, ERM Thailand, Liam Salter, CEO of RESET Carbon, and Yuan Chun Kew, Head of Sustainability & Safety at Frasers Property Singapore. The CDx platform offers additional tools, peer support, and learning resources.
It's important to note that imperfect data is not a barrier to credible climate action. This approach balances ambition with practicality in the absence of comprehensive data or expert resources. Companies have taken action using available tools, guidance, and estimation methods. By following these steps, companies can take a meaningful step towards reducing their carbon footprint and contributing to a more sustainable future.
In the industry, companies can start their emissions reduction journey by utilizing sectoral benchmarks that provide typical emissions values based on comparable companies. Embracing free greenhouse gas calculation tools like the GHG Protocol can guide in estimating direct, indirect, and value chain emissions using activity data or financial proxies.
Initial disclosure and benchmarking can be done through accessible platforms such as CDP, while the Science Based Targets Initiative (SBTi) offers valuable target-setting guidance. Companies should focus on setting near-term targets for significant emissions scopes, such as Scope 1 and 2, and include material Scope 3 emissions if they account for a significant portion of the total.
A practical implementation roadmap should be defined, outlining actions to reduce emissions in key areas like energy efficiency, waste reduction, and supply chain engagement. Leveraging ESG and carbon accounting software can automate data collection, calculation, and reporting, helping manage the process with limited internal resources.
Embracing this approach fosters credible, accessible climate action, recognizing that perfect data is not always available. Companies have demonstrated that they can take meaningful steps in reducing their carbon footprint and moving toward a more sustainable future by following these practices.
