Science Based Targets Description and Calculation
As part of the Paris Agreements, the governments of various countries have pledged to prevent a rise in temperature on Earth by 1.5°C, which would lead to irreversible climate change. Despite efforts, carbon emissions continue to rise, so Science Based Targets (SBT) offers companies an effective approach to minimize this indicator (Science Based Targets, 2020). Many companies use SBT as part of a resilient business plan to actively participate in preventing climate catastrophe. There are two approaches to calculate SBTs: absolute and intensity contraction approach. They describe scope 1 (direct emissions from fuel combustion) and scope 2 (indirect emissions from energy purchased and consumed). For their calculation, companies need to use a special form offered by SBT Initiatives, which calculates the required figures for align with 1.5°C or with 2°C. It is recommended to set the most ambitious targets that the company plans to achieve, because the actual results often do not match the planned ones. 2.5% in annual linear terms is the minimum reduction in accordance with the Absolute Emissions Contraction required for the 2°C Scope 2 scenario. For the Scope 1 scenario aligned with the limiting warming to 1.5°C it is highly suggested to adapt the 4.2% annual linear reduction.
Approaches Difference; Pros and Cons
Absolute targets are associated with the total number of carbon emission emitted. Intensity targets are related to the emissions produced by specific unit of economic output. Each approach has both advantages and disadvantages that must be considered when setting targets. In particular, absolute targets are designed to reduce emissions by a certain amount; more credible for stakeholders; make predictions transparent. However, absolute targets do not describe the reasons for the decrease in emission, which may be the reason for the reduction in production; may not be applicable to the growth of the company and the amount of its emissions. Intensity targets take into account the growth of the company; can be used to compare the performance of companies; more in line with emissions reduction strategies. Nevertheless, they are less credible for stakeholders, since they can grow with a decrease in intensity; it is difficult for companies to define a common intensity metric.
Reference
Science Based Targets. (2020). Science-based target setting manual. Web.