How to Use Carbon Accounting to Set Science-Based Targets

In this blog post, we'll explore how carbon accounting can help businesses set science-based targets that are aligned with the Paris Agreement's goal of limiting global warming to well below 2°C above pre-industrial levels, with a target of 1.5°C if possible.
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What are science-based targets?

Overall, science-based targets are GHG emissions reduction targets that are in line with the latest climate science. This means that they’re based on the best available science and represent what each sector needs to do to reduce emissions in line with the Paris Agreement.

The Paris Agreement is a legally binding international treaty on climate change, adopted by 196 countries at the UN Climate Change Conference (COP21) in 2015. The agreement set the goal of limiting global warming to well below 2°C above pre-industrial levels, with a target of 1.5°C if possible. To achieve this goal, it's critical that businesses play their part in reducing greenhouse gasemissions.

Setting science-based targets is a credible way for companies to demonstrate their commitment to addressing the climate crisis and to help achieve the Paris Agreement's goals. By setting targets that are in line with the latest science, companies can do their part to limit global warming and mitigate the effects of climate change.
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Why use carbon accounting?

To set science-based targets, companies must first understand their current carbon footprint. This is where carbon accounting comes in. Carbon accounting is the process of measuring and tracking a company's GHG emissions over time. This involves identifying and measuring emissions from a company's activities, for example energy use, transportation, and purchased good and services. 

Carbon accounting provides businesses with the data they need to set science-based targets that are based on their actual company-wide emissions, which includes emissions in the company’s supply chain, the so-called scope 3 emissions. By measuring and tracking their emissions over time, businesses can identify areas where they can reduce their emissions and develop strategies for achieving their targets, for instance by replacing suppliers with a high carbon footprint to others with more low-carbon operations.

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How to set science-based targets using carbon accounting

To set science-based targets using carbon accounting, businesses need to devote time and commitment, and there is no 'one-size fits all' solution. But overall, they follow a few key steps:

1. Calculate your baseline emissions

The first step is to calculate your company's baseline emissions. This involves identifying and measuring emissions from all of your company's activities. The baseline should be consistent with the Greenhouse Gas Protocol and cover all scope 1, 2, and 3 emissions. Scope 1 emissions are direct emissions from owned or controlled sources, such as emissions from combustion in owned or leased buildings or vehicles. Scope 2 emissions are indirect emissions from the consumption of purchased electricity, heat, or steam. Scope 3 emissions are all other indirect emissions that occur in the supply chain, such as emissions from suppliers, transport, and product use.

2. Choose a target

Once you’ve calculated your baseline emissions, you’re able to set targets to reduce your emissions across your company. The Science Based Targets Initiative provides a framework and guidance for setting these targets. This framework includes guidelines for different types of targets, such as absolute targets, intensity targets, and sector-specific targets.

Absolute targets are a specific reduction in emissions from a base year. Intensity targets are a specific reduction in emissions per unit of output or activity. Sector-specific targets are based on what the sector needs to do to reduce emissions in line with the Paris Agreement.

3. Develop a strategy

Once you have chosen your targets, you need to develop a strategy for achieving them. This involves identifying specific actions and initiatives that’ll help you reduce your emissions. For example, you might invest in renewable energy sources, implement energy-efficient technologies, or optimise your supply chain to reduce emissions. As mentioned, there’s no ’one size fits all' approach, so your strategy should be tailored specifically to your company's emissions profile and business goals.

4. Monitor progress

Once you've developed your overall strategy and broken it down into sub-targets, you need to continuously monitor your progress towards achieving those targets. This involves tracking your emissions over time to ensure that you’re constantly on track to meet your goals. Regular reporting and monitoring is necessary to help you identify areas where you may need to adjust your strategy to stay on track.

It goes without saying that setting science-based targets using carbon accounting is a powerful tool for businesses to act on climate change. By aligning your emissions reduction goals with the latest climate science, you can demonstrate your commitment to sustainability and help mitigate the effects of climate change.

Carbon accounting provides the data you need to set targets that are based on your actual emissions, and developing a strategy for achieving your targets can help you identify new opportunities for reducing emissions and improving efficiency. With the right tools and guidance, businesses of all sizes can take action on climate change and contribute to amore sustainable future.

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