Your Net Zero Journey Starts Here

Climate change is already affecting every region on Earth, its impacts increasingly visible in the form of extreme weather, worsened droughts, and heightened risk of forest fires. Against this backdrop, companies are increasingly adopting net-zero targets. The number of businesses committing to reach net-zero emissions has grown rapidly. Agile advisors can provide you with the skills and expertise required for developing a practical net zero target.

All About Net Zero

Companies can take a variety of approaches to develop near-term and long-term science-based net zero targets; however, we recommend following the five steps described below in accordance with widely accepted net zero standards.

 

Select a base year

Companies need to establish a base year to track emissions performance consistently and meaningfully over the net-zero target period. The Scope 1, 2, and 3 emissions should be estimated and the data should be accurate and verifiable.

Calculate emissions

Companies are required to have a thorough emissions inventory that covers at least 95% of company-wide scope 1 and 2 GHG emissions and a complete scope 3 screening for setting the net zero target. 

Set Target Boundaries

Near-term science-based net-zero targets must cover at least 95% of company-wide scope 1 and 2 emissions. For companies with scope 3 emissions that are at least 40% of total emissions (scope 1, 2, and 3 emissions), at least 67% of scope 3 emissions must also be covered.

Choose a target year

Near-term net zero targets must have a target year 5-10 years from the date of submission to the SBTi, while longterm targets must have a target year of 2050 or sooner (2040 for companies in the power sector).

 

Set the targets

Companies must set near-term net zero targets with a minimum ambition of 1.5°C for scopes 1 and 2 and a minimum ambition of well-below 2°C for scope 3. Long-term targets must have a minimum ambition of 1.5°C across scopes.

Several globally accepted guidelines are available to guide organisations through this journey of setting and achieving net zero, including the GHG Protocol, Net-Zero Standard, SBTi, ISO 14064, PAS 2050 etc. We have helped several clients in developing net zero targets and get carbon neutral certified as well.

For further information and support on development of net zero target, get in touch with us.

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