Faced with the urgency of climate change, companies are increasingly called upon to take concrete steps to reduce their greenhouse gas (GHG) emissions. Two approaches are emerging as benchmarks for emissions reduction: science-based targets (SBT) and life-cycle analysis methods with social allocation and equitable distribution of benefits (SDA). This article will explore these two approaches, their fundamental principles and their practical application to help companies develop effective strategies for reducing GHG emissions.
Science-Based Targets (SBT)
Science-based targets (SBTs) are based on the idea that companies should align their emissions reduction targets with the requirements of climate science to limit global warming to less than 2°C above pre-industrial levels. Key elements of SBT include:
- Evidence-based science : SBTs rely on sound scientific data, such as the recommendations of the Intergovernmental Panel on Climate Change (IPCC), to determine the levels of emissions reductions needed to meet global climate goals.
- Setting specific objectives : Companies set emission reduction targets in line with the global warming trajectories defined by science, taking into account their own specific needs. direct and indirect emissions (scope 1, 2 and 3).
- External validation : SBT targets are externally validated by organizations such as the Science Based Targets Initiative (SBTi) to ensure alignment with best scientific practice.
ACA method (for Absolute Contraction Approach)
ACA is a method that sets absolute emissions reduction targets, based on the global carbon budget remaining to limit global warming to 1.5°C or 2°C. In practical terms, this means that each company must reduce its greenhouse gas (GHG) emissions by a specific percentage from a reference year to a target year. For example, a company could commit to reducing its emissions by 50% by 2030, compared with its 2010 emissions.
Benefits of ACA:
- Applicable to all types of company, whatever their sector of activity.
- Easy for companies to understand and implement.
ACA limitations :
- Less precise than the SDA method, as it does not take into account the specific characteristics of each sector.
- Based on global scenarios that may not reflect sectoral realities.
SDA method (Sectoral Decarbonization Approach)
The SDA first allocates the remaining global carbon budget on a sector-by-sector basis, assigning each sector a share of this budget. This share is calculated on the basis of the sectoral scenarios of the International Energy Agency (IEA). Then, each company within a sector is assigned a reduction target expressed in relative terms by means of sector-specific indicators. For example, in the energy sector, the indicator could be a percentage reduction in emissions per kilowatt-hour (kWh) of electricity produced.
Advantages of SDA :
- Takes into account the specific features of each business sector.
- Enables a fairer comparison of performance between companies in the same sector.
Limitations of SDA :
- We need to find the right scenario for each sector, which may be difficult for some sectors not covered by the IEA scenarios.
- Works best for homogeneous sectors with similar products in terms of carbon intensity.
Steps to a successful environmental transition
Making a successful environmental transition requires careful planning and strategic implementation. Here are the key steps to a successful environmental transition:
- Initial assessment : The first step is to carry out a thorough assessment of the company's current environmental footprint. This involves identifying the main areas of impact, such as energy consumption, greenhouse gas emissions, waste management and use of natural resources.
- Defining objectives : Based on the initial assessment, define clear, measurable objectives for the company's environmental transition. These objectives must be specific, achievable, relevant and time-bound (SMART).
- Drawing up an action plan : Draw up a detailed action plan to achieve your environmental objectives. This plan should include specific measures to be implemented, deadlines for each stage, and clearly defined responsibilities for each team member.
- Stakeholder engagement : Actively involve internal and external stakeholders in the environmental transition process. This can include employees, customers, suppliers, shareholders and local communities. Transparent communication and stakeholder participation are essential to ensure a successful transition.
- Training and awareness : Provide appropriate training and awareness-raising at all levels of the organization on environmental issues and how to address them. This can include awareness sessions, training workshops and educational resources on sustainable practices.
- Implementation of environmental measures : Implement the environmental measures defined in the action plan. This may include adopting sustainable management practices, investing in clean technologies, reducing energy and resource consumption, and implementing environmental management systems.
- Monitoring and evaluation : Regularly monitor and evaluate progress in the company's environmental transition. Use environmental performance indicators to measure the effectiveness of the measures implemented, and adjust the action plan accordingly.
- Communication of results : Transparently communicate progress in the company's environmental transition. Celebrate successes, share best practices and commit to continuing to improve the company's environmental performance.
By following these steps, companies can make a successful environmental transition and make a significant contribution to environmental protection, while strengthening their long-term viability.
The ACT Method Step by Step: 5 Steps to a Low-Carbon Transition
The transition to a low-carbon economy is a complex process requiring careful planning and total commitment on the part of the company. The ACT Step by Step method offers a structured five-step framework to guide companies through the decarbonization process.
Step 1: Current situation
The aim of this first stage is to carry out a self-diagnosis of the company's initial maturity in terms of decarbonization strategy and practices. This involves assessing the company's greenhouse gas emissions, identifying the main sources of these emissions, and understanding current sustainability practices. This step usually takes from a week to a month, depending on the size and complexity of the company.
Stage 2: Issues and challenges
Once the current situation has been assessed, the next step is to inform the Board of Directors of the company's carbon challenges through the results of a relevant strategy and performance analysis. This analysis helps to determine the main decarbonization challenges facing the company, and to identify opportunities for improvement. This stage can take from one to three months to complete.
Step 3: Vision
The third stage of the ACT Step by Step method consists in building a collective vision of the company's journey towards a low-carbon world. This involves involving internal and external stakeholders in the process of thinking through and creating a shared vision of the company's future. This stage can last from two to six weeks, depending on the complexity of the vision and the level of stakeholder commitment.
Stage 4: New strategy
Once the vision has been established, the next step is to commit to a detailed strategic decarbonization plan, including carbon performance targets. This involves defining specific, measurable, achievable, relevant and time-bound (SMART) objectives to guide the company's future decarbonization actions. This step can take from one to three months to complete.
Step 5: Action plan
The final step of the ACT Step by Step method is to convert the detailed strategic plan into concrete actions. This involves defining a specific action plan, with clear milestones, assigned responsibilities and precise deadlines. The action plan must be aligned with the company's decarbonization objectives and integrated into its day-to-day activities. This stage can take from four months to a year to complete, depending on the complexity of the actions to be implemented.
Support from Phishia
This information provides a valuable overview of how companies can approach the reduction of their greenhouse gas (GHG) emissions and engage responsibly in the transition to a low-carbon economy. Here's how Phishia could help companies navigate this complex landscape:
- Analysis of Remaining Carbon Budget By understanding the importance of the remaining carbon budget for achieving global climate goals, Phishia can help companies assess their current carbon footprint, identify high-impact areas and develop strategies to reduce emissions to meet this limited budget.
- Adoption of Science-Based Targets (SBT) : Phishia can guide companies in setting emissions reduction targets in line with the IPCC's scientific recommendations, using approaches such as ACA and DSA to derive the remaining carbon budget at company level.
- Assessing climate accountability : Phishia can support companies in assessing their climate accountability using initiatives such as SBTi and ACT. This involves helping companies to develop credible decarbonization strategies, assess their transition plans and ensure that their carbon neutrality commitments are backed up by concrete actions.
- Implementing : Using methods such as ACA and DSA, Phishia can help companies define emissions reduction trajectories tailored to their specific industry, while ensuring a fair distribution of the benefits of the transition to a low-carbon economy.
By combining in-depth expertise in cybersecurity and sustainability, Phishia is well positioned to support companies on their journey towards responsible management of their GHG emissions and their contribution to the fight against climate change.
