Together against Climate Change
Net-Zero
Despite all efforts to combat climate change and the Paris Climate Agreement, the amount of greenhouse gases (GHGs) in the atmosphere continues to rise. In 2020, levels of carbon dioxide and methane, the two main human-caused GHGs, reached record levels, although the COVID-19 pandemic had curbed economic growth. Thus, since 2000, a 12% increase for carbon dioxide and 6% increase for methane can be recorded in the atmosphere (NOAA, 2021).
The most recent IPCC report, The Physical Science Basis, indicates that changes in the Earth’s climate are now proceeding rapidly and intensifying. The probability of global warming exceeding 1.5°C in the next two decades is now 50%.
DFGE will guide you through the entire process of submitting the SBTi Net-Zero Standard. From projecting your emissions trends, to selecting the appropriate target corridors, to defining the savings target and Net-Zero scenarios. In addition, we support you starting with the calculation of a valid Corporate Carbon Footprint in conformance with SBTi requirements, as well as with the SBTi Near-Term Definition to meet Net-Zero criteria. As the first official Science Based Targets partner of the CDP in the DACH region, numerous companies from DAX, MDAX as well as medium-sized businesses already trust us with the development of SBTi standards.
- Whitepaper: Net-Zero
- Article: The copanies are challenged
- Article: SBTIs new Standard
- Net-Zero & Compensation
- Net-Zero & Neutralisation
- Science-based Targets Initiative
Definition of Terms
Net-Zero Definition
Due to a lack of standards, companies’ net zero claims to date differ not only in terms of the climate effects considered, but also in terms of their periods of consideration, the emission sources taken into account, and the implementation strategies companies use to achieve their net zero goal. In general, inconsistency in the development of net-zero climate targets makes it difficult to classify the level of ambition used and increases the risk of attracting accusations of greenwashing and suffering reputational damage as a result.
In order to standardize and compare the data, SBTi 2021 has published a global Net Zero standard. This sets framework conditions for long-term climate targets by specifying the choice of emissions to be taken into account, the time span and scope of emission reductions, and the general duration of the target.
Climate Neutrality
The term climate neutrality refers to the state in which human activities no longer affect the climate system (net effect). This state occurs when the remaining emissions are offset by the uptake of CO2 in sinks (natural or technological CO2 reservoirs) and regional or local biophysical impacts of human activities are accounted for. (Source: IPCC & SBTi)
CO2-Neutrality
In contrast to climate neutrality, CO2 neutrality refers to the global offsetting of man-made CO2 emissions through implemented CO2 sequestration measures within a defined period of time. (Source: IPCC & SBTi)
Net-Zero
The term net-zero, or net-zero emissions, refers to the state when all human-made greenhouse gas emissions in the atmosphere are balanced by the uptake of greenhouse gases in sinks over a specified period of time. (Source: IPCC & SBTi)
Net-Zero Services
The DFGE offer on SBTi Net-Zero
- Validation of the Corporate Carbon Footprint (CCF)
- Verification of compliance with the net-zero criteria of the SBTi (near-term target, long-term strategy)
- Forecasting of emission developments based on appropriate growth metrics
- Support in the selection of appropriate target corridors
- Final definition and calculation of a valid savings target
- Elaboration of the Long-Term Net-Zero scenarios
- Economic evaluation of the neutralization measures for the remaining emissions (Residual Emissions)
Summary
The four key elements of the Net-Zero standard
Near-Term SBTs
- 5-10 year targets in line with 1.5°C target achievement pathways.
- After completion of a near-term target, a new one is set to gradually reduce emissions (pathway to net-zero)
- Iterative process to recalculate – a review and possible recalculation of the target pathway must also be conducted at least every five years
Long-Term SBTs
- Long-term corporate planning, with the aim of reducing emissions to a minimum residual level corresponding to the 1.5°C target by 2050 at the latest.
- Cooperation with customers and suppliers, possibly even realignment of product portfolio, use of future technologies + price developments for environmentally friendly alternative products
Reduction / neutralization outside the value chain
- Additional recommended mitigation measures in the transition to Net-Zero.
- B. REDD+ credits, investments in Direct Air Capture (DAC) technology, geological storage.
Neutralization of residual emissions
- Offsetting residual emissions
- After a Long-Term SBT is achieved through permanent removal and storage of CO2 from the atmosphere
