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  • ESG Everyday

SBTi 101 - Options for temperature alignment

Updated: Mar 16, 2023


In the context of the Science-Based Targets Initiative (SBTi), a company can align its temperature goals by taking one or more of the following options:


Setting absolute emissions reduction targets: Companies can set targets to reduce their greenhouse gas (GHG) emissions to reach a certain level of absolute reduction, which can be in line with a 1.5°C or 2°C scenario.


Setting intensity-based targets: Companies can set targets to reduce their emissions intensity (i.e., the amount of GHG emissions per unit of activity or output) to align with a 1.5°C or 2°C scenario.


Setting net-zero targets: Companies can set targets to achieve net-zero emissions, which means that their GHG emissions are balanced by the removal of an equivalent amount of GHG emissions from the atmosphere.


Setting sector-specific targets: Companies can set targets that are aligned with sector-specific decarbonization pathways, which are based on the sector's emissions characteristics and the technological solutions available.


Setting Scope 3 targets: Companies can set targets to reduce their Scope 3 emissions (i.e., the emissions from their value chain, including their suppliers, customers, and end-users) to align with a 1.5°C or 2°C scenario.


Committing to a long-term temperature goal: Companies can commit to a long-term temperature goal, such as reaching net-zero emissions by 2050, to demonstrate their ambition and leadership in addressing climate change.


These options are not mutually exclusive, and companies can choose to take a comination of them to align their temperature goals with the goals of the paris Agreement.

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