Net Zero Business Models

4SCIENCE‐BASED EMISSIONS‐REDUCTION TARGETS

“Decarbonizing the Power Sector is key to the energy system transition.”¹

—SBTi Power Sector Guidance

Science‐based CO₂e emissions‐reduction targets can help companies succeed in the net zero emissions economy. Once a company has an inventory of its Scope 1, 2, and 3 emissions and knows its carbon intensity and the size of its carbon short, it can set scienced‐based CO₂e emissions‐reduction targets. Science‐based targets are designed to enable businesses to set ambitious emissions reductions in line with the latest climate science. Such targets' overarching goal is to limit the global rise in temperatures since the beginning of the Industrial Age to 1.5°C. The goal is to achieve a 50% reduction in CO₂e emissions by 2030 and achieve net zero on or before 2050.

The Science Based Targets Initiative (SBTi) is a global partnership between the United Nations Global Compact, the Carbon Disclosure Project, the World Resources Institute, and the World Wide Fund for Nature. In 2021, the SBTi promulgated the Corporate Net Zero Standard (Net Zero Standard) to complement the GHG Protocol and provide the guidance and tools companies need to set science‐based net zero targets.² Such targets provide companies with a clearly defined path to reduce their emissions in line with Paris Agreement goals. The methodologies set forth resulted from a highly collaborative process and were stress tested by 80 companies before their release.

The Net Zero Standard ...