THE RIGHT CLIMATE STRATEGY
FOR YOUR COMPANY

The Science Based Targets Initiative is a partnership between CDP, United Nations Global Compact, World Resources Institute (WRI) and WWF. The Science Based Targets themselves are science-based goals that are measurable, actionable and time-bound. They are based on the best available scientific evidence and allow actors to align themselves with societal sustainability goals. They are based on the remaining emission budgets until 2100 and on the basis of the UN climate protection goals. Defining and setting a company’s Science Based Targets takes place in five steps:

1. Commitment to the Science Based Targets: This involves submitting a letter to the Science Based Targets Initiative stating the intention to set Science Based Targets.
2. Development of the targets: In this step, initial emission reduction targets are developed in accordance with the SBTi criteria.
3. Submission of targets: In this step, the previously developed targets are submitted to the SBTi for review and validation.
4. Communication: Once the targets are validated, the company can publish them and also communicate them to its stakeholders.

Reporting: Even before the targets are published, work begins on the targets themselves. Reduction projects are initiated and targets are reviewed annually to understand the current status and identify potential barriers. Current emissions and measures to reduce, offset and avoid emissions are continuously communicated internally and externally.

Offsetting is not a sensible alternative to reduction and, above all, isolated individual projects do not achieve their goals. Companies must reduce their emissions consistently and on the basis of scientific targets, also because the Paris Agreement obliges all signatory countries to set national emission reduction targets (so-called Nationally Determined Contributions, NDCs). The agreement thus requires all sides to significantly reduce their greenhouse gas emissions and in this way also ends the simple cross-border trade of securitised CO2 credits. Companies are thus decisively responsible for reducing the emissions of their value chain to almost zero. This can only be achieved with a sound climate strategy that sets targets, plans measures, and provides a framework.

Businesses can use their influence and voice to strengthen the climate movement in the business community, help others meet their commitments, and push regulators for progressive legislation to mitigate and adapt to the climate crisis. From our point of view, it is not expedient to make individual products climate neutral, as this sends misleading signals to consumers, for example. 

However, we support the idea of climate responsibility, which makes it possible to take responsibility for the production of a product or the company’s own emissions and to make the climate impact visible to consumers. This can be put into practice with so-called contribution claims, for example. 

Here, it is no longer primarily the company’s own emissions that are offset and products are described as climate-neutral. Instead, it is transparently stated on the product or on the company website how high the remaining emissions are for consumers after as many emissions as possible have been reduced. At the same time, it is also communicated here in which emission reduction projects the company invests. Companies that take this approach are less exposed to the risk of greenwashing accusations because they communicate credible and realistic efforts.

In addition to the Paris Agreement, there are other goals and targets for companies to consider. These include the European Union’s climate targets set out in the Green Deal. In December 2019, the European Commission presented the “European Green Deal”. The concept aims to reduce net greenhouse gas emissions in the European Union to zero by 2050. At the EU summit in December 2020, the heads of state and government also decided to tighten the medium-term climate target. By 2030, pollutant emissions in the European Union are to be reduced by 55% compared to the reference year 1990, because climate change and environmental degradation are existential threats to Europe and the world. Therefore, Europe needs a new growth strategy if the transition to a modern, resource-efficient and competitive economy is to succeed, in which:

• no net greenhouse gas emissions are released by 2050.
• economic growth is decoupled from resource use.
• no one, neither people nor region, is left behind.

The European Green Deal is a roadmap for a sustainable EU economy. It aims to achieve this goal by seeing climate and environmental challenges as opportunities in all policy areas and by making the transition equitable and inclusive for all. Therefore, the European Green Deal includes a roadmap of measures:

• to promote a more efficient use of resources through the transition to a clean and circular economy
• to restore biodiversity and combat pollution.

It identifies what investments are needed and how they can be financed, and explains how a just and inclusive transition can succeed. To get there, a European climate change law has been proposed to put this political commitment into law and make it the trigger for investment. All sectors of the economy should actively contribute to climate goals. These include:

Investing in new, environmentally friendly technologies.

• Supporting industry to innovate.
• The introduction of greener, cheaper and healthier forms of private and public transport.
• The decarbonisation of the energy sector.
• Increasing the energy efficiency of buildings.
• Working with international partners to improve global environmental standards.

The EU aims to provide financial and technical support to people, businesses and regions struggling most with the transition to a green economy. This will be done through the Just Transition Mechanism, which aims to mobilise at least €100 billion in the period 2021-2027 in the most affected regions.