1、10 Steps to Net Zero The practical guide to carbon reporting and reduction Contents A note from the author Glossary 10 Steps to Net Zero A net zero future I N T H I S G U I D E 2 3 5 8 31 2CONTENTS Contents: 10 steps to net zero 1. Education and learning (pg 8) 2. Scoping (pg 10) 3. Data collection

2、(pg 12) 4. Calculating your carbon footprint (pg 16) 5. Establishing a policy position (pg 19) 6. Setting science-based targets (pg 21) 7. Creating a strategy to achieve your targets (pg 23) 8. Exploring offsets and insets (pg 24) 9. Communicating your strategy (pg 26) 10. Tracking progress (pg 28)

3、3 3A NOTE FR OM TH E AU TH OR A note from the author Net zero goals may seem lofty, but theyre vital to the future of the planet. According to the IPCC, eliminating emissions by 2050 is the only way to stave off the worst effects of climate change. The planet has already warmed significantly above p

4、re-industrial levels, and this is wreaking havoc in the form of sea level rise and extreme weather events but there are still massive advantages to limiting warming as far below 2C as possible. Thats why in recent years, the phrase “net zero” has become increasingly important. Its not just about red

5、ucing emissions Its about eliminating them to the greatest possible extent, then removing any residual emissions. Governments are enacting new legislation to mandate net zero targets. The UK, for example, passed laws in 2019 that require the nation to bring all greenhouse gas emissions to net zero b

6、y 2050, compared with the previous target of at least 80% reduction from 1990 levels. This is being enforced through the power of the purse. Recent measures require that prospective suppliers bidding for government contracts above 5 million per year must have committed to the UK governments net zero

7、 target and have published a carbon reduction plan. In June 2021, the European Union approved a law to make the blocs greenhouse gas emissions targets legally binding; 27 nations must collectively slash greenhouse gas emissions by 55% by 2030 compared to 1990 levels, with the aim to become climate-n

8、eutral by 2050. In addition, central bankers from the G7 countries have agreed to make TCFD disclosures mandatory for large businesses. This will force more organisations than ever to calculate and confront their greenhouse gas emissions. Other governments and private organisations have pledged net

9、zero goals as well, although none are legally binding yet. But 4A NOTE FR OM TH E AU TH OR behind all the buzz and aspirational goals is the nitty gritty: actually monitoring and reporting greenhouse gas emissions and implementing strategies for reduction. To keep businesses, investors, and other or

10、ganisations on track and accountable, accurate and verifiable carbon reporting is absolutely necessary. And at Rio, we believe that net zero strategy, carbon reporting, and target setting needs to be as straightforward as possible. Thats why were working to democratise the process through our intell

11、igent, accessible sustainability software. In addition, were committed to educating the public through free resources like this one. In this 10-step guide, well walk you through the practical, actionable steps any organisation needs to take to get started on the path to becoming net zero. All the be

12、st, DA N IEL B OT TERILL CEO, Rio ESG 5GLOSSARY Glossary To ensure were on the same page about sustainability lingo before diving in, heres a simple glossary that will help us distinguish the differences between many of the key terms used when discussing climate change, emissions, and net zero targe

13、ts. Baseline year: This is a historic point of comparison used to track changes and improvements in emissions. An organisation can use the year for which it has the most data and that is most reflective of operations. For example, the IPCC uses a baseline year of 2010 to project that total global em

14、issions must be reduced by 45% by 2030 to reach net zero by 2050. Carbon footprint: This is the total amount of greenhouse gases (GHGs) emitted by a person, organisation, product, event, or other entity. GHGs include carbon dioxide (the most common gas emitted by humans), methane, nitrous oxide, and

15、 fluorinated gases. A carbon footprint results from the production, use, and end-of-life of a product or service (e.g. fossil fuels, food, manufactured goods, materials, and transportation). Carbon neutral: Being carbon-neutral, or achieving carbon-neutrality, means that an individual and/or the ope

16、rations of a business or national economy has balanced emission of carbon by removing carbon from the atmosphere, often done through carbon offsetting. Climate neutral: This refers to achieving net-zero emissions of all greenhouse gases (not just carbon), which is done by balancing GHG emissions so

17、theyre equal to or less than those that are removed naturally by the Earth. Net zero: Carbon-neutral and net zero are often used interchangeably, but there are slight differences. Net zero means that all man- made GHG emissions are removed from the atmosphere via reduction measures, balancing the re

18、lease and removal of these gases. Net zero is reached when the amount we add is no more than the amount taken away. (Note: Net-zero carbon emissions mean that carbon emissions and removal are balanced. Net-zero emissions mean all GHG emissions and removal are balanced.) 6 Climate positive/carbon neg

19、ative: Becoming climate positive or carbon negative, which are the same thing, means that an organisation not only achieves net-zero carbon emissions (see below), but also removes additional carbon dioxide from the atmosphere, which positively affects the climate. GLOSSARY Absolute Zero Source: Engi

20、e Impact, 2021 7 Offsetting: This refers to a reduction or avoidance of emissions to compensate for other emissions being produced. Best practice carbon offsets are those that use carbon-reduction activities like renewable energy projects or carbon removal technology projects. Insetting: This refers

21、 to carbon offsetting that occurs within a companys own value chain (whether upstream or downstream). Scope 1 emissions: These are direct GHG emissions that occur from sources that an organisation controls or owns, such as emissions associated with fuel combustion in boilers, furnaces, and vehicles.

22、 Scope 2 emissions: These are indirect GHG emissions associated with the purchase of electricity, steam, heat, or cooling. Although scope 2 emissions physically occur at the facility that generates them, these are considered GHG emissions for the organisation that purchases them because they are a r

23、esult of the organisations energy use. Scope 3 emissions: These indirect emissions, also known as value chain emissions, often represent the majority of an organisations total GHG emissions. Scope 3 emissions are the result of activities from assets not owned or controlled by the reporting organisat

24、ion, but that the organisation indirectly impacts in its value chain for example, the goods a business purchases or consumer disposal of its products, or transport-related activities in vehicles not owned or controlled by the reporting entity. GLOSSARY 81 0 STEP S TO N ET Z ERO Step 1: Education and

25、 learning What Before diving into calculating a carbon footprint or developing a net-zero strategy, its important to first simply understand the space youre entering. Educate yourself, your team, and your organisation as a whole on why large-scale sustainability is so important. Learn about how carb

26、on tracking and reporting makes your business more competitive and future-facing, as well as how it can boost your reputation and your bottom line. Ensure the companys purpose is clear to gain everyones buy-in. Why Net zero goals require involvement from nearly everyone at an organisation. Staff mus

27、t be equipped with the knowledge, tools, and skills they need to do their jobs sustainably. This extends to the highest levels of leadership as well. Without everyone on board, your strategy wont be successful, and a lack of buy-in from the board or management team is likely to result in underfunded

28、 opportunities for training, and no opportunity for staff to participate in learning during the working day. Eventually, that leads to strategies that fall apart in the long-term. How Invest in education and training that will help everyone see how achieving net zero impacts them on a personal level

29、, an organisational level, and a global level. This doesnt need to be expensive there are many free resources available, such as those offered via Rio Engage. Provide on-the-job training to help create a work- based learning culture where people feel motivated to undertake informal (e.g. unplanned,

30、self-directed) and formal (e.g. planned, structured) learning opportunities to enhance and progress their jobs and careers. Then, connect your strategy to finances so that you can present investors and other stakeholders with specific details on why they should make capital allocation decisions in f

31、avour of net zero. 91 0 STEP S TO N ET Z ERO Education and learning cont. Further guidance Online training from GHG Protocol Science Based Targets (SBTi) Resources Task Force on Climate-related Financial Disclosures Knowledge Hub Rio Engage sustainability learning modules 101 0 STEP S TO N ET Z ERO

32、Step 2: Scoping What Next, you need to determine the scope of your net-zero strategy. This means understanding your organisations level of ambition, the boundaries of your influence, and emissions sources. Why To do the detailed work, collect the most relevant info, and focus your efforts, you first

33、 need to establish the big picture. What do you want to achieve? Where does your responsibility begin and end? What will need to change in order to reduce emissions? How To decide the scope of your net-zero strategy and understand what areas are most significant and impactful to your organisation, u

34、ndertake a materiality assessment. This is a formal exercise that helps determine how important specific environmental, social and governance issues are to your internal and external stakeholders. You can conduct a materiality assessment internally or via a consultant. Following your materiality ass

35、essment, youll use the results to drill into three key areas: level of ambition, influence, and emissions sources. Level of ambition: Your level of ambition is the specific end target you want to achieve. For example, do you want to set a net-zero target in line with a 1.5C future, as laid out by SB

36、Ti? This requires halving greenhouse gas emissions by 2030 and hitting net-zero emissions by 2050. Different targets have levels of ambitions for different warming scenarios. Influence: Youll also need to decide how wide a boundary youll include in your emissions reporting. In setting organisational

37、 boundaries, youll select an approach for consolidating your GHG emissions, then consistently apply that approach to define the businesses and operations that constitute your organisation so that you can properly track and report GHG emissions. 111 0 STEP S TO N ET Z ERO Scoping cont. GHG Protocol o

38、utlines two approaches here: equity share and control. An equity share approach is when a business accounts for GHG emissions from operations according to its share of equity in the operation. A control approach, meanwhile, is accounting for 100% of the GHG emissions from operations over which your

39、company has control. It does not account for GHG emissions from operations in which you own an interest but have no control. The control approach is further defined as either financial control or operational control. Financial control is when your company has the ability to direct the financial and

40、operating policies of the operations with a view of gaining economic benefits from its activities, whereas operational control means your business or one of its subsidiaries has full authority to introduce and implement operating policies. Your method will depend on your business structure, as well

41、as mandated reporting requirements. Organisations must also decide the boundaries of which emissions to account for and report on: If youre committed to net zero, you must include Scope 1 and 2 emissions at minimum and ideally youll include Scope 3 as well. Emissions sources: Once organisational bou

42、ndaries have been established, you must identify emissions sources within each scope youve chosen to include. A good starting point is to refer to the breakdown of Scope 1-3 emissions by GHG Protocol; this will help you understand what common emission sources are, then identify them within your orga

43、nisation. Further guidance SBTis Business Ambition for 1.5C GHG Protocol Guidance The GHG Protocol: A Corporate Accounting and Reporting Standard 121 0 STEP S TO N ET Z ERO Step 3: Data collection What Now that youve established scope, you can start collecting data on your carbon footprint. Why You

44、cant effectively drive change and make decisions without high-quality data. Climate change data is just as important as financial data, so it should be monitored in the same fashion. What makes data high-quality? It should meet the following criteria: Accurate: Manual processes increase the risk of

45、human error. A standardised, automated process and system for data collection and management can help with this. Complete: Estimates can be made from incomplete data, but to have the most accurate reporting and the clearest picture of whether your organisation is meeting targets data needs to be as

46、complete as possible. If only some data is provided for some months or locations, and no data is provided for others, it will be difficult to have complete visibility. Timely: Collect data in a timely manner (annually, at minimum) to better inform decision-making and quickly point out anomalies. Not

47、e: When significant structural changes occur during the middle of the year, recalculate base year emissions for the entire year, not just the remainder of the reporting period. “Climate change data is just as important as financial data, so it should be monitored in the same fashion.” How The first

48、step of data collection is calculating your baseline emissions by selecting a baseline year, then gathering as much data as you can. Select a baseline year that is most reflective of your business activities, and a year where you can gather the most high-quality data. 131 0 STEP S TO N ET Z ERO Data

49、 collection cont. If its not possible to obtain good (or any) data on certain emission sources, you can make estimates but be transparent about the methodology youre using. If you have data for another location or site, use averages from your own internal data that are applicable across the business

50、 before looking to external sources. Its also important to consider how your organisation will capture and manage the data being collected: Do you have a system in place, or will you need to develop one? Specialised software can help with this. Pro tip: To get an idea of how cities, regions, and com