10 principles for an ambitious climate strategy
Carbometrix supports the 10 principles for an ambitious climate corporate strategy.
These 10 principles are driven by the Net Zero Initiative project. It was developed by a large number of climate change and business professionals.
Principle 1: Net zero refers to the planetary ambition of balancing GHG emissions and carbon sinks
The main objective of climate action is to limit global warming to the objective of temperature defined in the Paris Agreement, by urgently mobilizing resources to collectively achieve net zero GHG emissions globally over the next second half of the century.
Principle 2: Having a net zero strategy means the company is willing to make the required transformations to achieve planetary carbon neutrality by 2050
A corporate climate strategy shall aim to make the company’s activities compatible with a net zero emissions world in 2050. It must contribute at the right level to the achievement of this planetary net zero objective.
Principe 3: Companies must structure their climate ambition and distinguish between three different types of actions that do not offset each other: emissions reduction, avoided emissions and carbon sequestration
A company has three levers to implement its climate strategy: reduce emissions from its value chain, help others reduce their emissions, and develop carbon sinks.
These levers must be measured, monitored against set targets and reported separately.
Principle 4: Reducing corporate emissions is the number one priority of their climate action
The absolute priority of the climate strategy of a company must be the reduction, at the right level and at the right speed, of direct and indirect emissions.
Principle 5: Companies must compute and communicate on all emissions in their value chain (i.e. including scope 3)
Companies GHG footprint must account for all of the direct emissions and significant indirect emissions.
Principle 6: Emission reduction targets must be consistent with climate science
A a priority, the company must set targets for reducing its carbon footprint. For a credible climate strategy, these objectives must be compatible with carbon budgets 1.5°C or well-below 2°C. These
objectives must be specified for the medium and long term horizons.
Principle 7: Beyond mere commitments, it is urgent that companies obtain concrete and rapid results on the reduction of their emissions
A climate strategy is only valuable if it leads to real reductions of company’s GHG emissions, in line with the set trajectory. It is imperative to define and monitor a business transformation plan. Companies must allocate resources to meeet their ambitions.
Principle 8: Companies must contribute as much as possible to the decarbonization of their ecosystem by generating avoided emissions
In addition to their emission reduction plan, companies are encouraged to contribute to decarbonization beyond their carbon footprint scope, on the one hand by developing compatible low-carbon products and services avoiding emissions at their customers level, on the other hand by financing projects to reduce emissions outside of their value chain.
Principle 9: Companies must develop carbon sinks to the right level
In addition to their emission reduction plan and contribution to the decarbonization of third-party players (avoided emissions), companies are encouraged to contribute at the right level to the sustainable carbon sequestration in carbon sinks, primarily within their value chain.
Principle 10: If companies wish to communicate on their climate strategy, they must do so rigorously
Companies are invited to communicate transparently and sincerely about their climate strategy, emphasizing their concrete results, and using indicators that contribute to promoting a rigorous approach to the issue of climate change.
The full report can be downloaded here.