Carbon
A critical type of ESG goals relate to a company’s carbon impact. This is conducted using carbon accounting, an advanced method of measuring CO2 emissions associated with the firm’s value chain.
Carbon accounting involves the measurement of a company’s greenhouse gas emissions and tracking initiatives aimed at reducing these emissions. It is crucial in combating climate change to quantify and manage a company’s carbon footprint.
ESGRoadmap is a valuable tool for evaluating the sustainability commitments of major corporations. Our platform helps users identify the carbon and other ESG goals set by companies
Among the companies featured on ESGRoadmap, carbon-related goals are the most prevalent ESG objectives. Of the 500 companies listed in our tool, more than 100 have set specific targets for reducing carbon emissions.
What Are Carbon Targets?
Carbon targets refer to specific objectives set by companies and organizations to reduce carbon emissions. These objectives are integral to their strategies and represent their commitment to ESG and sustainability issues. ESG reporting examples in carbon include:
Carbon Neutrality / end goals: Companies may aim to balance their carbon emissions by reducing them and offsetting the rest through activities such as reforestation or investing in renewable energy projects.
Emissions Reduction / intermediate goals: Many organizations set specific targets to reduce their greenhouse gas emissions, either in absolute terms or relative to their operations or revenue.
Energy Efficiency: Companies may focus on improving the energy efficiency of their operations, products, or supply chains to minimize carbon emissions. SUch goals may be linked to a financial metric, such as CO2 emissions / revenues (revenues intensity metric)
Transition to Renewable Energy: Shifting to renewable energy sources is a common carbon reduction strategy for companies looking to lower their carbon footprint.
External validation
Carbon goals are commonly validated to ensure their alignment with the imperative of combating climate change. The Science Based Targets Initiative (SBTi) plays a central role in this process by providing a rigorous framework for companies to set emissions reduction targets grounded in scientific consensus. SBTi’s approach ensures that these goals are based on sound science, enhancing their effectiveness in mitigating global warming. By offering a methodology for assessing and approving carbon targets, SBTi empowers companies to contribute to sustainability and provides stakeholders with confidence in the authenticity of their commitments
Carbon Footprint vs. Emissions
Carbon footprint and emissions are closely related but are distinct concepts in the context of environmental impact.
Carbon footprint often relates to a company: it measures all the carbon dioxide (CO2) that a firm is directly and indirectly responsible for. It considers emissions but also accounts for indirect factors like transportation, energy consumption, and even the entire life cycle of a product.
GHG Emissions typically refers to the release of all types of greenhouse gasses, including also methane and nitrous oxide, into the atmosphere. All of these emissions directly contribute to global warming and climate change.
Scope 1, 2 and 3
Carbon emissions are categorized into three distinct scopes, often called Scope 1, Scope 2, and Scope 3. This categorization helps companies and organizations assess their carbon footprint comprehensively:
Scope 1 Emissions: These are direct emissions from a company’s owned or controlled sources. They typically include emissions from on-site combustion, like company-owned vehicles or in-house power generation.
Scope 2 Emissions: These emissions arise indirectly from generating purchased electricity, heat, or steam consumed by the reporting company.
Scope 3 Emissions: This category encompasses a broader range of indirect emissions. It covers emissions along the entire value chain, including suppliers, transportation, product use, and disposal. Scope 3 emissions can account for most of their carbon footprint for many sectors.
Why Are Carbon Targets Important?
Carbon targets are vital in the global effort to combat climate change and promote sustainability. Here’s why they are crucial:
Mitigating Climate Change
Regulatory Compliance
Promoting investments, as many investors themselves have carbon goals or are part of carbon coalitions such as CA100+
Enhancing Brand Reputation with customers and stakeholders
Operational Efficiency
Researching Carbon Reporting
Effective research is essential for understanding a company’s carbon targets and ESG efforts. Here’s how our tool can assist you in this process:
Comprehensive Data
The ESGRoadmap platform provides access to various ESG topics, including carbon. You can easily search and compare data to assess a company’s sustainability performance.
Customized Reports
Generate custom reports tailored to your specific interests and criteria.The ESGRoadmap tool can help you find the information you need.
User-Friendly Interface
Our user-friendly interface makes it easy for anyone, regardless of their level of expertise, to navigate and extract valuable insights from ESG and carbon reporting data.
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