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Science Based Targets


Workshop 2
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Use the 'Q&A' functionality to ask questions

This meeting will be recorded


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Welcome
Roger Maybury | Supplier Management Director, Commercial &
Procurement, Network Rail

Route Services Powerpoint Putting


Puttingpassengers
passengers first
first
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Agenda

Topic Speaker Time


Roger Maybury (Network Rail)
Ivan Le Fevre (Highways England)
Introductions & Welcome 10:00am
James Ingram (Transport for London)
Peter Miller (HS2)
How to Develop Science Based
Olwen Smith (SBTi) 10:10am
Targets

Scope 3 Emissions Danielle Mulder (Carbon Intelligence) 10:35am

Break 11:00am

Supplier Case Study Example Ryan Burrows (AECOM) 11:10am

Expert Panel Q&A Rupa Bhatt (Network Rail) 11:25am

Closing Comments Roger Maybury (Network Rail) 11:55am


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Ivan Le Fevre
Head of Environment
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James Ingram
Senior SHE Environment Manager
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Peter Miller
Environment & Town
Planning Director
London
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How to Set Science-


Based Targets

Olwen Smith
UK & WW Regional Lead, Net Zero Campaigns
Science Based Targets - Workshop 2 (1st July, 2021)
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AGENDA
• Standard SBT-setting route (large companies)
• Developing the target

• Submitting the target for validation

• Communicating and disclosing

• SME SBT-setting route


• Key resources
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HOW TO SET A TARGET


GETTING READY TO SET A SBT

Scope 1 – Direct emissions on site (e.g., on-site


energy use)

Scope 2 – Emissions from purchased electricity,


heat steam, water

Scope 3 – All other indirect emissions along the


value chain

Note: All companies must complete at least a scope 3


screening for all relevant categories. If scope 3 is over
40% of total emissions, an emissions inventory must be
provided (estimations at minimum).

https://ghgprotocol.org
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HOW TO SET A TARGET


TWO DIFFERENT ROUTES

LARGE COMPANIES STANDARD ROUTE

SMALL AND MEDIUM-SIZED


SMEs ROUTE
ENTERPRISES

For the purposes of target validation by the SBTi, an SME is


defined as a non-subsidiary independent company with fewer
than 500 employees
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STANDARD ROUTE:
LARGE COMPANIES

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HOW TO SET A TARGET

AFTER
DAY 1 24 MONTHS APPROVAL

Company submits a Company works on Company presents Company Company report its
letter establishing an emissions the target to the announces the wide emissions and
its intent to set a reduction target in SBTi for official target and inform progress against
science-based line with the SBTi validation stakeholders targets on an
target criteria annual basis
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HOW TO SET A TARGET


STEP 2: DEVELOP THE TARGET | KEY RESOURCES OVERVIEW

Tools
5 Excel tools for modeling targets.
Target Validation Protocol
Presents how the team checks and
classifies targets against the SBTi 4
Criteria.
SBTi Criteria and
Recommendations
Presents the criteria and
3 recommendations for the development of
Science Based Targets
SBT targets. Companies are validated
Corporate Manual against these criteria.
Presents the steps to join the initiative, and 2
guidance for companies to develop their
targets for scopes 1, 2 and 3.
Foundations of Science-
based Targets
1 Explains how the SBTi has leveraged
newly available science to align its
methods with 1.5°C and well-below 2°C
pathways.
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HOW TO SET A TARGET


STEP 2: DEVELOP THE TARGET | CRITERIA OVERVIEW

• Level of ambition (Scope 1+2): At a minimum – consistent with the level


of decarbonization required to keep temperature increase to well-below
2°C while we encourage efforts towards 1.5°C.
• Progress: Both the target timeframe ambition (base year to target year)
and the forward-looking ambition (most recent year to target year) must
meet the ambition criteria.
• Boundary: All company-wide Scope 1 and 2 GHG emissions (> 95%);
• Timeframe: 5-15 years into the future;
• Reporting: Disclose GHG emissions inventory on an annual basis.
• Scope 3: A Scope 3 screening is required. An ambitious Scope 3 target is
required when Scope 3 emissions cover < 40% of total emissions.
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HOW TO SET A TARGET


STEP 2: DEVELOP THE TARGET | METHODS FOR SCOPE 1 AND 2

- All sectors - Homogeneous sectors


- Equal % of reduction - Different % of reduction
Absolute-based approach - IPCC carbon budgets Sector-based approach - Sectoral carbon budgets
scenarios (e.g. IEA*)

Sectoral Decarbonization Approach (SDA)**

Contraction Convergence

* International Energy Agency


** Developed by the SBTi
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HOW TO SET A TARGET


STEP 2: DEVELOP THE TARGET | OVERVIEW OF METHODS FOR VARIOUS SECTORS
● SDA only.
POWER
● Visit the SBTi Power webpage to access the guidance and SBTi tool.

● SDA or Absolute Contraction.


LAND ● Auto manufacturers MUST set well-below 2°C aligned scope 3 targets on use of sold
TRANSPORTATION products.
● Visit the SBTi Transport webpage to access the guidance and tool.

● Three methods for financed emissions (scope 3): SDA, SBT Portfolio Coverage,
FINANCIAL
Temperature Rating
SBTi INSTITUTIONS ● Visit the SBTi Financial Institutions webpage to access the guidance and tools.
Methods &
Sectors ALUMINUM, CEMENT,
● SDA or Absolute Contraction.
COMMERCIAL BUILDINGS, IRON
AND STEEL, PULP AND PAPER ● Download the SBTi tool to model targets for these sectors.

● Absolute Contraction only.


APPAREL &
● Visit the Apparel & Footwear webpage and the ICT webpage to access
FOOTWEAR, ICT relevant guidance.

● Absolute contraction only.


ALL OTHER SECTORS ● Download the SBTi Tool to model targets using the absolute contraction
approach.
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Access the SBTi Sector Guidance webpage to find detailed info about each sector: https://sciencebasedtargets.org/sectors
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HOW TO SET A TARGET


STEP 2: DEVELOP THE TARGET | SBTi TOOL

Scopes 1 and 2 Scope 3


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HOW TO SET A TARGET


STEP 2: DEVELOP THE TARGET | SBTi TOOL

Scopes 1 and 2
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HOW TO SET A TARGET


STEP 2: DEVELOP THE TARGET | CASE STUDIES

More than 20 case studies available,


such as:
● Dell
● Kellogg’s
● Pfizer
● Orsted
● Tech Mahindra
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HOW TO SET A TARGET


STEP 3: SUBMIT | RELEVANT RESOURCES FOR TARGET VALIDATION PURPOSES

+ +

Criteria and Target validation Target submission form


recommendations protocol and guidance
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HOW TO SET A TARGET


STEP 3: SUBMIT | TARGET VALIDATION PROCESS

DATA VALIDATION VALIDATION DECISION


SUBMISSION PROCESS
Company submits its Target validation team Company receives
targets using the Target performs target Target Assessment
Report
Submission Form assessment
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HOW TO SET A TARGET


STEP 3: SUBMIT | TARGET VALIDATION PROCESS DETAILED

1 2 3 4 5
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HOW TO SET A TARGET


STEPS 4 AND 5: COMMUNICATE AND DISCLOSE

Once approved, companies must


communicate their targets.

SBTi publishes approved targets on its


website on the companies taking action
page as well as on partner’s websites
(We Mean Business and CDP).

Companies must publicly disclose their


emissions inventory and progress
against their targets on an annual basis.

Recommendations include annual


reports, sustainability reports, the
company’s website, and/or disclosure
through CDP’s annual questionnaire.
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SMALL AND MEDIUM-SIZED


ENTERPRISES:
SMEs ROUTE

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HOW TO SET A TARGET


SMES ROUTE

ONCE COMPANY
RECEIVES FORMAL
DAY 1 APPROVAL AFTER APPROVAL

Company reports
Company submits its SME And upon payment, its GHG inventory
Target Setting Letter to the the company’s and progress
SBTi, which will perform target is published against target on an
the review of the on the website annual basis
information submitted
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HOW TO SET A TARGET


SMES ROUTE

● The SBTi has developed an exclusive route for PREDEFINED options in the
SMEs and these MUST submit a target through SME Target Setting Letter
this route;
● This route enables SMEs to bypass the regular
target validation process and to immediately set
a science-based target for scope 1 and 2;
● SMEs must choose one of the predefined
options available in the SME Target Setting
Letter;
● Base year and target year cannot be different
from the predefined ones;
● SBTi does not approve SME’s scope 3 targets;
● Oil and gas companies and financial institutions
cannot set targets through the SME’s route, even
if they fit the SME definition;
● SMEs must communicate their targets and
SME Target Setting Letter available at:
publicly disclose their emissions inventory and https://sciencebasedtargets.org/resources/files/SBT-SME-Target-
progress against targets on an annual basis. Setting-Letter.pdf
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KEY RESOURCES
WHERE TO FIND THEM

1. Access the initiative's website:


www.sciencebasedtargets.org
2. On the main menu, click on
"Resources"

3. Scroll down a little bit


4. The resources are presented according
to the stage in which they will be used:
commit, develop, submit, learn and
background
5. Click on the corresponding menu and
access the resources you want
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KEY RESOURCES
TARGET-SETTING SUPPORT

• Browse our general Frequently Asked Questions here

• Review the SME FAQ doc here

• Use the SBTi tool including scope 3 tool to model targets

• Watch our SBTi Net-Zero FAQ videos here

• Take the new UNGC E-Learning course on SBTs


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THANK YOU! QUESTIONS?


Partner organizations In collaboration with
sciencebasedtargets.org @ScienceTargets Science Based Targets

/science-based-targets info@sciencebasedtargets.org
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Who we are

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Carbon Intelligence

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Danielle Mulder, Director
Scope 3 Centre of Excellence Lead

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Why Scope 3 Matters
Scope 1 and 2
• Climate risk – both physical and transition
• Net zero carbon and Science Based Targets
• Investor pressure
• Brand and reputational risk
• Reporting and disclosure requirements

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Scope 3
- TCFD, CDP, SECR etc.
• Policy and regulatory changes –
- UK Govt (Net Zero by 2050) , EU Taxonomy

Typically 80%+ of your


company emissions will be in
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How

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Our Scope 3 Methodology

Information request Data sets SBTi Target options Current projects/initiatives


Inputs Peer review Emissions Factors

1. Scope 3 2. Scope 3
3. Scope 3 Target 4. Scope 3

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Screening/GAP Modelling and
Setting Roadmap
Analysis Baselining

Outputs Scope 3 screening and Scope 3 emissions Scope 3 Targets and High level
emissions assessment baseline and model expected reduction implementation plan
potential with de-carbonisation
strategies

Follow SBTi guidance and requirements


Aligned to GHG Accounting Protocol
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Scope 3 Defined

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GHG Accounting: Scope 3 Emission Categories

UPSTREAM SCOPE 3 CATEGORY TYPICAL SCOPE 3 EMISSION


Upstream scope 3 1. Purchased goods and services SOURCES
emissions 2. Capital goods
3. Fuel and energy related activities • Upstream – Purchased
4. Upstream transportation and distribution goods & services, capital

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5. Waste generated in operations goods, FERA, Upstream
6. Business travel
transportation &
7. Employee commuting
8. Upstream leased assets distribution etc.
Downstream scope 9. Downstream transportation and distribution
3 emissions 10.Processing of sold products
11.Use of sold products • Downstream – downstream
12.End-of-life treatment of sold products leased assets, use of sold
13.Downstream leased assets products, franchises,
14.Franchises investments etc.
15.Investments
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Understand the SBTi Scope 3 target criteria and

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identify relevant emission sources
SBTi requirements Scope 3 screening and heatmap Outputs

1. Assessment of Scope
You must complete a
Scope 3 screening 3 emission hotspots

2. Peer review and

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If Scope 3 >40% of industry intelligence
total footprint you
must set a target
3. Understanding of
Target boundary must gaps in Scope 3 data
cover at least 2/3 of
total Scope 3 coverage and quality
emissions

4. Action plan to
Scope 3 targets must address gaps to
be in line with <2C
science conduct full Scope 3
emissions inventory
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How

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The ‘usual suspects’

Value Chain
Upstream Downstream

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Procurement
Business Use of Sold
of Goods and Investments
Travel Goods
Services

Tenant
Capital Goods Your sector and business type/context is key
Emissions
and determines you scope 3 categories
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Industry intelligence and peer review are also key


Emission Category Contribution (%)

Emission Category Microsoft Apple Inc. Amazon Alphabet WPP Dentsu Inc
Scope 1 1.0% 0.2% 11.3% 0.5% 0.5% 0.8%
Scope 2 (MB) 2.4% 0.0% 10.7% 6.3% 1.2% 0.8% Scope 3 emissions are
Scope 3 Total 96.7% 99.8% 78.0% 93.1% 98.4% 98.1% consistently the most
significant category
Purchased goods and services 35.9% 75.3% 30.1% 67.9% 58.1% 49.2% across all vendors and
Capital goods 17.9% 0.0% 15.7% 17.2% 1.4% 39.4% peers.
Fuel-and-energy-related activities 1.5% 0.0% n/a n/a 0.3% n/a

Upstream transportation and distribution 0.5% 1.9% 24.3% 3.7% 0.1% 0.4%

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Waste generated in operations 0.0% n/a n/a n/a 0.0% 0.0%
Business travel 3.4% 1.3% n/a 2.9% 1.7% 0.1%
Employee commuting 3.4% 0.8% n/a 1.4% 1.1% 9.0%
Upstream leased assets n/a n/a n/a n/a n/a n/a
Downstream transportation and
0.5% 4.0% 7.9% n/a n/a n/a
distribution
Processing of sold products n/a n/a n/a n/a n/a n/a
Use of sold products 33.1% 16.3% n/a n/a 32% n/a
End of life treatment of sold products 0.6% 0.2% n/a n/a n/a n/a
Downstream leased assets 0.0% n/a n/a n/a 0.0% n/a
Franchises n/a n/a n/a n/a n/a n/a
Investments n/a n/a n/a n/a 4.1% n/a
Total 11.7 million tCO2e 25.1 million tCO2e 51.1 million tCO2e 12.5 million tCO2e 7.7 million tCO2e 600k tCO2e

Note, applicable Scope 3 categories will vary by company depending on business structure
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Scope 3 Data Quality Summary

Low High
Data improvement
priority

1 ~1 year data transformation programme


to improve data quality

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2 3
5 1 Procurement
4 6 7 2 Use of sold products
3 Processing of sold products
8 4 Waste generated in operations
5 Minority investments

5 4 3 2 1 6
7
End of life of sold products
Business travel
8 Employee commuting
Data Quality Score
Size of bubble = magnitude of emissions
Low data quality = estimation using industry or country level data 39
High data quality = verified emissions data from supplier at product/service level
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Simplified GHG measurement process
Emissions generating activities Average ratios for the emissions
across the value chain generated per unit of activity

Activity data x Emissions Factor = Emissions

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Time / Quality / Accuracy

Supplier
Physical
Reported Estimated Spend Average-data Scope 3
Performance improvement
Estimated

Average-
data
Reported Spend Physical Supplier

Reported Physical Supplier

Definitions:
Spend = spend based emission factors e.g. average emissions per monetary value of goods purchased calculated using economic input-output models
Physical = physical emission factors e.g. average emissions per unit/mass of goods purchased
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Average-data = emission factors based on allocated average emissions for particular sector
Supplier = emission factors based on allocated emissions from the particular supplier of the purchased good or service
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How

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Best practice approach: driving towards accurate emissions
factors
Information Scope 3 Analysis
Scope 3 Data Final Data
Request & Data Mapping Report
Screening Reconciliation preparation
Review

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Key success factors:
1. Materiality and business context
2. Target data accuracy and best available emissions factor within each
category
3. Develop targets that are aligned to climate science:
- Option 1: Set SBTs in your Supply Chain
- Option 2: Absolute and Intensity Reductions
*Different methods can be used to calculate emissions from
different Scope 3 categories. These result in varying accuracy 41
of emissions.
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Typical Emissions profile: Scope 3 dominates

Value Chain Emissions Scope 3 emissions

Direct emissions
(Scope 1&2) 8%

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<2%
Cat 1: Purchased
goods and services
Scope 3
>98% 23%

Cat 2: Capital Goods

Emissions baseline with 71%


Scope 3 category
breakdown Total Emissions: 5,760,078 tCo2e
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There are several target methodologies available, we then make a

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recommendation on approach
METHOD SCOPE CRITERIA PROS CONS SBTi Preference
• Transparent and easy for
Reduce absolute emissions by the stakeholders to understand
1. Absolute same percentage to keep global • Only approach that is aligned to
Scope 1, 2 + 3 • Does not consider growth
contraction temperature increase within well 1.5°C
below 2°C or 1.5°C. • Can be converted into an intensity
target

Global carbon budget is divided by • Can’t be used to model 1.5°C


2. Sectoral sector and a physical intensity is used • Reduction in line with your sector targets
Scope 1, 2 + 3

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approach to allocate reductions to individual • Considers growth • Sector pathway not available for
organizations. the hospitality sector

• Can’t be used to model 1.5°C


Reduce emissions intensity per
targets
physical production output that do not • Useful for fast growing companies
3. Physical • Not as ambitious, could come
Scope 3 only result in absolute emissions growth unable to achieve absolute
Intensity under stakeholder scrutiny
and lead to linear annual intensity reductions
• Less transparent than absolute
improvements of 2% at a minimum.
target
• Economic metrics are variable
4. Economic Reduce emissions intensity per value • Uses sensitive information (e.g.
Intensity Scope 3 only added by at least an average of 7% gross profit)
Targets year on year • Not SBTi preferred approach,
considered less robust
Commit to having a specific
• Useful if you are still trying to
percentage of suppliers (as a • Need to be timely in order to
identify levers for more specific
percentage of spend or GHG result in absolute reductions
5. Engagement Scope 3 reduction opportunities
Scope 3 only emissions) with their own SBTs within • Potentially not seen as ambitious
Targets • Can be used to support
five years from the date the by stakeholders if it is the only
company’s target is submitted to the
achievement of absolute reduction
target
target set 43
SBTi for validation
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Target options for Scope 3: Example

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Absolute % Reductions:
Low ambition Medium ambition Leadership
Scope 3 Targets
800,000.00 Intensity 2C Well-below 2C 1.5C

Target Target Target Target


Year
reduction reduction reduction reduction
700,000.00
2022 +5.6 -3.7% -7.5% -12.6%

600,000.00 +13.2% -7.4% -15%


2025 -25.2%

2030 -1.4% -13.5% -27.5% -46.2%


500,000.00
Emissions (tCO2e)

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Intensity % Reductions*:
400,000.00
Intensity 2C Well-below 2C 1.5C

Target Target Target Target


300,000.00 Year
reduction reduction reduction reduction

2022 -9% -16.9% -20.2% -25%


200,000.00
2025 -18% -33.7% -39.3% -47%

100,000.00
2030 -33% -41% -50.7% -63%

- Recommended Target: Commit to reduce Scope 3 emissions


2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
from purchased goods and services, capital goods, upstream
1.5 degrees Well below 2 degrees 2 degrees BAU Physical Intensity transportation and distribution, waste and franchises by 47% by
2030 from a 2019 baseline.

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Target Pathway and De-carbonisation Strategies
Prioritise Reduction Reduction Strategies
Strategies and Initiatives • Energy demand and optimisation
• Supplier engagement/procurement
• Operational efficiency programs
• Raw materials and provenance
• Recycled Content
• Low carbon packaging
• Transport and logistics
1.5ºC Target • Refrigeration
• Product stewardship and new

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sustainable products
• Investment in new technologies
Scope 3 and Supplier program that reduces
emissions gap and potential offset cost
Offset/Inset strategies
• Invest in emission removal projects
within the value chain (insetting)
• Offset residual balance of emissions
through carbon removals

Best Practice is to pursue reduction strategies prior to offsetting.


Marginal abatement cost curves can be used to prioritise initiatives and develop the business case.
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NETWORK RAIL
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CASE STUDY
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Network Rail’s Scope 3 emissions make up


97% of the total footprint

• All 15 GHG Protocol Scope 3


categories have been screened for
Emissions Scope 3

relevance
• Top sources of Scope 3 emissions are:

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o “Use of sold products”, (i.e.
traction power)
o “Capital goods” (i.e. embodied
carbon of capitalised spend)
o “Purchased goods & services”
(i.e. embodied carbon of
operational spend)

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Emissions outside of NR direct operational control


Scope 3 emissions baseline and identification of hotspots

Supply chain
emissions
Emissions Scope 3

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What makes up Network Rail’s Scope 3 hotspots?

Purchased goods & Capital goods Use of sold products,


services i.e. use of network
Emissions Scope 3

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Main spend on: Main spend on: Traction diesel usage from
• General Civils (19%) • Electrification and energy reported by TOCs
• Signalling (19%) Fixed Plant (33%) and FOCs
• Professional Services • Buildings (29%)
Direct (16%) • Track (19%)

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Achieving Net Zero in our Value Chain


Emissions Scope 3

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All suppliers constituting 75% of Network 27.5% reduction of traction diesel
Rail Scope 3 emissions to set emissions
Science-Based Targets by 2030
by 2025

We expect NR’s supply chain emissions to


decrease by roughly 50% if target is met 50
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Break

Use the 'Q&A' functionality to ask questions


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Science Based
Targets – A Case
Study
Ryan Burrows
Sustainability Manager – AECOM
Ryan.Burrows@aecom.com
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Agenda
Starting our Journey
Getting Scope 1 & 2 data
Scope 3 Screening
Setting our targets
Submitting and Communicating our SBTs
Updating our targets & Progress
Lessons Learnt
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Starting Our Journey: Getting Leadership Buy-


in and Assembling the Right People
– Early achievement in 2018 of our 20%
reduction in Scope 1 and 2 emissions by
2020 target
– Proposal developed to explain the case for
setting an SBT for Exec approval
– Received Exec level approval for our
commitment to setting an SBT in
September 2018
– Established SBT Technical Working Group
from across the globe to understand work
required in mid-2019 (we have global teams
who do this work for clients)
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Getting Scope 1 & 2 Data: Primary Data and Estimates

Scope 1: Fleet vehicles


– Primary data gathered from our fleet
managers and external providers (distance
travelled and fuel usage)
– Gaps estimated using average mileage and
vehicle types
Scope 2: Office energy use
– Primary data gathered from our facilities
managers and energy brokers (energy usage
from meter data and bills)
– Gaps estimated using emissions factors and
floor area (need to estimate due to lack of
visibility over usage in rented offices)
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Scope 3 Screening: Do it Early and High Level


– Screening undertaken using GHG Protocol, SBTi
guidance and Scope 3 Evaluator Tool
– Most information can be estimated using Scope 3
Evaluator Tool
– Should be supplemented with real data as much as
possible e.g. Travel team data from external
partners, Global Commuter Survey
– Many of the downstream Scope 3 elements were
deemed to be out of Scope for us as a consultancy
that sells services rather than goods or products,
although we have chosen to separately address
this as it is significant 100% 90.19%

– Screening showed by far the biggest elements were 80%


in purchased goods and services & capital goods 60%
(supply chain) 40%
– Due to the significance of our Scope 3 and supply 20% 4.55%
0.30% 1.47% 0.37% 0.04% 2.41% 0.69%
chain emissions we needed to set a target and it 0%
could be exclusively on supply chain emissions
– Decided to go for absolute rather than intensity
targets, due to our supply chain composition
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Setting our Targets: Use the Tools and Get Going


– Scope 1 & 2 Target: 20% reduction in absolute Scopes 1 and 2 GHG emissions by 2025 from a
2018 baseline
– Scope 3 Target: 10% reduction in emissions from our supply chain by 2025, compared with
2018 levels
Services / Commercial Buildings

Base year Target year


Variation
2018 2025
Scope 1 emissions (tCO2e) 21,660.00 19,009.37 -12%
Scope 2 emissions (tCO2e) 125,849.00 103,124.58 -18.1%
Scope 1+2 emissions(tCO2e) 147,509.00 122,133.95 -17%
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Submitting and Communicating our SBTs: Make a Splash

– Two targets submitted for approval to SBTi


in September 2019
– Official validation received from SBTi in
November 2019
– Communication of targets externally and
internally
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ESG Strategy: Stepping up our Ambitions

With ESG principles embedded into everything we do, the goal of our Sustainable Legacies strategy is straightforward: to ensure that the work we do in partnership
with our clients leaves a positive, lasting impact for communities and our planet.

Embed sustainable
development and Improve Achieve net-zero Enhance
resilience across social outcomes carbon emissions governance
our work

o To incorporate an ESG action plan for reducing o To deliver social value through our business, o To ensure we are operationally net-zero by the o To develop an enterprise framework to assess
carbon impact by at least 50 per cent on all empowering staff and delivering projects that end of 2021 ESG risk in potential projects
major projects (our 'ScopeX™’ process) proactively improve social value outcomes to o To reach science-based net-zero by 2030 by: o To drive leadership accountability and advocacy
o To develop and grow our dedicated ESG and individuals, communities and society in general through specific ESG goals / metrics in annual
o Implementing a 50 percent reduction in
sustainable services each year o To ensure our project teams reflect the diversity business travel goals
o To work with clients and partners to drive of the clients and communities we serve o To track and report on ESG performance targets
o Developing carbon reduction targets in
innovation in climate change, sustainable design o To promote social equity, diversity and inclusion partnership with our supply chain in line with leading industry benchmarks (i.e.,
and social value in our supply chain and communities through Sustainability Accounting Standards Board
o Decarbonizing all fleet vehicles and
o To embed net-zero, resilience and social value partnerships with small and minority-owned [SASB] and Task Force on Climate-related
switching to renewable energy tariffs
targets into our client account management businesses Financial Disclosures [TCFD])
o Offsetting residual carbon by creating
program and the work we bid for o To make strategic community investments that
our own nature-based solution projects
o To measure key impacts such as carbon positively impact clients, communities and
emissions, climate resilience and social value on society
major projects o To ensure women comprise at least 20 percent
of senior leadership roles and at least 35
percent of the overall workforce

ESG summary deck April 2021


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What are our New Net Zero Targets?


Science Based Net Zero by 2030: Halve our emissions across our value chain by 2030 compared with 2018, and
carbon offset the remainder every year from then. This is our most significant long term target, meaning reducing and
neutralising millions of tonnes of GHG emissions.

Operational Net Zero by 2021: Be on track with science based net zero reductions for our operations (fleet vehicles,
purchased energy and business travel) at the end of 2021 (4% annual reduction), and carbon offset the remainder
every year from then. This allows us to make additional positive climate impact on the way to science based net zero.

Illustrative example of Progress to date:


AECOM route to net zero • Well on track to meeting both targets
• Updated to 1.5C SBT in line with
what science requires
• Target to be validated as a net zero
SBT later in the year

• Supply chain data improvement:


Contract signed with TruCost and
reduced unclassified spend data
• Supplier RFI being developed and
Pilot RFI issued to suppliers (24
DCS, 59 CM)
• Developing Net Zero Roadmap
• Fast Forward Program and Travel
with Purpose
• Working with our landlords
• Offsetting proposals received

N.B. The offsetting amounts are an approximation, and we may end up offsetting more on the way to science based net zero
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Lessons Learnt
– Getting leadership buy in is crucial
– Assemble the right people (operational and
technical)
– Read the resources and use the tools, they’re useful
and not too complicated
– Screen your Scope 3 emissions early
– Estimate data if you don’t have it – don’t let perfect
get in the way of good!
– Get going with a target, and if necessary update
after
– SBTs are a powerful tool to motivate action, and as
best practice seal of approval
– When communicating your targets make it relevant
to people
– If you need more help to set and achieve SBTs / Net
Zero there is help available including at AECOM Putting Targets into Action:
Nottingham Low Carbon Office Pilot
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Thank you.
Ryan Burrows, Sustainability Manager
Ryan.Burrows@aecom.com
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Panel Q&A
Name Role Organisation
Ivan Le Fevre Head of Environment Highways England

James Ingram Senior SHE Environment Manager Transport for London

Matthew Galvin Responsible Procurement Manager Transport for London

Peter Miller HS2 Environment Director HS2

Olwen Smith Regional Lead SBTi


Danielle Mulder Director Carbon Intelligence
Ryan Burrows Sustainability Manager AECOM
Principal Consultant – Climate Change and Sustainability
Hayley Maynard AECOM
Services
Roger Maybury Supplier Management Director Network Rail
Emmanuel Deschamps Head of Environmental & Sustainability Development Network Rail
Jamie Shaw Low Emission Strategy Lead Network Rail

If we do not get to answer your question today, we will follow up with you with the answer or alternatively please feel free to submit
your questions to ScienceBasedTargets@networkrail.co.uk or Neil.Wait@hs2.org.uk or SMBEnvironment@tfl.gov.uk
OFFICIAL

1st & 2nd Workshop Recording & Documents will be uploaded to:
https://www.networkrail.co.uk/industry-and-commercial/supply-chain/

3rd Workshop – September 2021, Date TBC

We will be issuing a questionnaire shortly after the workshop. If you could please complete this, then we
would be greatly appreciate feedback/ideas for future workshops!

If you have any further questions, then please send them to:
ScienceBasedTargets@networkrail.co.uk
Neil.Wait@hs2.org.uk
SMBEnvironment@tfl.gov.uk

Thank You

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