Professional Documents
Culture Documents
Welcome
Roger Maybury | Supplier Management Director, Commercial &
Procurement, Network Rail
Agenda
Break 11:00am
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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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
https://ghgprotocol.org
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STANDARD ROUTE:
LARGE COMPANIES
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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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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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Contraction Convergence
● 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.
Scopes 1 and 2
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+ +
1 2 3 4 5
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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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● 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
KEY RESOURCES
TARGET-SETTING SUPPORT
/science-based-targets info@sciencebasedtargets.org
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Who we are
carbon.ci
Carbon Intelligence
Intelligence
Carbon
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
Intelligence
Carbon
Scope 3
- TCFD, CDP, SECR etc.
• Policy and regulatory changes –
- UK Govt (Net Zero by 2050) , EU Taxonomy
How
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Our Scope 3 Methodology
1. Scope 3 2. Scope 3
3. Scope 3 Target 4. Scope 3
Intelligence
Carbon
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
Scope 3 Defined
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GHG Accounting: Scope 3 Emission Categories
Intelligence
Carbon
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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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
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Carbon
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
Intelligence
Carbon
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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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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Low High
Data improvement
priority
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Carbon
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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carbon.ci
Simplified GHG measurement process
Emissions generating activities Average ratios for the emissions
across the value chain generated per unit of activity
Intelligence
Carbon
Time / Quality / Accuracy
Supplier
Physical
Reported Estimated Spend Average-data Scope 3
Performance improvement
Estimated
Average-
data
Reported Spend 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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Direct emissions
(Scope 1&2) 8%
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Carbon
<2%
Cat 1: Purchased
goods and services
Scope 3
>98% 23%
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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
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Carbon
approach to allocate reductions to individual • Considers growth • Sector pathway not available for
organizations. the hospitality sector
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Absolute % Reductions:
Low ambition Medium ambition Leadership
Scope 3 Targets
800,000.00 Intensity 2C Well-below 2C 1.5C
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Carbon
Intensity % Reductions*:
400,000.00
Intensity 2C Well-below 2C 1.5C
100,000.00
2030 -33% -41% -50.7% -63%
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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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Carbon
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
Intelligence
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NETWORK RAIL
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CASE STUDY
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relevance
• Top sources of Scope 3 emissions are:
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Carbon
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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Supply chain
emissions
Emissions Scope 3
Intelligence
Carbon
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What makes up Network Rail’s Scope 3 hotspots?
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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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Intelligence
Carbon
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
Break
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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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
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.
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
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
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1st & 2nd Workshop Recording & Documents will be uploaded to:
https://www.networkrail.co.uk/industry-and-commercial/supply-chain/
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