CDP Climate Change 2022 Reporting Guidance

(C4.2c) Provide details of your net-zero target(s).

Question dependencies

This question only appears if you select “Net-zero target(s)” in response to C4.2.

Change from last year

Modified question

Rationale

Reaching net-zero emissions at the global level is a central goal of the climate action movement. Corporate net-zero targets are a powerful opportunity for companies to go beyond science-based emissions reductions by also contributing to CO2 removal from the atmosphere and accelerating climate action outside their value chains. This question provides investors and other data users with transparency on your organization’s commitment to achieving net-zero emissions.

Connection to other frameworks

NZAM (FS only)

General Commitment

Response options

Please complete the following table:

[Add Row]

Is this a science-based target? drop-down options:

• Yes, and this target has been approved by the Science Based Targets initiative
• Yes, we consider this a science-based target, and the target is currently being reviewed by the Science Based Targets initiative
• Yes, we consider this a science-based target, and we have committed to seek validation of this target by the Science Based Targets initiative in the next 2 years
• No, but we are reporting another target that is science-based
• No, but we anticipate setting one in the next 2 years
• No, and we do not anticipate setting one in the next 2 years

Requested content

Target reference number (column 1)

• Select a unique target reference from the drop-down menu provided to track progress against this target in subsequent reporting years.

Target coverage (column 2)

• If the target applies to the whole company, select “Company-wide”. Note that “company” refers collectively to all the companies, businesses, organizations, other entities or groups that fall within your definition of the reporting boundary.
• [Financial Services only] Some of the target coverage options shown are driven by the organizational activities you selected in C-FS0.7
• If the target does not apply to the whole company, select the option that best describes the coverage of the target, and provide further details in the “Please explain target coverage and identify any exclusions” column; for example, if your target applies only to your European operations, select “Country/region” in this column and specify the country/region in the column “Please explain target coverage and identify any exclusions”

Absolute/intensity emission target(s) linked to this net-zero target (column 3)

• If the target is linked to an emission reduction target(s) reported in C4.1a or C4.1b, select the relevant target reference number(s) here.
• [Financial Services only] If the target is linked to a portfolio target(s) reported in C-FS4.1d, select the relevant target reference number(s) here.
• You should generally be reporting an absolute/intensity emission target linked to your net-zero target, since ambitious near-term emissions reductions comprise the most important component of any net-zero target. However, if you have not reported any emission reduction targets in C4.1a or C4.1b that are linked to this net-zero target, please select “Not applicable” and explain why you are not reporting any linked emission targets in the column “Please explain target coverage and identify any exclusions”.

Is this a science-based target? (column 5)

• Please refer to the SBTi’s Net-Zero Standard for what qualifies as a science-based net-zero target and how to assess your target against the SBTi’s Net-Zero Standard Criteria.
• Yes, and this target has been approved by the Science Based Targets initiative – Companies are very strongly encouraged to have their net-zero targets officially evaluated by the Science Based Targets initiative (SBTi). CDP considers net-zero targets approved by the initiative to reflect best practice in science-based net-zero target setting. Select this option only if the net-zero target has been approved by the SBTi.
• Yes, we consider this a science-based target, and the target is currently being reviewed by the Science Based Targets initiative – If your company has set a net-zero target and has self-assessed it to be science-based, and it has been submitted it to the SBTi for validation and is currently being reviewed by the SBTi, you should select this option. You should use the “Please explain target coverage and identify any exclusions” column to explain why you believe your net-zero target to be science-based.
• Yes, we consider this a science-based target, and we have committed to seek validation of this target by the Science Based Targets initiative in the next two years – If your company has set a net-zero target, has self-assessed it to be science-based and intends to submit it to the SBTi for validation in the next two years, you should select this option. You should use the “Please explain target coverage and identify any exclusions” column to explain why you believe your net-zero target to be science-based. If you are currently in the process of revising your net-zero target to meet the SBTi’s Net-Zero Standard Criteria, indicate this by selecting “No, but we anticipate setting one in the next 2 years.
• No, but we are reporting another target that is science-based – Another net-zero target disclosed in a different row in this table is science-based.
• No, but we anticipate setting one in the next 2 years – While not necessary, it is recommended that the company publicly state this by submitting a Science Based Target initiative commitment letter.
• No, and we do not anticipate setting one in the next 2 years – No science-based net-zero targets have been set and there are no plans in place to set one in the next 2 years.

Please explain target coverage and identify any exclusions (column 6)

• If the target does not apply to the whole organization (i.e. the target coverage is not “Company-wide”), provide further details of your target coverage in this column; for example, if you have selected “Country/region” in column 2, please specify which countries/regions your target covers.
• If you have self-assessed your net-zero target to be science-based but it has not been approved by the SBTi, please explain why you consider your target to be science-based.
• If you have not reported any emission reduction targets that are linked to this net-zero target, please explain why not.

Do you intend to neutralize any unabated emissions with permanent carbon removals at the target year? (column 7)

• Although most companies will reduce emissions by at least 90% through their emissions reduction targets, some residual emissions may remain at the target year.
• Indicate whether your organization intends to neutralize these unabated emissions through the permanent removal and storage of carbon from the atmosphere when the net-zero target year is reached. See “Explanation of terms” for more information.

Planned milestones and/or near-term investments for neutralization at target year (column 8)

• This column is only presented if “Yes” is selected in column 7.
• Indicate the magnitude of emissions that you plan to neutralize in the net-zero target year, and describe any planned milestones and/or near-term investments that demonstrate the integrity of your commitment to neutralize unabated emissions in the target year.
• For example, you may be investing or planning to invest into carbon dioxide removal and storage technologies (e.g. Direct Air Capture) in the near-term.

Planned actions to mitigate emissions beyond your value chain (optional) (column 9)

• In addition to any neutralization actions described in column 8 (if applicable), describe any actions your organization has taken in the reporting year, or plans to take between the reporting year and net-zero target year, to accelerate the net-zero transition beyond your organization’s value chain. See “Explanation of terms” for more information.
• For example, your organization may be purchasing high quality REDD+ carbon credits that will support countries to achieve their Nationally Determined Contributions (NDCs) in the long-term.
• If you do not plan to mitigate emissions beyond your value chain as part of your net-zero target, you may leave this column blank.

Explanation of terms

• Net-zero target: the SBTi Net-Zero Standard defines corporate net-zero as:
  1. reducing Scope 1, 2 and 3 emissions to zero or to a residual level that is consistent with reaching net-zero emissions at the global or sector level in eligible 1.5°C scenarios or sector pathways and;
  2. neutralizing any residual emissions at the net-zero target date and any GHG emissions released into the atmosphere thereafter.
• Neutralization: Measures that companies take to remove carbon from the atmosphere and permanently store it to counterbalance the impact of emissions that remain unabated. Neutralization can occur using removals within or beyond the value chain. (Adapted from the SBTi Beyond Value Chain Mitigation FAQ).
• Beyond value chain mitigation: Mitigation action or investments that fall outside of a company’s value chain. This includes activities that avoid or reduce greenhouse gas emissions, and those that remove and store greenhouse gases from the atmosphere. Examples include purchasing high quality, jurisdictional REDD+ carbon credits that support countries in raising the ambition on and, in the long-term, achieving their nationally determined contributions, or investing in carbon dioxide removal (CDR) technologies such as direct air capture (DAC) with geological carbon storage. (Adapted from the SBTi Beyond Value Chain Mitigation FAQ)

Additional information

The Science Based Targets initiative has developed a standard for corporate net-zero targets, to ensure that companies’ net-zero targets translate into action that is consistent with achieving a net-zero world by no later than 2050.