Science Based Targets - Transition to Low Carbon Economy

What is the issue?

Science Based Targets, an environmental initiative, could go a long way in driving companies to contribute to tackling climate change.

What is 'Science Based Targets'?

Science Based Targets is a joint initiative of CDP, the UN Global Compact (UNGC), the World Resources Institute (WRI) and WWF.
It is an initiative to drive corporate climate actions globally.
It sets emissions reduction targets to ensure that the transformational action is aligned with current climate science.
It is 'science-based' as it is in line with the scale required to keep global temperature increase below 2°C compared to pre-industrial temperatures.
‘Science-based target setting’ is a way of boosting companies’ competitive advantage in transition to a low-carbon economy.

What is the rationale?

What is the significance?

India - India has committed to generate at least 40% of its electricity from non-fossil fuel sources.
A decrease in carbon emission intensity of GDP by 33 to 35% by 2030 has also been committed.
Indian companies and multinationals operating in India have a major role in this.
Sixteen Indian companies have committed to set science-based targets.
They have secured themselves competitive advantage in the transition.
Some of the world’s biggest companies with significant supply chains in India have also committed.
These include Kering, Walmart and others.

Global - Unique to the initiative is the criterion that companies need to commit to setting supply chain or ‘scope 3’ targets.
If more than 40% of a company’s emissions occur in its supply chain, then it has to commit to reducing those emissions as well as its direct emissions.
Notably all companies operate within a value chain.
This has the potential to rapidly escalate the impact of science-based target setting on global emissions.

Source: Business Line