Many of our clients and industry colleagues are in the midst of defining their sustainability strategy for 2016-2020. An important component of this work is setting targets, and this is particularly important because:
- 1 in 5 FTSE 100 companies have carbon targets that expired in 2015
20% of FTSE 100 companies have targets that ended in 2015. Our work with clients tells us that this trend extends well beyond the FTSE. So, what now? 2016 looks to be a pivotal year for getting your sustainability strategy right. To ensure business sustainability in a post COP 21 world, your business needs to set accurate and aggressive targets in conjunction with a well-developed strategy.
- There are extra points available for setting Science Based Targets in the CDP Climate Change Questionnaire 2016
CDP has increased the performance score in 2016 for the targets question, with maximum points given if a company has a Science Based Target. There was much discussion around what targets based in climate science actually looked like at our CDP Breakfast Briefing last week. Indeed, we are helping a number of companies at the moment to navigate how to set ‘top down’ targets aligned with climate science and what we collectively need to do to limit the impacts of climate change.
- Renewable energy strategy is in the spotlight
Changes to the GHG Protocol require a new approach to accounting for Scope 2 emissions, which is a pain for many of our clients, but it also presents an opportunity to reduce Scope 2 emissions by sourcing renewable energy certificates. In the past, companies opting for renewable energy procured it as a bundled product from their electricity supplier; electricity supplied alongside certificates to prove the renewable nature of the electrons. Now, there is a better way, with more control offered to you, better pricing and an easier route to sign-off. By sourcing your electrons from the electricity supplier, and your renewable certificates from the market, you get a superior product at the same or better pricing.
- Water rises up the corporate agenda
If your business operates in the fast moving consumer goods, agricultural, hospitality or power sector it’s likely that water usage will be central to your operations. Rising concerns about water resource scarcity mean that companies with high water use need to monitor their operations and supply chains to ensure the risks to their business model associated with water are effectively managed. To do so, companies must set robust targets and a realistic strategy to achieve their goals.
Are you exploring any or all of these themes at the moment? If so, we’d love to hear from you.
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