Get Over Being Overwhelmed - How to Simplify the Creation and Tracking of Your Carbon Reduction Targets
Over 3,000 companies have committed to a Science Based Target or carbon reduction target and over 30% of the Fortune Global 500 have committed to a carbon reduction initiative. This is great news for environmental sustainability nerds like me, and also reflects the fact that companies are facing increasing investor and regulatory pressures – hoping to mitigate climate-related risk for their operations. As disclosure requirements become solidified, companies are now trying to get ahead of significant changes on the horizon.
According to Harvard Business Review, about 90% of companies in the S&P 500 now issue some form of environmental, social, and governance (ESG) report, almost always including an estimate of the company’s GHG emissions. However, setting and tracking a carbon reduction target is not intuitive. It historically has been time consuming, manual and heavily relies on estimations.
To help reduce any frustration with setting a carbon reduction target, we are excited to announce Persefoni’s Climate Trajectory Modeling (CTM), an add-on module to our core Climate Management Platform. CTM simplifies the process of developing a Science Based Target (SBTi) or a custom reduction target at a corporate level or investment portfolio level.
With Climate Trajectory Modeling, companies can:
Create Different Target Scenarios by selecting the criteria you would like to model to better understand which target aligns with your company’s overall business strategy
Compare Target Goals and Timelines by leveraging insights within CTM to better understand what the main differences are between the target criteria you’ve created
Determine Target by evaluating the criteria you’ve input and utilizing the projected path visual to select which target fits your company’s needs the best
Track and Measure Target by utilizing the specific graphs to see if you are on pace to achieve your corporate target and/or how your investments contribute to your total carbon footprint
From 2010 to 2021, there has been a 23-fold increase in the amount of Fortune Global 500 companies making public carbon reduction commitments or actions. Even though there has been a dramatic increase, the historical process of setting a target is complicated, time consuming and downright overwhelming.
Whether a company is in the beginning stages of setting a target or if it has already committed to one, the universal questions typically asked are”How do we start and what do we do?”, “How do I measure progress to my goal?”, and “Are we on pace to achieve our target?”
Once a company has identified and collected the right data, and calculated its carbon footprint, the next 2 steps are to determine which carbon reduction target is best aligned to its business strategy and track & measure progress towards its target. Below are the 6 key steps in a customer’s decarbonization journey.
Climate Trajectory Modeling simplifies the process of developing a Science Based target (SBTi) or a customer reduction target and helping you understand your pace toward target as well as how your investments impact your footprint - we sustainability nerds hope to see that the number of companies committing to a carbon reduction target growing well past 3,000 in the coming years.
To learn more about Climate Trajectory Modeling, please click here.
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Persefoni is a leading Climate Management & Accounting Platform (CMAP). The company’s Software-as-a-Service solutions enable enterprises and financial institutions to meet stakeholder and regulatory climate disclosure requirements with the highest degrees of trust, transparency, and ease. As the ERP of Carbon, the Persefoni platform provides users a single source of carbon truth across their organization, enabling them to manage their carbon transactions and inventory with the same rigor and confidence as their financial transactions.