Establish the Foundations of a CTAP

The below guidance from EDF aligns with other key frameworks in the ecosystem, including Ceres’ Blueprint for Implementing a Leading Climate Transition Action Plan and the TPT Disclosure Framework.  

Step 1: Calculate and publicly disclose Scope 1, 2, and 3 emissions   

Measuring your emissions is the first step towards setting and achieving net zero targets. This process, often referred to as emissions accounting, involves quantifying the amount of greenhouse gases your organization produces and identifying where in your operations they are produced. The greenhouse gases (GHGs) measured typically include carbon dioxide (CO₂), methane (CH₄), nitrous oxide (N₂O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexafluoride (SF₆) and nitrogen trifluoride (NF₃). To provide consistent and comparable measurements, greenhouse gases are converted to carbon dioxide equivalent (CO₂e).  

A company’s total quantity of emissions is referred to as its carbon footprint or emissions inventory. By identifying the sources of your company’s emissions and collecting data on the quantity of emissions produced, you can set a baseline and determine the next steps to reduce your footprint.  

Compiling your emissions inventory: 

1. Define organizational boundaries: Companies have complex business structures, including subsidiaries, joint ventures, franchises, etc. Decide which aspects of your company operations should be included in your inventory. 
2. Define operational boundaries: Determine which emissions sources should be included in your inventory, and how those should be categorized to avoid double-counting.  
3. Set a base year to compare and track emissions: By selecting a base year, you can compare emissions footprints year to year and demonstrate progress over time.  
4. Track emissions over time: select a calculation approach, collect data, and choose emissions factors. Important equations to keep in mind include: 

Some things to keep in mind as you develop your inventory: 

• Relevance: inventory boundaries must include material information for internal and external decision-making. 
• Completeness: inventories must account for all emissions within the chosen boundaries  
• Consistency: inventories must include standardized, comparable data. 
• Transparency: document data in a clear, factual, and accessible manner with references for methodologies and sources.  
• Accuracy: ensure data is credible enough for informed decision-making.  

After you calculate your carbon footprint, it is then important to publicly disclose this information to increase transparency and to help stakeholders make informed decisions. Many companies submit their emissions data to CDP. Companies also typically make their Scope 1, 2, and 3 emissions available on a public-facing website and/or in an annual sustainability or climate report. When you disclose and communicate about your carbon footprint, it is important to include information on your goals and priorities, the scale of your inventory, base year, calculation methodologies, data outputs, and justification for any omissions.   

For more information on emissions accounting, visit the NZAA’s “Measure Emissions” pathway, or refer to the Greenhouse Gas Protocol’s Corporate Standard or Corporate Value Chain (Scope 3) Standard. For country- or sector-specific tools, refer to GHGP’s calculation tools and guidance. 

Step 2: Set and publish a near- and long-term 1.5°C-aligned emission reduction target 

Once you have calculated your emissions, your company is ready to set science-based targets. While pathways vary by industry and sector, Paris Agreement-aligned emissions targets generally require companies to halve emissions by 2030 and reach net zero by around 2050 at the latest. These targets will be your north star as you create your climate transition action plan.  

Near-term targets can serve as intermediate steps toward reaching your long-term targets. Many companies choose to set both their near-term and long-term targets with SBTi because their verification process is globally recognized and utilized across the corporate sector. See SBTi’s step-by-step guide for in-depth guidance on developing near-term targets across Scopes 1, 2, and 3. 

Verifying your targets instills confidence in your emissions reduction plan, enhances credibility with government and corporate partners, drives innovation, and sets the foundation for increasing ambition. To verify a target through SBTi, companies must submit a letter of commitment to aligning emissions reduction targets to 1.5°C, after which they have 24 months to develop and submit targets in line with SBTi’s science-based criteria. Following submission, companies must announce their targets publicly, inform stakeholders, and disclose emissions annually to track progress. 

For more information, visit the NZAA’s “Set Science-Based Goals” pathway or refer to SBTi’s step-by-step guide for in-depth guidance on developing targets across scopes 1, 2, and 3. 

Following this Action Step, we recommend you move onto Action Step 2: Create an Emissions Reduction Strategy for detailed guidance on developing a roadmap to reducing emissions. 

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