Science-Based Target Pathway: Understanding Corporate…

What is the Science-Based Target Pathway?

The science-based target (SBT) pathway is a method for setting greenhouse gas emission reduction targets that are in line with the goals of the Paris Agreement. It ensures that companies contribute to limiting global warming to well below 2°C, and preferably to 1.5°C above pre-industrial levels. The SBTi (Science-Based Targets initiative) provides guidelines to ensure these targets are ambitious enough.

The pathway typically involves a corporate carbon budget, which is the total amount of greenhouse gases that can be emitted over time while staying within the global carbon budget necessary to meet climate goals.

How Does the E(t) = E0(1-r)^t Equation Work?

The equation E(t) = E0(1-r)^t represents the corporate emissions over time, where E(t) is the emissions at a given year t, E0 is the initial baseline emissions, and r is the annual reduction rate. This exponential decay model helps companies plan their decarbonization efforts by setting specific emission targets for each year.

By adjusting the abatement effort slider in the simulator, users can see how different rates of emission reductions impact the company's carbon footprint over time.

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Cumulative Carbon-Budget Phase Diagram

The cumulative carbon-budget phase diagram shows the relationship between the budget allowed and the budget used. The diagonal line represents a company’s science-based net-zero pathway, indicating where it should be on its emissions reduction journey to meet its targets.

Companies can use this tool to visualize their progress and make informed decisions about future emission reductions.

Why is This Important for Corporate Sustainability?

Achieving net-zero emissions by 2050 or sooner is crucial for mitigating the worst impacts of climate change. The SBTi pathway helps companies ensure their decarbonization efforts are aligned with global goals, providing a clear roadmap to sustainability.

By using this simulator, businesses can better understand and communicate their environmental impact, fostering transparency and trust among stakeholders.

Frequently asked questions

What is the difference between 1.5°C and well-below-2°C SBTi pathways?

The 1.5°C pathway sets more stringent emission reduction targets, aiming for a lower global temperature rise compared to the well-below-2°C pathway, which still requires significant reductions but allows for slightly higher emissions.

How does the abatement effort slider affect corporate emissions?

The abatement effort slider adjusts the rate at which a company reduces its emissions. Higher values indicate more aggressive emission reduction strategies, leading to faster decreases in emissions over time.

What is the significance of the diagonal line on the phase diagram?

The diagonal line represents the science-based net-zero pathway for the company. It shows where a company should be on its decarbonization journey if it wants to meet its SBTi targets and align with global climate goals.

Can companies use this simulator for any industry?

Yes, while specific industries may have unique challenges and opportunities, the principles of setting science-based targets apply broadly across all sectors. The simulator can be adapted to different contexts by adjusting baseline emissions and abatement efforts accordingly.

Try it live

Everything above runs in your browser — open Science-Based Target Pathway: Carbon Budget Phase Diagram and change the parameters while it is running. Nothing is installed, nothing is uploaded, the whole model lives in one tab.

▶ Open Science-Based Target Pathway: Carbon Budget Phase Diagram simulation

Science-Based Target Pathway: Understanding Corporate Decarbonization