With climate change an ongoing threat, Government and business are focused on decarbonisation, but how can organisations set realistic and attainable decarbonisation targets and make a real contribution to climate action? What standards can they apply?
Decarbonisation is a global priority for mitigating climate change, says Derarca Dennis, EY Ireland assurance partner and sustainability services lead. “The European Union and Ireland have set ambitious decarbonisation targets.
“At the EU level, the European Green Deal aims to make Europe climate neutral by 2050. This ambitious goal has been supported by individual member states, including Ireland. Ireland has committed to reducing its greenhouse gas (GHG) emissions by 51 per cent by 2030 compared to 2018 levels, and to achieving net-zero emissions by 2050.”
Dennis says the ambitious decarbonisation targets set by the Government present challenges and opportunities for organisations. “To align with the Government’s decarbonisation goals, organisations must reduce their GHG emissions by setting ambitious yet achievable targets, increasing energy efficiency, reducing reliance on fossil fuels and taking steps to transition to cleaner energy sources, and improved resource circularity,” she adds.
Organisations can set informed and effective decarbonisation targets by first conducting a carbon baseline assessment, “accurately quantifying the organisation’s GHG across their operations and value chain”.
“This is calculated into three scopes (Scope 1, 2 and 3) and provides a foundation for understanding the organisation’s emissions profile and identifying their primary sources of emissions.
“Benchmarking against industry peers can help organisations gain valuable insights into successful decarbonisation strategies and initiatives. This can also present opportunities for sector-combined collaborations.”
Assessing internal capabilities is essential to setting a realistic and attainable decarbonisation target, says Dennis, adding: “It ensures resourcing, feasibility and facilitates support to drive the development of a decarbonisation roadmap, ensuring specific actions are assigned to appropriate individuals with agreed timelines and across different functional units within the organisation.
“Regular monitoring and tracking of performance to targets is crucial to maintaining progress and managing risk. By following these steps, organisations can start to effectively contribute to climate action through their decarbonisation efforts.”
Setting effective decarbonisation targets requires a structured approach; organisations can apply various frameworks and standards to guide their efforts, says Dennis.
“The GHG Protocol provides a standardised methodology and guidance for organisations to calculate the carbon footprint accurately,” she says.
“The Science-Based Targets initiative (SBTi) offers guidance on setting ambitious targets aligned with climate science. The Carbon Disclosure Project (CDP) enables organisations to measure, manage, and disclose their environmental impact.”
The Task Force on Climate-Related Financial Disclosures (TCFD) provides a structured approach for organisations to assess and manage climate-related risks and opportunities, which can support their decarbonisation efforts. By understanding and addressing these financial implications, organisations can make informed decisions and allocate resources effectively to achieve their decarbonisation goals, Dennis explains.
“Additionally, ISO 14064 offers guidance on quantifying and reporting greenhouse gas emissions. It can be used by organisations of all sizes to establish a robust emissions management system.”
The climate-change-related disclosure requirement of European Sustainability Reporting Standards (ESRS) under the Corporate Sustainability Reporting Directive (CSRD) represents a step towards greater transparency and accountability for the organisation’s climate-related activities, says Dennis.
“In-scope organisations are required to disclose detailed information about their Scope 1, 2 and 3 GHG emissions, along with their decarbonisation targets and strategies.”
A range of resources is available in the market where organisations can access expertise and support to set and achieve effective decarbonisation targets, including specialist advisers, government agencies, NGOs, and online resources such as GHG Protocol, CDP, SBTi, Future Planet and Change by Degrees, to name but a few, says Dennis.
Aoife O’Donnell, head of sustainability at Jones Engineering, points out that the construction and engineering industry is responsible for a significant portion of global GHG emissions, especially through building materials and energy consumption.
“We recognise, as a company, the critical need to decarbonise and we have made it a priority to reduce our emissions across our operations and supply chain, including engaging with our clients and our suppliers in decarbonisation efforts,” says O’Donnell.
Jones Engineering has committed to reducing Scope 1 and 2 GHG emissions by 50.4 per cent by 2032 from a 2022 baseline, she adds.
“We’ve also set a Scope 3 GHG emission reduction target of 50.4 per cent within the same time. Our targets have been approved by the SBTi and form part of our broader sustainability strategy.”
To set its decarbonisation targets, Jones conducted a thorough baseline assessment of its emissions associated with their value chain and operations, identified key emission hotspots, and used the Science-Based Targets initiative decarbonisation pathways to ensure that their targets aligned to a 1.5 degrees pathway, says O’Donnell.
“We have developed a decarbonisation plan in collaboration with key stakeholders around the business. This sets a clear pathway for us to achieve our targets.”