J )(c0" R%zH$Hi$dw2bT}asls xJ J2tBUJ5jhb7[A{5vbaS>v I3R"\.qpc 5,*OFa"hiD63npa;+/ v3D*jDShX4.Pz&9e-Nu/3yq9'NuX}/bINMSV!Q3 ~$^9 Companies may in this regard refer to the Norwegian example for guidance on scope and level of Adaptations In case of an adaptation of this work, the following disclaimer must be added along with the attribution: This is an adaptation of an original work by the International Labour Office (ILO). Energy use is the major contributor to GHG emissions in the textile and garment sector. For example, 1kg of methane can be expressed as 25kg CO2e. The physical or economic intensity approaches can also be used, but the targets must not result in absolute emissions growth and must lead to linear annual intensity improvements equivalent to the absolute contraction targets. One of the biggest challenges is establishing the boundaries for your Scope 3 data; determining which emissions categories, and which suppliers / data types within each you will report. These results are consistent with a Swedish study based on emissions from six types of garments, which found wet treatment (dyeing and finishing processes) accounted for the largest portion of emissions (23.5 per cent), followed by fibre production (16.3 per cent), confectioning (cutting and sewing) (15.6 per cent) and fabric production (14.1 per cent) (Sandin et al. For example, you might already have data on purchased goods and services in your organizations accounting system, or you might be able to source data directly from your suppliers. 2014. The Private Securities Litigation Reform Act of 1995 (the Reform Act) provides a safe harbor for forward-looking statements, so long as (1) those statements are identified as forward-looking, and (2) the statements are accompanied by meaningful cautionary statements that identify important factors that could cause actual results to differ materially from those Envizi provides a flexible data structure to enable large organizations to easily set and change reporting boundaries, ensuring your GHG emissions calculations stay up to date as your organization changes. H&M Group. Well dressed? The Paris Agreement sets out to limit global warming to less than 2 degrees above pre-industrial levels, with the preferable target of 1.5 degrees. <> The SBTi recommends that each company makes their own determination about the appropriateness or necessity of recalculating base year emissions, but if this decision is made, companies must resubmit relevant targets to the SBTi using our resubmission process as detailed in the SBTi Target Validation Protocol. More guidance is detailed in C23 on the 50% revenue threshold for companies with fossil fuel activities. Measure and reduce scope 3 emissions. 1 0 obj We continually update our software in line with customer needs to ensure they stay ahead. The studies discussed above all found that transport is not a significant consumer of energy, with estimates of 16 per cent of the value chain. 2019). End-of-life treatment of sold products bL+8:1h. Investments. (/JPy -3diYpn&J(SnNB)HFK s!HA E4LW,V3 J Y>sH$]J>3te)/z However, so far there are only 14 companies with approved targets and 34 others that have committed to set targets. An LCA is referred to as cradle-to-grave if it includes the full product life cycle, or cradle-to-gate if it only quantifies emissions until the product leaves the factory. Heres how to approach Scope 3 calculation and reporting in a systematic way, and how sustainability software like Envizi can help. o135@Uz(H1eiV{i Q` G To support this, the SBTi has developed a foundational framework representing the first step in defining net-zero for financial institutions. In 2021, Adient submitted new greenhouse gas (GHG) emissions-reduction targets to reduce Scope 1 and 2 GHG emissions 75% at our manufacturing plants by 2030 and to reduce Scope 3 GHG emissions 35% by 2030 to SBTi. Activities related to fuel and energy We recognized and took responsibility for the urgent need to transition to a low-carbon future, and have been working for years to give our contribute to the cause and reduce our environmental footprint. The procurement team, supply chain experts and Chief Procurement Officers, can lead this charge to become the unexpected heroes of your organizations decarbonization efforts. When submitting combined targets, the scope 1+2 portion must be in line with at least a well -below 2C scenario and the scope 3 portion of the target must meet the ambition requirements outlined in C20. Our targets with SBTi. A full suite of support, guidance documents and webinars can be accessed through your dashboard when you log in.. The criteria for which Scope 3 emissions should be included are outlined in table 2 below. Table 3. The SBTi has sector-specific requirements related to the use of target-setting methodologies and minimum ambition levels. Alliance today announced its commitment to the Science Based Targets initiative (SBTi) as a key step to achieve the Companys climate protection ambition. Sectoral Decarbonization Approach in line with 1.5C or well-below 2C. 9 0 obj Vehicle manufacturers who produce fossil-fuel-powered cars would expect a significant portion of Scope 3 emissions to come from downstream category 11, use of sold products, whereas in food and beverage / FMCG manufacturing, a significant portion of emissions would come upstream from category 1, purchased goods and services. There are significant barriers that exist to report and reduce scope 3 emissions. After youve set your scope 3 boundaries and where you will source your data, you can determine which emission factor and calculation is most appropriate. The SBTi has previously validated targets from automakers in line with the Target Validation Protocol, where scope 3 targets covering use of sold products have been required to meet the minimum level of ambition determined by the SDA Transport tool, covering well-to-wheel (WTW) emissions of sold vehicles, and aligned to the well-below 2C pathway. The Science Based Targets initiative (SBTi) is a collaboration between the CDP, the United Nations Global Compact, WRI, and the World Wide Fund for Nature (WWF). Signatories to the Charter commit to 30 per cent greenhouse gas (GHG) emission reductions by 2030 (from a 2015 baseline) and net-zero emissions by 2050. Watson, Katherina J., and S.G. Wiedemann. Most brands and retailers will exceed this threshold and be required to set a Scope 3 target. Any organization thats looking to lead in decarbonization should report and reduce Scope 3 emissions. First, it must include the emission sources of the entire value chain (scope 1, 2 and 3). endstream endobj 610 0 obj <>/Metadata 59 0 R/Outlines 82 0 R/PageLayout/OneColumn/Pages 604 0 R/StructTreeRoot 107 0 R/Type/Catalog>> endobj 611 0 obj <>/Font<>/XObject<>>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> endobj 612 0 obj <>stream Getting started with SBTs: the methods, criteria, Scope 3 target-setting and SBTs in the CDP Questionnaire. <> Downstream leased assets PepsiCo also measures scope 3 emissions, and is striving to reduce its absolute indirect value chain (scope 3) by 40% by 2030 (against a 2015 baseline).Part of their climate mitigation strategy includes developing efficient and alternative solutions in transportation and distribution, as well as shifting to renewable electricity and fuels in manufacturing and fleet. The criteria for which Scope 3 emissions should be included are outlined in table 2 below. Scope 3 emissions are those emissions that fall within a companys value chain but are outside its operational control. as defined by the United Nations Secretariats Department of Economic and Social Affairs. This is because use-phase emissions make up the vast majority of automakers emissions. This is because, according to a 2020 World Economic Forum and BCG report, just eight supply chains (food, construction, fashion, fast-moving consumer goods, electronics, automotive, professional services and freight) account for over 50% of global What is the SBTi's policy regarding automakers? 1+2 or 1+2+3) are permitted. A study in Sweden estimated emissions from clothing consumption to be 330 kg CO2e per person per year, approximately 3 per cent of the carbon footprint per person (Sandin et al. The process for undertaking a GHG inventory using the GHG Protocol begins with setting an organizational boundary. The SBTi guidance encourages the apparel sector to use the absolute contraction approach for Scope 1 and 2 emissions. A public consultation on the draft began on 10 November 2021. Scope 3 Other indirect GHG emissions: Indirect emissions that occur in the value chain of the company (upstream and downstream) as a consequence of the activities of the company (such as, purchased materials, goods and services). @5t5#V1/$t`0a|~wQ4 _3\z Hg_NFt:zZh4Z21Q(1`9S7%ufOt62j 28&HNCQ^5t-`'nL5 l7h?3)\gM8f11[dM)-|yYS4c@&+^SZdXz(`.8,3&%(m 2004. This figure is even higher in retail, hospitality, manufacturing, and food, beverage and agriculture. High energy demand comes from the wet processing stages (dyeing and finishing), where energy is used to create steam to heat water and also for drying fabrics. ASICS commits to reduce Scope 3 GHG emissions from purchased goods and services and end-of-life treatment of sold products by 55% per product manufactured by 2030 (from a 2015 base year). Addressing specific emission categories directly related to a companys main activity has significant potential to improve the credibility and consistency of decarbonization claims for both near- and long-term targets. We provide complete 24*7 Maintenance and Support Services that help customers to maximize their technology investments for optimal business value and to meet there challenges proficiently. Department for Environment, Food and Rural Affairs. In a similar result to the Pulse of the Fashion Industry report, this study found that garments made from non-synthetic fibres used twice as much energy as those made from synthetic fibres. For consumer-facing brands and retailers, Scope 3 emissions are typically the majority of total emissions. For example, in the United Kingdom of Great Britain and Northern Ireland the textile and garment industry is estimated to be responsible for less than 1 per cent of total emissions (Allwood et al. What guidance do you offer for setting science-based targets? xZYo"G~G?#CZwvk6@EOU34f%LOu=>|hMp~|ouo} hu;G8>=?58yp00%kq^'kzu. Sharpe, Samantha. Scope 3 Less than 40% of overall emissions Scope 3 40% or more of overall emissions No scope 3 target required, although encouraged as best practice. GHGP Corporate Value Chain Scope 3 Standard. Who are the key intermediaries and what are the key tools that are used in these change processes? {QO>4J/H/fiHNziik7o:zxby\tBS`z}aWmo}{_.yjX1p'Q]%FTK) :*gv:@[8h6hZ n9y6E!NVu.O!vREFa CHM[m'm=#SU5\XgSqP] The Toolkit is built from inputs from constituents, including a mix of knowledge creation, knowledge diffusion and capacity-building activities for key sector actors with the aim of developing an evidence base for how environmental sustainability and the adoption of more sustainable practices in the textile and garment supply chain enhance decent work in the sector. Alliance today announced its commitment to the Science Based Targets initiative (SBTi) as a key step to achieve the Companys climate protection ambition. Table 2. This paper provides an explainer on how and where carbon emissions accrue across the textile and garment sector supply chain as a precursor to identifying where in the supply chain action should be most targeted. Organizations that report and reduce Scope 3 emissions, especially within the top eight emitting supply chains (food, construction, fashion, fast-moving consumer goods, electronics, automotive, professional services and freight), can use their buying power to encourage and support the suppliers in their value chain to adopt more sustainable business practices. Which companies will not be affected by policy? High energy demand comes from the wet processing stages (dyeing and finishing), where energy is used to create steam to heat water and also for drying fabrics. 2006). A typical LCA of a product can cover all life cycle stages from raw materials extraction or production, manufacturing, distribution, use and end-of-life. Advancing social justice, promoting decent work, ILO is a specialized agency of the United Nation. The SBTi has sector-specific requirements related to the use of target-setting methodologies and minimum ambition levels. Life Cycle Assessment of Clothing Libraries: Can Collaborative Consumption Reduce the Environmental Impact of Fast Fashion? Journal of Cleaner Production 162: 13681375. How does the SBTi relate to similar initiatives? The SBTi reserves the right to remove other committed companies that, after careful evaluation, are considered to fall within category 1 below. What is the SBTi's Business Ambition for 1.5C campaign? The carbon intensity of the energy sources used in production centres (coal or natural gas) translates to high emissions intensity for textile production. The SBTi made several changes to its criteria for near-term targets. Whileeach business unit plays a critical role in business decarbonization efforts, a recent Accenture piece,Getting to Net Zero is a big gain for CPOs, highlights the opportunity for Chief Procurement Officers to reduce emissions through the supply chain. 2015). With access to a shared, trusted source of information, you can make sustainability relevant across diverse stakeholder groups by providing targeted insights, and empowering people to deliver sustainability results in their business area. 2017. Companies should engage their suppliers and recommend they use the SBTi guidance to set targets. The SBTi understands that science-based targets can be complex and difficult for companies to always communicate accurately. Over time, the scope of our targets will increase to cover more sectors, following the guidelines set by both NZBA and SBTi. Much of the discussion on Scope 3 focuses on the supply chain, and is sometimes referred to as supply chain emissions. What is the SBTis policy on fossil fuel companies? Sustainability reporting software can help you produce financial grade reports by ensuring confidence in the data and auditability at every step in the process, from collection at the source data through to the production of reports. hbbd```b``^ "I=wH`DsA 2yXvX2`&H(F2 &4 However, the M&S study notes that transport by a consumer from the store uses more energy than all other transport in the value chain (Environmental Resources Management 2002), and this was not accounted for in the Quantis study. C11 Combined scope targets: Targets that combine scopes (e.g. Our goal is to achieve zero emissions across Walmarts global operations by 2040, reducing absolute scopes 1 and 2 GHG emissions by 35% by 2025 and by 65% by 2030 from our 2015 base year. % Does the 24 month commitment window run until a company submits a target for validation and books a validation slot or when the target validation process itself takes place? 2020. hn8_(MUdCR;CN%%#,aG dDk -'+hB ) W"D0s5jM/*:rB835N]:+";>,L1:.g H The SBTi is also launching resources to enable near-term 1.5C target setting for key sectors of the economy, including for forest, land and agriculture (FLAG), cement and buildings. Does the SBTi have any specific guidance or recommendations on this topic? A study from Bangladesh found significant energy use in the wet processing unit, which uses both steam and heat energy, and in the weaving machines (looms), which consume 5060 per cent of the energy at the weaving plant (Hasan et al. The Charter sets a commitment to setting a decarbonization pathway for the industry based on the SBTi. Alternatively, autopart manufacturers with direct use of sold products can apply other valid scope 3 target setting methods for informing target ambition for their category 11 emissions. A life cycle impact assessment can then be undertaken with existing models and LCA software to quantify environmental impacts based on the flows identified in the LCI phase. Target setting methods for reducing Scope 1,2 and 3 emissions. British Steel is certified to a good rating for the Environmental and Sustainability Standard BES 6001 Responsible Sourcing of Products, meaning our customers can be confident they are working Scopes 1 and 2 are the most controllable scopes for GHG accounting and reduction, and the focal point of any decarbonization journey. For example, a study in Finland found that increasing the collection of discarded textiles for reuse and recycling can create an environmental benefit by offsetting virgin textile production. All companies involved in the sale or distribution of natural gas and/or other fossil fuels shall set scope 3 targets for the use of sold products, irrespective of the share of these emissions compared to the total scope 1, 2, and 3 emissions of the company. 4. For example, a 2019 study of a sewing assembly line for mens shirts in China found that fabrics are the main source of carbon emissions (Zhang and Chen 2019). How has the coronavirus (COVID-19) pandemic affected target progress and achievement? 2 Why did SBTi accept commitments from fossil fuel companies in the past? 0 To ensure targets remain aligned with the most recent climate science, companies will be required to review, and if necessary revalidate, their targets every five years from the date of the original target approval, beginning in 2025. Overview of GHG Protocol scopes and emissions across the value chain. Companies may in this regard refer to the Norwegian example for guidance on scope and level of What can a company externally communicate when they have submitted a target for validation and are waiting for their validation to commence? Join us! What options will be open to me with the introduction of the updated SBTi Criteria? The IEA Net Zero by 2050 report was clear that we now need to step up action to avoid the worst effects of climate change. To address decarbonization, we first need to understand where and how emissions are generated. Fibres such as wool, silk and leather are more likely to be made into higher-quality and longer-lasting garments, with synthetic garments used more in fast fashion items. Pulse of the Fashion Industry 2017. The GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard (also referred to as the Scope 3 Standard) provides further guidance on accounting for Scope 3 emissions (WBCSD and WRI 2011a). A full suite of support, guidance documents and webinars can be accessed through your dashboard when you log in.. LCA has also been used to look at the entire global apparel system, including fibre production, yarn preparation, fabric preparation, dyeing and finishing, assembly, distribution and end-of-life (Quantis 2018). 2017. Do you track companies' progress against their targets? This paper has been produced as part of the Just Transition Toolkit of the Decent Work in the Garment Supply Chains in Asia project. Goal: Achieve zero emissions across global operations by 2040: Sub-goal: Reduce absolute global scopes 1 & 2 GHG emissions 35% by 2025 and 65% by 2030 from 2015 base year 1 (approved as science-based and classified as 1.5C-aligned, Science Based Targets initiative (SBTi)); Sub-goal: Power 50% of our global operations with renewable sources of energy by 2025 and 100% by 2035 That study did not include the use phase or transport to the customer because of the difficulty of analysing the variability in consumer behaviour (Quantis 2018). Standards for LCA have been developed through the International Organization for Standardization (14040:2006, Life Cycle Assessment: Principles and Framework, and 14044:2006, Life Cycle Assessment: Requirements and Guidelines) and detailed methodological guidance for LCA is provided through organizations such as the Life Cycle Initiative hosted by UN Environment . jz9d1p. endobj This graphic shows how supply chain emissions from Scope 3 compare with direct emission by industry. Figure 3. In order to reach net-zero emissions by no later than 2050, we need to halve global GHG emissions by 2030. 2017). and distribution The Higg MSI was used in the Pulse of the Fashion Industry report, and found that natural materials particularly leather, silk and wool had the highest emissions by kg of material (Global Fashion Agenda and Boston Consulting Group 2017). 2014. In both examples, product manufacture was responsible for 13 per cent and retail operations 4 per cent, and cotton fibre production was responsible for only 3 per cent compared to 7 per cent for polyester (Environmental Resources Management 2002). This statistic is a reminder that organizations must consider climate impacts beyond the sphere of their own direct operations if they wish to make a difference. All companies involved in the sale or distribution of natural gas and/or other fossil fuels shall set scope 3 targets for the use of sold products, irrespective of the share of these emissions compared to the total scope 1, 2, and 3 emissions of the company. The Greenhouse Gas Protocol: Corporate Accounting and Reporting Standard, revised edition. These impacts will include changes in the technological intensity of the sector, and therefore increased demand for financial capital and demand for new skills and knowledge. *C11 Combined scope targets: Targets that combine scopes (e.g. This paper provides an overview of how emissions are calculated across the sector, highlighting implications and limitations. Having reliable, timely support is essential for uninterrupted business operations. Getting started with SBTs: the methods, criteria, Scope 3 target-setting and SBTs in the CDP Questionnaire. British Steel is certified to a good rating for the Environmental and Sustainability Standard BES 6001 Responsible Sourcing of Products, meaning our customers can be confident they are working ESG reporting software like Envizi can prepare organizations to meet this challenge, and simplify what may seem like a daunting task to calculate and report Scope 3 emissions. A recent report by the World Economic Forum and Boston Consulting Group outlines key strategies organizations can use to engage and support their supply chains: Scope 3 accounting is complex, which makes the benefits software can offer compelling. Climate change is the main sustainability concern of our time, posing severe threats to people and communities everywhere in the world. n.d. About the Fashion Industry Charter for Climate Action, available at: https://unfccc.int/climate-action/sectoral-engagement/global-climate-action-in-fashion/about-the-fashion-industry-charter-for-climate-action. As noted above, the sector accounts for 68 per cent of total global emissions (Niinimaki 2020). What changes are being rolled out for automakers? Organization. Environmental Product Declarations (ISO 14025) have been developed as a standardized method to communicate LCA results to consumers. 2) Increasing requirements and expectations for businesses to reduce emissions and a broad landscape of initiatives and approaches to meet these. Processing of sold products 2019). For reporting purposes, under the guidance of the GHG Protocol, Scope 3 emissions consist of 15 categories and fall into either upstream or downstream emissions types as shown below. Supply-chain measures put in place by relatively few end-consumer companies can yield a significant flow on affect by reducing emissions for numerous organizations in the supply chain. The textile industry in general has an enormous water footprint ranging from agricultural water consumption for cotton farming, to water consumption in textile printing, dyeing and finishing. Focus on Scope 3 emissions in climate change related reporting 4. Do I have to commit before setting a target? Kering commits to reduce Scope 1, Scope 2 and Scope 3 emissions from upstream transportation and distribution, business air travel, and fuel- and energy-related emissions by 50% per unit of value added by 2025 (from a 2015 base year). The project is planning to develop more than 300 regionally-specific datasets for wool, cotton, leather, silk and man-made fibre supply chains for shirts, pullovers, trousers and shoes. LAb6]/2,rSSF+U`spx_,mOz w=NIu &b3mHYt-84yR; *&sVE2%=ts(|EO It is challenging to quantify the distribution of carbon emissions across the value chain, as it is dependent on the specific product and materials, as well as the emissions intensity of the country of production (WRI 2019). The Environmental Price of Fast Fashion. Nature Reviews: Earth and Environment 1: 189200. The phase of the value chain that contributes most to GHG emissions can depend on the fibre type as well as the production process. Buses: reduce emissions per vehicle-km by 40% by 2030. <> One of the biggest challenges is establishing the boundaries for your Scope 3 data; determining which emissions categories, and which suppliers / data types within each you will report. As leaders prepare for COP26 1 at the end of this month, the need for addressing the looming climate crisis seems to be grasped more broadly than ever before. Work towards achieving the chosen science-based scope 1 and 2 target in accordance with the rules of the GHG Protocol within the specified timeframe. Companies report that adopting a science-based target: Boosts profitability; Improves investor confidence Other goals may include efficiency or Fixing Fashion: Clothing Consumption and Sustainability, HC 1952. Construction equipment: reduce absolute emissions 30% by 2030 Our customers recognise the benefits of sustainable development, both in meeting government guidelines, and improving social and environmental performance. As a next step, the SBTi is planning an external peer review of the O&G methodologies. 2013. Studies focused on particular factories, brands or garments also found similar results. 2) Increasing requirements and expectations for businesses to reduce emissions and a broad landscape of initiatives and approaches to meet these. 2019. The use phase would include data on the garment lifetime, use frequency, washing habits, and the energy, water and materials used in washing, drying and ironing. Carbon Emission Evaluation Based on Multi-Objective Balance of Sewing Assembly Line in Apparel Industry.Energies12 (14): 2783. Responsible sourcing. . As industrial activities move away from carbon-intensive production, employment and economic activity will also need to change, and industrial change at this scale is rarely smooth. Digital Journal is a digital media news network with thousands of Digital Journalists in 200 countries around the world. Madsen, Jacob, Bryan Hartlin, Shahila Perumalpillai, Sarah Selby, and Simon Aumnier.
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