Half of Fortune 500 companies have made net zero or carbon reduction commitments. What does that mean?
Net zero is the balance between emissions produced and emissions taken out of the atmosphere; reaching net zero means a company is no longer contributing to global warming. Carbon reduction commitments are made to deliver a reduction in emissions below current rates.
Achieving these commitments means tackling emissions along a company’s entire value chain - upstream with suppliers and downstream with customers, addressing direct emissions (Scope 1) and indirect emissions (Scopes 2 and 3).
No matter where you are on your net zero journey, you need a plan. Our ESG framework helps companies at any stage in the process.
Tracking greenhouse gas (GHG) emissions across an organization can be challenging because they come from so many sources, both direct and indirect. Whether a company is working toward a net zero or carbon reduction commitment, understanding the difference between Scope 1, 2, and 3 emissions is important.
|Scope 1||Scope 2||Scope 3|
|Direct emissions from owned and controlled sources such as emissions associated with fuel combustion in boilers, furnaces and vehicles.||Indirect emissions from purchased electricity, steam, heating and cooling.||Other indirect emissions that occur in a company’s value chain by customers and/or suppliers, such as emissions from business travel or employee commutes.|
Our experienced teams are ready to help you deliver on your net zero and decarbonization goals:
Baseline, strategy and roadmap. Where do you stand? Where can you prioritize?
Operationalize and implement: Where do you need to change? How can you implement it operationally? How do you engage your supply chain?
Report and communicate: How do you measure? How do you communicate?
No matter where you are on your decarbonization journey, we can help you step forward.
A growing number of companies are taking action to reduce the emissions gap and embracing it as an opportunity to drive innovation, increase competitiveness, and stimulate resilient growth. PwC has defined an ESG framework with nine key building blocks for a successful decarbonization transformation. It can serve as a roadmap as you move ambition to implementation and:
Driven by our purpose, we feel a deep obligation and commitment to help address the root causes of climate change and reduce the environmental footprint of our own operations. In 2020, we announced our global science-based commitment to reach net zero emissions by 2030, building on our 2018 global environmental commitment. We have been recognized in a number of benchmarks and standards relating to responsible business, environmental performance, supply chain management and circular economy.
We will use our experience to help you deliver on your ESG strategy, building organizational purpose into the focus.