IMPACT - sustainAX Net Zero communication pertinence rating

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António Guterres – UN Secretary General:

“We urgently need every business, investor, city, state and region to walk the talk on their net zero promises. We cannot afford slow movers, fake movers or any form of greenwashing.”

Main recommendation:

“A net zero pledge should be made publicly by the leadership of the non-state actor and represent a fair share of the needed global climate mitigation effort. The pledge should contain interim targets (including targets for 2025, 2030 and 2035) and plans to reach net zero in line with IPCC or IEA net zero greenhouse gas emissions modelled pathways that limit warming to 1.5°C with no or limited overshoot, and with global emissions declining by at least 50% by 2030, reaching net zero by 2050 or sooner. Net zero must be sustained thereafter.”

Net Zero - Science Based Targets SBTi

What is important when considering the Net Zero Initiative:

It is important that the companies follow the expected process of the the United Nations’ high-level expert group on the Net Zero emissions commitments of non-state entities. Their report can be found here: https://www.un.org/sites/un2.un.org/files/high-level_expert_group_n7b.pdf

How we do the Net Zero rating:

After having identified a clear Net Zero commitment claim by the company, we

  • first check if it is SBTi validated (2 different levels here, best is Corporate Net Zero Standard),
  • thereafter depending on what validation eventually if no approval, we check long term targets (and if good enough to take away the need for near term targets), and near term targets (are all required elements communicated?).
  • We also assess if the neutralisation of residuals of the company qualifies as Climate Neutral/Net Zero or Carbon Neutral only.
  • Finally we make a final sustainAX assessment on the Net Zero claim that only can count negative if other elements outside the moment mentioned here above indicate so.

Worst rating is 0 and best score is 100, and an SBT validation per Corporate Net Zero Standard gives full score.