NET ZERO

AN INTRODUCTION
FOR BUSINESS

1
Contents

1. What do we mean by net zero? 4

2. The benefits of setting a net zero target 9

3. The Science-Based Targets initiative’s guiding principles for net zero 10

4. What are the pitfalls that make a net zero strategy less credible? 11

5. How to get started 12

• What should you include in your net zero emissions boundary? 13

• What should your emissions reductions pathway look like? 18

• What should your emission removals pathway look like? 20

6. Case study 22

2
Foreword

Climate change represents an irreversible threat to habitats, societies and economies around the globe. In 2015
world leaders signed the Paris Climate Agreement, committing countries to transition to a lower carbon economy
and limit the global average temperature rise to 2°C above pre-industrial times. In 2019, the UK became the first
major economy to legislate and commit to achieving “net zero” carbon emissions by 2050. This ambitious target will
inform the future direction of government policy and business over the coming decades.

The transition to net zero is the collective responsibility of businesses of all shapes and sizes. For many it will
present significant challenges, but with that comes opportunity, and the possibility of developing new business
models and driving efficiencies.

As one of the world’s largest banking and financial service organisations, HSBC UK are committed to leading the
way to a sustainable future. Indeed, we recently set out an ambitious plan to prioritise financing and investment
that supports the transition to a net zero global economy.

At the heart of that plan is a pledge to reduce financed emissions from our portfolio of customers to net zero by
2050 or sooner, in line with the goals of the Paris Agreement. And to do this, we’re intensifying our support for
customers to switch to more sustainable ways of doing business.

Setting challenging sustainability targets can seem daunting and even risky for many businesses but it can
bring significant commercial benefits and future-proof your business, not to mention demonstrating social
responsibility.

Action on climate change will mark out the businesses who will succeed in a zero carbon future and sustainability
is no longer just the concern of one team. Becoming a net zero business is a deliberate and strategic journey that
will impact the entire organisation.

That is why HSBC UK have written this guide in collaboration with Carbon Intelligence, a world class team of
experts who believe in business as the solution to a zero carbon world. Along with Carbon Intelligence, we hope to
inspire change and support businesses in laying the foundations of an ambitious carbon reduction strategy that
will be credible with, their customers, employees and investors.

Michaela Wright Robert King

Head of Corporate Sustainability, HSBC UK Head of Sustainable Finance, HSBC UK

3
WHAT DO WE MEAN BY
NET ZERO?
In the last few years net zero has become the guiding At the heart of an ambitious and credible net zero
principle for action on climate change. The simplicity of strategy is a commitment to reduce emissions in line with
this phrase is seen by many as a helpful antidote to the the Paris Agreement.
complexity of communicating climate science, while
others view it as being riddled with loopholes. To ensure credibility and so that targets stand up to
public scrutiny, companies should aim to get their Paris-
Since the UK became the first major economy to aligned targets validated by the Science-Based Targets
legally commit to reach net zero emissions, the term initiative (SBTi). The SBTi is a collaboration between
has become more commonplace and we’ve seen many the World Resource Institute, WWF and The UN Global
public and private sector organisations declare climate Compact. The SBTi uses using rigorous criteria to ensure
emergencies and commit to net zero futures. This is a targets are aligned with the latest climate science.
positive response to the overwhelming evidence about
the urgency of the climate crisis. However, there are valid Over 1,000 businesses around the world are working with
concerns that net zero targets are being set without a the SBTi to reduce their emissions in line with climate
consistent and credible definition, science.
or a transparent strategy.

We have published this guide to explain what a net zero

target is and how you can set one that is ambitious,
credible and science based.
The SBTi defines and
promotes best practice
Aligning with science Our working definition of net zero:
in science-based target
In December 2015, 195 countries signed the Paris setting with the support To reduce company wide and value-chain greenhouse
Agreement to limit the increase in global temperatures of a Technical Advisory gas (GHG) emissions in line with limiting warming to
to well below 2°C (above pre-industrial levels) and pursue Group, and independently well below 2°C or 1.5°C, and to balance any remaining
efforts to limit it to 1.5°C. Following this, in 2018, the assesses and approves emissions by enhancing carbon sinks which remove
International Panel on Climate Change (IPCC) released carbon dioxide from the atmosphere.
companies’ targets.
a special report highlighting the importance of keeping
temperatures below 1.5°C.

4
Global impacts of temperature increase

Global temperatures are currently on track to increase by about

4°C this century, but according to the latest report by the IPCC,
we must limit global warming to 1.5°C above pre-industrial levels
to avoid the most catastrophic impacts of climate change.

The Paris Agreement commits to limiting the increase in global

temperatures to well below 2°C and pursuing efforts to limit it
to 1.5°C. But the IPCC's special report examined the difference
in impact of limiting warming to 1.5°C versus 2°C above pre-
industrial levels, and the differences are stark.

The graphic on the next page highlights just some of these

differences.

The SBTi requires companies to set targets that are in line with
keeping global warming well below 2°C (compared with pre-
industrial levels). Companies are encouraged to pursue efforts
to set targets that align with keeping warming below 1.5°C.

Setting a net zero target goes one step further, recognising

the need to remove carbon from the atmosphere to neutralise
unavoidable emissions sources.

5
Global impacts of temperature increase

2°C
Limit global warming to 2°C above pre-
vs 1.5°C
Limit global warming to 1.5°C above
industrial levels pre-industrial levels

Global GDP Loss 13% Global GDP Loss 8%

Sea levels will rise 50cm by 2100 Sea levels will rise 40cm by 2100

17% less freshwater 9% less freshwater

Heatwaves last up Heatwaves last up

to 1.5 months longer to 1.1 months longer

98% reefs at risk 90% reefs at risk

from coral bleaching from coral bleaching

6
How can a company mitigate
emissions and achieve net zero?

There are two elements that make up a best practice MITIGATION APPROACHES
net zero pathway: a reductions pathway and a removals Emissions mitigation approaches can be grouped
pathway. These pathways should be delivered in parallel, into five categories that support your reductions and
but the priority should be reducing emissions. removals pathways. These are outlined in order of
preference below and to the right.

Reductions pathway Reductions pathway

The reductions pathway defines the rate 1. Decarbonisation: Reducing emissions on an

of decarbonisation in line with science- absolute basis.
based trajectories. Switching to LED
lighting is an example of what could be
included in the reductions pathway.

The two approchaches below are less credible mitigation

approaches. This is because they still result in a net-
release of emissions and the accumulation of emissions
in the atmosphere. Therefore, they are not consistent
with a 1.5°C mitigation pathway.

Removals pathway Removals pathway

2. Removals within the value chain: Balancing 4. Avoided emissions through sold products/
The removals pathways provides further
remaining emissions by sequestering carbon services: Balancing emissions with emissions
mitigation when reductions will not be
through activities that happen within the value- avoided through the use of sold products or services.
sufficient on their own to meet Paris-
chain of the company.
aligned climate goals. These projects are
often called carbon offsets, for example, 5. Carbon credits from reduction projects: Balancing
3. Carbon credits from removal projects: emissions with carbon credits from carbon reduction
investing in a tree planting project to
Balancing emissions with carbon credits from or avoidance projects.
restore forestry.
carbon removal projects.

7
An illustrative net zero pathway
The graph below shows what your net zero pathway could look like. The reduction pathway is in line with the
emissions necessary to limit warming to 1.5°C. The remaining emissions are offset by investing in projects that
remove carbon to achieve net zero by 2030, becoming net negative thereafter.

JARGON BUSTER

Term Typical definition

CARBON To balance GHG emissions with

NEUTRALITY an equivalent amount of emissions
offsets that avoid or remove
emissions.

NET ZERO To reduce company-wide and value-

EMISSIONS chain GHG emissions in line with
limiting warming to well below 2°C or
1.5°C, and to balance any remaining
emissions by removing GHG
emissions from the atmosphere.

NET NEGATIVE To go beyond achieving net zero

EMISSIONS emissions so that your organisation
has a net effect of removing GHG
emissions from the atmosphere.

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THE BENEFITS OF SETTING
A NET ZERO TARGET
Public awareness of net zero has grown rapidly over Companies are increasingly choosing to build on their
recent years. It is widely considered that a net zero world science-based targets by setting net zero targets. This
will be much cleaner, more efficient and provide wider means that on top of reducing emissions in line with the
societal benefits such as improved human health. level of decarbonisation required to limit warming to
1.5°C or well below 2°C, they are also taking responsibility
Achieving net zero is therefore recognised as a primary for the remaining emissions. They do this by enhancing
goal of climate change mitigation at the global level. carbon sinks which remove carbon dioxide from the
As a result of this recent momentum, more than 1,000 atmosphere.
businesses around the world are working with the
Science Based Target initiative (SBTi) to reduce their Leaders in the space are now going even further and
emissions in line with climate science. are looking at carbon negative strategies, meaning the
removal of all the carbon they have ever emitted.
Increasing stakeholder pressure and the positive impact
on a company’s reputation means that this number will Although currently setting a science-based target is seen
likely continue to over the next few years. as ambitious, more and more, a net zero strategy is being
called for to limit the worst impacts of climate change.

Establishing a net zero strategy ensures you are meeting

the expectations of your stakeholders, both internal and
external, and mitigates against the risk of future carbon
A 2016 study of over 1,000 prices.
people showed that 58%
Setting out your net zero pathway now provides a clear
consider a company’s
picture of the necessary invesment required. Focusing
Environmental, Social on the reduction pathway as a priority reduces the
and Governance (ESG) cost associated with offsetting. Investing in offsetting
commitments when job gradually builds up a portfolio of offsetting partners to
hunting. lockin process and build up the carbon sinks necessary to
offset your emissions in the future.

Leading businesses recognise that there are significant

opportunities to capitalise on the transition to a low-
carbon economy. It's fair to say that if businesses fail to
act, they risk getting left behind.

9
THE SBTI’S GUIDING PRICIPLES FOR SETTING A
NET ZERO TARGET
The Science-Based Targets initiative has defined four guiding principles for a credible net zero strategy. By evaluating
your approach against these four principles you can be confident that your strategy is credible, ambitious and future-
proofed.

10
WHAT ARE THE PITFALLS THAT MAKE A NET
ZERO STRATGEY LESS CREDIBLE?
Setting science-based targets aligned to limiting warming to 1.5°C or well below 2°C that include Scope 3 value chain
emissions will provide credibility to your net zero targets.

These are the common pitfalls associated with a net zero strategy:

CO2
4 CH
NO
HFCs 2
PFCs
S
6

Exclusion of certain Exclusion of certain Relying on removing carbon Delaying action to reduce
greenhouse gases sources of emissions from the atmosphere to emissions or enhance
achieve the target, rather carbon sinks
than reducing emissions in
absolute terms in line with
science-based trajectories

11
HOW TO GET STARTED
In this section of the guide we provide the initial steps
required to set your net zero target. These are as follows:

• What should you include in your net zero emissions

boundary?
• Reporting your Scope 1, 2 and 3 emissions
• Scope 3 emissions categories
• How to set your emissions boundary
• Example: Scope 3 screening output
• What should your emission reductions pathway
look like?
• How to establish a credible emission
reduction pathway
• An illustrative pathway to net zero by 2040

• What should your emission removals pathway look

like?
• Key considerations when building your
emission removals pathway
• What are some of the criticisms of carbon
offsets?

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WHAT SHOULD YOU INCLUDE
Scope 1 and 2
IN YOUR NET ZERO EMISSIONS
The Greenhouse Gas (GHG) Protocol defines
BOUNDARY? three ‘scopes’ of emissions caused by your
company’s operations:

The first decision that you need to make is what

emissions to include within the boundary for your net
zero target. This boundary should be ambitious and
aligned to established standards as a minimum, such Scope 1:
as the Science-Based Targets initiative’s requirements Direct emissions by your
and carbon neutral standards like organisation, e.g. from burning
PAS 2060. fuels such as natural gas for
heating or petrol to fuel cars.

Scope 3

PAS 2060: Specification For The

Demonstration Of Carbon Neutrality
Scope 2:
Published by the British Standards Institution
Indirect emissions from
(BSI), PAS 2060 provides a common definition
and a method of validation for carbon neutrality. purchased electricity, cooling,
The carbon emissions boundary should include heat or steam.
100% of Scope 1 and Scope 2 emissions, and all
Scope 3 emissions that contribute more than 1%
of the total footprint. It requires an organisation
to develop a carbon management plan that
defines specific targets for reductions, a time
scale, the measures that will reduce emissions,
and how residual emissions will be offset.
Scope 3:
All other indirect emissions (i.e.
not included in Scope 2) that
Typially 80%+ of your
occur in the value chain, e.g.
company emissions will
from the use of sold products
be in your Scope 3
and services, business travel or
waste disposal.

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Reporting your Scope 1, 2 and 3 emissions
You should look to include 100% of your Scope 1, 2 & 3 emissions where confidence in emissions data is sufficient.
At a minimum, we would expect to see 100% of company-wide Scope 1 and 2 emissions and at least 67% of Scope 3
emissions, which is in line with the criteria set by the Science-Based Targets initiative. The scope of the emissions
boundary can be expanded over time to become more ambitious as data quality and confidence improves. Organisations
should establish their boundary in line with the GHG Protocol and report emissions for all six greenhouse gases in tonnes
of CO2 equivalent.

Source: GHG Protocol: Corporate Value Chain (Scope 3) Accounting

and Reporting Standard

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Scope 3 emissions categories
Short descriptions for each of the 15 Scope 3 categories can be found below. Relevant Scope 3 categories will vary by
company and sector. We explain how to undertake Scope 3 screening in the next section.

Scope 3 Category Description

1 Purchased goods and services Extraction, production, and transportation of goods and services purchased or acquired by the reporting company in the
reporting year, not otherwise included in Categories 2 - 8.
2 Capital goods Extraction, production, and transportation of capital goods purchased or acquired by the reporting company in the re-
porting year.
3 Fuel-and-energy related activities (not included Extraction, production, and transportation of fuels and energy purchased or acquired by the reporting company in the
in scope 1 or 2) reporting year, not already accounted for in Scope 1 or Scope 2.

4 Upstream transportation and distribution Transportation and distribution services purchased by the reporting company in the reporting year, including inbound lo-
gistics, outbound logistics (e.g., of sold products), and transportation and distribution between a company’s own facilities
(in vehicles and facilities not owned or controlled by the reporting company).

5 Waste generated in operations Disposal and treatment of waste generated in the reporting company’s operations in the reporting year (in facilities not
owned or controlled by the reporting company).
6 Business travel Transportation of employees for business-related activities during the reporting year (in vehicles not owned or operated
by the reporting company).
7 Employee commuting Transportation of employees between their homes and their worksites during the reporting year (in vehicles not owned or
operated by the reporting company).
8 Upstream leased assets Operation of assets leased by the reporting company (lessee) in the reporting year and not included in Scope 1 and Scope
2 – reported by lessee.
9 Downstream transportation and distribution Transportation and distribution of products sold by the reporting company in the reporting year between the reporting
company’s operations and the end consumer (if not paid for by the reporting company), including retail and storage (in
vehicles and facilities not owned or controlled by the reporting company).

10 Processing of sold products Processing of intermediate products sold in the reporting year by downstream companies (e.g., manufacturers).

11 Use of sold products End use of goods and services sold by the reporting company in the reporting year.

12 End of life treatment of sold products Waste disposal and treatment of products sold by the reporting company (in the reporting year) at the end of their life.

13 Downstream leased assets Operation of assets owned by the reporting company (lessor) and leased to other entities in the reporting year, not includ-
ed in Scope 1 or Scope 2 reported by lessor.
14 Franchises Operation of franchises in the reporting year, not included in Scope 1 and Scope 2 – reported by franchisor.

15 Investments Operation of investments (including equity and debt investments and project finance) in the reporting year.

Source: GHG Protocol Scope 3 Calculation Guidance

15
How to set your emissions boundary

Before following the steps below, it is worth considering seeking expertise from an external consultancy.
If you are able to confidently calculate your full GHG footprint in-house, we recommend obtaining third-party GHG
verification (e.g. ISO 14064-3). This provides you with assurance that your calculations meet industry standards.

1. Define your organisational 2. Define your operational 3. Undertake Scope 4. Calculate your 5. Calculate your Scope
emissions boundary emissions boundary 3 screening Scope 3 emissions 1 and 2 emissions for the
full footprint

1. Define your organisational GHG emissions boundary 3. Undertake Scope 3 screening to determine which 4. Calculate your Scope 3 emissions and identify next
in line with the GHG Protocol. You must select one Scope 3 categories are most significant for your steps to improve data quality.
out of two distinct approaches for consolidating and business. This exercise involves: • Estimation of Scope 3 emission categories
reporting on GHG emissions: • Assessing the relevance of each of the 15 Scope deemed to be relevant, using benchmarks and
• Control approach: A company accounts for 100% 3 emissions categories, typically based on proxy data where accurate data is not available.
of the GHG emissions from operations over which five criteria (size of emissions, influence, risk, • Identification of next steps to improve data
it has control. Control can be defined in either stakeholder interest and sector guidance). It is quality and completeness for relevant emissions
financial or operational terms, and companies likely that not all 15 categories will be relevant, sources.
should choose which definition to adhere to. and categories will vary by sector. The process
Operational control is the most common method. for Scope 3 screening is provided by the GHG 5. Calculate Scope 1 and 2 emissions and combine with
• Equity share approach: A company accounts for Protocol here. your full emissions footprint.
GHG emissions from operations according to its • Companies should begin by estimating the size of • Where raw data is unavailable, estimations are
share of equity in the operation. For example, if a GHG emissions in each of the 15 categories using acceptable. The estimation method must be
company owns 50% of a venture’s equity capital, less granular data. recorded for transparency.
it must report on 50% of its GHG emissions. • For Scope 3 categories, it is generally accepted
that data accuracy will be lower due to a lack of
data availability.
2. Define your operational GHG emissions boundary by
including all Scope 1 and 2 GHG emissions.
• According to the GHG Protocol, exclusions from
Scope 1 or 2 emissions sources are only allowed
if they are immaterial and justified transparently.
• Companies must report Scope 1 and 2 emissions
separately and may divide even further, for
Information taken from the GHG Protocol Scope 3
example by country or business unit. Calculation Guidance.

16
Example: Scope 3 screening output

The graph below shows the outputs of a Scope 3 screening exercise for a typical commercial real estate company. It is
important to note that the output of this assessment is likely to vary considerably between sectors.

Relevance Rating (1 = low, 5= high)

17
WHAT SHOULD YOUR EMISSION How to establish a credible emissions
reduction pathway
REDUCTIONS PATHWAY LOOK LIKE?
1. Select the 2. Select your 3. Model your 4. Build an emissions
The priority for a net zero strategy is to reduce
baseline year methodology emissions trajectory reduction roadmap
Scope 1 and 2 emissions on an absolute basis as
fast as possible, followed by engagement with your
organisation's supply chain and customers to reduce
Scope 3 emissions.
1. Select the right baseline year. 4. Build an emissions reduction strategy by assessing
emissions reductions from current and potential
The SBTi recommends organisations to set net zero • Select the most recent year that data is available projects.
carbon targets that are consistent with limiting as the baseline year.
warming to well below 2°C, and pursue efforts to limit to • Your strategy should project future emissions
• Use the previous section of the guide to help you
1.5°C degrees. based on expected changes to the organisation,
accurately calculate your emissions.
and the measures that can be taken to reduce
The distinction between a 1.5°C world and a 2°C 2. Pick the correct science-based target methodology. emissions.
world might sound minor but in terms of the numbers • Model the reductions you will achieve through
of people and wildlife that will be affected, the • An emissions target can be considered ‘science- emissions reduction projects.
consequences of the additional 0.5°C will be vast. based’ if the emissions reductions it requires
are in line with keeping the global temperature Additional tips:
The SBTi website has an abundance of resources and increase well below 2°C at a minimum (compared • Offsets cannot be used to achieve targets but
guidance documents designed to assist companies to pre-industrial temperatures). can be used for residual emissions beyond the
throughout the process. A key Excel document is • A science-based target must cover company- targets to achieve net zero.
the 'science-based target setting tool', which helps wide Scope 1 and 2 GHG emissions, as defined by • When defining the emissions reduction pathway,
organisations to determine target milestone years by the GHG Protocol. it is important to confirm if you will take a
aligning with a science-based reduction pathway. This • If Scope 3 emissions make up over 40% of total location or market-based approach to reporting
tool can be found here. emissions, then at least two-thirds of your Scope on Scope 2 emissions as this will influence the
3 emissions must be included in the target. strategy. Find out more about the different
An emissions reduction strategy should project approaches here.
future emissions based on expected changes to the
3. Model a science-based emissions trajectory for both
organisation, and the measures that can be taken to
1.5°C and well below 2°C.
reduce emissions.
• Note that to set a net zero target, organisations Carbon Intelligence
When defining the emissions reduction pathway,
it is important to confirm if you will take a location
should set targets that are consistent with has supported 43%
limiting warming to 1.5°C degrees or well below
or market-based approach to reporting on Scope 2 2°C. of all science-based
emissions as this will influence the strategy. • Establish a target period between 5 and 15 years targets aligned to
from the baseline year selected.
1.5°C in the UK

18
An illustrative pathway to net zero emissions by 2040

The graphs below provide an illustrative example of how a company could reach net zero emissions by 2040.

Key

19
WHAT SHOULD YOUR EMISSION
REMOVALS PATHWAY LOOK LIKE?

Once the emissions reduction pathway has been defined,

the extent of carbon removals required to balance
remaining emissions to zero will become clear.

The overall ambition of your strategy, and the cost and

quality of reduction or removal choices are key factors in
choosing which year to aim for net zero.

The SBTi recommends that the use of removals is limited

to balancing the impact of residual emissions as per 1.5°C
consistent scenarios with no or limited overshoot.

Organisations should be clear on which emissions

sources cannot be removed and therefore should be Key considerations when building your
balanced, as this will affect the integrity of the strategy. emission removals pathway

It is more credible, for example, to offset emissions from Insets vs. offsets: Should you take an active
air travel than from electricity consumption as zero role by developing carbon removal projects in
carbon air travel is not commercially available. your value chain, or should you purchase carbon
credits? How to build your removals pathway
We encourage organisations to consider both offsetting
and insetting when designing a carbon removals strategy. Timing: Should you prioritise removals in the
short-term and balance emissions to zero as 1. Confirm the volume of residual GHG
• Offsetting is where a company purchases credits soon as possible, or will this restrict investment emissions that you cannot reduce.
from an external offsetting partner. in projects that reduce emissions on an absolute 2. Identify the potential for insetting in
basis? your value chain.
• Insetting is where a company invests in carbon
removal projects within its own value chain. For 3. Using the considerations listed to the
Geography: Should you prioritise projects in
example, the luxury fashion retailer, Burberry, invests the locations that your company operates, or left, establish criteria that will be used
in methods to improve carbon capture on farms run will projects in other locations deliver broader to assess and prioritise options for
by their wool producers in Australia. environmental and socio-economic benefits? carbon removals.
4. Agree on the timelines.
Companies that have land related activities in their value Quality: What assessment criteria will you use
chain should prioritise insetting over purchasing offsets. to ensure high-quality and genuinely additional
carbon removals that contribute to sustainable
development?

20
What are some of the criticisms
of carbon offsets?
1. Offsets alone will not deliver the rapid and deep
decarbonisation that is required to avoid the worst
effects of climate change and limit warming to well
below 2°C.

2. If organisations rely on offsets instead of delivering PAS 2060 requires that

absolute reductions in emissions, it could lead to the the total amount of carbon
stagnation of initiatives and technologies that are
required to enable a zero-carbon future. emissions at the end of a
reduction period be offset
3. Offsets that rely on habitat management and
reforestation can require careful management into
by high-quality, certified
the future. This is because trees release carbon when carbon credits which meet
they decay or are burned. Forest offset projects can the following criteria:
require replanting schemes to ensure that they are
continuously renewed if natural regeneration is not
sufficient.

If degraded land is being converted into forest, then it • From one of the PAS 2060 approved schemes (for
is likely that decaying trees will be replaced naturally. example the Clean Development Mechanism, Joint
Therefore, the amount of carbon sequestration Implementation, The Gold Standard or Voluntary
that takes place will be the difference between Carbon Standard).
the original degraded land and the continuously
regenerating forest. • Genuinely additional (i.e. reductions that would not
have happened anyway).
4. Given that the world is losing an area of tree cover
the size of the UK each year (from 2014-2018), the • Verified by an independent third party to ensure that
aggregate impact of offset projects is unlikely to lead emission reductions are permanent, avoid leakage
to additional carbon sequestration at a global scale. It (so that emissions are not increased in another area
will, however, contribute to reversing this trend. as a result of the project reductions) and are not
double counted.
5. There’s a risk that a significant increase in demand
for offset projects will lead to a land grab, as • Retired after a maximum of 12 months to a credible
companies look to acquire suitable land to develop registry.
offset projects in developing countries. Land
acquisitions can displace local communities and
restrict their access to land, food, water and other
natural resources.

21
CASE STUDY - WILLMOTT DIXON
Willmott Dixon is a privately-owned contracting and interior fit-out group, founded
in 1852. They have long embedded sustainability within their operations, from
constructing energy efficient buildings to encouraging supply chain partners to
reduce their carbon emissions.

Wilmott Dixon has committed to reduce absolute Scope 1 and 2 GHG emissions by
100% by 2030 from a 2018 base year. They have also committed to reduce absolute
Scope 3 GHG emissions from purchased goods and services by 55% by 2030 and
100% by 2040 from a 2018 base year.

How will they achieve this ambitious target?

Supply chain Business travel

The most challenging element of the Travel emissions are notoriously
target relates to the Scope 3 GHG tricky to reduce and Willmott
emissions from purchased goods Dixon has a strategy to support
and services. This will be a key area their employees to work and travel
of focus for the strategy, working sustainably with incentives to
collaboratively with their customers dramatically reduce mileage by
and supply chain. 65% by 2030 and transition to 100%
electric vehicles.
The aim is to help suppliers to get to
net zero operational emissions and
achieve net zero embodied carbon
by 2040.

Click here to find out more information on Willmott Dixon's strategy.

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