KPMG commits to science-based net-zero targets as climate action steps up a gear
The Science Based Target initiative will see KPMG in Ireland commit to reduce absolute scope 1 and 2 greenhouse gas emissions by 8 percent by 2030.
A net-zero target for carbon emissions is achievable but will require sticking to rigorous science-based guidelines, says KPMG.Ā
This week KPMG supported Dublin Climate Dialogues produced a declaration on how to raise global ambition to tackle climate change at the forthcoming COP26 summit.Ā
The forum, which was addressed by US climate envoy John Kerry, was preceded by KPMGās announcement of their own commitment to be net-zero carbon by 2030.
KPMGās pledge to achieve net-zero is underpinned by the use of science-based targets. They offer an independent, externally validated means to real and measurable change. They are based on a āscience-based' approach, consistent with what the latest climate science deems necessary to meet the Paris Agreement goals and the 1.5Ā°C Pathway. This is the approach numerous scientists regard as needed to limit warming to 1.5 degrees centigrade, thus reducing the odds of triggering the most irreversible effects of climate change.
In the case of KPMG in Ireland, the firm's commitment to being net-zero carbon by 2030, is part of its focus on supporting sustainable growth. Importantly and along with ten other Irish-based businesses, it has committed to having this target and its plans for getting there, independently validated.
In an approach that will hopefully become the norm and along with those other ten businesses, KPMGās plans have been approved by the Science Based Targets initiative (SBTi). It will see KPMG in Ireland commit to reduce absolute scope 1 and 2 greenhouse gas emissions by 8 percent by 2030 and to reduce scope 3 emissions by 3 percent over the same timeframe. To illustrate what this means in practice, itās worth assessing the definitions of these categories. Scope 1 relates to direct emissions from company-owned and controlled resources ā e.g. fuels and heating sources.Ā
Scope 2 emissions are indirect emissions from the generation of purchased energy from a utility provider - all greenhouse gas emissions from the consumption of purchased electricity, steam, heat, and cooling. Finally, Scope 3 emissions are all indirect emissions that occur in the value chain, including upstream and downstream emissions linked to the companyās operations and include business travel, employee commuting, waste generation and purchased goods and services.
Key to signatories achieving these emissions reductions are actions such as reducing reliance on fossil fuels, embedding technologies to increase building efficiencies (Scope 1), and increased use of renewable energy (Scope 2). To address indirect emissions in its value chain (Scope 3), those following this approach need to work with suppliers to ensure their sustainability ambitions align with its commitment to achieving carbon reductions.
Commenting on its commitment to science-based targets, KPMG Managing Partner Seamus Hand said: āBusinesses are increasingly recognising the urgency of the climate crisis, and the importance of aligning their operations with a net-zero trajectory. Large organisations have an obligation to lead by example and Iām really proud to commit our firm to the Science-Based Targets initiative, an independently verified pathway to becoming a net-zero carbon organisation by 2030.āĀ
āAlongside making our own climate commitments, we have also invested significantly in establishing Irelandās leading sustainability and climate change advisory practice, KPMG Sustainable Futures, to assist our clients to navigate and implement their own response to the fast-evolving agenda.ā As KPMG develops its climate change advisory practice, itās also expanding its market footprint in the sustainability space with engagements such as the Dublin Climate Dialogues and the Cork Chamber ā Sustainable Cork Series which seeks to create a vision for Cork aligned with the UN Sustainable Development Goals.
A key output at the aforementioned Dublin Climate Dialogues will see the Irish government present their UK counterparts with climate recommendations in the latterās role as joint hosts of the COP26 conference to be held in Glasgow in November. Given the target of limiting global temperature increases to well below 2Ā°C above pre-industrial levels and pursuing efforts to limit warming to 1.5Ā°C.
What does this mean for Irish business? The topic of āfuture-proofingā a business for both climate risk and opportunity is increasingly well established on the leadership agenda. Businesses will need to integrate key decarbonisation solutions including renewable energy procurement, circular economy, and supply chain issues in a manner that goes way beyond aspiration. Moreover, demand for support in this area continues to grow.
Meanwhile, the KPMG Sustainable Futures team has been working with a large number of clients across the island, helping them make the transition from brown to green. Inevitably, and in addition to this āswitch,ā Irish businesses will increasingly have to make net-zero commitments in the same manner as many of their global counterparts have done over the past 18 months. However, these commitments are just the beginning. How companies deliver against these commitments between now and 2030 will be of critical importance.
Learn more at www.kpmg.ie
Sustainable Cork Programme KPMG is proud to support the Cork Chamber - Sustainable Cork Programme which seeks to visualise and drive towards a more sustainable and resilient Cork. The next edition of the series will explore the EU Green Deal and takes place on Friday 28 May at 11.
Visit: https://chamber.corkchamber.ie/events/ for more!
For more information on KPMG's commitment to being a net-zero carbon organisation by 2030 click here.
