Science-based Emissions Reduction Targets | Tunley Environmental

The World Economic Forum (WEF) estimates that manufacturing operations are responsible for about one-fifth of global emissions while consuming more than half of the world’s energy resources. With the increasing pressure on companies to adopt resilient climate solutions, the manufacturing sector is under increasing scrutiny to address its environmental impact. One of the most robust ways to ensure corporate climate action aligned with the latest climate science is by setting science-based emissions reduction targets for manufacturing companies. This approach, driven by the Science-Based Targets Initiative (SBTi), enables companies to decarbonise both their operations and supply chains in a methodical and credible manner.

What is the Science-Based Targets Initiative (SBTi)?

The Science-Based Targets Initiative is a collaboration between the Carbon Disclosure Project (CDP), the United Nations Global Compact, the World Resources Institute (WRI), and the Worldwide Fund for Nature (WWF). It aims to mobilise the private sector to take the lead in climate action by setting greenhouse gas (GHG) reduction targets that are in line with the goals of the Paris Agreement, limiting global warming to well below 2 °C, preferably to 1.5 °C, compared to pre-industrial levels.

Key Features of SBTi:

Scientific Rigour: Targets are assessed against the most recent climate science, particularly the Intergovernmental Panel on Climate Change (IPCC) Special Report on Global Warming of 1.5 °C.

Scope-Covering: Addresses emissions across Scope 1 (direct), Scope 2 (indirect from purchased energy) and Scope 3 (other indirect emissions including supply chain).

Sector-Specific Pathways: Offers tailored guidance for various industries, including manufacturing, fast moving-consumer goods and food production.

Transparency: Requires public disclosure of targets and progress, increasing stakeholder trust.

Global Emissions from Manufacturing

The manufacturing industry is made up of a wide variety of sectors ranging from fabricated metal production, to automotive, consumer electronics, to fast moving-consumer goods. Encyclopaedia Britannica defines manufacturing as “any industry that makes products from raw materials by the use of manual labour or machinery and that is usually carried out systematically with a division of labour.” Energy used by various manufacturing sectors contributes to around 73.2% of global GHG emissions. Key sub-sectors such as steel, cement, chemicals and food processing are especially carbon intensive.

How to Align with the Science-Based Targets Initiative

This is a step-by-step approach to aligning emissions reduction in manufacturing with science-based targets:

Conduct a comprehensive GHG inventory using protocols such as the GHG Protocol Corporate Standard. This includes:

• Scope 1: Direct emissions from owned or controlled sources (e.g., company vehicles, on-site fuel combustion)
• Scope 2: Indirect emissions from the generation of purchased electricity, steam, heating, and cooling
• Scope 3: All other indirect emissions, including those from purchased goods, transportation, employee commuting and waste disposal

Learn More: What is the Difference Between Scopes 1, 2, and 3

The SBTi provides several target-setting methods:

• Absolute Contraction Approach: Requires reducing absolute emissions by a set percentage (e.g., 50% by 2030).
• Sectoral Decarbonisation Approach (SDA): Uses sector-specific carbon intensity pathways; particularly useful for manufacturing and food sectors.

• Short-term: Targets typically 5–10 years from the base year. These are now mandatory for validation by SBTi.
• Long-term: Targets aligning with net-zero by 2050 under the SBTi Net-Zero Standard.

Once targets are set, submit them for review through SBTi’s online platform. Expect feedback and a detailed validation report.

Use action plans that incorporate:

• Capital investment strategies
• Behavioural changes
• Technology upgrades
• Decarbonising Manufacturing Operations

Reducing carbon emissions in manufacturing is complex but achievable through a combination of technology, process optimisation and policy adherence.

Learn More: Set Science-Based Targets for Net Zero Goals | Tunley Environmental

Reducing Scope 3 Emissions in Manufacturing

Scope 3 emissions can account for up to 90% of a manufacturing company’s total GHG footprint. These emissions occur outside the organisation's direct control, posing significant measurement and mitigation challenges. Manufacturers must prioritise the management and reduction of scope 3 emissions across their operations to align with SBTi requirements.

Key Actions to Reduce Scope 3 Emissions

Supplier Engagement: Organisations should work with their key suppliers to measure and reduce their emissions. This would also include providing training and incentives for suppliers to adopt science-based targets.

Sustainable Procurement: The use of low-carbon materials, such as recycled steel or bio-based plastics should be considered during sourcing of raw materials.

Product Lifecycle Management: Incorporation of eco-design principles can reduce emissions over a product's life.

Logistics Optimisation: Manufacturing companies can use route optimisation software to better manage emissions from transportations and deliveries.

Monitoring, Reporting and Verification (MRV) of Science-Based Targets

Companies must ensure continuous improvement and credibility through robust MRV systems.

• Annual Reporting: Publish progress in sustainability or integrated reports.
• Third-Party Auditing: Use accredited verification bodies for added credibility.
• Digital Tools: Make use of digital platforms to help track and report emissions.
  
  

Business Benefits of Setting Science-Based Emissions Reduction Targets

• Regulatory Compliance: This helps manufacturing companies align with emerging sustainability regulations like the EU Green Deal, the UK’s Net Zero Strategy and other international frameworks setting enforceable emission reduction standards.
• Investor and Consumer Expectations: Setting emissions reduction targets that are based on science can serve as an indicator of a manufacturer's commitment to more sustainable operation. It also helps avoid accusations of greenwashing from observers.
• Operational Efficiency: Decarbonisation often results in energy savings and lower long-term operational costs.

The Bottom Line

Setting science-based emissions reduction targets is a crucial step for manufacturing companies looking to future-proof their operations and meet stakeholder expectations. Whether through reducing Scope 3 emissions in manufacturing or transitioning to sustainable manufacturing practices, the journey towards net-zero should start with a clear, science-based commitment. Businesses can decarbonise their operations and supply chains in a structured and scientifically credible way by aligning with the Science-Based Targets Initiative.