Sustainable finance is becoming an essential component for businesses seeking long-term success. At Zeroe, we understand the importance of carbon emissions performance targets as key indicators of an organization's commitment to sustainability and have built a comprehensive suite of tools that enable business. In this article, we provide a clear and concise guide on leveraging carbon emissions as sustainable performance targets and outline the steps your organization should take.
Unlocking Sustainable Finance
Emissions measurement and reporting backed by credible decarbonization plans are key to unlocking capital and financing the net-zero transition. In recent years carbon emissions have emerged as the most widely used KPI in sustainability-linked debt transactions. Emissions targets are an impactful way for organizations to showcase their commitment to sustainability helping businesses align their operations to the Paris Agreement's goals and contribute to global climate change mitigation efforts.
From 2011-2020, USD 4.8 trillion was committed to climate finance. By 2030, we need at least USD 4.3 trillion annually to combat climate change.
Steps to Position Your Organization for Sustainable Finance:
Develop Science-Based Carbon Emissions Targets:
Establish ambitious, measurable, and time-bound emissions reduction targets aligned with the Paris Agreement's 1.5°C goal.
Ensure your targets are science-based, taking into account your organization's size, sector, and unique circumstances.
Develop a transparent roadmap for achieving these targets, including monitoring and reporting progress.
Integrate Carbon Targets into Your ESG Strategy:
Incorporate carbon emissions targets into your organization's broader environmental, social, and governance (ESG) strategy.
Ensure that your carbon targets are consistent with your ESG goals, demonstrating a comprehensive approach to sustainability.
Communicate your ESG strategy and carbon targets to stakeholders, including investors, customers, and regulators.
Leverage Sustainable Finance Instruments:
Explore sustainable finance instruments, such as green bonds and sustainability-linked loans, to fund your organization's sustainability initiatives and emissions reduction efforts.
Ensure that your carbon emissions targets align with the requirements of these financial instruments.
Partner with financial institutions that share your commitment to sustainability and can support your organization's sustainable finance journey.
Measure & Disclose Carbon Emissions Performance:
Measure your organization’s emissions performance and take tangible steps to improve efficiency and decarbonize
Regularly disclose your organization's carbon emissions performance, including progress towards achieving your targets, in line with global reporting standards such as the Task Force on Climate-related Financial Disclosures (TCFD).
Showcase your organization's achievements and challenges, emphasizing your commitment to transparency and continuous improvement.
How Zeroe Can Help
At Zeroe, our platform and climate experts are here to support your organization on its journey to unlock sustainable finance.
Expert guidance on setting science-based carbon emissions targets tailored to your organization's needs.
A comprehensive carbon management platform that consolidates emissions data, automates supplier engagement, and provides a holistic view of your organization's carbon footprint for informed decision-making.
Zeroe's AI powered decarbonization platform identifies emissions hotspots and recommends targeted initiatives, ensuring your organization remains agile and resilient.
Simplified tracking and reporting of your carbon emissions performance, meeting global reporting standards.
