SCIENCE BASED TARGETS INITIATIVE

NET-ZERO
Net-Zero Standard Launch Event

28th October, 2021

 WELCOME & HOUSEKEEPING

This event is being recorded.

We will send all registrants a copy of the

presentation and the recording.

Please ask your questions for the panel section

in the Q&A box.

2 2
 AGENDA
Welcome

Opening – UN High-level Climate Action

Champion Nigel Topping

Panel – Conversation on Net-Zero with

business, science, and civil society

Introduction to the Net-Zero Standard –

Presentation by SBTi Team

Net-Zero in Practice – A Case Study from

Ørsted (Session 1) and JLL (Session 2)

Wrap-up and Call to Action

3 3
Opening – Session 1

OLWEN NIGEL
SMITH TOPPING
Regional Lead, UK & UN High-Level Climate
Worldwide, Call to Action Action Champion
Science Based Targets
initiative

4
Opening – Session 2

PAOLA NIGEL
DELGADO LUNA TOPPING
Head of Engagement UN High-Level Climate
Action Champion
Science Based Targets
initiative

5
CONVERSATION ON
NET-ZERO WITH
BUSINESS, SCIENCE,
AND CIVIL SOCIETY
PANEL – Session 1

PATRICK MIKIKO MICHAEL

FRICK KAINUMA HUGMAN
Lead Facilitator Senior Research Advisor Director, Climate Finance
Global Commons Alliance Institute for Global Children’s Investment Fund
Environmental Strategies Foundation (CIFF)

NARAYAN NICOLAS
PS CLERGET
Global Head, Sustainability Global Sustainable
and Social Initiatives Development Manager
Wipro Ltd The HEINEKEN Company

9
PANEL – Session 2

PATRICK EMILY MICHAEL

FRICK HICKSON HUGMAN
Lead Facilitator Head of Advocacy and Director, Climate Finance
Global Commons Alliance Climate Lead Children’s Investment Fund
The B Team Foundation (CIFF)

DOREEN NOORA KAROL

STABINSKY SINGH GOBCZYNSKI
Professor of Global Global Director of Head of Climate
Environmental Politics Sustainability & Energy
College of the Atlantic PepsiCo Ingka Group | IKEA

10
 SCIENCE BASED TARGETS INITIATIVE

NET-ZERO
Net-Zero Standard Launch
Event
28th October, 2021
Presentation – Session 1

ALBERTO EMMA MCKENNA

CARRILLO PINEDA WATSON SMITH
Managing Director & Co- Net-Zero Senior Manager Target Validation Manager
Founder Science Based Targets Science Based Targets
Science Based Targets initiative initiative
initiative

12
Presentation – Session 2

CYNTHIA EMMA PAULINA

CUMMIS WATSON TARRANT
Technical Director & Co- Net-Zero Senior Manager Net-Zero Engagement
Founder Science Based Targets Manager
Science Based Targets initiative Science Based Targets
initiative initiative

ANDRES
CHANG
Research Manager
Science Based Targets
initiative

13
 AGENDA
Introduction to science-based
targets

Why has the SBTi developed a

Net-Zero Standard?

How has the SBTi developed the

Net-Zero Standard?

What is a science-based net-zero

target?

Acknowledgements and
appreciation

Call to action
14 14
INTRODUCTION TO
SCIENCE-BASED
TARGETS
INTRODUCTION TO THE SBTi
What is the Science Based Targets initiative?

The Science Based Targets initiative (SBTi) is a global body enabling

businesses to set ambitious emissions reductions targets in line
with the latest climate science.

Founding Partners In collaboration with

17
INTRODUCTION TO THE SBTi
What are science-based targets?

5 to 10 years

Emissions (tCO2e) Science-based emission

1
1 reduction target (SBTs)

Emissions pathway aligned

to a Paris temperature goal

Science-based targets help companies determine how much and how fast
they need to reduce GHG emissions to align with efforts to limit warming to 1.5°C.
INTRODUCTION TO THE SBTi
Progress to date

To learn more about the progress of the initiative, consult the SBTi Progress Report 2020.
19
 INTRODUCTION TO THE SBTi
PROGRESS TO DATE

Companies with science-based targets are

delivering emissions reductions at scale.

► Companies with science-based targets

reduced emissions by 25% between 2015-
2020, compared with an increase of 3.4% in
global emissions from energy and industrial
processes.
► The typical company with SBTs reduced
direct (scope 1 and 2) emissions at a linear
annual rate of 6.4%. This exceeds the rate
required by the SBTi’s criteria to meet 1.5°C
scenarios (4.2%).

Source: SBTi Progress Report 2020.

20
WHY HAS THE SBTI
DEVELOPED THE NET-
ZERO STANDARD?
What does net-zero mean?
Understanding net-zero at the global level
The imbalance between
at
the amount of greenhouse
H Gs th he
r G
Othe ulate in
accu m
re
t
gases (GHGs) released into
sphe
atmo the atmosphere by
CO 2
nt of s humans and the amount

s
o u

r
GHG
am te

Othe
e, Net- ccumula re
gric ultur tha t a
tmos
p e
h
of carbon absorbed by
A . a
st e, etc in t he
r
w a y yea
u se ch
ange
ever natural sinks, results in a
Land
net accumulation
` of GHGs
in the atmosphere.
CO2
l fuel
Fossi stion
u vals
comb ustry CO2
remo
ind
&
Accumulation of GHGs in
s ed
a n-cau ls
Hum remova
the atmosphere is the
main driver of
um
ause
an-c ions
d anthropogenic climate
H s
emis
GHG change.
What does net-zero mean?
Understanding net-zero at the global level

To halt global warming,

we need to reach a
GHG emissions CO2 removals
balance between
` anthropogenic emissions
sources and removals. A
Human-caused GHG Human-caused
state known as net-zero
emissions removals emissions.
What does net-zero mean?
Understanding net-zero at the global level

ns
missio
GHG e
To limit global warming to
CO2 re
movals
GHG emissions CO2 removals 1.5°C, we must reach net-
zero carbon emissions no
later than 2050.
`

Goal: Net amount of

Current state: Net
amount of GHG GHG emissions is
zero GT CO2e year
emissions is >55 GT
CO2e year

Anthropogenic GHG
emissions

Anthropogenic carbon
removals
Why has the SBTi developed a Net-Zero Standard?
The science behind aiming for 1.5°C

1.5°C 2.0°C 2°C impacts

Global population
exposed to severe
heat at least once
14% 37% 2.6x worse
very 5 years

Despite understanding the

Number of ice- At least 1 every At least 1 every
free artic summers 100 years 10 years
10x worse severity of climate change
`
impacts, current policies
put us on track for
Further decline in Up to 29% between 2.7–3.1˚C.
coral reefs
70-90% 99%
worse

Decline in marine
fisheries
1.5M tonnes 3M tonnes 2x worse

Source: Levin, K. (2018, Oct 7). 8 Things You Need to Know About the IPCC 1.5˚C Report. Retrieved from
Source: Climate Action Tracker, May 2021 update
https://www.wri.org/blog/2018/10/8-things-you-need-know-about-ipcc-15-c-report
Why has the SBTi developed a Net-Zero Standard?
Since the release of the IPCC Special Report on 1.5°C, there has been rapid
growth in the adoption of net-zero pledges.

Net-zero coverage Growth in UNFCCC Race to Zero campaign

1 in 3 of the largest listed companies in G20 countries

now have net-zero targets, up from 1 in 5 last year

Source: ECIU, October, 2021 Source: Race to Zero, Sep, 2021

26
Why has the SBTi developed a Net-Zero Corporate net-zero targets can
play a critical role in
Standard? addressing the climate
emergency, but the lack of a
robust benchmark has
triggered scepticism around
Net-zero targets differ across four key dimensions: net-zero as a concept.
Dimension Options (non-exhaustive)
Common criticisms include:
Scope of climate • Incomplete boundary:
CO2 All GHGs GHG & other
impact
Selective inclusion of
emission sources in
Scope of `
Operations Value chain Products Others corporate net-zero targets
activities
• Delayed action: Lack
Mitigation Emission Negative Avoided of. interim milestones for
strategy Carbon finance
reduction emissions emissions long-term targets.
• Mitigation deterrence:
Timeframe Short-term Long-term
Focus on offsetting instead
of on reducing emissions.
• Poor accountability: Lack
of scrutiny and
accountability on voluntary
commitments.
27
HOW HAS THE SBTI
DEVELOPED THE NET-
ZERO STANDARD?
Net-Zero Standard: Robust process built on best practice

• Following a robust and transparent stakeholder process

building upon the ISEAL Standard-Setting Code of Good
Public Practice and the GHG Protocol standard setting process.
consultation
• Consulting a balanced and diverse Expert Advisory Group
(EAG) that provided direction to develop criteria.
Expert Advisory • The SBTi aimed to build consensus with the EAG.
Group
• If consensus was not reached, the SBTi made a final
decision considering the different perspectives.
SBTi
• Engaging regularly with the SBTi Technical and Scientific
Advisory Groups to consult on technical aspects, including
scenarios to determine residual emissions and target setting
methods.
Net-Zero Standard: thorough, transparent, and inclusive

2020 2021

Sep Oct Jan Feb-Mar Jul-Aug Sep-Oct Oct-Nov

Publication Set up of
of the Net- Road-
Expert Initial draft 1st public 2nd public
Zero testing Launch
Advisory of criteria consultation consultation
Foundations process
Paper Group

A balanced and Nearly 400 84 companies 167 participants

diverse group of participants participated to participated in
42 experts from from 37 different trial the target the pre-launch
civil society, countries and a setting tool, consultation
academia, & variety of sectors review the
business has participated in criteria and
guided the the first public guidance, and
development of consultation provide
the standard feedback
30
Four key resources for companies to set net-zero targets

Getting Started SBTi Corporate SBTi Corporate

Net-Zero Tool
Guide Net-Zero Standard Net-Zero Criteria
A simple, step-by-step Provides criteria, The criteria companies' Target-setting tool to
guide that allows guidance and net-zero targets must calculate long-term
companies to recommendations to meet to be approved by SBTs in line with the
understand how to set support corporates in the SBTi. Net-Zero Standard.*
net-zero targets. setting net-zero
targets.

* In a future update, the Net-Zero Tool and

current SBTi target-setting tool for near-term
31
SBTs will be combined.
Two key resources explain the Net-Zero Standard technical details

Net-Zero Foundations paper Pathways to Net-Zero

Produced in
collaboration with more
than a dozen pioneering
This paper lays out the academics, IPCC lead
conceptual foundations authors and mitigation
for credible, science- experts, this technical
based net-zero targets for summary provides an
the corporate sector. overview of how the
SBTi selects mitigation
pathways to steer
action.

32
WHAT IS A SCIENCE-
BASED NET-ZERO
TARGET?
 Four key elements make up the Net-Zero Standard framework

By 2050 at the latest To set near-term science-based targets:

1 5-10 year emission reduction targets in line with 1.5°C
5 to 10 years pathways
Emissions (tCO2e)

1.5°C-aligned
emissions
pathway
4
3

Abatement within the

value chain

Removals
Abatement or removals beyond
a company’s value chain

Net-zero emissions Required Recommended

 Four key elements make up the Net-Zero Standard framework

By 2050 at the latest To set near-term science-based targets:

1 5-10 year emission reduction targets in line with 1.5°C
5 to 10 years pathways
Emissions (tCO2e)

1 To set long-term science-based targets:

2 Target to reduce emissions to a residual level in line with
1.5°C scenarios by no later than 2050

1.5°C-aligned
Most companies will be
emissions required to reduce
pathway
4
emissions by 90% or more
3
before reaching net-zero.

Abatement within the

value chain

Removals
Abatement or removals beyond
a company’s value chain

Net-zero emissions Required Recommended

 Four key elements make up the Net-Zero Standard framework

By 2050 at the latest To set near-term science-based targets:

1 5-10 year emission reduction targets in line with 1.5°C
5 to 10 years pathways
Emissions (tCO2e)

1 To set long-term science-based targets:

2 Target to reduce emissions to a residual level in line with
1.5°C scenarios by no later than 2050

2 Beyond value chain mitigation:

In the transformation to net-zero, companies should take
1.5°C-aligned action to mitigate emissions beyond their value chains.
3
emissions For example, purchasing high-quality, jurisdictional
pathway REDD+ credits or investing in direct air capture (DAC) and
geologic storage
4
3

Abatement within the

value chain

Removals
Abatement or removals beyond
a company’s value chain

Net-zero emissions Required Recommended

 Four key elements make up the Net-Zero Standard framework

By 2050 at the latest To set near-term science-based targets:

1 5-10 year emission reduction targets in line with 1.5°C
5 to 10 years pathways
Emissions (tCO2e)

1 To set long-term science-based targets:

2 Target to reduce emissions to a residual level in line with
1.5°C scenarios by no later than 2050

2 Beyond value chain mitigation:

In the transition to net-zero, companies should take
1.5°C-aligned action to mitigate emissions beyond their value chains.
3
emissions For example, purchasing high-quality, jurisdictional
pathway REDD+ credits or investing in direct air capture (DAC) and
geologic storage
4
3
Neutralization of residual emissions:
GHGs released into the atmosphere when the company
Abatement within the
value chain 4 has achieved their long-term SBT must be
counterbalanced through the permanent removal and
Removals storage of carbon from the atmosphere

Abatement or removals beyond

a company’s value chain

Net-zero emissions Required Recommended

 Four considerations for setting near-and long-term SBTs

Boundary Ambition Timeframe Methods

How much coverage or What is the ambition level What is the maximum What are the eligible
your emissions inventory in terms of limiting timeframe to meet your methods to set your targets?
is required? temperature rise? targets?

Scope 1+2: 95% Scope 1+2: 1.5°C 5-10 years 1. Absolute contraction
2. Physical intensity
Near-term Scope 3: If >40% of total Scope 3: Well-below convergence
science- emissions, 67% 2°C
3. Renewable electricity
based target coverage
4. Supplier or customer engagement*
5. Economic intensity*
6. Physical intensity contraction*

1. Absolute contraction
Scope 1+2: 95% Scope 1+2+3: 1.5°C 2050 latest
2. Physical intensity
Scope 3: 90% convergence
Long-term
3. Renewable electricity
science-
4. Economic intensity*
based target
5. Physical intensity contraction*

* Scope 3 only
Acknowledging challenges with Scope 3, the Standard A comprehensive target
boundary is necessary for
is following an expansive boundary approach companies to make credible
net-zero claims. However,
90% boundary for long-
term targets
acknowledging the
(by 2050) challenges with Scope 3
67% boundary for near- data, the Net-Zero Standard
term targets
(5 to 10 years) is following an expansive
boundary approach.

This gradual increase in

ambition:
• Provides opportunities to
collaborate across the
whole value chain to
support suppliers and
customers to decarbonize
• Allows companies to focus
now on making steep cuts
in their most material
emissions
• Affords time to work
through the complexity of
scope 3

39
To follow on from the Net-Zero Standard, the SBTi has planned three
projects to tackle challenges related to net-zero

Measurement,
Beyond Value Net-Zero Value
Reporting &
Chain Mitigation Chains
Verification
It is vital companies have clarity on The SBTi recognizes the challenges The SBTi will develop an MRV
how to take credible mitigation around scope 3 and is planning to framework to ensure transparency
actions beyond their value chain. The further develop scope 3 target setting and accountability around the
SBTi is exploring models to incentivize methods and explore other progress and achievement of
this in a credible and robust way. approaches to drive net-zero value science-based emission reduction
chain alignment. and net-zero targets.
ACKNOWLEDGEMENTS
& APPRECIATION
Acknowledgements & appreciation from the SBTi
As part of the Net-Zero Standard development process, the
SBTi engaged over 800 stakeholders

543 42 2 84
Permanent Road test
Global leaders
Responded to the Advisory Groups companies
gave vital input as
public gave essential provided feedback
part of our Expert
consultations guidance and on guidance,
Advisory Group
feedback methods and tools
84 companies took part in the road test, providing crucial
feedback on guidance, methods and tools
• WayCarbon
• ab inbev • easyJet • McCain Foods
• Wipro Ltd
• A.P. Moller-Maersk • EDF Group • Moody's
• Worley
• ABOUT YOU AG & Co. KG • EDP Energias de Portugal • Multiplex Construction Europe
• WSP Global Inc.
• ACCIONA Energía • Elopak • Ørsted
• ACCIONA S.A • Emira Property Fund • Outokumpu Oy
• AstraZeneca • Enel S.p.A. • PepsiCo
• Baluarte Cultura • Ferrovial • Pfizer Inc.
• Bayer AG • FLSmidth A/S • Pilgrim's UK
• Bloomberg LP • Givaudan • Ralph Lauren Corporation
• BMW Group • Globant • Rolls-Royce plc
• Bonava • Guidehouse • Slaughter and May
• Boston Consulting Group • HEINEKEN • Sodexo
• Capgemini SE • Holcim Ltd. • Sopra Steria Group
• CBA • Informa • Starbucks
• CBRE • International Consolidated Airlines Group (IAG) • Swire Properties Limited
• Colgate Palmolive Company • Jacobs • Swiss Re
• Co-op • JLL • Telenor ASA
• CVS Health • Kesko Corporation • Transurban
• Danone • Lenovo • Tubacex
• Dentsu International • Magyar Telekom Plc. • Unilever
• Deutsche Telekom AG • Mahindra Lifespace Developers Limited • Veritas Technologies
• DSM • Mars • Volkswagen

The SBTi would like to thank these

companies for their support!
And finally, we would like to thank and congratulate the seven
companies that have had their net-zero targets approved!
CALL TO ACTION
The SBTi will officially begin validating
net-zero targets in January 2022

NET ZERO TARGET VALIDATION

NET-ZERO
The net-zero validation
booking system opens today!
When you are ready, book
your slot*.

`
COMPLETENESS TIMEFRAME AMBITION EARLY ACTION ACCOUNTABILITY
Covers all material Aims to reach net- Leads to Leads to action in Target will be
sources of zero within a decarbonisation the short-term subject to a robust
emissions across timeframe that is consistent with through the and independent
the value chain of a consistent with limiting warming to adoption of near- accountability
company limiting warming to 1.5°C in line with term emission framework
1.5°C robust climate reduction targets
scenarios

*To support our operating costs, the fee for the target
validation service is USD 9,500 (+ applicable VAT) or USD
1,000 (+ applicable VAT) for SMEs.
49
We are urgently calling on all
companies to set science-
based net-zero targets.

600+ companies have already

committed to net-zero through
the Business Ambition for 1.5˚C
Campaign.

You can commit now by signing

the SBTi commitment letter*.

*Companies have 24 months to submit targets.

 WRAP UP

Find relevant Net-Zero Standard materials

on the SBTi Net-Zero webpage

More webinars on the technical detail to

come in coming months

Companies can commit to setting net-zero

targets aligned with science via our
commitment letter

The net-zero validation booking system is

now open!
51 51
NET-ZERO IN PRACTICE:
ØRSTED CASE STUDY
Net-Zero in Practice: Ørsted

JAKOB
ASKOU BØSS
Senior Vice President
Ørsted

Presenter
53 Name | @presenterhandle 53
NET-ZERO IN PRACTICE:
JLL CASE STUDY
Net-Zero in Practice: JLL

RICHARD
BATTEN
Chief Sustainability Officer
JLL

Presenter
68 Name | @presenterhandle 68
October 28, 2021
Agenda

• About JLL

• Our sustainability strategy

• Our progress

• Our journey to net-zero

• How we will achieve our science-based

target

• Our headline actions

© 2021 Jones Lang LaSalle IP, Inc. All rights reserved. 70

We shape the
future of real estate
for a better world.

© 2021 Jones Lang LaSalle IP, Inc. All rights reserved. 71

 • Our progress

© 2020 Jones Lang LaSalle IP, Inc. All rights reserved. 72

 • Our journey to net-zero

JLL commits to reduce

absolute scope 1,2 and 3
emissions by 51% by 2030
and 95% by 2040 from a
2018 base year

© 2020 Jones Lang LaSalle IP, Inc. All rights reserved. 73

 • How we will achieve our science-based target

© 2020 Jones Lang LaSalle IP, Inc. All rights reserved. 74

 Our headline actions

Activity

Office space Vehicles Clients

Emissions Scope 1, 2, 3 1 3
2018 baseline emissions 30,614 31,164 17,547,735
mt CO2e

Reduction activities • Improve energy • Significant vehicle • Help clients to set

efficiency in offices fleets in US and strategies and drive
we already occupy EMEA due to our energy efficiency in their
• Take on highly mobile engineering buildings
efficient office space service • Increase the uptake of
and enhance with • Anticipate 100% renewable energy they
fitout specifications EV across our are consuming
• Move offices onto global vehicle fleet • Make significant
renewable energy, by 2032 investments in
or purchase RECs if technology solutions to
© 2020 Jones Lang LaSalle IP, Inc. All rights reserved.
unavailable deliver these services 75
 Our headline actions

Activity

Business travel Supply chain Employee Other

& hotel use commuting & emissions
homeworking
Emissions Scope 3 3 3 3

2018 baseline emissions 76,740 409,397 100,451 10,654

mt CO2e
Reduction activities • Eliminate • Strengthen • Incentivize use • Implementation
unnecessary travel collaboration with of public transit of new
• Invest in technology suppliers to set • Reductions will procedures
solutions to support shared targets and also occur should see these
flexible working KPIs through decrease with
• Where travel is • Ensure data increased use any residuals
unavoidable, direct centres used are of renewable addressed
employees to use supplied with energy and low through high
less impactful renewable energy emission quality offsets
© 2020 Jones Lang LaSalle IP, Inc. All rights reserved. transport wherever possible vehicles 76
 Richard Batten
Chief Sustainability Officer, JLL
E: Richard.Batten@jll.com 20