Hi there,
I am looking at residential properties in the UK, where Scope 1 emissions are significantly higher proportionally to Scope 2. Conversely, in the IEA NZE2050 or ETP, Scope 2 emissions are much higher than Scope 1. When we look at the reduction pathway of the IEA NZE2050 the scope 1 reduction of emissions is ~30% (2020-2030) and Scope 2 is ~69%. Due to the higher proportion of scope 2 emissions this leads to a 56% reduction largely driven by the big reduction in scope 2. For many of the UK scenarios the % reduction across scope 1 & 2 are similar however due to the UK residential emissions being much more weighted to scope 1 - the overall emissions reduction is lower. It is therefore, very difficult for UK centric portfolios to align and use the IAE NZE2050 scenario due to the different scope1:2 ratio that we see in the UK.
Would it be acceptable to set Scope 1 and Scope 2 separate targets for UK residential mortgages, using a 30% and 69% reduction respectively? Would the SBTi accept this target-set as aligned with 1.5 degrees?
If not, it will be hugely challenging for UK focused residential portfolios to align with the IEANZE2050 - can this be factored in when the SBTi update their 1.5 degree methodology?
Many thanks!