Temperature Score for Renewable Energy Companies

Methods
1

Hi all, a question came up regarding temperature scores for companies that are in the renewable energy space. If there are companies that have already achieved very low or 0 emissions, but have not set a public emissions reduction target, I understand that the temperature score for that company would be 3.2 degrees. Is there any special consideration that could be given to the temperature score for such companies that already have very low emissions, but may not (for whatever reason) submit an emissions reduction target?

I do realize that one workaround would be to use the SDA approach for companies with low emissions and no targets.

I just wanted to double check that there is no special treatment in this case for renewable energy or other net-zero or near-net zero companies.

Thanks for all of your help!

2

Hi @akallin,

Good question, but unfortunately your assumptions are correct. Currently, we don’t have a way to treat renewables differently to other companies in the temperature rating method. As SBTi is focused on decarbonization and don’t reward emissions reductions already achieved, if they haven’t set a target they will unfortunately get a default score, currently 3.2C.

3

Thank you very much for the reply and the confirmation Donald. Will keep my eyes out for any future amendments to the temperature approach.