TABLE OF CONTENTS

• Overview
• Definitions
  • Timeframes:
  • Emission Paths:
  • Actions:
• Calculations

Overview

The Decarbonization Strategy module allows you to model emissions reductions over time, based on custom actions you define. This guide explains how we calculate emissions, costs, and reduction potential so that you can understand and trust the outputs.

Definitions

Timeframes:

Base year: The base year is the reference point used to measure greenhouse gas (GHG) emissions reductions. It is the year from which targets are set and progress is tracked over time. The base year should have reliable, verifiable, and complete emissions data to ensure credible comparisons in future years.

Target year: The year by which you aim to meet your emissions reduction target.

Reference year: The reference year is typically the most recent year with a complete emissions inventory. It is used as the starting point for modeling emissions pathways, including business-as-usual and projected scenarios.

Emission Paths:

Business as usual (BAU): Expected emissions if no decarbonization actions are taken. Based on reference year emissions and expected business growth.

Projected emissions: Shows expected future emissions considering both business growth and planned decarbonization actions.

Target trajectory: The linear emissions path to meet Scope 1, 2, and/or 3 targets by the target year.

Reported emissions: Actual emissions as-reported for historical years. 

Actions:

Reduction potential (%): This represents the estimated percentage of emissions you can reduce or avoid through your actions, relative to the reference year selected. You can determine this by consulting relevant studies or benchmarks that provide reduction potential ranges. If enabled, our AI Analyst can also offer an indicative estimate.

Implementation rate: Your implementation rate reflects how broadly this action is expected to be applied across the relevant emission category. 

For example, if 10% of your vehicle fleet is expected to be impacted through an action, enter 10%. Please note that if you’re modeling multiple mutually exclusive actions within an emissions category (such as switching to either electric or biodiesel vehicles), their combined implementation rates should not exceed 100%. 

CapEx (capital expenditure): The total upfront investment cost required to implement the decarbonization action.* 

OpEx (operational expenditure): The annual change in operational costs as a result of implementing the decarbonization action. This may reflect cost savings (e.g., from efficiency gains) or increased costs (e.g., from cleaner but more expensive alternatives).*

* Cost values are reported in the company currency and are not discounted. All CapEx and OpEx figures are presented in nominal terms.

Calculations

CO2e reduction target: The overall emissions reduction target for the scenario, expressed as a percentage reduction from base year emissions. This is calculated by weighting the individual Scope 1, 2, and 3 targets according to their share of base year emissions.

Business as usual (BAU): Calculated based on your reported emissions in the reference year and expected business growth rate. No decarbonization actions are applied here.

Projected emissions: Calculated based on your BAU emissions, reduced by decarbonization actions. Decarbonization actions are assumed to apply evenly between the action start and end year (i.e. on a linear basis).

Target trajectory: A linear path from your Base Year to your Target Year based on the emissions reduction target you define.

Reported emissions: These are your actual, calculated emissions based on submitted data. They reflect what has been reported to date and are not modified by this module—they serve as the foundation for projections and comparisons.

Reduction (tCO2e) [actions table, change analysis chart]: The total emissions reduction attributed to the action in the target year. It is calculated by subtracting projected emissions from BAU emissions for that year.

A safeguard is in place to prevent total reductions from driving an emissions category below zero in cases where actions overlap or conflict. If this occurs, the adjustment will be reflected in the Change Analysis chart as a bar labeled “overlapping.”