Achieving climate targets with the XDC model and the SBTi

28.10.2024
  • co2 balancing

The Science Based Targets Initiative (SBTi) is a global initiative that supports companies in setting science-based climate targets. These targets set a clearly defined path to reduce greenhouse gas emissions and are in line with the Paris Climate Agreement, whose main goal is to limit global warming to a maximum of 1.5 degrees Celsius.

The SBTi reviews corporate targets and confirms whether they are ambitious and scientifically sound enough to achieve the 1.5 degree target. Companies are instructed to measure emissions in Scope 1 (direct emissions), Scope 2 (indirect emissions from purchased energy) and Scope 3 (indirect emissions along the entire value chain) and to set specific reduction targets. The basis for this is greenhouse gas accounting in accordance with the Greenhouse Gas (GHG) Protocol, a globally recognized standard.


What is the X-Degree Compatibility (XDC) model?

A key tool to help achieve these climate targets is the X-Degree Compatibility (XDC) model, developed by right. based on science, a German provider of science-based climate assessments. The XDC model quantifies a company's impact on the climate by calculating a “temperature compatibility”. This temperature figure shows how much the company's activities contribute to global warming and indicates how this compares to the 1.5 degree limit.

The XDC model enables companies to determine their remaining emissions budget - the maximum CO₂ budget still available to a company to achieve the Paris climate targets. This tool helps companies to develop concrete reduction pathways that focus on their largest emission sources in Scope 1, 2 and 3. With the XDC model, companies can create a precise analysis of their climate impact and make strategic decisions to become climate neutral.

Other tools to support climate targets

In addition to the SBTi and the XDC model, there are other initiatives that support companies in implementing and disclosing their climate strategies. These include the Task Force on Climate-Related Financial Disclosures (TCFD), which encourages companies to make climate-related risks and opportunities transparent. Another example is the Carbon Disclosure Project (CDP), which offers a standardized methodology for reporting climate risks and impacts.


Conclusion

The combination of the Science Based Targets Initiative (SBTi) and the X-Degree Compatibility (XDC) model provides companies with effective tools to formulate science-based climate targets and monitor their achievement. The SBTi supports the formulation and validation of transparent emissions targets, while the XDC model provides a detailed assessment of the climate compatibility of corporate activities. Together, these tools promote a science-based emissions reduction strategy and provide companies with clear guidance on their path to climate neutrality.

 

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