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Science Based TargetsWorkshop 2

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Route Services Powerpoint Putting passengers firstPutting passengers first

Welcome

Roger Maybury | Supplier Management Director, Commercial & Procurement, Network Rail

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Agenda

Topic Speaker Time

Introductions & Welcome

Roger Maybury (Network Rail)

10:00amIvan Le Fevre (Highways England)

James Ingram (Transport for London)

Peter Miller (HS2)

How to Develop Science Based Targets

Olwen Smith (SBTi) 10:10am

Scope 3 Emissions Danielle Mulder (Carbon Intelligence) 10:35am

Break 11:00am

Supplier Case Study Example Ryan Burrows (AECOM) 11:10am

Expert Panel Q&A Rupa Bhatt (Network Rail) 11:25am

Closing Comments Roger Maybury (Network Rail) 11:55am

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Ivan Le FevreHead of Environment

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James Ingram

Senior SHE Environment Manager

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London

Peter Miller

Environment & Town

Planning Director

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How to Set Science-Based Targets

Olwen Smith

UK & WW Regional Lead, Net Zero Campaigns

Science Based Targets - Workshop 2 (1st July, 2021)

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AGENDA

• Standard SBT-setting route (large companies)

•Developing the target

•Submitting the target for validation

•Communicating and disclosing

• SME SBT-setting route

• Key resources

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https://ghgprotocol.org

Scope 1 – Direct emissions on site (e.g., on-site

energy use)

Scope 2 – Emissions from purchased electricity,

heat steam, water

Scope 3 – All other indirect emissions along the

value chain

Note: All companies must complete at least a scope 3

screening for all relevant categories. If scope 3 is over

40% of total emissions, an emissions inventory must be

provided (estimations at minimum).

HOW TO SET A TARGETGETTING READY TO SET A SBT

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HOW TO SET A TARGETTWO DIFFERENT ROUTES

LARGE COMPANIES

SMALL AND MEDIUM-SIZED

ENTERPRISES

STANDARD ROUTE

SMEs ROUTE

For the purposes of target validation by the SBTi, an SME is

defined as a non-subsidiary independent company with fewer

than 500 employees

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STANDARD ROUTE:

LARGE COMPANIES

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HOW TO SET A TARGET

DAY 1 24 MONTHS

Company submits a

letter establishing

its intent to set a

science-based

target

Company works on

an emissions

reduction target in

line with the SBTi

criteria

Company presents

the target to the

SBTi for official

validation

Company

announces the

target and inform

stakeholders

Company report its

wide emissions and

progress against

targets on an

annual basis

AFTER

APPROVAL

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STEP 2: DEVELOP THE TARGET | KEY RESOURCES OVERVIEW

5

ToolsExcel tools for modeling targets.

3

SBTi Criteria and

RecommendationsPresents the criteria and

recommendations for the development of

SBT targets. Companies are validated

against these criteria.

1

Foundations of Science-

based TargetsExplains how the SBTi has leveraged

newly available science to align its

methods with 1.5°C and well-below 2°C

pathways.

4

Target Validation ProtocolPresents how the team checks and

classifies targets against the SBTi

Criteria.

2

Science Based Targets

Corporate ManualPresents the steps to join the initiative, and

guidance for companies to develop their

targets for scopes 1, 2 and 3.

HOW TO SET A TARGET

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STEP 2: DEVELOP THE TARGET | CRITERIA OVERVIEW

• Level of ambition (Scope 1+2): At a minimum – consistent with the level

of decarbonization required to keep temperature increase to well-below

2°C while we encourage efforts towards 1.5°C.

• Progress: Both the target timeframe ambition (base year to target year)

and the forward-looking ambition (most recent year to target year) must

meet the ambition criteria.

• Boundary: All company-wide Scope 1 and 2 GHG emissions (> 95%);

• Timeframe: 5-15 years into the future;

• Reporting: Disclose GHG emissions inventory on an annual basis.

• Scope 3: A Scope 3 screening is required. An ambitious Scope 3 target is

required when Scope 3 emissions cover < 40% of total emissions.

HOW TO SET A TARGET

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STEP 2: DEVELOP THE TARGET | METHODS FOR SCOPE 1 AND 2

Absolute-based approach Sector-based approach

- Homogeneous sectors

- Different % of reduction

- Sectoral carbon budgets

(e.g. IEA*)

- All sectors

- Equal % of reduction

- IPCC carbon budgets

scenarios

ConvergenceContraction

HOW TO SET A TARGET

* International Energy Agency

** Developed by the SBTi

Sectoral Decarbonization Approach (SDA)**

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STEP 2: DEVELOP THE TARGET | OVERVIEW OF METHODS FOR VARIOUS SECTORS

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TRANSPORTATION

● SDA or Absolute Contraction.

● Auto manufacturers MUST set well-below 2°C aligned scope 3 targets on use of sold

products.

● Visit the SBTi Transport webpage to access the guidance and tool.

FINANCIAL

INSTITUTIONS

● Three methods for financed emissions (scope 3): SDA, SBT Portfolio Coverage,

Temperature Rating

● Visit the SBTi Financial Institutions webpage to access the guidance and tools.

ALUMINUM, CEMENT,

COMMERCIAL BUILDINGS, IRON

AND STEEL, PULP AND PAPER

● SDA or Absolute Contraction.

● Download the SBTi tool to model targets for these sectors.

POWER● SDA only.

● Visit the SBTi Power webpage to access the guidance and SBTi tool.

SBTi

Methods &

Sectors

ALL OTHER SECTORS

● Absolute contraction only.

● Download the SBTi Tool to model targets using the absolute contraction

approach.

APPAREL &

FOOTWEAR, ICT

● Absolute Contraction only.

● Visit the Apparel & Footwear webpage and the ICT webpage to access

relevant guidance.

HOW TO SET A TARGET

Access the SBTi Sector Guidance webpage to find detailed info about each sector: https://sciencebasedtargets.org/sectors

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STEP 2: DEVELOP THE TARGET | SBTi TOOL

Scopes 1 and 2 Scope 3

HOW TO SET A TARGET

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STEP 2: DEVELOP THE TARGET | SBTi TOOL

Scopes 1 and 2

HOW TO SET A TARGET

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STEP 2: DEVELOP THE TARGET | CASE STUDIES

More than 20 case studies available,

such as:

● Dell

● Kellogg’s

● Pfizer

● Orsted

● Tech Mahindra

HOW TO SET A TARGET

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STEP 3: SUBMIT | RELEVANT RESOURCES FOR TARGET VALIDATION PURPOSES

HOW TO SET A TARGET

Criteria and

recommendations

Target validation

protocol

Target submission form

and guidance

+ +

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STEP 3: SUBMIT | TARGET VALIDATION PROCESS

HOW TO SET A TARGET

VALIDATION

PROCESS

Target validation team

performs target

assessment

DATA

SUBMISSION

Company submits its

targets using the Target

Submission Form

VALIDATION DECISION

Company receives

Target Assessment

Report

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STEP 3: SUBMIT | TARGET VALIDATION PROCESS DETAILED

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HOW TO SET A TARGET

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STEPS 4 AND 5: COMMUNICATE AND DISCLOSE

HOW TO SET A TARGET

Companies must publicly disclose their

emissions inventory and progress

against their targets on an annual basis.

Recommendations include annual

reports, sustainability reports, the

company’s website, and/or disclosure

through CDP’s annual questionnaire.

Once approved, companies must

communicate their targets.

SBTi publishes approved targets on its

website on the companies taking action

page as well as on partner’s websites

(We Mean Business and CDP).

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SMALL AND MEDIUM-SIZED

ENTERPRISES:

SMEs ROUTE

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HOW TO SET A TARGETSMES ROUTE

Company submits its SME

Target Setting Letter to the

SBTi, which will perform

the review of the

information submitted

And upon payment,

the company’s

target is published

on the website

Company reports

its GHG inventory

and progress

against target on an

annual basis

DAY 1

ONCE COMPANY

RECEIVES FORMAL

APPROVAL AFTER APPROVAL

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HOW TO SET A TARGETSMES ROUTE

● The SBTi has developed an exclusive route for

SMEs and these MUST submit a target through

this route;

● This route enables SMEs to bypass the regular

target validation process and to immediately set

a science-based target for scope 1 and 2;

● SMEs must choose one of the predefined

options available in the SME Target Setting

Letter;

● Base year and target year cannot be different

from the predefined ones;

● SBTi does not approve SME’s scope 3 targets;

● Oil and gas companies and financial institutions

cannot set targets through the SME’s route, even

if they fit the SME definition;

● SMEs must communicate their targets and

publicly disclose their emissions inventory and

progress against targets on an annual basis.

PREDEFINED options in the

SME Target Setting Letter

SME Target Setting Letter available at:

https://sciencebasedtargets.org/resources/files/SBT-SME-Target-

Setting-Letter.pdf

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KEY RESOURCESWHERE TO FIND THEM

1. Access the initiative's website:

www.sciencebasedtargets.org

2. On the main menu, click on

"Resources"

3. Scroll down a little bit

4. The resources are presented according

to the stage in which they will be used:

commit, develop, submit, learn and

background

5. Click on the corresponding menu and

access the resources you want

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TARGET-SETTING SUPPORT

• Browse our general Frequently Asked Questions here

• Review the SME FAQ doc here

• Use the SBTi tool including scope 3 tool to model targets

• Watch our SBTi Net-Zero FAQ videos here

• Take the new UNGC E-Learning course on SBTs

KEY RESOURCES

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THANK YOU! QUESTIONS?

sciencebasedtargets.org

/science-based-targets

@ScienceTargets Science Based Targets

info@sciencebasedtargets.org

Partner organizations In collaboration with

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Wh

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e ar

eCarbon Intelligence

Danielle Mulder, DirectorScope 3 Centre of Excellence Lead

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Why Scope 3 Matters

• Climate risk – both physical and transition

• Net zero carbon and Science Based Targets

• Investor pressure

• Brand and reputational risk

• Reporting and disclosure requirements

- TCFD, CDP, SECR etc.

• Policy and regulatory changes –

- UK Govt (Net Zero by 2050) , EU Taxonomy

Scope 1 and 2

Scope 3

Typically 80%+ of your company emissions will be in your Scope 3

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1. Scope 3 Screening/GAP

Analysis

2. Scope 3 Modelling and

Baselining

3. Scope 3 Target Setting

4. Scope 3 Roadmap

Follow SBTi guidance and requirementsAligned to GHG Accounting Protocol

Scope 3 screening and emissions assessment

Scope 3 emissions baseline and model

Scope 3 Targets and expected reduction

potential

High level implementation plan with de-carbonisation

strategies

Information requestPeer review

Data setsEmissions Factors

Current projects/initiativesSBTi Target options

Outputs

Inputs

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GHG Accounting: Scope 3 Emission Categories

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UPSTREAM SCOPE 3 CATEGORY

Upstream scope 3 emissions

1. Purchased goods and services2. Capital goods3. Fuel and energy related activities 4. Upstream transportation and distribution5. Waste generated in operations6. Business travel7. Employee commuting8. Upstream leased assets

Downstream scope 3 emissions

9. Downstream transportation and distribution10.Processing of sold products11.Use of sold products12.End-of-life treatment of sold products13.Downstream leased assets14.Franchises15.Investments

TYPICAL SCOPE 3 EMISSION SOURCES

• Upstream – Purchased goods & services, capital goods, FERA, Upstream transportation & distribution etc.

• Downstream – downstream leased assets, use of sold products, franchises, investments etc.

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Understand the SBTi Scope 3 target criteria and identify relevant emission sources

You must complete a Scope 3 screening

If Scope 3 >40% of total footprint you must set a target

Target boundary must cover at least 2/3 of

total Scope 3 emissions

Scope 3 targets must be in line with <2C

science

SBTi requirements Scope 3 screening and heatmap Outputs

1. Assessment of Scope

3 emission hotspots

2. Peer review and

industry intelligence

3. Understanding of

gaps in Scope 3 data

coverage and quality

4. Action plan to

address gaps to

conduct full Scope 3

emissions inventory

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carbo

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Downstream

Procurement of Goods and

Services

Upstream

Use of Sold Goods

Business Travel

Investments

Tenant Emissions

Value Chain

Your sector and business type/context is key and determines you scope 3 categories

Capital Goods

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Industry intelligence and peer review are also key

Emission Category Contribution (%)

Emission Category Microsoft Apple Inc. Amazon Alphabet WPP Dentsu Inc

Scope 1 1.0% 0.2% 11.3% 0.5% 0.5% 0.8%

Scope 2 (MB) 2.4% 0.0% 10.7% 6.3% 1.2% 0.8%

Scope 3 Total 96.7% 99.8% 78.0% 93.1% 98.4% 98.1%

Purchased goods and services 35.9% 75.3% 30.1% 67.9% 58.1% 49.2%

Capital goods 17.9% 0.0% 15.7% 17.2% 1.4% 39.4%

Fuel-and-energy-related activities 1.5% 0.0% n/a n/a 0.3% n/a

Upstream transportation and distribution 0.5% 1.9% 24.3% 3.7% 0.1% 0.4%

Waste generated in operations 0.0% n/a n/a n/a 0.0% 0.0%

Business travel 3.4% 1.3% n/a 2.9% 1.7% 0.1%

Employee commuting 3.4% 0.8% n/a 1.4% 1.1% 9.0%

Upstream leased assets n/a n/a n/a n/a n/a n/a

Downstream transportation and distribution

0.5% 4.0% 7.9% n/a n/a n/a

Processing of sold products n/a n/a n/a n/a n/a n/a

Use of sold products 33.1% 16.3% n/a n/a 32% n/a

End of life treatment of sold products 0.6% 0.2% n/a n/a n/a n/a

Downstream leased assets 0.0% n/a n/a n/a 0.0% n/a

Franchises n/a n/a n/a n/a n/a n/a

Investments n/a n/a n/a n/a 4.1% n/a

Total 11.7 million tCO2e 25.1 million tCO2e 51.1 million tCO2e 12.5 million tCO2e 7.7 million tCO2e 600k tCO2e

Scope 3 emissions are consistently the most significant category

across all vendors and peers.

Note, applicable Scope 3 categories will vary by company depending on business structure

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Scope 3 Data Quality Summary

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5 4 3 2 1

Data Quality Score

1

Data improvement priority

Size of bubble = magnitude of emissions

Low data quality = estimation using industry or country level dataHigh data quality = verified emissions data from supplier at product/service level

HighLow

2 3

4

5

6 7

8

~1 year data transformation programme to improve data quality

1 Procurement

2 Use of sold products

3 Processing of sold products

4 Waste generated in operations

5 Minority investments

6 End of life of sold products

7 Business travel

8 Employee commuting

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Simplified GHG measurement process

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Activity data Emissions Factor Emissionsx =

Reported Estimated

Reported

Esti

mat

ed

Reported

Tim

e /

Qu

alit

y /

Acc

ura

cy

Spend

Ph

ysic

al

Spend Physical

Physical

Average-data

Sup

plie

r

Ave

rage

-d

ata

Supplier

Supplier

Emissions generating activities across the value chain

Average ratios for the emissions generated per unit of activity

Definitions:Spend = spend based emission factors e.g. average emissions per monetary value of goods purchased calculated using economic input-output modelsPhysical = physical emission factors e.g. average emissions per unit/mass of goods purchasedAverage-data = emission factors based on allocated average emissions for particular sectorSupplier = emission factors based on allocated emissions from the particular supplier of the purchased good or service

Scope 3

Performance improvement

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Best practice approach: driving towards accurate emissions factors

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*Different methods can be used to calculate emissions from different Scope 3 categories. These result in varying accuracy of emissions.

Scope 3 Screening

Information Request & Review

Data Reconciliation

Final Data preparation

Data Mapping

Key success factors:

1. Materiality and business context

2. Target data accuracy and best available emissions factor within each

category

3. Develop targets that are aligned to climate science:

- Option 1: Set SBTs in your Supply Chain

- Option 2: Absolute and Intensity Reductions

Scope 3 Analysis Report

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Typical Emissions profile: Scope 3 dominates

71%

8%

23%

Scope 3

>98%

Direct emissions

(Scope 1&2)

<2%

Value Chain Emissions Scope 3 emissions

Total Emissions: 5,760,078 tCo2e

Emissions baseline with

Scope 3 category

breakdown

Cat 1: Purchased goods and services

Cat 2: Capital Goods

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There are several target methodologies available, we then make a recommendation on approach

1. Absolute contraction

Scope 1, 2 + 3

Reduce absolute emissions by the same percentage to keep global temperature increase within well below 2°C or 1.5°C.

• Transparent and easy for stakeholders to understand

• Only approach that is aligned to 1.5°C

• Can be converted into an intensity target

• Does not consider growth

2. Sectoral approach

Scope 1, 2 + 3

Global carbon budget is divided by sector and a physical intensity is used to allocate reductions to individual organizations.

• Reduction in line with your sector• Considers growth

• Can’t be used to model 1.5°C targets

• Sector pathway not available for the hospitality sector

3. Physical Intensity

Scope 3 only

Reduce emissions intensity per physical production output that do not result in absolute emissions growth and lead to linear annual intensity improvements of 2% at a minimum.

• Useful for fast growing companies unable to achieve absolute reductions

• Can’t be used to model 1.5°C targets

• Not as ambitious, could come under stakeholder scrutiny

• Less transparent than absolute target

4. Economic Intensity Targets

Scope 3 onlyReduce emissions intensity per value added by at least an average of 7% year on year

• Economic metrics are variable• Uses sensitive information (e.g.

gross profit)• Not SBTi preferred approach,

considered less robust

5. Engagement Targets

Scope 3 only

Commit to having a specific percentage of suppliers (as a percentage of spend or GHG emissions) with their own SBTs within five years from the date the company’s target is submitted to the SBTi for validation

• Useful if you are still trying to identify levers for more specific Scope 3 reduction opportunities

• Can be used to support achievement of absolute reduction target

• Need to be timely in order to result in absolute reductions

• Potentially not seen as ambitious by stakeholders if it is the only target set

PROS CONSMETHOD SCOPE CRITERIA SBTi Preference

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Target options for Scope 3: Example

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Recommended Target: Commit to reduce Scope 3 emissions from purchased goods and services, capital goods, upstream transportation and distribution, waste and franchises by 47% by 2030 from a 2019 baseline.

Leadership

Intensity 2C Well-below 2C 1.5C

YearTarget

reductionTarget

reductionTarget

reductionTarget

reduction

2022 +5.6 -3.7% -7.5% -12.6%

2025 +13.2% -7.4% -15% -25.2%

2030 -1.4% -13.5% -27.5% -46.2%

Low ambition Medium ambition

Intensity 2C Well-below 2C 1.5C

YearTarget

reductionTarget

reductionTarget

reductionTarget

reduction

2022 -9% -16.9% -20.2% -25%

2025 -18% -33.7% -39.3% -47%

2030 -33% -41% -50.7% -63%

Intensity % Reductions*:

Absolute % Reductions:

-

100,000.00

200,000.00

300,000.00

400,000.00

500,000.00

600,000.00

700,000.00

800,000.00

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Emis

sio

ns

(tC

O2

e)

Scope 3 Targets

1.5 degrees Well below 2 degrees 2 degrees BAU Physical Intensity

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Target Pathway and De-carbonisation Strategies

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Offset/Inset strategies• Invest in emission removal projects

within the value chain (insetting)• Offset residual balance of emissions

through carbon removals

1.5ºC Target

Reduction Strategies• Energy demand and optimisation• Supplier engagement/procurement• Operational efficiency programs• Raw materials and provenance• Recycled Content• Low carbon packaging• Transport and logistics• Refrigeration• Product stewardship and new

sustainable products• Investment in new technologies

Prioritise Reduction Strategies and Initiatives

Best Practice is to pursue reduction strategies prior to offsetting. Marginal abatement cost curves can be used to prioritise initiatives and develop the business case.

Scope 3 and Supplier program that reduces emissions gap and potential offset cost

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Network Rail’s Scope 3 emissions make up 97% of the total footprint

• All 15 GHG Protocol Scope 3 categories have been screened for relevance

• Top sources of Scope 3 emissions are:

o “Use of sold products”, (i.e. traction power)

o “Capital goods” (i.e. embodied carbon of capitalised spend)

o “Purchased goods & services” (i.e. embodied carbon of operational spend)

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Scope 3 emissions baseline and identification of hotspots

Supply chain

emissions

Emissions outside of NR direct operational controlE

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What makes up Network Rail’s Scope 3 hotspots?

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Purchased goods &

services

Main spend on:

• General Civils (19%)

• Signalling (19%)

• Professional Services

Direct (16%)

Capital goods

Main spend on:

• Electrification and

Fixed Plant (33%)

• Buildings (29%)

• Track (19%)

Use of sold products,

i.e. use of network

Traction diesel usage from

energy reported by TOCs

and FOCs

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All suppliers constituting 75% of Network Rail Scope 3 emissions to set

Science-Based Targetsby 2025

27.5% reduction of traction diesel emissionsby 2030

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Achieving Net Zero in our Value Chain

We expect NR’s supply chain emissions to decrease by roughly 50% if target is met

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Break

Use the 'Q&A' functionality to ask questions

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Science Based

Targets – A Case

Study

Ryan Burrows

Sustainability Manager – AECOM

Ryan.Burrows@aecom.com

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Agenda

Starting our Journey

Getting Scope 1 & 2 data

Scope 3 Screening

Setting our targets

Submitting and Communicating our SBTs

Updating our targets & Progress

Lessons Learnt

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– Early achievement in 2018 of our 20% reduction in Scope 1 and 2 emissions by 2020 target

– Proposal developed to explain the case for setting an SBT for Exec approval

– Received Exec level approval for our commitment to setting an SBT in September 2018

– Established SBT Technical Working Group from across the globe to understand work required in mid-2019 (we have global teams who do this work for clients)

Starting Our Journey: Getting Leadership Buy-

in and Assembling the Right People

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Scope 1: Fleet vehicles

– Primary data gathered from our fleet managers and external providers (distance travelled and fuel usage)

– Gaps estimated using average mileage and vehicle types

Scope 2: Office energy use

– Primary data gathered from our facilities managers and energy brokers (energy usage from meter data and bills)

– Gaps estimated using emissions factors and floor area (need to estimate due to lack of visibility over usage in rented offices)

Getting Scope 1 & 2 Data: Primary Data and Estimates

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– Screening undertaken using GHG Protocol, SBTi guidance and Scope 3 Evaluator Tool

– Most information can be estimated using Scope 3 Evaluator Tool

– Should be supplemented with real data as much as possible e.g. Travel team data from external partners, Global Commuter Survey

– Many of the downstream Scope 3 elements were deemed to be out of Scope for us as a consultancy that sells services rather than goods or products, although we have chosen to separately address this as it is significant

– Screening showed by far the biggest elements were in purchased goods and services & capital goods (supply chain)

– Due to the significance of our Scope 3 and supply chain emissions we needed to set a target and it could be exclusively on supply chain emissions

– Decided to go for absolute rather than intensity targets, due to our supply chain composition

Scope 3 Screening: Do it Early and High Level

0.30% 1.47%

90.19%

0.37% 0.04% 2.41% 0.69% 4.55%

0%

20%

40%

60%

80%

100%

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– Scope 1 & 2 Target: 20% reduction in absolute Scopes 1 and 2 GHG emissions by 2025 from a 2018 baseline

– Scope 3 Target: 10% reduction in emissions from our supply chain by 2025, compared with 2018 levels

Setting our Targets: Use the Tools and Get Going

2018 2025Variation

Target yearBase year

Scope 1 emissions (tCO2e)

Scope 2 emissions (tCO2e)

Scope 1+2 emissions(tCO2e) 122,133.95

-12%

-18.1%

-17%

103,124.58125,849.00

147,509.00

19,009.3721,660.00

Services / Commercial Buildings

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– Two targets submitted for approval to SBTi in September 2019

– Official validation received from SBTi in November 2019

– Communication of targets externally and internally

Submitting and Communicating our SBTs: Make a Splash

ESG summary deck April 2021

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ESG Strategy: Stepping up our Ambitions

o To deliver social value through our business,

empowering staff and delivering projects that

proactively improve social value outcomes to

individuals, communities and society in general

o To ensure our project teams reflect the diversity

of the clients and communities we serve

o To promote social equity, diversity and inclusion

in our supply chain and communities through

partnerships with small and minority-owned

businesses

o To make strategic community investments that

positively impact clients, communities and

society

o To ensure women comprise at least 20 percent

of senior leadership roles and at least 35

percent of the overall workforce

o To ensure we are operationally net-zero by the

end of 2021

o To reach science-based net-zero by 2030 by:

o Implementing a 50 percent reduction in

business travel

o Developing carbon reduction targets in

partnership with our supply chain

o Decarbonizing all fleet vehicles and

switching to renewable energy tariffs

o Offsetting residual carbon by creating

our own nature-based solution projects

o To develop an enterprise framework to assess

ESG risk in potential projects

o To drive leadership accountability and advocacy

through specific ESG goals / metrics in annual

goals

o To track and report on ESG performance targets

in line with leading industry benchmarks (i.e.,

Sustainability Accounting Standards Board

[SASB] and Task Force on Climate-related

Financial Disclosures [TCFD])

o To incorporate an ESG action plan for reducing

carbon impact by at least 50 per cent on all

major projects (our 'ScopeX™’ process)

o To develop and grow our dedicated ESG and

sustainable services each year

o To work with clients and partners to drive

innovation in climate change, sustainable design

and social value

o To embed net-zero, resilience and social value

targets into our client account management

program and the work we bid for

o To measure key impacts such as carbon

emissions, climate resilience and social value on

major projects

With ESG principles embedded into everything we do, the goal of our Sustainable Legacies strategy is straightforward: to ensure that the work we do in partnership

with our clients leaves a positive, lasting impact for communities and our planet.

Embed sustainable

development and

resilience across

our work

Enhance

governance

Improve

social outcomes

Achieve net-zero

carbon emissions

OFFICIAL

What are our New Net Zero Targets?Science Based Net Zero by 2030: Halve our emissions across our value chain by 2030 compared with 2018, and carbon offset the remainder every year from then. This is our most significant long term target, meaning reducing and neutralising millions of tonnes of GHG emissions.

Operational Net Zero by 2021: Be on track with science based net zero reductions for our operations (fleet vehicles, purchased energy and business travel) at the end of 2021 (4% annual reduction), and carbon offset the remainder every year from then. This allows us to make additional positive climate impact on the way to science based net zero.

N.B. The offsetting amounts are an approximation, and we may end up offsetting more on the way to science based net zero

Illustrative example of

AECOM route to net zeroProgress to date:• Well on track to meeting both targets

• Updated to 1.5C SBT in line with

what science requires

• Target to be validated as a net zero

SBT later in the year

• Supply chain data improvement:

Contract signed with TruCost and

reduced unclassified spend data

• Supplier RFI being developed and

Pilot RFI issued to suppliers (24

DCS, 59 CM)

• Developing Net Zero Roadmap

• Fast Forward Program and Travel

with Purpose

• Working with our landlords

• Offsetting proposals received

OFFICIAL

– Getting leadership buy in is crucial

– Assemble the right people (operational and technical)

– Read the resources and use the tools, they’re useful and not too complicated

– Screen your Scope 3 emissions early

– Estimate data if you don’t have it – don’t let perfect get in the way of good!

– Get going with a target, and if necessary update after

– SBTs are a powerful tool to motivate action, and as best practice seal of approval

– When communicating your targets make it relevant to people

– If you need more help to set and achieve SBTs / Net Zero there is help available including at AECOM

Lessons Learnt

Putting Targets into Action: Nottingham Low Carbon Office Pilot

OFFICIAL

Thank you.Ryan Burrows, Sustainability ManagerRyan.Burrows@aecom.com

OFFICIAL

Panel Q&A

Name Role Organisation

Ivan Le Fevre Head of Environment Highways England

James Ingram Senior SHE Environment Manager Transport for London

Matthew Galvin Responsible Procurement Manager Transport for London

Peter Miller HS2 Environment Director HS2

Olwen Smith Regional Lead SBTi

Danielle Mulder Director Carbon Intelligence

Ryan Burrows Sustainability Manager AECOM

Hayley MaynardPrincipal Consultant – Climate Change and Sustainability

ServicesAECOM

Roger Maybury Supplier Management Director Network Rail

Emmanuel Deschamps Head of Environmental & Sustainability Development Network Rail

Jamie Shaw Low Emission Strategy Lead Network Rail

If we do not get to answer your question today, we will follow up with you with the answer or alternatively please feel free to submit your questions to ScienceBasedTargets@networkrail.co.uk or Neil.Wait@hs2.org.uk or SMBEnvironment@tfl.gov.uk

OFFICIAL

1st & 2nd Workshop Recording & Documents will be uploaded to:https://www.networkrail.co.uk/industry-and-commercial/supply-chain/

3rd Workshop – September 2021, Date TBC

We will be issuing a questionnaire shortly after the workshop. If you could please complete this, then we would be greatly appreciate feedback/ideas for future workshops!

If you have any further questions, then please send them to: ScienceBasedTargets@networkrail.co.ukNeil.Wait@hs2.org.ukSMBEnvironment@tfl.gov.uk

Thank You