Slides for "The Science of Science-Based Goals" tutorial. As scientific research on climate change builds and becomes increasingly quantifiable, companies have new opportunities to use measurable data to set sustainability and climate goals. By understanding the impact your company can have in this universal context, you can set defensible goals driving towards real global impact. Dozens of large companies have set science-based greenhouse gas, carbon-neutral and renewable energy goals. This tutorial shows how leading companies are tackling this challenge, including the tools and knowledge to set goals in your company.

1. DNV GL © 2015 SAFER, SMARTER, GREENERDNV GL © 2015
The Science of Science based goals
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Tutorial @ GreenBiz Forum, Scottsdale
Tuesday 17th February 2015

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Objectives
To equip attendees with:
1.An overview of science based goal setting approaches
2.The knowledge of actionable next steps for your
organization
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Sustainability Prerequisites
The Environment
resources that support life
The Social Sphere
human interaction in the
environment
Economic
Activity
Financial
Outcomes
‘The Rope
of Context’

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Multiple sources: taken from
Will Steffen 2012, The Great
Acceleration

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Multiple sources: taken from
Will Steffen 2012, The Great

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Planetary Boundaries
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Johan Rockström et al, Sep 2009, Nature
Note: Jan 2015
update in
Science

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Sustainability data as driver of change – Key obstacles
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Source: Oxfam/GRI/BSD think
tank outputs – Feb 2015
(Convetit)

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UNEP Meritas report - Recommendations
Research report on ways to improve the quality of
environmental dimension of sustainability reporting
 All companies should apply a context-based approach to
sustainability reporting
 Multilateral organizations should collaborate to provide
guidance on methodologies for determining ecological (and
social) thresholds and allocations
 Raters should develop frameworks and mechanisms to
apply Context-based assessments
 Reporting standards / guidance bodies should integrate
Sustainability Context more explicitly into their frameworks
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10. DNV GL © 2015 SAFER, SMARTER, GREENERDNV GL © 201310
A SAFE AND
SUSTAINABLE
FUTURE

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The world we want: Goals and targets (snapshot)
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1.5˚C
temperature
increase
350ppm
CO2 concentration
0 net
Biodiversity loss
4000km3
Annual
freshwater use
0 net
Deforestation
35mn tonnes
Nitrogen removed
from the
atmosphere
70%
Increase in food
production
0%
Child and maternal
mortality
100%
SDGs achieved
by 2030
15%
Land converted to
cropland
276
Ozone
concentration
(Dobson units)
0%
Extreme poverty
100%
Access to safe
drinking water
0%
Child and forced
labour
IIRC
Mandatory
reporting
Beyond
GDP
A new measure of
prosperity
True
Costing and
valuation
0%
Harmful subsidies

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Indicators, targets and goals
S p e c i f i c - M e a s u r e a b l e - A s s i g n e d - R e a l i s t i c - T i m e b o u n d
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Leading/
Process Indicators
Lagging/
Outcome

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Business Response examples
Future Fit Business Benchmark
International Integrated Reporting Council – Use of
capitals model
Reporting 3.0 Report
ThriveAbility
MultiCapital Scorecard Overview – Ben & Jerry’s
Pivot goals (Andrew Winston)
Science based targets (Nicole Labutong/CDP)
Use of C-FACT approach (Kathrin Winkler)
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Future Fit benchmark
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Integrated Reporting - The value creation process
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SAFER, SMARTER, GREENER
www.dnvgl.com
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17. PivotGoals Data
The ESG, science-based, and visionary targets of the largest companies
Andrew Winston
GreenBiz Science-Based Goals Workshop // Scottsdale, AZ // February 17, 2015

18. THE BIG PIVOT STRATEGIES
BUILD A RESILIENT COMPANY
VISION PIVOT
Fight short-termism
Set science-based goals
Pursue heretical innovation VALUATION PIVOT
Change incentives & engage
Redefine ROI
Value natural capital
PARTNER PIVOT
Inspire customers to use less
Collaborate radically
Become a lobbyist
Copyright ©, Andrew Winston, The Big Pivot, 2014

20. PwC Low Carbon Economy Index

21. Photo: Ford Motor

22. Replenish 100% of
water used

23. 100% Renewables Goals
Achieve rail transport that is CO2-
free and
powered by renewables
Bring well-to-wheel CO2 emissions
down to zero

24. Maersk: Safely
recycle all our
ships at the end of
their service lives

25. “Zero traffic accidents involving Nissan
vehicles that inflict serious or fatal injuries.”

26. Are these all based on “science”?
Another standard?
Are these typical?

27. Pivot Goals:
The Global Fortune 300’s Sustainability Goals
PivotGoals.com Search Criteria:
•Keyword search
• Company Name, Goals (e.g., search for “net zero” or
“deforestation”)
•Checkbox search/narrowing to…
• 29 focus Areas (Climate, Water, Human rights, etc.)
• By Industries and sectors
• Value Chain area (from supply chain to end of life)
• Absolute/Intensity

28. The PivotGoals Data
• 150 of the Fortune 200 (75%) have sustainability goals
• ~2,000 goals (nearly 4,000 in full database)
• Goals are…
• Specific and mostly time-bound (79%)
• Mostly absolute (84%) vs. relative/intensity (16%)
• Predominantly about operations, although cover value chain:
• Supply chain: 15% (54% of companies)
• Operations: 69% (98% of companies)
• Use phase: 15% (50% of companies)
• End-of-life: 3% (23% of companies)
Note: Calculations as of Sep.2014; results change as new data is loaded

29. Portion of Companies Setting Goals
for…(Biophysical)
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30. Portion of Companies Setting Goals for…
(Social & Process)
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31. We Like Round Numbers –
When Goals Are Due
Note: Calculations as of Sep.2014; results change as new data is loaded
0
100
200
300
400
500
600
700
800
900
Number
of
Goals

32. Science-equivalent/Ethics Goals
• 2 categories…
– Science-equivalent (for a large part of business, not full value-chain)
– Ethics-equivalent: moral, ethical, or based on flourishing model
• Of 1,621 goals in eligible categories, 20% are in the
ballpark…
– 155 (10%) Science-equivalent (only a few explicitly science-based)
– 67 (4%) Ethics-equivalent
– 29 (2%) Aspirational (Meet criteria, but undated)
– 60 (4%) May qualify, but not enough data (e.g., no baseline)
• 105 of the 150 companies have at least 1 qualifying goal…
– Unilever (20 qualifying goals)
– Nestle, Maersk, Panasonic, P&G, Woolworths (10 to 7)
– Intel, PTT, Walmart, Kroger, Tesco, Honda, Nissan, Ford, UT, Samsung, Carrefour (5 or 4)
Note: Calculations as of Sep.2014; results change as new data is loaded

33. “Science-Based” Goals
Big questions about screening for “science-based”
• Based on what? Whose thresholds are we
relying on?
• Is there “science” on social areas?
• Should it “count” if it’s just a “four walls” goal, or
does it need to be value chain?
• Today vs. ultimately?
• How big a part of the business should qualify?
• What if the goal doesn’t have a date attached
(not time-bound)?
• When is “all” or “zero” the only acceptable goal
vs. some or progress?
Note: Calculations as of Sep.2014; results change as new data is loaded