Schedule a demo with one of our founders, Mark, to see our platform in action.

Want to explore more?

Transform reporting from tens of suppliers to thousands, thereby delivering on your ambitious 2025 supply chain reporting targets, and preparing for the EU Corporate Sustainability Due Diligence Directive.

Accelerate the adoption of carbon disclosure and science based targets among your suppliers.

Boost supplier reporting penetration

Supply chain emissions are notoriously difficult to abate, but are crucial in the race to net zero. 

Gather rich primary data from suppliers, and provide them with effective tools, such as bespoke pathways & reduction initiatives, so they can decarbonise on your behalf.

Tackle Scope 3 through collaboration

Reaching 20k+ suppliers with high quality carbon tools should not be this easy. 

Save 70% vs employing dedicated in-house resources, and 90% vs engaging consultancies on a supplier-by-supplier basis.

Engage at scale, but don't break the bank

All the tools your suppliers need to measure & report their emissions.

Carbon management. 10X easier.

A good news story for you, your suppliers, and the planet.

Help your suppliers *cut carbon*

Assess emissions across Scopes 1, 2 and 3. Best-in-class methodology, minus the jargon and complexity

Suppliers calculate their footprint...

Measure

Define a 1.5°C reduction pathway tailored to the business, with custom initiatives to get there

... define a reduction pathway...

Manage

Automated documentation for self reporting, CDP disclosure, SBTi & more

... and report externally

Report

Track supplier progress and enrich your scope 3 inventory with primary data from suppliers

You monitor their progress

Track

# Three takeaways from the LTW panel on decarbonising the supply chain

On 12th July 2022, Aklimate took part in a panel at ClimateTech at London Tech Week, alongside Amazon, Maersk and SpeedInvest. The topic of the panel was how we can decarbonise the supply chain. In this article we have summarised three key takeaways from this session:

1. 👯‍♂️ 🥅 ⓪  **Corporates need to pursue net zero authentically for partnerships with climate startups to be successful**

2. 👩‍🏫👩‍💻👏 **Corporates need to emphasise collaboration over compliance to incentivise suppliers to provide high quality data**

3. 👩‍⚖️🏫⏩ **The mere existence of future regulation can help accelerate climate action**


![London Tech Week panel on decarbonising the supply chain](https://media.graphassets.com/3u7iXDOER56JnrGud3eU)

## **1. Corporates need to be authentically pursuing net zero for partnerships with climate startups to be successful**

There is an amazing opportunity to bring the innovation and tech from climate startups, and combine it with the scale and impact of corporates, for outsized climate action. 

And when corporates are genuine about their net zero pledges, with executive level buy-in, it  leads to aligned incentives and speedy execution.

For example, [Maersk is this year deploying 300 electric trucks in partnership with Einride](https://www.maersk.com/news/articles/2022/03/24/maersk-to-deploy-300-electric-trucks-in-partnership-with-einride). Similarly at [Aklimate](www.getaklimate.com), we are currently working with two Fortune 500 companies that are at the vanguard of climate action, and are genuinely translating ambtion into action.

But far too often the net zero pledge precedes the true organisational change, leading to a lack of urgency and alignment that can kill the possibility of impactful start up partnerships. 

Many corporates have set very aggressive supplier engagement goals as part of their science based target, but lack genuine commitment to achieve these. The climate crisis cannot afford this delay.

## **2. Corporates need to emphasise collaboration over compliance to incentivise suppliers to provide high quality data**

With 80% of corporate carbon emissions in the supply chain, corporates need to gain primary supplier data in order to prioritise reduction efforts, as well as to prove the emissions reductions that will be necessary to fulfil their science based targets.

The old-school approach has been to burden suppliers with command and control style audit obligations. This has not generated good results historically - no supplier appreciates yet another mandatory questionnaire.

Instead, we urge corporates to move from *compliance* to *collaboration* in order to get high quality data from suppliers.

If they can provide suppliers with valuable carbon management tools, and work *with* them, then there are great opportunities to incentivise suppliers to take climate seriously. 

And what is particularly exciting, and a source of optimism, is that with the right messaging and incentives, we have seen a growing groundswell of suppliers who want to do this, and are taking their climate impact hugely seriously.

## **3. The mere existence of future regulation can help accelerate climate action**

The mere existence of regulation has changed the corporate paradigm when it comes to reporting on Scope 3, moving from a nice-to-have, to a must-have. Indeed, regulatory pressure is continually cited as a key motivation for sustainability and procurement teams for disclosing their supplier data. Some of the contributing regulations at a glance:

- TCFD becoming mandatory in the UK (2022)
- CSRD will mean Scope 3 numbers need to be more transparent and auditable (2023)
- Supply Chain Act means corporate buyers will be obliged to do due diligence on ESG impact of suppliers (2023)
- Carbon Border Tax among other things will mean that companies will need to measure the carbon emissions of a particular good or service or receive the dirtiest possible rating (estimated 2026)

*Agree? Disagree? Any thoughts or questions? Get in touch with us!*

Three takeaways from the London Tech Week panel on how we can decarbonise the supply chain

ClimateTech Panel: Decarbonising the Supply Chain

Hi all,

Greetings from San Francisco! Thanks to all of you for your ongoing support. It’s been a busy early 2022 for us, as we come to the end of Y Combinator and ‘Demo Day’ at the end of March.

Read on for some short updates, and do get in touch, especially if you are based in the Bay Area and want to meet in person - we have our own Electric Vehicle and will travel!

Aklimate Team

### 1. Sustainable Sourcing Strategy Article

We field a lot of questions on how engaging your suppliers on carbon can fit into a holistic sustainable sourcing strategy. And ahead of the first ever [World Sustainable Procurement Day](https://wspd.earth/agenda/) on 21st March, we thought it would be a great time to pull some of our thoughts into an article (available on our website [here](https://www.aklimate.co.uk/blog-posts/sustainable-procurement))

![](https://media.graphcms.com/cUXY0mvWTn9RpvpHXn9A)

### 2. New Video

As fond as we were of our DIY-style demo on our landing page, we have now updated it with an explainer video that provides a great overview of how we can help drive down supplier carbon emissions. Do give it a watch on the landing page, and let us know what you think!

![](https://media.graphcms.com/xFOBIN4R5O7s14VIiF71)

### 3. **Partnership with Positive Luxury**

We are huge fans of the work that has been done by [Positive Luxury](https://www.positiveluxury.com/) with their Butterfly Mark certification to drive the sustainability conversation in the sector. So we are beyond excited to announce Positive Luxury as one of our partners for 2022. We can’t wait to help them on their mission to drive down the environmental impact of luxury supply chains!

![](https://media.graphcms.com/j0Gkje6RaiUG4Oa4mZEA)

If you made it here, thank you for your ongoing support and do get in touch!

Updates from a busy Q1 at Aklimate

Friends of Aklimate #3

Supply chains are complex, globe-spanning networks of relationships that have a huge environmental and social impact. A range of factors such as Covid-19, stakeholder demand, and a new due diligence law in the EU, have all increased the urgency for sustainable procurement. 

In this article, we share reasons why sustainable procurement is the next big ESG trend. 

## What is sustainable procurement?

Sustainable procurement is at its core about incorporating more than just typical price and quality considerations in purchasing decisions, for example social and environmental impacts. [Chartered Institute of Procurement and Supply](https://www.cips.org/knowledge/procurement-topics-and-skills/sustainability/)

A sustainable procurement strategy involves identifying sustainability risks and objectives that are material to an organisation. 

![Sustainable procurement covers a wide range of issues impacting all areas of business](https://media.graphcms.com/vo7SgGQOyoZZoMCy2AfQ)

## Why is sustainable procurement important?
### Supply chain resilience and Covid-19

Shipping transport accounts for [90 percent](https://multimedia.scmp.com/infographics/business/article/3166926/container-crisis/index.html) of global trade, and labour shortages and lockdowns from the pandemic rattled supply chains. Delays and price hikes have contributed to economic inflation everywhere. 
- In December, 2020 [1/3 of containers](https://www.washingtonpost.com/business/2021/01/24/pandemic-shipping-economy/) failed to ship on time to the world's 20 largest ports.
- Global shipping container [prices](https://fbx.freightos.com/) peaked at around $11,000 per container in September 2021, but they have only fallen back to just over $9,000 by March 2022. Pre-pandemic they averaged under $2,000. 

Price levels on global imports could rise by [10.6% globally](https://www.weforum.org/agenda/2022/01/global-shipping-costs-inflation-prices-trade/), and consumer price levels could rise by 1.5% if the cost of freight stays high in 2022. 

Shipping impacts, manufacturing energy shortages, labour shortages for trucking, raw materials shortages, and changing consumer behaviour have added to global supply chain chaos. These changes have caused corporations to rethink their supply chain strategies, and to realise how much risk is situated in their supply chains. 


### Regulations on Supply Chain Sustainability 

Lawmakers are well aware of the combined environmental and social impacts of supply chains, and governments have begun to regulate ESG issues that were once voluntary. Calls for reporting on Scope 3 emissions, which include upstream supply chain emissions and downstream consumer emissions, have risen across the board. 

**UK’s Climate Financial Risk Disclosure Mandate**

Starting April 22, 2022, the UK will require its largest companies and financial institutions to report to the TCFD’s standards for climate-related financial risk. It is the first G20 country to mandate TCFD-aligned disclosure. 

TCFD includes reporting recommendations in four areas: governance, strategy, risk management, and metrics and targets. Pursuant to TCFD, companies are should disclose the ways climate physical (direct environmental hazards) and transition (policy, reputation, litigation, and technology) risks financially impact their operations in the short-, medium-, and long-term. 

Scope 3 emissions disclosure is based on materiality per TCFD, though all companies are encouraged to measure and report these emissions.  

**EU Supply Chain Due Diligence Directive**

The EU's proposed [supply chain due diligence directive](https://www.globalelr.com/2022/02/european-commission-proposes-new-supply-chain-due-diligence-rules-for-large-companies/) would bring sustainable procurement into mainstream business operations. Euractiv reports that the EU is responsible for [10% of global deforestation](https://www.euractiv.com/section/circular-economy/news/lawmakers-call-for-green-due-diligence-in-europes-supply-chains/). It seeks to curb this impact while also achieving its [GHG emissions reduction targets](https://www.supplychainbrain.com/blogs/1-think-tank/post/33667-fit-for-55-how-the-eus-new-climate-targets-could-change-supply-chains) and limiting human rights violations. 

It would require certain EU-based and non-EU based businesses operating in the EU to report the “actual and potential” adverse environmental and social  impacts of their operations, subsidiaries, and established business relationships in their value chain. Its stated environmental impacts include GHG emissions, pollution, and ecosystem degradation, while social impacts include forced labour, worker health and safety, worker exploitation. 

The directive classifies business sectors according to their supply chain risk exposure. “High-impact” businesses include those in the clothing, mineral extraction, agriculture, and metals manufacturing sectors. The following thresholds would determine which large and high-impact companies the directive affects: 

- High impact businesses with a global revenue over €40 million and over 250 employees. 
- Large businesses with a global revenue over €150 million and over 500 employees. 

**US SEC Climate-related Financial Risk Updates**

The US Securities and Exchange Commission closed its request for comment on the need to regulate climate-related financial risk last year in 2021. It is expected to announce an updated requirement similar to the TCFD this year.  

![Regulation is set to have a huge impact on the urgency of sustainable procurement](https://media.graphcms.com/3doZKBxQmS1DTJQ1f3Yw)

### ESG Initiatives tackle Supply Chain Emissions

International ESG standards focused on improving alignment to aid comparability and consistency, as the recent formation of the International Sustainability Standards Board at COP26 shows. Most ESG standards have updated their reporting recommendations to include Scope 3 emissions, subject to materiality. This is critical, because the climate impact of Scope 3 value chain emissions often far surpasses operational emissions: 

On average, upstream GHG emissions are double those of a company’s own operations ([CDP](https://cdn.cdp.net/cdp-production/cms/reports/documents/000/000/580/original/committing-to-climate-action-in-the-supply-chain.pdf?1470053398)). 
90% of natural impacts (water stress, raw material extraction, and pollution) and 80% of GHG emissions for consumer goods occur upstream in company supply chains ([McKinsey](https://www.mckinsey.com/business-functions/sustainability/our-insights/starting-at-the-source-sustainability-in-supply-chains)).  

However, this is not translating into action fast enough. CDP shows that among its 11,400+ corporate suppliers, 56% lacked climate targets in 2021. Only 2.5% of these had science-based targets. 

The [Science Based Targets initiative](https://www.aklimate.co.uk/blog-posts/science-based-targets-initiative) formed to improve corporate alignment with the Paris Agreement 1.5 °C warming pathway. SBTi recommends Scope 3 emissions targets to improve global alignment with the latest climate science.  

### Sustainable Supply Chains Attract Investment 

A company’s access to capital depends more than ever on high quality [ESG scores](https://www.reuters.com/markets/us/how-2021-became-year-esg-investing-2021-12-23). Supply chain data is crucial for investor evaluations, as this is one of the greatest sources of ESG risk. WeForum [reports](https://www.weforum.org/reports/beyond-supply-chains-empowering-responsible-value-chains) that companies adopting supply chain sustainability measures have shown a 15-20% brand value increase. 

## So how do you start a supplier engagement plan?

So you’re ready to embed sustainable procurement practices. Now you’re going to need to bring your suppliers along with you. 

Supply chain engagement is one of the biggest hurdles to achieving sustainable procurement goals. The Sustainability Consortium (TSC) conducted [a survey of 1,700 manufacturers](https://www.impact.sustainabilityconsortium.org/impact/impact-report/) revealing that only 23% of manufacturers engaged their suppliers on sustainability issues and 9% included sustainability requirements in their supplier contracts in 2020. 

A McKinsey [survey](https://www.mckinsey.com/business-functions/operations/our-insights/buying-into-a-more-sustainable-value-chain) of 20 Chief Procurement Officers (CPOs) at large European companies showed significant gaps in planning, tools, and data necessary to make a sustainability impact. 

- 90% didn’t know which actions to take for ESG. 
- 70% said their organisations lacked data on where Scope 3 emissions were generated

To get started, it’s important for CPOs to align procurement with an organisation’s broader ESG priorities. Aligning sustainable procurement practices with existing ESG initiatives and material concerns can improve its impact and consistency. 

In addition to price points, quality, and delivery schedules, CPOs should start by collecting data on supplier GHG emissions, resource use, workforce, and operational standards. Technological advances in AI and data analytics tools support stronger analysis at this stage of the process. 

Once an organisation collects the data to establish a performance baseline, it can start developing criteria for evaluating suppliers and embedding new specifications in their codes of conduct and contractual agreements. 

![It can be tough to know where to get started on sustainable procurement](https://media.graphcms.com/BSNurTezTFIywaj53RmH)


## Strategies for reducing supply chain emissions

CPOs that engage suppliers on Scope 3 emissions help avoid the risks of locking in high-carbon strategies. When organisations sign-on to long-term supplier contracts that depend on high emissions technologies, long routes, and inefficient resource use, the consequences can pass on ever higher risks down the line. 

The IPCC’s latest Assessment Report on [climate adaptation](https://www.forbes.com/sites/roberthart/2022/02/28/a-dire-warning-about-the-consequences-of-inaction-climate-change-worse-than-expected-un-report-finds/?sh=3e88c0a84db5) (Working Group 2) warns that 3.3 billion people live in places highly vulnerable to climate change. “Irreversible” damages from water shortage, extreme heat, and rising sea levels could cause significant social and economic losses. A [report from Swiss Re](https://www.dw.com/en/climate-inaction-will-cost-g7-countries-billions/a-57800168) estimates that climate inaction could cause G7 countries annual average losses of 8.5% by 2050.   

Thankfully, a wide-range of strategies exist for engaging suppliers. [Walmart](https://supplychaindigital.com/sustainability/retail-dragging-heels-on-scope-3-supply-chain-emissions) offers early payment to suppliers that score higher with CDP. Microsoft, Ørsted and Mitsubishi Corporation all use an [internal carbon price](https://www.cdp.net/en/articles/media/nearly-half-of-worlds-biggest-companies-factoring-cost-of-carbon-into-business-plans). Other organisations weight their suppliers by carbon intensity or invest in supplier adoption of low-carbon technologies. In order to know which approach to take, it’s important to start by measuring your supply chain GHG emissions. 

But with thousands of suppliers across different geographies and industries, gaining visibility into these emissions can be a challenge. Procurement teams don’t have the resources to support them all; and suppliers can’t do this on their own. 

At Aklimate, we provide powerful and intuitive carbon management tools for procurement teams and their suppliers.

With Aklimate, suppliers can:

- Measure their full carbon footprint in an easy, jargon-free way with direct access to our team of experts.
- Define a science-based emission reduction pathway with custom initiatives to meet their goals
- and automatically generate detailed documentation for external reporting.

And as suppliers make progress, procurement teams benefit from a single source-of-truth on supply chain emissions, so they can:

- Monitor supplier progress from the moment they create an account.
- Manage information for all suppliers – including emissions data & reduction plans – wherever they’re based
- Define the metrics that matter, and export data with a single click

To learn how [Aklimate](www.aklimate.co.uk) can supercharge your sustainable procurement and supplier engagement strategy, talk to us today.


Sustainable procurement embeds environment and social impact in your supply chain. Read why it’s an important ESG strategy. 

Sustainable Procurement: What is it, why does it matter, how can you achieve it?

Hi all,

Hope you have had a great start to the new year, and thanks for your continued support. It’s been a busy few weeks for us, starting Y Combinator, shipping some new features, and supporting clients with everything SBTi related.

Read on for some further information on these three topics, and get in touch if you have any questions, we are always up for a chat! All the best,

Aklimate Team

### **1. Started Y Combinator**

At the end of last year, we mentioned that we had received investment from a leading US investor. A couple of weeks ago, we were proud to announce that we had been backed by [Y Combinator](https://www.ycombinator.com/) (YC). YC is the leading startup accelerator in the world, having kickstarted the likes of Airbnb, Stripe, Dropbox, Coinbase & Reddit: indeed, as a snapshot, we have already had surreal Zoom calls with the three founders of Airbnb, and the two founders of Stripe!

With YC’s support we can accelerate and massively scale up our climate impact. The program will culminate in Demo Day in March this year, with 1000’s of attendees, **where we will be announcing our exclusive partners** for the first half of 2022. Stay tuned!

![l-r: Harry, Mark, Will](https://media.graphcms.com/6TdFGcS8TZSsNthwXg0E)

### **2. Published further guidance on SBTi**

[The Science Based Targets initiative](https://sciencebasedtargets.org/) (SBTi) is, among other things, a robust framework for companies to set climate targets that are aligned with 1.5°C of warming. One of the great beacons of hope in private sector decarbonisation is that global commitments aligned with the SBTi have been growing rapidly over the last few years.

At Aklimate we are always receiving questions from both enterprises and their suppliers on science based targets, so we summarised some of our learnings into a detailed article [here](https://www.aklimate.co.uk/blog-posts/science-based-targets-initiative) which includes a checklist of all the necessary steps required to successfully set a science based target

![Growth of SBTi Commitments](https://media.graphcms.com/w1zdYou1Q36H1nZeSW7B)

### **3. Released interactive ‘manage your emissions’ feature**

One of the most frequently requested features from users, was an ability to customise and interact with the recommended initiatives in the Manage section of the app. We listened! So users can now choose, from an automatically generated list of features, the initiatives that they want to commit to in the next year. They can see how much CO2 they will be saving with any particular initiative, and choose how ambitious they want to be with their reduction pathway. Check out the short video [here](https://vimeo.com/673545770) to see it in action, and feel free to book some time with us [here](https://calendly.com/mark_fischel/15min?month=2022-02), if you want to learn more.

![](https://media.graphcms.com/7TWIM8BQeWuBJ05m8ZgA)

*If you made it here, thank you for sticking with us, and please get in touch, we love your feedback!*

Sharing a few things we have been up to at the start of 2022

Happy New Year! Updates from Aklimate HQ

## Introduction

If you want to make credible decarbonization claims and avoid accusations of greenwashing, you’ll need to create a robust roadmap to achieve net zero. The Science Based Targets Initiative (SBTi) offers the most respected approach available: setting a science based target.  

Indeed, SBTi has [proven effective](https://sciencebasedtargets.org/news/330-target-setting-firms-reduce-emissions-by-a-quarter-in-five-years-since-paris-agreement) at reducing emissions:  “Target-setting companies have successfully reduced their emissions by 25% since 2015, a difference of 302 million tonnes of CO2 equivalent, the same as the annual emissions from 78 coal-fired power plants.” 

Currently, over 1,000 businesses have set science based targets to remain within a 1.5°C warming scenario compatible with the Paris Agreement. 

In this guide, we explain some of the key benefits that make SBTi an excellent framework for developing a transition plan. 

## What is the Science Based Targets Initiative (SBTi)?  

The Science Based Target Initiative (SBTi) offers two main benefits to organizations. 

- It offers [criteria](https://sciencebasedtargets.org/resources/files/SBTi-criteria.pdf) for emissions reduction targets aligned with the safe 1.5°C warming limit target  of the Paris Agreement. 
- It validates transition plans according to the latest climate science. 

SBTi is a collaborative effort of leading environmental, social, and governance (ESG) organisztions such as the Carbon Disclosure Project (CDP) and World Resources Institute (WRI).

### Key facts about SBTi
![SBTi information on the number of companies committed to science-based targets in the last few years](https://media.graphcms.com/w1zdYou1Q36H1nZeSW7B)

- Year established: 2015.
- Current number of active organizations: 2356.
- Current number of organizations with a 1.5C target: 1056. 
- Criteria: The SBTi will only accept 1.5°C-aligned targets after June 2022.
- Forthcoming or existing sector-based guidance: Forest, Land and Agriculture (FLAG), Aviation and Maritime, Financial Institutions, Cement, Steel, Buildings, and Chemicals. 

Organizations with validated targets under SBTi demonstrate a legitimate commitment to decarbonization.  

## What are Science Based Targets?

SBTi starts with the global temperature increase limit outlined by the IPCC in the Paris Agreement of limiting global heating to 1.5°C by the end of the century. The scenario to achieve this with the least drastic change requires 50% CO2e emissions reductions by 2030 and net-zero emissions by 2050.

This provides a good rough outline, but businesses need more granularity to understand exactly how much of their emissions they’ll need to reduce. This is where SBTi criteria comes in. 

The SBTi criteria breaks down the global CO2e emissions budget by sector and then measures the impact needed for businesses of different sizes. Currently, companies can select from three main temperature targets: 1.5°C, well below 2°C, or 2°C. However, the SBTi will only accept 1.5°C-aligned targets after June 2022. 

Based on the stated temperature goal, the SBTi provides emissions reduction criteria tailored to the business submitting a Letter of Intent. The next step for businesses is to develop a target. 

## What qualifies as a Science Based Target under SBTi? 

A net zero commitment is an important target for businesses to set. However, a goal without an actionable and measurable CO2e emissions reduction path will not likely achieve the distant goal. To solve this issue, SBTi offers a way for businesses to set targets that are benchmarked against an external science-based standard. 

An SBTi-aligned target meets the following guidelines:

- Companies are required to achieve their near-term reduction targets in 5 -15 years  in order to maintain their validation status. 
- SBTi gives no credit for prior reductions. All businesses start at a baseline of the year they submitted their Letter of Intent. 
- SBTi doesn’t recognize avoided emissions or offsets within its framework. 

## What is SBTi’s Net Zero Standard? 
SBTi released the [first ever corporate standard](https://sciencebasedtargets.org/resources/files/Net-Zero-Standard.pdf) for setting net zero targets in October 2021 to provide a means for businesses to validate their net zero targets. 

Corporations have used net zero goal-setting to show their commitment to the Paris Agreement. However, net zero strategies have so far lacked consistency. Strategies that rely too heavily on offsetting, future technological improvements, or delayed emissions reductions won’t likely make enough of an impact. To address these issues, SBTi’s Net Zero Standard for corporations offers helpful principles and criteria for mitigating climate change through corporate action. 

To achieve “net zero” by 2050, corporations and governments need to prioritize transitioning the majority of operational activities off of fossil fuel-based fuel or energy, but that’s not all. The IPCC also calls for removing some of the existing CO2e from the atmosphere and offsetting hard-to-mitigate industrial activities. CO2e removals and offsets can occur either naturally, by conserving or restoring natural carbon sinks such as forests, agricultural lands, and the ocean, or using carbon capture and storage technologies.  

The SBTi Net Zero Standard criteria helps corporations to allocate an appropriate emphasis to these combined activities. While it varies by sector, most corporations should follow strategies that roughly amount to a ratio of 90% for CO2e emissions reductions and 10% offsets of the total. How these are distributed over time may also vary, which is why it helps to adopt a standard for setting a net zero goal. SBTi’s standard also helps corporations take immediate action with its emphasis on short term targets across the entire value chain (Scope 1, 2, and 3 emissions). 

Corporations can still set a near-term target with SBTi without setting a Net Zero target. Net zero targets, however, offer a more holistic climate change mitigation approach. Learn more about the foundations of SBTi’s Net Zero Standards [here](https://sciencebasedtargets.org/resources/legacy/2020/09/foundations-for-net-zero-executive-summary.pdf).

## What are Valid CO2e Emissions Reductions under SBTi?

SBTi requires Scope 1 and 2 emissions (internal) reductions for all organizations and Scope 3 emissions (value chain) reductions for businesses with 40% or more of their emissions in this category. Here are more details on [Scopes 1, 2, and 3](https://www.aklimate.co.uk/blog-posts/scopes-1-2-and-3). 

For Scope 1 and 2, SBTi requires absolute CO2e emissions reductions. Scope 3 emissions reduction requirements are more complex. Organizations can combine any of the following strategies such that they cover 2/3s of an organization’s Scope 3 emissions. 

Absolute reductions: Cutting total emissions by at least 4.2% each year. 
Intensity targets: Reductions accounted per business activity unit, relative to revenue, or total output of manufactured goods. This option accommodates growing businesses. 
Supplier engagement: Targets based on the number of vendors which have set SBTs. This is one of the biggest levers businesses have to reduce Scope 3 emissions, but also a particularly challenging task. 

Setting supplier engagement targets is a really good way to get started on measuring and reducing Scope 3 emissions effectively. This can be a very complex, costly, and time intensive task, particularly for small teams managing vast supply chains.  

[Aklimate](www.aklimate.co.uk) provides sustainable procurement teams with an intuitive, user-friendly platform to engage thousands of suppliers to measure and report their emissions. This can significantly accelerate your corporate journey towards science based targets.  

## Checklist to kickstart the SBTi journey

![SBTi depiction of the five step process](https://media.graphcms.com/D9WXxXgMQP6XZUMeXEH2)

The five step process to set a science based target is deceptively simple: 

**Commit:** Submit a letter of intent to establish a science based target . 
Wait for your letter of acknowledgement to begin the next step. 

**Develop:** Prepare an emissions reduction target that meets SBTi’s criteria. 
You have 24 months to submit a reduction target upon receipt of your acknowledgement notification.  

**Submit:** Once your target has been developed, submit it to SBTi for validation. 
Submission reviews generally take 30 days. Responses can vary from “approved” to a request for revisions. 

**Communicate and Take Action:** Share your target with your organization and stakeholders. 
Once your organization has a roadmap in place, it’s time to decarbonize your operations and supply chain. 

**Disclose:** Submit annual disclosures according to your target. 
The good news is that SBTi reporting aligns with both the CDP and TCFD frameworks. You’ll also need to resubmit your target every five years. 

Obviously, there’s no one size fits all approach to addressing climate change, so SBTi is working to develop sector-specific guidance. SBTi has finalized [sector-specific guidance](https://sciencebasedtargets.org/sectors) for apparel and footwear, aviation, financial institutions, information and communication technology (ICT), and power generation. Additional sectoral guidance is under development. 

For small- and- medium-sized enterprises (SMEs) of 500 employees or less, SBTi offers a simplified process which allows them to skip steps one and two. It also eases the requirements for SMEs to engage their value chain with a less stringent requirement for setting Scope 3 targets. This helps bring more SMEs into the fold and ease the administrative burden of Scope 3 emissions reporting. Learn more [here](https://sciencebasedtargets.org/blog/smoothing-the-way-for-small-and-medium-sized-businesses-to-set-science-based-climate-targets). 

### So what next?

**Did you know?** Scope 3 emissions measurement errors are the most common roadblock to gaining SBTi approval. We can help you implement a scalable process for engaging your value-chain to overcome this challenge.  

The Science Based Targets Initiative is a rapidly growing movement, transforming the private sector towards a lower carbon future. Set your own science based target today, and [get in touch](https://www.aklimate.co.uk/) to learn how we can help you with your Scope 3 targets. 


The Science Based Targets Initiative helps organizations align their decarbonization strategy with climate science. Could this put an end to greenwashing? 

What are Science Based Targets? [checklist included]

Hi all,

Today’s our last working day of 2021, so we thought we should take a look back at our first full year of operations! It’s been a crazy year for everyone, us included, so thanks for all of your support, and below is our attempt to capture our top 7 highlights!

Wishing you all the very best for Christmas if you are celebrating, and very warm wishes for a prosperous and green 2022!

Aklimate Team

1 **Launched Aklimate**

A year ago, the founders were working at Bain, MasterCard and Otta, gaining hugely valuable domain expertise across the low-carbon transition and enterprise SaaS. But, we were also moonlighting on Aklimate, helping responsible businesses engage their suppliers at scale to decarbonise. Determined to make an impact in the climate fight and reach 000’s of businesses worldwide, we quit our jobs and we haven’t looked back since: best decision we ever made!

![l-r: Harry, Chou, Will, Mark](https://media.graphcms.com/eXgH27fpRBCDbwXu1zcf)

2 **Grew the team of Akli-mates**

We have added some absolute rockstars to our team, including our third co-founder Will, and our head of business development, Shreya. It has been massive to be able to work together in person this year, and the shared motivation from our environmental mission is infectious. We’ll be growing like crazy next year, so if you or someone you know is looking for an exciting gig at a high growth ClimateTech start up, get in touch!

![l-r: Eloise, Harry, Shreya, Mark, Will, Viona](https://media.graphcms.com/vU7yxFa8QTKUxsNxzoht)

3 **Developed the Aklimate product**

Our product has come a long way this year! We started the year with a jumble of email, excels and google forms, and in the summer we launched our self-serve web application. Every aspect of the application is designed to make carbon management an order of magnitude easier. We dramatically reduce the complexity involved for companies to measure robust Scopes 1-3 carbon emissions, reduce these over time, and report them publicly. And this is just the start; our product roadmap for 2022 is absolutely stacked!

Product Video [here](https://vimeo.com/659400838)

![](https://media.graphcms.com/w8UyCVhRUu0RCINHOBn6)

4 **Worked with WWF to promote Net Zero in Schools**

It has never been more important for future generations to become climate champions, given the urgency of helping the planet towards a greener future. With that in mind, we have been thrilled to help several schools with their environmental journey, and particularly to work with Itza Media on their climate education collaboration with WWF. You can find a video all about this work [here](https://www.itza.io/railshome/HPR_UN07_AKL_HP).

![](https://media.graphcms.com/aH6WVrmaT1aCqpt0g2tM)

5 **Raised funding from some incredible investors**

We couldn’t have made it this far and this fast without the support of some brilliant angel investors - thank you to each of you. In hugely exciting news, we have also been funded by a world-leading US institutional investor, the details of which we can’t release publicly yet, but will be able to share in the New Year, so stay posted!

![](https://media.graphcms.com/h3eV90S0u4wC7JkGP4Tg)

6 **Contributed to fantastic cross-industry initiatives**

Working on all things climate is a collaborative exercise, so we have been stoked to see the growth and progress of several different initiatives, such as [Climate Fit Training for SMEs,](https://smeclimatehub.org/climate-fit/) the [SME Climate Hub](https://businessclimatehub.org/uk/) and [Tech Zero](https://techzero.technation.io/). We are signatories to the SME Climate Hub and Tech Zero, and we can vouch first hand for them as hugely useful tools - we hope to support these bodies and contribute to their continued success in 2022, as we all seek to bring business climate action into the mainstream!

![SDG 17: Partnerships for the goals](https://media.graphcms.com/xYECkckNS9eOU9dpDZFg)

7 **Helped organisations measure +100k tonnes of CO2e**

Above all, we are driven by the opportunity for climate impact, and we loved being able to help numerous organisations, including some of the biggest businesses in the world, to accelerate their suppliers’ climate journeys this year. To all our customers, thanks for trusting us with such an important exercise - each and every one of you is a true climate champion! In total, this year, we helped organisations with a combined footprint of +100k tonnes of CO2e, to measure their emissions and set out a tangible plan to reduce them. For us, this is the most exciting update: after all, climate impact is what we are all here for.

![](https://media.graphcms.com/Zc9jgLcrR89rY5haT3hK)

*If you made it this far, thank you for sticking with us! Is this update too long? Too short? Too infrequent? Please do give us some feedback so we can make it as interesting and relevant as possible*

Our top 7 highlights from our first year

Happy Holidays! Aklimate 2021 wrap-up 🎄

Aklimate was started with a simple goal, to help businesses of all sizes join the net zero revolution. While it is a real cause for optimism that 65% of the world economy is now under a net zero pledge of some kind, much of the action has been confined thus far to governments and huge global corporates, even though half of business and industry emissions come from small and medium sized businesses. It is crucial for the 6M UK SMEs to have a clear path to net zero carbon if we are going to avoid the worst effects of climate change.

And not only is this a critical problem for the planet, it's also on the mind of business owners. Some of the questions they might ask:

1. How can I use my business to fight climate change?
2. How do I attract increasingly climate-conscious customers?
3. How can I win supplier contracts with larger, net zero pledged companies?
4. How do I find the time, money and capabilities to do my part?

One of our co-founders, Harry, is himself the son of two small business owners, both of whom have expressed their desire to do more to help the planet, but that they lack a clear idea of where to start. Indeed, a recent survey by Small Business Britain of >250 SMEs found that while 99% recognise the importance of sustainability, three quarters of them (77%) don’t know how to measure their carbon emissions and need support. 4 in 10 of them are facing real or perceived financial challenges in relation to the net zero transition.

Aklimate is here to accelerate the net zero revolution for the benefit of both SMEs and society at large
‍
# ‍So what do we actually do?

We help our customers to do the following:

1. **Measure emissions:** The first step on any net zero journey is understanding the starting point or "baseline" emissions. We assess the full value-chain emissions of business as defined by Greenhouse Gas Protocol in an affordable and accurate manner
2. **Set a climate pledge:** Once they have measured their starting point, businesses need to set out a target. Commitments range from reducing emissions in line with 1.5°C warming, to carbon neutrality, to net zero. We reject all forms of greenwashing, and for that reason each pledge prioritises emission reductions and is based on the best available industry standards (SBTI for reduction targets and net zero and PAS 2060 for carbon neutrality). Once committed, businesses will receive a bespoke pathway to help them reach their goal.
3. **Reduce & remove carbon:** We provide actionable steps and impactful initiatives, such as partnerships with low carbon suppliers, to help businesses reduce internal emissions. For what cannot be reduced, we help businesses to actively remove carbon from the atmosphere.

**For all of our climate pathways, we provide businesses with the tools to measure, reduce and remove their emissions to reach their target.**

# What can you do?

We're at the start of our journey. Our trailblazing early adopters have pledged, reduced, and shared, and helped us build our platform. Get in touch with us now and forever be known as one of the aklimate100: the very first 100 aklimate customers, leading the net zero revolution.

65% of World Economy

50% of Business and Industry Emissions: BEIS

Small Business Britain Survey

How did we get here and where are we going?

Aklimatising: Our Story So Far

# Introduction

In the Paris Agreement in 2015, 197 countries agreed to limit warming by the end of the century to “well-below 2°C above preindustrial levels” and pursue efforts to limit the temperature increase to 1.5°C. At the time of writing, we are at ~1.23°C increase vs 1880, as you can see on Sky's temperature tracker [here](https://www.skyzero.sky/daily-climate-show).

# Why 1.5°?

This target was chosen because at 1.5°C of warming, we may be able to escape the worst effects of climate change. Indeed, although it may seem small, half a degree can make a world of difference. For example, 2 degrees would mean three times as many people exposed to extreme heatwaves, the loss of all coral reefs, and 60 million more exposed to severe drought. Further differences are outlined in the WWF infographic below:

![Source: WWF - OUR WARMING WORLD: HOW MUCH DIFFERENCE WILL HALF-A-DEGREE REALLY MAKE?](https://media.graphcms.com/aJYxv5aQRtCxzX6l1OTn)

‍If we are going to remain within the 'safe' (from a relative standpoint) 1.5°C limit, we therefore have a very limited amount of greenhouse gases, commonly called the 'carbon budget', that we can emit globally, so we must begin decarbonising now. The Science Based Targets Initiative (SBTI) has done the hard work to translate this destination into quantified climate targets for business.

In brief, to limit warming to 1.5°C, businesses must reduce their greenhouse gas emissions by 50% (vs. 2018 emissions) by 2030. This may seem daunting, but it is certainly achievable with commitment and effort.

# What does this mean for your business?

For small and medium sized enterprises (SMEs), the task is slightly different than for large corporates. According to SBTI, SMEs must:

- Reduce Scopes 1 & 2 emissions (from energy and company vehicles) by 50% (vs. 2018)
- Reduce Scope 3 emissions (from the rest of the value chain), but by no specified amount
- Report on all scopes each year

The justification for this is that SMEs have more limited resources to influence their supply chains. These goals therefore make it possible for businesses of all sizes to have real climate impact. What's more, if every business takes its Scopes 1 & 2 emissions to net zero, then there are no Scope 3 emissions.

# Aklimate's 1.5°C Reduction Pathway

At Aklimate, we are enabling businesses of all sizes to join the movement to limit global warming, with our 1.5°C Reduction Pathway, with the following benefits:

- **Measure:** define your baseline emissions with our Scopes 1 - 3 carbon footprint analysis.
- **Certify:** receive certification that you're committed to a 1.5°C reduction pathway, along with brand assets to use in your facilities, on your website and more.
- **Emission breakdown:** get a detailed breakdown of where your emissions come from, so you can make the best decisions for your business and for the planet.
- **1.5°C reduction pathway:** define the reduction pathway that makes sense for your business, and find out the initiatives you can take to get there.
- **1:1 expert advice:** experts will take you through your emissions breakdown and reduction pathway, and answers any questions you might have along the way.
- **Optional SBTI accreditation:** At your request, we can prepare an application to be accredited with SBTI for your reduction pathway.

![Aklimate Badge](https://media.graphcms.com/LyNvpf3XRwC1amZyK3vT)

The Exponential Roadmap 1.5C Reduction Playbook

SBTI target setting for SMEs

WWF: How much difference will half a degree really make

What does it mean to limit warming to 1.5°C? How can aklimate help your business get involved?

1.5 degrees: a scientific approach to reducing emissions

The question we get asked the most is what the difference is between 'Carbon Neutral' and 'Net Zero'. This field is complicated enough, but it gets even more confusing when you factor in all the other claims a business could make, such as Climate Positive, Carbon Negative, Climate Neutral, Zero Carbon and many more, which have contested definitions depending on who you talk to. Fortunately, Carbon Neutrality, in particular, and Net Zero, to a lesser extent, have clear industry standards to be followed, as well as robust scientific frameworks that will guarantee genuine climate impact if the standards are adhered to. At aklimate, we reject greenwashing in all its forms, and so we use the most rigorously defined standards for businesses that want to become Net Zero or Carbon Neutral. Below you can find our interpretation of these terms:

# Carbon Neutral

Some businesses will claim carbon neutrality with different definitions. However, there is an internationally recognised standard called PAS 2060 to which we align our methodology. This consists of the following:

- Measurement of emissions to cover all of Scopes 1 & 2 emissions, and all Scope 3 emissions categories that account for at least 1% of the total
- Neutrality to be reached by investing in verified carbon offset projects of multiple types (e.g. distributing clean cookstoves, protecting ecosystems, tree planting)
- Crucially, carbon neutrality cannot be reached by offsetting alone. Businesses must also commit to measure and reduce total emissions (but not by a specified amount)

# Net Zero

Net Zero is a more recent term, and as such the exact specifics are still being fleshed out. The Science Based Targets Initiative provides a scientific framework for the action that will be necessary to limit the worst effects of global warming. We follow their lead, defining Net Zero as the following:

- Measurement of emissions to cover all of Scopes 1, 2 & 3 emissions
- Core emission reductions are central to any Net Zero claim - business value chain emissions must be reduced in-line with 1.5C warming scenario (that means ~50% by 2030)
- Net Zero can then be achieved (alongside reductions) by investing in carbon removal offsets (i.e. projects that directly take carbon out of the atmosphere such as tree planting or direct carbon capture and storage)

![Table summary of the terms](https://media.graphcms.com/DmIWZndeQTWcBdcGRfmO)

# Begin your Net Zero journey today

At Aklimate, we've made it easy for businesses of all sizes to join the net zero movement. Get in touch today to measure your emissions, set a public pledge (1.5°C Reduction, Carbon Neutral, or Net Zero), and gain robust climate certification.

PAS 2060

Net Zero SBTI

SME SBTI

GHG Protocol

What do carbon neutral and net zero really mean and how do they differ?

Jar-gone: demystifying Carbon Neutral and Net Zero

# Context
In the world of carbon measurement and accounting, the terms 'Scope 1, 2 and 3' are seemingly ubiquitous and often bandied about with little explanation. This is a problem, because the distinction between them is crucial when calculating and reducing business emissions in line with scientific standards (see the [aklimate blog post on Carbon Neutral and Net Zero](https://www.aklimate.co.uk/blog/carbon-neutral-and-net-zero) for more on this). The following article covers the definitions of Scope 1, Scope 2 and Scope 3, and the differences between them.

![Greenhouse Gas Protocol infographic on the different emission 'scopes'](https://media.graphcms.com/BAK1cPdR0ikkyRkqxM5Q)

# Summary
In brief, as defined by the [GHG Protocol](https://ghgprotocol.org/sites/default/files/standards_supporting/Scope3_Calculation_Guidance%20-updated.pdf), the three ‘Scopes’ that emissions fall into are as follows:

- Scope 1: Direct emissions from activities under the organisation's control, such as gas heating, fleet vehicles.
- Scope 2: Indirect emissions from electricity purchased by the organisation.
- Scope 3: All other indirect emissions, including: purchased goods & services, business travel, commuting, waste, use of products, distribution, investments, leased assets and franchises.

![Aklimate Summary Table](https://media.graphcms.com/iKYwbgyRaSdJ59CfEMpW)

# Additional Information
## Scope 1
Scope 1 emissions are the direct emissions caused by resources controlled by the company. These are divided into four categories:

- Stationary combustion includes all fuels and heating sources (e.g. gas boilers)
- Mobile combustion concerns all vehicles owned or controlled by a firm, burning fuel (e.g. company cars and vans).
- Fugitive emissions refers to the leakage of greenhouse gases (e.g. refrigeration, methane pipes).
- Process emissions are released during industrial processes, and on-site manufacturing (e.g. production of CO2 during brewing, creating fertiliser, making cement)

## Scope 2
Scope 2 emissions refer to the indirect emissions that are released into the atmosphere as a result of the consumption of purchased electricity (and heat and cooling). For most organisations, electricity will be the most important, or only, source of Scope 2 emissions.

## Scope 3
Scope 3 emissions cover all indirect emissions, not included in Scope 2, that occur in the value chain of the reporting company, including both upstream and downstream emissions. In other words, all the emissions that are linked to the company’s operations that are not directly controlled by the organisation. This includes the entirety of a business' supply chain. The GHG Protocol, to which the aklimate methodology is aligned, separates Scope 3 emissions into 15 categories. Some of the most important are as follows:

Upstream:
- Business Travel
- Employee Commuting
- Purchased Goods & Services
- Operational Waste

Downstream:
- Use of Sold products
- End of Life of products
- Investments
- Leased Assets

## Why is Scope 3 so important?
In the vast majority of businesses, emissions along the value chain represent by far the biggest source of greenhouse gases. At [Mastercard](https://www.mastercard.com/content/dam/public/mastercardcom/na/global-site/documents/mastercard-sustainability-report-2020.pdf) for example, Scopes 1 and 2 combined have only constituted between 5% and 10% of the overall company footprint over the last 5 years. Similarly, the below diagram highlights the huge importance and significance of Scope 3 to overall emissions of [Microsoft](https://query.prod.cms.rt.microsoft.com/cms/api/am/binary/RWyG1q), as per their 2020 Sustainability Report:

![3.png](https://media.graphcms.com/Y0Fgq0c7SB6DFjmsFPkq)

Given the relative importance of Scope 3, all of our measurement and reduction pathways highlight and focus on Scope 3, ensuring our customers will have a genuine climate impact. Be wary of the many calculators you can find online that will only consider Scopes 1 and 2, thus ignoring and neglecting the majority of an organisation's impact. Get in touch with aklimate today, if you have any questions, or if you would like to measure and reduce the Scopes 1, 2 **and 3** of your business, and thus consider the full picture when it comes to your carbon emissions.