KEY CONCEPTS

AND TAXONOMY
Sustainability Campus
GLOSSARY FOR
SUSTAINABILITY NOVICES

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Common carbon related terms
Greenhouse gases (GHGs) absorb and emit infrared radiation thereby trapping it in Earth’s atmosphere. Includes carbon
dioxide, methane, water vapor, nitrous oxide, and ozone.

Decarbonization refers to measures that reduce carbon dioxide (CO2) emissions associated with electricity, industry, transport,
etc.

What is “net zero” ? To stabilize global warming, we know that net zero emissions must be reached by 2050. There is still not
one widely accepted definition of net zero. Here is an official view from two leading climate change organizations, the CDP
(Carbon Disclosure Project) and SBTi (The Science Based Target Initiative):
“Net zero is achieving a state in which the activities within a country or the value chain of a company result in no net impact
on the climate from greenhouse gas emissions. This is achieved by reducing greenhouse gas emissions, in line with 1.5°C
pathways, and by balancing the impact of any remaining greenhouse gas emissions with an appropriate amount of carbon
removals.”

Carbon offsetting is compensating for the harmful impact of a company’s emissions by investing in projects beyond their value
chain that avoid or remove emissions (e.g. forest restoration).

Carbon negative company removes more carbon than it emits each year.

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 What is the difference between carbon neutrality and net zero?
CARBON NEUTRAL NET ZERO
All human carbon dioxide (CO2 ) emissions released
All human Greenhouse Gas (GHG) Emissions released in the atmosphere are balanced by
Science are balanced by human-caused CO2 removal over a
human-caused GHG removal over a specified period.
specified period
Direct Operations
Direct Operations
Scope Purchased Energy
Purchased Energy
(cf. deep-dive) Value Chain – at least 66% of emissions
Value Chain – not mandatory selective
Beyond value chain – through investment in quality capture and/or storage of residual GHGs
Set and reduce actual emissions across all scopes at a rate consistent with an SBTi verified
Reduction Set credible emissions reduction targets and
1.5°C pathway - an economy-wide emissions reduction of at least 90% by 2050 informs the
Target demonstration of progress through a carbon plan
level of residual emissions for most companies
Credible and certified avoidance and/or removal
Credible and certified carbon removal projects only – i.e. high-quality, jurisdictional REDD+
Offsetting projects i.e. cook stoves, water purification and re-
credits or investing in direct air capture (DAC) and geologic storage
forestation
Near term (5-10year) reductions inline with a 1.5°C pathway
Short Term - a company can be considered carbon
Long term targets to reduce to a residual level in line with a 1.5°C pathway across the sector
neutral when an equal amount of emissions are
Timeframe by no later than 2050
being neutralised through carbon offsets as those
being emitted A company can only be considered net zero when it has achieved its long-term science-
based target. At this point will they offset or neutralize their “residual” emissions

The key difference is that net zero has stronger requirements around reducing emissions as much as possible,
and a wider scope including those in the supply chain. 4
International agreements and frameworks (1/3)

When did the global climate effort begin? Whilst scientists have been aware of the link between atmospheric carbon dioxide
levels and global temperatures for over 120 years, the serious discussion of climate only started in the late 1970s, when the
first global climate change conference was held in 1979. However, the issue did not really gain global political momentum until
1992 at the Earth Summit in Rio de Janeiro when the UNFCCC (United Nations Framework Convention on Climate Change), an
international environmental treaty came into being. The objective of the treaty was to stabilize greenhouse gas concentrations,
“at a level that would prevent dangerous human-induced interference with the climate system”.

What is the COP? In 1995 the United Nations Climate Change Conferences (also known as Conference of the Parties or the
COP) were instituted. The COP is a yearly conference of the representative nations on the UNFCCC to assess progress in dealing
with climate change and to establish legally binding obligations for countries to reduce their greenhouse gas emissions.

What is the Paris Agreement? Resulting from the COP21 in 2016, the Paris Agreement was signed by 197 countries, agreeing to
work towards a goal of limiting the global temperature rise to well below 2°C above pre-industrial levels and to pursue efforts
to limit the temperature increase to 1.5°C above pre-industrial levels. It signaled an acceleration in the transition to a low
carbon economy. The business proposals for COP21 were signed by many CEOs, including our then CEO Paul Hermelin, calling
on policy makers for stronger climate action.

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International agreements and frameworks (2/3)
The Science Based Targets initiative (SBTi) is an organization that works with companies to set ambitious emission reduction
targets in line with the latest climate science, in order to help meet the goals of the Paris Agreement and the recommendations
of the IPCC report. Having a 1.5°C science-based target means a company has a clearly defined pathway to reduce emissions in
line with the level needed to keep global temperature increases at no more than 1.5°C above pre-industrial levels. Science-
based targets are validated by a team of technical experts at SBTi. Organizations are then bound to disclose their progress
against these targets.
Capgemini was one of the first companies in our sector to have our targets validated by the SBTi in 2016. Now more than 2,600
companies have signed up, including many of our competitors and clients, with over 1,200 companies having validated science-
based targets.

The Intergovernmental Panel on Climate Change (IPCC) is the United Nations body for assessing the science related to climate
change. It was commissioned to conduct research following the Paris Agreement to look at warming scenarios at 2°C and 1.5°C.

The UN Sustainable Development Goals (SDGs), also known as the Global Goals, were adopted by all United Nations Member
States in 2015 as a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and
prosperity by 2030.
The 17 SDGs are integrated - that is, they recognize that action in one area will affect outcomes in others, and that
development must balance social, economic and environmental sustainability. Through the pledge to “Leave No One Behind”,
countries have committed to fast-track progress for those furthest behind first. That is why the SDGs are designed to bring the
world to several life-changing ‘zeros’, including zero poverty, hunger, AIDS and discrimination against women and girls. 6
International agreements and frameworks (3/3)

Why 1.5°C? The IPCC report, published in October 2018, concluded that the world needs to do more to limit warming further
as we are currently on a trajectory to reach 1.5°C warming between 2030 and 2052, and if temperatures continue to increase
at this rate, we will reach 3°C by the end of the century. The report even warned against a 2°C warming, stating that the world
will be a profoundly different place. In this scenario, there will be almost no coral reefs remaining, the Arctic will be completely
devoid of ice during summer at least once a decade, and huge numbers of animals and plants will become extinct as their
habitat becomes smaller and smaller. The report’s key recommendation is that nations must do what they can to stabilize
global warming below 1.5°C above pre-industrial levels. At COP26, with pre 2021 plans, we were on track to reach 2.4°C
warming.

How will we reach 1.5°C? To stabilize global warming, it has been calculated that global emissions must be reduced by 45% by
2030 from 2010 levels. Then, we must reach net zero emissions by 2050. This will require a fundamental shift, the engagement
of governments, private business, individuals and a move away from a dependance upon fossil fuels.

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Other sustainability concepts

Sustainable consumption argues that reducing ecological footprints requires high-consuming classes to change their
consumption patterns and reduce their consumption levels (Lorek and Fuchs, 2013). Conceptually, it proposes a maximum level
of consumption that is environmentally sustainable (Spangenberg, 2014; Spengler, 2016).

Circular economy is an alternative to a traditional linear economy (make, use, dispose) a circular model, designs out waste and
allows materials to safely re-enter the biosphere or continue to circulate as high-quality production resources.

Zero waste refers to the conservation of all resources by means of responsible production, consumption, reuse and recovery of
all products, packaging, and materials, without burning them, and without discharges to land, water or air that threaten the
environment or human health.

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CARBON ACCOUNTING Basics

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What about Capgemini emissions (CO2e) ?

2019 data

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