Decarbonization

Pathway
This is intended to provide a framework that PSCI members can use to support their
suppliers in decarbonization towards Net Zero, in line with global goals such as the
COP Paris Agreement and UN Sustainable Development Goals.
■ To deeply decarbonize, PSCI members need to address our Scope 3 emissions ■ The principle is embedded that our suppliers (PSCI members Tier 1 suppliers)
i.e. the GHG emissions generated by our suppliers in the course of delivering would flow this framework down to their supply chains (members Tier 2+).
their contracts with us.
■ This approach builds on Maturity Models for other PSCI focus areas.
■ PSCI members will require our suppliers to address their own Scope 1 & 2
GHG emissions and those of our suppliers own supply chain i.e. their Scope 3
emissions.

Maturity model for Decarbonization

L eve l

L eve l

L eve l
Starting out Developing Implementing Leading
■ Set baseline for reducing ■ Public target to reduce Scope 1 ■ Obtain SBTi verification of ■ Obtain SBTi verification of a
Scope 1 and 2 emissions & 2 GHG emissions Near Term Science Based Near and Long Term Net Zero
Targets aligned with 1.5°C target or SBTi equivalents if
■ Public commitment to setting
or SBTi equivalents if they they meet the SBTi criteria and
Science Based Targets (in line
meet the SBTi criteria and are are validated by a 3rd party
with a 1.5°C trajectory)
validated by a 3rd party ■ Require suppliers to set
■ Public commitment to
Set Scope 3 GHG emissions Science Based Targets
Targets

■
increasing use of renewable
reduction targets, including
electricity (at least 80%)
targets for suppliers to reduce
■ Set internal target for their GHG emissions
engagement of supply chain

■ Actively assess reporting and ■ Management systems and ■ Scope 3 (all relevant ■ Reported emissions provided
disclosure tools, processes governance in place to ensure categories) calculated using with limited or reasonable
and management systems accurate reporting and combination of spend-based assurance by 3rd party auditor
to establish an annual GHG disclosures of Scope 1, 2 & 3 methods and primary data ■ Reporting carbon footprint
reporting process emissions from suppliers
for products (e.g. life cycle
■ Establish a baseline for Scope ■ Scope 1 & 2 with 3rd party ■ Reporting, disclosures and assessment) using digital tools
1 and 2 GHG emissions in line verification processes meet external to provide full transparency
with GHG Protocol and publicly standards throughout value chain
■ Publicly disclose upstream
disclose them
Scope 3 emissions (Scope 3 ■ Scope 1, 2 and 3 carbon ■ Decarbonization is embedded
- Operating under own categories 1 to 8) using spend- footprint provided to PSCI in company culture with
internal management based methodology member companies in ratio Governance and Targets
systems without external specific to their business/ at Board level impacting
- Understand material sources
validation spend (site based or corporate remuneration
of emissions across Scope 3
level emissions accepted) in a
■ Initiate internal processes for GHG categories ■ Active participation in external
digital tool determined by the
Scope 3 screening of some in-sector and cross-sector
■ Report to 3rd party ESG requestor
Scope 3 categories using partnerships, publicised to
rating provider
spend-based methodology Detail of targets, actions and support transition to Net Zero
Enablers & Actions

■
■ Board commitment to a reductions made transparent
■ Ad-hoc success in - Advocacy on sustainable
decarbonization strategy
implementing actions for ■ Majority of employees have challenges and change
made public
reduction in emissions, mostly received training to embed towards Net Zero
focussed on Scope 1 & 2 ■ Material improvement emissions reductions activity ■ Demonstration of significant
opportunities identified to across business
investment in innovation and
reduce Scope 1 & 2 emissions
■ Key suppliers engaged at delivery of carbon reduction
- managed in line corporate level to set their ■ Minimises the use of carbon
with accreditation in strategy & targets and report
compensation (offsets) in
management standards publicly
the short and medium term.
and built into core business
- Set standards for suppliers Only highest quality carbon
processes
which requires transparent compensation schemes
■ Senior management GHG reporting and (removals) used to achieve Net
accountability allocated, production of emissions Zero in line with SBTi guidance
Suppliers are coordinated across all reduction plans by the
expected to ■ Energy management system
business units suppliers
in place, energy opportunities
undertake most, ■ Regular engagement with ■ Demonstrating progress (incl. have been identified and
or all, of the employees to raise awareness exploring options) towards actioned. Energy benchmarks
steps outlined of need for action on emissions sourcing renewable heat and KPIs developed for
reduction specific products
at each stage of ■ Energy management system
Purchasing certified renewable in place, energy opportunities
maturity
■
electricity from utility suppliers, have been identified. Energy
where markets allow benchmarks and KPIs
developed by site