Setting science-based targets to tackle climate change “will drive innovation inside the companies; it will be a signal of leadership, it will bring cost reductions, it will bring disrupting technology and business models,” says Pedro Faria, Technical Director, CDP, in the latest Climate TV interview.
CDP is collaborating with The Climate Group on RE100 and provides the Technical Working Group that recommends the campaign criteria for accounting and reporting renewable electricity.
In today’s global market, accountability is key for businesses to their customers. “We need to transition, and companies will need to transition” toward a low carbon economy, explains Pedro Faria. “It’s fundamental that companies adopt science-based targets, because there is no business case in a wrecked planet.”
Such targets must follow a long-term path because “we are in a long-term journey in terms of decarbonization”, he explains. At the same time, setting many achievable short-term goals within this long-term journey can actually “create accountability for their external stakeholders and even internally, to know how they are doing in terms of their long-term goals,” continues Pedro Faria.
The historic Paris Agreement which was adopted at COP21 last December is pivotal to setting this pathway, helping establish a long-term framework for businesses to grasp the opportunities of climate action.
“Reporting on your carbon emission is fundamental,” says Pedro Faria, since it’s the first step of such an inevitable journey all companies must go through. It also “creates transparency, creates accountability, creates engagement with your stakeholders, your value chain and your clients”, the Director explains.
“Consumer demand is driving a transformation in the power industry,” concludes Pedro Faria. “RE100, by gathering large consumers, gives a really strong signal to the power industry about the need to decarbonize.”