Science-basedTargetSettingfortheAviationSectorsciencebasedtargets.org@ScienceTargets/science-based-targetsVersion1.0August2021info@sciencebasedtargets.orgSCIENCE-BASEDTARGETSETTINGFORTHEAVIATIONSECTORPartnerorganizationsAcknowledgmentsThisguidancewasdevelopedbyWWFonbehalfoftheScienceBasedTargetsinitiative(SBTi),withsupportfromtheInternationalCouncilforCleanTransportation(ICCT)andBostonConsultingGroup(BCG).TheScienceBasedTargetsinitiativemobilizescompaniestosetscience-basedtargetsandboosttheircompetitiveadvantageinthetransitiontothelow-carboneconomy.ItisacollaborationbetweenCDP,theUnitedNationsGlobalCompact,WorldResourcesInstitute(WRI)andtheWorldWideFundforNature(WWF)andisoneoftheWeMeanBusinessCoalitioncommitments.AboutWWFWWFisoneoftheworld’slargestandmostexperiencedindependentconservationorganizations,withover5millionsupportersandaglobalnetworkactiveinmorethan100countries.WWF’smissionistostopthedegradationoftheplanet’snaturalenvironmentandtobuildafutureinwhichhumansliveinharmonywithnature,byconservingtheworld’sbiologicaldiversity,ensuringthattheuseofrenewablenaturalresourcesissustainable,andpromotingthereductionofpollutionandwastefulconsumption.AboutBCGBostonConsultingGrouppartnerswithleadersinbusinessandsocietytotackletheirmostimportantchallengesandcapturetheirgreatestopportunities.BCGwasthepioneerinbusinessstrategywhenitwasfoundedin1963.Today,wehelpclientswithtotaltransformation—inspiringcomplexchange,enablingorganizationstogrow,buildingcompetitiveadvantage,anddrivingbottom-lineimpact.Tosucceed,organizationsmustblenddigitalandhumancapabilities.Ourdiverse,globalteamsbringdeepindustryandfunctionalexpertiseandarangeofperspectivestosparkchange.BCGdeliverssolutionsthroughleading-edgemanagementconsultingalongwithtechnologyanddesign,corporateanddigitalventures—andbusinesspurpose.Weworkinauniquelycollaborativemodelacrossthefirmandthroughoutalllevelsoftheclientorganization,generatingresultsthatallowourclientstothrive.AbouttheICCTTheInternationalCouncilonCleanTransportationisanindependentnon-profitorganizationfoundedtoprovidefirst-rate,unbiasedresearchandtechnicalandscientificanalysistoenvironmentalregulators.Itsmissionistoimprovetheenvironmentalperformanceandenergyefficiencyofroad,marine,andairtransportation,inordertobenefitpublichealthandmitigateclimatechange.PartnerorganizationsPrimaryAuthors●DanRutherford(ICCT)●SolaXinyiZheng(ICCT)●JesperNielsen(BCG)●PaulinaPoncedeLeónBaridó(BCG)●NicholasCollins(BCG)●FernandoRangelVillasana(WWF)●BradSchallert(WWF)●RebekahHughes-Khan(WWF)●JohnHoller(WWF)●TimLetts(WWF)ATechnicalWorkingGroup(TWG)ofdedicatedexpertsfromindustryandNGOsprovideddetailedinputduringtheplanningphaseandonvariousdraftsoftheguidanceandtool.TWGmemberorganizations:AirNewZealand,AllNipponAirways,AmericanAirlines,CathayPacificAirways,DeutschePostDHLGroup(DPDHL),EasyJet,EthiopianAirlines,FederalExpress(FedEx),Finnair,GOL,InternationalAirlinesGroup(IAG),InternationalEnergyAgency(IEA),JetBlueAirways,QantasAirways,TheSmartFreightCentre,UnitedParcelService(UPS),UniversityCollegeLondon(UCL)WeareverygratefulfortheinputandengagementfromallourTechnicalWorkingGroupmembersandprojectsupportteams.OpinionsexpressedwithinthisdocumentmaynotrepresenttheviewsofeveryTechnicalWorkGrouporganization.PartnerorganizationsEXECUTIVESUMMARYIntroductiontoScienceBasedTargetsinitiative(SBTi)TheScienceBasedTargetsinitiative(SBTi)helpscompaniesunderstandhowmuchandhowfasttheyhavetoreducegreenhousegas(GHG)emissionsbytoalignwiththegoalsoftheParisagreement-tolimitwarmingtowell-below2°Cabovepre-industriallevelsandpursueeffortstolimitwarmingto1.5°C.Thisdocumentprovidesguidanceonhowairlinesandusersofaviationservicesshouldsettargetsalignedwithawell-below2°Cambition(thegoaloftheParisagreement).Targetsettingapproachforairlines●ThetargetsettingmethodforairlinesisbasedontheSBTi’sSectoralDecarbonizationApproach(SDA)whichstatesthatacompany’scarbonintensityshouldconvergetothesector’sParis-alignedGHGintensityby2050Decarbonizationpathwayfortheaviationsector●TherateandscaleofaviationdecarbonizationisdefinedbytheInternationalEnergyAgency’s(IEA)EnergyTechnologyPerspectives(ETP)2020reportwhichmodelsGHGreductionrequirementsforeachsectorbasedonanumberofassumptionsincludingforecastedsectorgrowth,availabilityofmitigationleversandsocio-economicfactors●ToalignwiththeParisagreement,theaviationsectorisrequiredtoreduceaveragecarbonintensityby~35-40%between2019-2035,or~65%from2019-2050Scopeofemissionscovered●Theimpactofaviationnon-CO₂factorsonwarmingisacknowledgedbutnotincludedinquantitativetargetsettingduetoscientificuncertaintyandlackofmitigationsolutions●Toraiseawarenessofnon-CO₂impactsofaviation,airlinesareencouragedtoparticipateindatasharing,collaborationandincludenon-CO₂factorsinotherclimatecommitmentsProcesstosetatarget●CompaniesmayusetheaccompanyingSBTaviationExceltooltohelpsetSBTsPartnerorganizations●Onceatargethasbeendeveloped,itshouldbesubmittedtotheSBTiforvalidationMechanismstorealizetargets●TheSBTidoesnotprescribeatechnologyroadmapformeetingtargets,however,airlinesmayconsiderimprovingcarbonintensitythroughfleetrenewal,improvedoperationalefficiency,adoptionofSustainableAviationFuelsorothersolutions●Science-basedreductiontargetscurrentlyaddressin-value-chainreductions,henceout-of-value-chainneutralizationorcompensation1creditscannotbeusedtomeetSBTs●However,science-basedreductiontargetscanbecomplementedbyscience-basedNetZerotargets(underdevelopment)whichfurtherconsidertheroleofCO₂removals/creditsSBTsforusersofaviationservices●Thispathwaycanbeusedtosettargetsforscope3category4“upstreamtransportationanddistribution”(e.g.,contractedfreight),scope3category9“downstreamtransportationanddistribution”orforscope3category6“businesstravel”emissions●Businessairtraveltargetsaregeneratedusingtheabsolutecontractionmethodwithalinearannualreductionrateof0.4%(thesectordecarbonizationratefor2019-2050)●SAFcanbeusedtoaddressscope3targetsifprocuredinlinewithSBTiprinciples1Compensation:Measurableclimatemitigationoutcomes,resultingfromactionsoutsideofthevalue-chainofacompanythatcompensateforemissionsthatremainunabatedwithinthevalue-chainofacompany.InthecontestoftheSBTi,thetermcompensationalsoreferstoacompany’sactionsorinvestmentsthatmitigate,oraremadewiththeintentiontomitigate,GHGemissionsbeyondthosemitigatedbyitsSBTandnet-zerotarget.Neutralization:ToreachastateinwhichhumanactivitynolongercontributestoglobalwarmingmeansachievingastateinwhichanthropogenicGHGemissionsnolongeraccumulateintheatmosphere.Forcompanies,thismeansneutralizingtheimpactofanysourceofresidualemissionsthatisunfeasibletoeliminatebypermanentlyremovinganequivalentvolumeofatmosphericCO2.PartnerorganizationsTABLEOFCONTENTSEXECUTIVESUMMARY........................................................................................................3CONTEXT..............................................................................................................................6WHATARESCIENCE-BASEDTARGETS(SBTS).........................................................................6THEAVIATIONSECTORINCONTEXT........................................................................................6OVERVIEWOFTHEPUBLICCONSULTATIONPROCESS..............................................................7DEVELOPMENTOFAVIATIONDECARBONIZATIONTRAJECTORIES.............................8OVERVIEWOFTHESECTORALDECARBONIZATIONAPPROACH(SDA)......................................8CHOICEOFEMISSIONSSCENARIOANDACTIVITYFORECAST.....................................................9SECTORACTIVITYFORECAST...............................................................................................11APPROACHTOSECTORALSEGMENTATION............................................................................13PATHWAYBOUNDARIESANDASSUMPTIONS..........................................................................15ADDRESSINGNON-CO₂EFFECTSOFAVIATION......................................................................16SECTORCARBONINTENSITYPATHWAYS...............................................................................17HOWTOSETASCIENCE-BASEDTARGETFORAVIATIONCOMPANIES.....................19USINGTHETARGETSETTINGTOOL.......................................................................................19SUBMITTINGATARGETFORVALIDATION...............................................................................21COMMUNICATINGATARGET.................................................................................................21UPDATINGATARGET...........................................................................................................21MECHANISMSTOREALIZETARGETS.............................................................................23IMPROVINGEFFICIENCYOFTECHNOLOGYANDOPERATIONS..................................................23USINGSUSTAINABLEAVIATIONFUELS..................................................................................24APPLICABILITYOFCOMPENSATIONANDNEUTRALIZATION.....................................................27TARGETSETTINGFORUSERSOFAVIATIONSERVICES..............................................28SCOPE3CATEGORIES4AND9TARGETSETTINGMETHOD.....................................................28SCOPE3CATEGORY6TARGETSETTINGMETHOD.................................................................29CONCLUDINGREMARKSANDFUTUREOPPORTUNITIES.............................................32GLOSSARY.........................................................................................................................33PartnerorganizationsCONTEXTWhatarescience-basedtargets(SBTs)SBTsspecifyhowmuchandhowquicklyacompanyneedstodecarbonizetoalignwiththeParisAgreementgoalsScience-basedtargetsspecifyhowmuchandhowquicklyacompanywouldneedtoreduceitsgreenhousegas(GHG)emissionsinordertoalignwiththegoalsoftheParisAgreement-tolimitwarmingtowell-below2°Cabovepre-industriallevels(WB-2°C)andpursueeffortstofurtherlimitwarmingto1.5°C.ThisreportbuildsonexistingScienceBasedTargetsinitiativeguidance,inparticulartheSBTiTransportTargetSettingGuidance(2018),andtheGHGProtocolCorporateAccountingandReportingStandardtooutlinehowmuchandhowquicklytheaviationindustryneedstodecarbonizetomeetthegoalsoftheParisAgreement.Itshowstheconclusionsofagroupofexpertsandindustrystakeholders2thathavebeenfocusedondevelopingbestpracticesforscience-basedtargetsettinginaviationsinceMarch2020.Thisscience-basedtargetsettingmethodologyforaviationhasbeenbuiltontheSBTi’sSectoralDecarbonizationApproach(SDA)whichallowsaviationindustrystakeholdersincludingpassengerandcargoairlines,contractedfreightforwardersandbusinesstravelerstosetGHGintensitytargetsthatarealignedwithaWB-2°Cscenario(thetemperaturegoaloutlinedintheParisagreement).TheaviationsectorincontextAviationisconsideredaheavy-emittingsector,butthesectorneedstoactnowtorespondtoincreasingregulatory,investorandconsumerpressuresBecauseofitsrelativelyhigherabatementcoststhantherestoftheeconomy,aviationisconsideredtobeahardtoabatesector,representing~2.4%ofglobalCO₂emissionsin2018.Effortstodecarbonizeairtravelfacesignificantheadwindsduetolargetechnicalbarriers2TheaviationpathwaydevelopmentprocesshasbeensupportedbyanalysisfromtheInternationalCouncilonCleanTransportation,aTechnicalWorkingGroupinvolving>15representativesfromairlines,freightcarriers,researchorganizationsandindustrybodiesPartnerorganizationsassociatedwithremovingorreplacingjetfuel,challengingindustryfundamentals,suchaslowprofitmargins(2-4%globalaverage)andlimitedhistoricregulatorypressuretodecarbonize.TherecentCOVID-19pandemichasimpactedaviationatafundamentallevel,causingindustrywidedisruptionand,atthepandemic'speak,agreaterthan90%reductioninmonthlyRevenuePassengerKilometers(RPKs)inApril2020.Astheworldbeginstoreturntonormal,flightactivityintheaviationsectorwillseeareturnofdemand–however,therateofincreaseoverthecomingyearsishighlyuncertain.PriortotheCOVID-19crisis,theindustrywasalreadyseeingachanginginvestorandconsumersentimenttowardsflying,bothduetoanincreasingcorporatefocusonemissionstargets,aswellasconsumer-drivenmovementssuchas“flyingshame”.However,itispossiblethatthesechangingattitudeswillonlyhavebeenexacerbatedbytheCOVID-19pandemic.Indeed,manybusinesseshavebecomeincreasinglyaccustomedtoaremoteworkingmodel.Whethersustainably-mindedtravelerstaketotheskiesagainwilldependpartiallyonacost-benefitanalysis:weighingupthebenefitsoftravelagainstthecostsinbothfinancialandcarbonterms.Therefore,nowmorethanever,itisimperativeforairlinestodecarbonize:sustainabilityandsectorrecoveryshouldgohandinhand.Settingscience-basedtargetsrepresentsacrediblesignaltoconsumers,investorsandregulatorsthattheindustryisready,willingandabletotakeactionandre-buildwithclimateatthetopoftheagenda.Foraviationcompanies,thebusinesscaseisclear:notonlydoessettingascience-basedtargetdemonstratetocustomersandinvestorsawillingnesstoact,butdecarbonizingnowiskeytocreatingfutureresilienceandcompetitiveadvantageinalowcarboneconomy.OverviewofthepublicconsultationprocessApublicconsultationwasorganizedfromNovember20toDecember112020togetinputfromindustryandcivilsocietystakeholdersonthisguidancedocumentandaccompanyingtargetsettingtool.Feedbackfromover60stakeholderswasreceivedthroughanonlinesurveyandovertwoconsultationwebinarswereheldinDecember2020.PartnerorganizationsDEVELOPMENTOFAVIATIONDECARBONIZATIONTRAJECTORIESOverviewoftheSectoralDecarbonizationApproach(SDA)AtargetsettingmethodbasedonintensitymetricswhichincorporatesindustrygrowthforecastsintodecarbonizationtargetsTheSDAisatargetsettingmethodologydevelopedbytheSBTiallowingcompaniestosetscience-basedgreenhousegasintensitytargetsalignedwithawell-below2°Cscenario.Essentially,theSDAattemptstoaddressafundamentaltensionincorporatetargetsetting:thatrapiddecarbonizationisincongruentwithindustrygrowth.Forcommercialaviation,thisuncertaintycouldbeframedas:“Howmuchwouldtheaviationsector’saveragecarbonintensityneedtodecreaseinordertoachieveParisaligneddecarbonizationgoalswhilstalsoallowingforprojectedindustrygrowth?”TheSDAanswersthisquestionbyhelpingcompaniesmodelphysicalintensityGHGreductiontargetsthatalignwiththesector-specificpathwayofanunderlyingclimatescenario.TherateofdecarbonizationneededtomeettheParisgoalsisdefinedbyscientificfindingsfromIntegratedAssessmentModels(IAMs).Thesemodelsdetailhowaglobalcarbonbudgetshouldbespentovertimeanddividedbysectorbasedonanumberoffactors,including:sectormitigationpotential,socio-economicdrivers,regionalfactorsandtechnologicalavailability.OneoftheoutputsofIAMsisanannualemissionspathway-anillustrationofthenecessaryemissionseachsectorcanemitineveryfutureyearinordertobeconsistentwithaspecifictemperatureoutcome.IntheSDA,annualemissionspathwaysaredividedbyforecastedindustryactivitytodefineacarbonintensitycurve.Thesecurvescanhelpcomparethecarbonintensityofanindividualcompanyandthesectoroverall.Forexample,ifacompanyhasahighercarbonintensitythanthesectoraverageitisconsideredtohavelesscarbon-efficientoperationsthanitssectorpeers.TheSDAbuildsuponthecomparisonbetweensector-wideandcompanyintensities.Targetsaresetbyassumingthatallcompaniesconvergetothesameintensitylevelasthesectorbytheyear2050.Science-basedtargetsaresetintheshorttomediumterm(5to15years)alongthisconvergencepath,thesteepnessofwhichisdefinedbytherelativeintensityofthecompanycomparedtothesectorinthebaseyearandtherateofforecastedcompanyactivitygrowth.Thelargertherelativedifference,andthefasterthegrowth,themorestringenttheintensitytargetforanindividualcompany.PartnerorganizationsFigure1:Illustrationofanintensityconvergencepathway-companiesshouldconvergetothesectoraverageintensity(redline)by2050,settingshort-mid-termtargetsalongthewayChoiceofemissionsscenarioandactivityforecastThefirststepintheSectoralDecarbonizationApproachrequiresdevelopmentofanaviationsectorGHGintensitypathwayalignedtoaWB-2°Cscenario.Onceasector-wideGHGintensitypathwayhasbeendefined,companieswithinthatsectormaysettargetsbycomparingtheirbaseyearGHGintensitywiththatofthesector,ultimatelyconvergingtosectorintensitylevelsby2050.Equation1𝑆𝑒𝑐𝑡𝑜𝑟𝐺𝐻𝐺𝑖𝑛𝑡𝑒𝑛𝑠𝑖𝑡𝑦(𝑔𝐶𝑂2𝑒/𝑅𝑃𝐾)=𝐴𝑛𝑛𝑢𝑎𝑙𝐸𝑚𝑖𝑠𝑠𝑖𝑜𝑛𝑠𝑃𝑎𝑡ℎ𝑤𝑎𝑦(𝑔𝐶𝑂2𝑒)𝑆𝑒𝑐𝑡𝑜𝑟𝐴𝑐𝑡𝑖𝑣𝑖𝑡𝑦𝐹𝑜𝑟𝑒𝑐𝑎𝑠𝑡(𝑅𝑃𝐾)Annualemissionspathway:TheInternationalEnergyAgencyEnergyTechnologyPerspectives(IEAETP)SustainableDevelopmentScenarioisusedtodefinetherequiredrateofdecarbonizationforaviationconsistentwithaWB-2°CscenarioPartnerorganizationsThenumeratoroftheintensityequationisderivedfromIntegratedAssessmentModels(IAMs)thatdefinetherequiredrateofdecarbonizationfromeachsectortolimitwarmingtoagiventemperature,inthiscaseWB-2°C.TheInternationalEnergyAgencies(IEA)flagshipEnergyTechnologyPerspectives(ETP)modelhasbeenusedasthesourceofannualemissionspathwaysforallpreviousSBTiSDAtools.ThelatestETPpublicationdescribestwoscenarios.●TheStatedPoliciesScenario(STEPS)whichoutlinesthecurrentemissionstrajectory(2020-2070)foreachsectorbasedonexistingandplannedpolicycommitments●TheSustainableDevelopmentScenario(SDS)whichoutlinesanemissionstrajectory(2020-2070)foreachsectorconsistentwithlimitingwarmingto1.8°Cabovepre-industriallevelsata66%probability-thisisconsideredtoaligntotheParisambitionoflimitingwarmingtowell-below2°CFordevelopmentofthisSBTiaviationsectorintensitypathway,theIEAETPSDSwasconsideredacredible,transparentdatasourcefortheannualemissionspathway.TheSBTiusestheSDSmodelasaninputtotheintensityequation,defininghowmuchandhowfastthesectorneedstodecarbonize.ThescenariodevelopedbyIEAisbasedonanumberofunderlyingassumptionsdetailedinFigure2.Thisscenario(andaccompanyingassumptions)representjustoneillustrativewaytoachievetherequireddecarbonizationalignedtoawell-below2°Cscenario-theSBTidoesnotprescribeaspecifictechnologicalroadmapandacknowledgesthatindividualcompaniesmayachievetherequiredtargetsviaadifferentcombinationofleversthanwhatisoutlinedintheSDS.Figure2:ComparisonofkeyassumptionsusedintheIEAETP2017B2DScomparedtotheIEAETP2020SDSPartnerorganizationsIMPORTANTNOTICE:A1.5°CpathwayiscurrentlyunderdevelopmentandwillbeintegratedintothisSBTiAviationGuidanceandaccompanyingtargetsettingtool.TheScience-BasedTargetAviationGuidanceandToolhasbeendevelopedbytheWorldWildlifeFundforNature(WWF)onbehalfoftheScienceBasedTargetsinitiative(SBTi),withsupportfromtheInternationalCouncilforCleanTransportation(ICCT)andBostonConsultingGroup(BCG),tohelpcompaniesintheaviationsectormodelscience-basedemissionreductiontargets,basedontheSectoralDecarbonizationApproach(SDA).AccordingtotheICCT,during2019passengeraircraftwereresponsiblefor85%ofcommercialaviationCO2,andithasbeenestimatedthatCO2emissionsfromcommercialaircraftareonpacetotripleby2050.Duetotheurgencyfortheaviationsectortostarttakingactionstopreventtheworsteffectsofclimatechange,aswellastorespondtoincreasingregulatory,investorandconsumerpressures,throughthisGuidance,companieswithairtransportemissionswillbeencouragedtosetscience-basedtargetstolimitwarmingtowell-below2°Cabovepre-industriallevels,whichistheprimaryobjectiveoftheParisAgreement.TheSBTirecognizestheimportanceofacorporateambitionalignedtothehigher1.5°Cambitionlevel,thatiswhyapathwayalignedwitha1.5°CscenarioiscurrentlyunderdevelopmentusingthesectorspecificemissionsandactivityprojectionsinIEANetZero2050Roadmappublication,whichwillfacilitatewell-below2°CtargetsubmissionthroughoutthetransitionperioddefinedbytheSBTi,beforethe1.5°CambitionupdatecomesintoeffectonJuly15th2022.Intheinterim,itisrecommendedthataviationstakeholdersseekingahigherambitiontargetutilizetheAbsoluteContractionmethodologytoseta1.5°Ctargetorsetacomplementarylong-termNetZerotargetwhenspecificguidanceforNetZerotargetsispublishedbySBTiin2021.SectoractivityforecastTheIEAETPSustainableDevelopmentScenario(SDS)isusedtoderivelong-termindustryactivityforecastsToderiveasector-wideGHGintensitypathway,activityforecaststhatreflectexpectedindustrygrowtharerequired.Asageneralrule,thefasterthesectorisexpectedtogrow,thefasteritsGHGintensitymustdecreasetomeettheannualemissionspathwayconsistentwiththerelevanttemperaturescenario.TheSustainableDevelopmentScenario(SDS)providesthesourceoftheannualemissionspathwaydata,aswellasalong-termactivityannualgrowthforecastof2.9%(2019-2050)alignedtoawell-below2°Ctemperaturegoal.Thisgrowthrateaccountsforboththeshort-termimpactfromtheCOVID-19pandemicandthenecessarylevelofdemandgrowthtoachievethedecarbonizationtrajectoryoutlinedbythescenario.Modelledlong-termairtrafficscenariosarenotmateriallysensitivetotheimpactoftheCOVID-19pandemic,giventhatmostscenariosanticipateairtraffictobeginincreasingover2021.PartnerorganizationsToensureinternalconsistencywiththeannualemissionspathwayfromtheSDS,agrowthrateof2.9%wasappliedindevelopmentofGHGintensitypathwaysinthisguidance.PartnerorganizationsApproachtosectoralsegmentationTheairlineindustryprovidesavarietyofservicesusingdifferentaircrafts.Tosetfairandreasonabletargets,theSDStotalemissionsbudgetforcommercialaviationisdividedintofivesegmentsbasedonpayloadtypeandstagelength.Thissectoralsegmentationprocessfollowedtwogeneralprinciples:(1)materiality(thatthereshouldbeamaterialdifferenceinintensityprofilebetweensegments)and(2)compatibility(thatsegmentationshouldnotincentivizeavoidablebusinessmodelsthatresultinhigher-intensityoperations).Baseduponthesecriteria,emissionspathwaysforfivemarketsegmentsweredeveloped(Figure3).ResearchshowsthattheCO₂intensityofshort-haulflights(<1,500km)issignificantlyhigherthanthatoflongerflights,pointingtotheneedforsegmentationbystagelength.Likewise,thereareinherentdifferencesinthebusinessmodelsofpassengersanddedicatedfreightcarriersthatnecessitateaseparateemissionspathway.Onaverage,bellyfreightdemonstratessimilarCO₂intensitytolong-hauldedicatedfreightusingrecommendedindustrypracticesforemissionsallocation(seeFigure3).However,consideringthedifferentbusinessmodelsandoperationalarrangementsforthesetwoservices,bellyfreightisdesignatedasaseparatesegmentfortargetsetting.Figure3:AviationsectorsegmentalsplitusedinpathwaydevelopmentTotalemissionsandactivityin2019weresegmentedusingICCT’sGlobalCarbonAssessmentModel(GACA).GACAestimatesflightfuelburnforeachuniqueorigin-destination-airline-aircraftcombinationusingOAGhistoricalflightoperationsdata.EmissionsandactivityestimatedbyGACAarevalidatedusingairlineandgovernmentdatafrommajormarkets,includingEurope,theUS,China,andJapan,andmatcheswellwithhighlevelstatisticspublishedbytheInternationalAirTransportAssociation(IATA).PartnerorganizationsIEA’sSDSassumesaconstantsplitbetweenpassengerandfreightemissionsovertime;91%oftotalcommercialaviationCO₂isattributedtopassengeraircraft,whiletheremaining9%isemittedfromdedicatedfreighters.3Emissionsassociatedwithbellyfreighttransportareincludedinthepassengeremissionsbudget.Regardingtraffic,theSDSassumesa2.9%annualgrowthrateforbothpassengerandfreighttrafficbetween2020and2050.Todevelopeachsegment’semissionspathway,theshareofemissionsbypayloadtype(e.g.passengervs.freight),stagelength(shortvs.medium/longhaul),andfreighttype(bellyvs.dedicated)washeldconstantat2019levelsasestimatedbyGACA.Similartototalemissions,theshareofrevenuepassengersandfreightrevenuetonnestransportedbystagelengthwasheldconstantat2019levels.Anemissionsallocationfactorwasusedtoapportionemissionsbetweenpassengersandbellyfreightoncommonflights.Themassof100kgofpassengerplus50kgforseatsandfurnishings(e.g.,lavatories,servicetrolley,etc.)wasassumed,asrecommendedbyIATA.Usingthis100kg+50kgapproachalignstheintensityprofileofbellyfreighttothatofdedicatedfreight,avoidingpotentialmarketdistortionsandrewardingbellyfreightcarriageonpassengerflights.Notethatthisallocationwasonlyusedindevelopmentoftheemissionspathway-alternativeallocationsmaybeusedbyairlinessettingtargets(mostrelevanttosegmentingthebusinessofafreightforwarderthatcontractsforbothdedicatedandbellycargo).Figure4:Emissionsallocationduringpathwaydevelopmentuseda100+50kgfactorforbellycargoinalignmentwithIATAbestpractices.Airlinessettingtargetsmaychoosetousedifferentfactors.3Theshareofaviationemissionsrelatedtoprivateaviationandmilitaryisnotincludedinthisanalysis.PartnerorganizationsPathwayboundariesandassumptionsDuetotheinherentcomplexityinclimatetargetsettingandthespecificnuancesoftheaviationsectoritisnecessarytodefineexplicitboundariesandscopeforemissionscoveredbytheaviationpathwayandfortargetsetting.EmissionsboundariesfortheaviationpathwayJetfuelistheprimarypollutantfromaviation,representing>90%ofmostairlines’valuechainemissions.4Forthatreason,thisSBTipathwayfocusesexclusivelyonjetfuelemissions.Fortargetsettingmethodologiescoveringnonjetfuel-relatedemissions(e.g.airportgroundoperations,officebuildings,etc),pleaserefertootherSBTiguidance.JetfueluseresultsinGHGemissionsacrosstheaviationvaluechain,fromproduction,refinementanddistributionofthefueltoultimatelyfuelcombustioninajetengine.Thesevaluechainemissionscanbesplitintotwocomponents:emissionsfromcombustionoffuel,referredtoasTank-to-Wake(TTW),andemissionsfromproduction,refinementanddistribution,knownasWell-to-Tank(WTT).Combined,thefullvaluechainemissionsfromjetfuelarereferredtoasWell-to-Wake(WTW)i.e.thesummationoftank-to-wakeandwell-to-tankemissions.Itistypicalformanystakeholderstoonlyconsiderdirectcombustion(TTW)whenmeasuringemissions;however,theaviationpathwaydevelopmentprocessbuildsofftheprecedentsetfrompreviousSBTitransportguidancetodeveloppathwaysonaWTWbasis.TherearetwokeyrationalesfordevelopmentofanaviationpathwayonaWTWbasis.1.Inclusionoftheupstreamproductionanddistribution(WTT)componentisrequiredtocrediblyaccountforuseofSustainableAviationFuels(seesection4.2).2.Inclusionofupstreamproductionanddistribution(WTT)willbestcaptureemissionreductionsfromfuturealternativepowerplants,includingthosethatconsumeelectricityandhydrogen,pleaseseeSBTTransportGuidanceforgreaterdetailsonthisprecedent.BoundariesfortargetsettingTheboundaryforGHGinventoriesandtargetsshouldbeascomprehensiveandaccurateaspossible.Emissionsnotcoveredbyatargetcannotberesponsiblymanagedorreduced.ThefirststepinsettingatargetinvolvesmeasuringandaccountingforGHGemissions.BestpracticeaccountingfollowsguidancefromtheGreenhouseGasProtocol(GHGP)whichstructuresemissionsfromKyotogasesaccordingtothreescopes:scope1representingdirect4Basedontheaverageof19airlineCDPdisclosures(2018)Partnerorganizationsemissionsfromoperations(forjetfuelthisisTTWemissions),scope2representingelectricityconsumedfromoperations(limitedrelevanceforaviation)andscope3representingallemissionsfromtheupstreamanddownstreamsupplychain(forjetfuelthisisWTTemissions).EmissionswithinthescopesshouldbeaccountedforintermsofCO₂e,wherethe“e”representstheequivalentCO₂warmingimpactofotherKyotogases.5Fromatargetsettingperspective,toalignwiththepathwayboundary,andtorecognizethatanairlineschoiceoffuelcaninfluenceboththeupstreamandcombustionemissions,thisguidanceandtoolrequiresuserstoaccountforthefullvaluechainimpactofjetfuelwithintheirtargetsettingboundaryi.e.,scope1+scope3category3(Well-to-Wake,WTW).Furthermore,incaseswhereSustainableAviationFuel(SAF)isutilized,directandindirectlandusechangeimpacts(LUC/iLUC)shouldadditionallybeconsideredinthetargetboundary-seesection4.2forfurtherguidanceonSAFaccounting.Addressingnon-CO₂effectsofaviationAviationSBTsonlycoverKyotoGHGs-recommendedbestpracticefornon-CO₂factorsincludestransparentaccounting,datasharingandinclusioninotherclimatecommitmentsWhilstCO₂remainsthemostcommonlycitedandarguablybest-understoodpollutantfromaviation,itscontributiontoglobaleffectiveradiativeforcing(ERF)i.e.,warming,isestimatedtobeonlyafraction(~⅓)oftheindustry'stotalimpact.Emergingresearchvalidateslong-heldbeliefsthatotherpollutantsfromjetenginescancausefurtherwarmingbeyondtheimpactofcarbonalone.Forexample,particulatematterhasbeenlinkedwithincreasedcontrail-inducedcirruscloudinessandNOxemissionswithnetincreasedGHGformation.6Despitetheclearimportanceofthese“non-CO₂factors”onaviation-inducedwarming,thescienceunderpinningthesefindingsremainsnascent.Furthermore,mitigationleverstargetingthesefactorsalsoremainuntested,limitingtheabilityforindividualcompaniestobothmeasuretheimpactsandthentakedirectedaction.Asaresult,theSBTipathwaydevelopedinthisprocessonlycoversCO₂emissionsandotherKyotoGHG’s(methane,nitrousoxide,hydrofluorocarbons,perfluorocarbons&sulphur5Note,thisdoesnotincludetheimpactofnon-CO₂factors,seesection2.5.36IncreasedNOxemissionsshowtoresultinanetwarmingfactorfromacombinationofincreasedO3formationdespiteanincreasedrateofCH₄degradationPartnerorganizationshexafluoridewhichareonlyminorpollutantsforaviation)-itdoesnotcovertheimpactfromtheaforementionednon-CO₂factors.Nonetheless,theSBTirecognizesthataviationnon-CO₂inducedERFwilllikelyneedtobeaddressedtodelivertheultimategoaloflimitingwarmingtowell-below2°C.Tothatend,thisguidanceintroducesanadditionaltarget-settingcriterionrelatedtodisclosureofemissionsboundariescoveredbytargets,aswellasrecommendationsforbestpracticesforaddressingtheimpactofnon-CO₂factors.Sector-specifictargetsettingcriteriaAviationtargetformulationandcommunicationmustexplicitlystatethattargetsareexclusiveofnon-CO₂factors.Aviationtargetformulationmustincludeafootnotestatingthatnon-CO₂factorswhichmayalsocontributetoaviation-inducedwarmingarenotincludedinthistargetandwhetherthecompanyhaspubliclyreportedorcommitstopubliclyreportitsnon-CO2impacts.Sector-specificrecommendationsTheSBTialsorecommendsbestpracticesrelatedtoconsiderationofnon-CO₂factors●Datasharingandcollaborationtostimulateresearchanddevelopment,includingsharingofflightandtechnicaldata,willbekeytobetterunderstandingandultimatelydevelopingmitigationapproachesforlimitingtheimpactofnon-CO₂ERF.●Incorporationofnon-CO₂ERFintoadditionaltargets,e.g.,airlinesareencouragedtoincludethefullimpactofnon-CO₂ERFinothertargetsettingprocessese.g.,NetZerocommitments.SectorcarbonintensitypathwaysBasedontheunderlyingemissionspathwayandactivityforecastsfromtheIEAETP2020SDS,sectoralsegmentationandthedefinedpathwayboundaries,asectoraveragecarbonintensitypathwayconsistentwithawell-below2°Cscenariocanbederived.Theaveragepathwayalongwithsegmentedvariantsrepresenttherequiredratesofdecarbonizationforthesectorasawholeandareusedtodefinethetargetintensitytowhicheachcompanymustconvergeby2050.PartnerorganizationsFigure5:Sectoraveragecarbonintensitypathways(onaWell-to-Wakebasis)derivedfromthemethodologicalassumptionsanddatasourcesdiscussedinsections2.1-2.5PartnerorganizationsHOWTOSETASCIENCE-BASEDTARGETFORAVIATIONCOMPANIESUsingthetargetsettingtoolTheSBTAviationtoolisbasedonthesameapproachandstructureaspreviousSBTiresources,mostnotablythe2018Transportsectorguidanceandtool.WhilstthefundamentalsoftheSectoralDecarbonizationApproachremainconsistentregardlessofuser,specificguidanceandadjustmentshavebeendevelopedfordifferentaviationstakeholdersinterestedinsettingtargets.Thesevariationspredominantlyaddressdifferencesinaccountingpractices,operationsandscopeofemissions.Operatorsofaircraftincludeairlinesthatcarryeitherpassengers,bellycargo,dedicatedcargooracombination.Science-basedtargetsforoperatorsofaircraftmaybederivedusingtheSBTiAviationtool.Thetarget-toolforairlinesinterfaceissplitinto5keysections:1.Settings:Usersshouldinputabaseyearandatargetyear.TheSBTirecommendschoosingthemostrecentyearforwhichdataareavailableasthetargetbaseyear.7Forthechoiceoftargetyear,targetsmustcoveraminimumof5yearsandamaximumof15yearsfromthedatethetargetissubmittedtotheSBTiforvalidation.2.Baseyearemissionsdata:BaseyearemissionsintonnesofCO2e8fortotalpassengerordedicatedcargooperations.a.EmissionsdatashouldbesubmittedonaWell-to-Wakebasis-thesumofbothscope1emissionsfromjetfuelcombustionandscope3category3“fuel-andenergy-relatedactivities”emissionsfromupstreamproductionanddistributionofjetfuel.b.IfWell-to-Wakedataisnotavailable,usersmayenterTank-to-Wakedata(scope1).Inthisinstance,defaultWell-to-TankemissionfactorswillbeappliedtoconvertTTWemissionsvaluesintoWTWvalues.c.Optionally,airlinesmayindicatethepercentageofemissionswhichoriginatedfromflights<1,500kminstagelength.Inputtingthisdatawillhelpbettertailorthetargetstoeachuser’sindividualoperatingcharacteristics.97Since2015andexcluding2020/2021(duetoCOVIDimpact)8MTCO2ereferstoMillionMetricTonnesofCO₂equivalent,includingallKyotogasesbutexcludingtheimpactfromnon-CO₂inducedeffectiveradiativeforcing9Ifnopercentagesplitisprovided,targetswillbesetbasedonthemedium-longhaulpathwaysasadefaultPartnerorganizations3.Baseyearactivitydata:BaseyearRevenuePassengerKilometers(RPK)orRevenueTonneKilometers(RTK)fromflownoperations.a.PassengeroperationsshouldreporttheiractivityintermsofRPKforpassengerstransported,andRTKforbellyfreighttransported.Ifthesplitisnotavailable,airlinesshouldenteronlyRPKvalues(assuming100kgactivityconversionfactor).10b.DedicatedcargooperationsshouldreportactivityintermsofRTKonly.c.Optionally,airlinesmayalsoindicatethepercentageofactivitywhichoriginatedfromflights<1,500kminstagelength.Inputtingthisdatawillhelpbettertailorthetargetstoeachairline’sindividualoperatingcharacteristics.4.Inputactivityforecastdata:Airlinesarerequiredtosubmitaforecastofexpectedactivityinthetargetyear.Thisforecastcanbeprovidedintwoformats:a.AsaCompoundAnnualGrowthRate(CAGR)frombaseyeartotargetyear-thisgrowthratewillbeappliedevenlytoallsegmentsofactivityenteredinstep3.b.Manually,byenteringexpectedactivityinthetargetyearintermsofRPKorRTKforpassengerandfreightoperationsrespectively.Ifanindicationoftheshareofemissionsandactivityfromflights<1,500kmwasprovidedinsteps2and3,thissplitwillalsoberequiredwhenmanuallyenteringactivityforecasts.5.Output:Fourkeyoutputswillbegeneratedfromtheinputsinsteps1-4,including:a.Anumericalscience-basedtargetintheformatofgCO₂/RTK:Thisrepresentsacompany-wideaviationtargetintensityvaluerepresentingallindustrysegmentsinwhichthecompanyoperates.b.Graphoftheconvergencepathway:Companiesarenotexpectedtofollowthepathwayitself,butshouldinsteadfocusonachievementofthetargetyearintensity.c.Graphofabsoluteemissionsreductions:Thisgraphisderivedfromtheforecastedactivitygrowthandtheintensitytarget.Notethatsectorabsoluteemissionsareweightedtoreflecttheindustrysegmentsinwhichtheuseroperates(basedonactivityinputs).d.Additionaldetailedgraphicsanddatatablesprovidedforconvenience.10SBTiutilizesaconversionfactorof100kgtoconvertRPKintoRTKPartnerorganizationsSubmittingatargetforvalidationToapplyforaSBTi-approvedtarget,acompanymustcompletetheTargetSubmissionFormandemailittotargets@sciencebasedtargets.org.SubmissionsarevalidatedagainsttheSBTiCriteriaandaccompanyingSBTiTargetValidationProtocol.Forallapprovedtargets,theSBTialsodisclosesatemperatureclassificationofscope1and2targets.Foraircraftoperators,usingtheSDAapproachtheavailabletemperatureclassificationofscope1and2targetsiswell-below2°C.TheSBTi’spaidtargetvalidationserviceoffersatleasttwosubmissionsandupto2hoursoffeedbackoncallswithreviewersontheTargetValidationTeam.Forfurtherdetailsrelatingtotheprocessforsettingatargetandcostoftargetvalidation,pleaserefertotheSBTiwebsite.CommunicatingatargetTargetformulationsmustindicatetheemissionscovered,thebaseyearandtargetyearselected,thepercentagereductionandtheunits.AspertheSBTicriteria,targetscanbeexpressedonanabsolutebasis(tCO₂e)orintensitybasis(e.g.gCO₂e/pkm,tCO₂e/tkm).Exampletargetlanguage:(CompanyName)commitstoreduceWell-to-WakeGHGemissions(percentreduction)X%perRTKby(targetyear)froma(baseyear)baseyear.Footnote:Non-CO₂factorswhichmayalsocontributetoaviationinducedwarmingarenotincludedinthistarget.(CompanyName)currentlypubliclyreports/willpubliclyreportitsnon-CO2impacts.UpdatingatargetToensureconsistentperformancetrackingovertime,thetargetshouldberecalculatedtoreflectsignificantchangesthatwouldcompromiseitsrelevanceandconsistency.TheSBTirecommendsthatcompaniescheckthevalidityoftheirtargetprojectionsannually.Ataminimum,targetsshouldbereassessedeveryfiveyears.ThecompanyshouldnotifytheSBTi(ifparticipatingintheinitiative)ofanysignificantchangesandreportthesemajorchangespublicly.Atargetrecalculationshouldbetriggeredbysignificantchangesin:●Companystructure(e.g.acquisition,divestiture,mergers,insourcingoroutsourcing)●Growthprojections●Datausedinsettingthetarget(e.g.discoveryofsignificanterrorsoranumberofcumulativeerrorsthatarecollectivelysignificant)Partnerorganizations●Otherassumptionsusedwithscience-basedtarget-settingmethodsTheSBTireservestherighttowithdraworadjustthetoolatanytimeforupdatesand/oramendmentstoitscalculationsorthird-partydata.Adjustmentscanincludechangestothedecarbonizationpathwaysembeddedinthetool,whichneedtoreflectmodelimprovementsandchangesintheremainingcarbonbudgetavailableastheworldstrivestomitigateGHGemissionsacrossallsectorsintheeconomy.ForfurtherdetailspleaserefertothetermsofuseanddisclaimerintheSBTitransporttool.PartnerorganizationsMECHANISMSTOREALIZETARGETSTheSBTihelpscompaniesunderstandhowmuchandhowquicklytheyneedtoreduceemissionswithintheirvaluechaininordertobeconsistentwiththegoalsoftheParisAgreement.Tothatend,theSBTi’sprimaryfocusisontargetsetting,ratherthanprescribingthetechnologicalroadmaprequiredtomeetthetargets.Nonetheless,thisguidanceoutlinessomecommonaviationdecarbonizationleversanddiscussesanySBTi-specificconsiderationswhererelevant.Improvingefficiencyoftechnologyandoperations11Jetfuelusehasamajorimpactonairlineprofitability,typicallyrepresentingaboutone-quarterofdirectoperatingcosts.Improvingfuelefficiencyremainsanimportantwayforairlinestoreduceemissions,particularlyuntillowcarbonfuelscanbescaledupandbecomecostcompetitivewithfossiljetfuel.Airlineshavethreemainleverstoimprovefuelefficiency:(1)replacingolderaircraftwithnewer,morefuel-efficientdesigns;(2)improvingoperationstocarrymorepayload(passengersandfreight)perflightandtoflymoredirectlytodestinations;and(3)findingoptimalflightpathsandavoidingcongestionnearairports.Eachnewgenerationofaircraftburns15%to20%lessfuelperpassenger-kilometerthantheaircraftitreplaces.Keytechnologiesincludemorefuel-efficientengines,improvedaerodynamics,lightweightmaterialssuchasadvancedcomposites,plusadvancedsystems(e.g.,all-electricaircraft)andintegrateddesign.Historically,newaircraftfuelburnhasfallenby1.3%peryearsincethe1960sduetonewtechnologies.Inadditiontobuyingnewaircraft,airlinescanimprovefuelefficiencybyincreasingflightpayloadsandflyingmoredirectlytodestinations.Payloadcanbeincreasedbybetterfillingagivencapacity(e.g.,flyingwithfeweremptyseats)orbyexpandingcapacity(e.g.,swappingoutpremiumseatinginfavorofeconomyseats).Reducing“circuity”byavoidingunnecessarylayoversandroutingflightsmoredirectlycanalsoreducefuelburn.Operationalimprovementstypicallyreducethefuelintensityofairlinesbyanadditional0.5%peryear.Thefinal,smallestcomponentistoimproveairtrafficmanagementtoreduceairdelayandnear-airportcongestionthroughtechnologieslikeGPS-basednavigation.In2008,theInternationalCivilAviationOrganization(ICAO)estimatedthatsystemwidefuelefficiencycouldbeimprovedby12%throughimprovedairtrafficmanagement.Subsequentanalysishasfound11BasedonICCTresearchPartnerorganizationsthathalf(6%)ofthatpotentialhasbeenachieved,andthatanother3%ispossibleoverthenext10years.Collectively,airlinestypicallyreducetheirGHGintensityby1.5to2.0%perannumoverthemidtolongtermviathesestrategies.Acceleratedaction,likelysupportedbygovernmentregulationandincentives,cansupportabout2.5%perannumreductionsoverthelong-term.Fasterreductions--ashighas8%overoneyear--havebeenseenforsmallerairlinespursuingaggressivefleetrenewalstrategies.UsingSustainableAviationFuelsSustainableAviationFuels(SAF)areconsideredtobeacriticalleverfordecarbonizingaviation.Asliquidfuelschemicallysimilartokerosene,theycanbeusedinterchangeablyinaircraftengineswhenblendedwithupto50%withfossiljetfuel–indeed,>200Kflightshavealreadyflownonabiofuelblendbetween2008-2019.Therearefour“generations”ofSAF:(1)biofuelsmadefromharvestedcrops;(2)biofuelsmadefromnon-foodcropsorwastefeedstocks,suchasusedcookingoiloragriculturalresidue;(3)algaeand(4)syntheticfuels(PtL)madefromrenewableelectricity,waterandcapturedCO₂.Dependingonthefeedstockandtechnologypathwayused,SAFhasthepotentialtosignificantlyreducelifecycleGHGemissions-combustionofthefuelstillreleasescarbon,butthefeedstockitselfmaycaptureorsequestercarbon,artificiallyorthroughbiomass.AirlinesmaychoosetoprocureSAFinordertolowertheirWell-to-WakeCO₂eemissionsandhenceimproveoverallcarbonintensity.ConsumersofaviationservicesmayalsorelyonSAFtoachievescience-basedtargets(asexplainedinsectionsbelow).Tothisend,theSBTihasdevelopedguidanceforuseofSAFspecifictoaviationscience-basedtargetsetting.AccountingforSAFuseSAFaccountingfollowstheprecedentforbioenergyuseoutlinedintheSBTiCriteriaandRecommendationsdocumentaswellastheGHGProtocolguidance12.“C4—Bioenergyaccounting:DirectCO₂emissionsfromthecombustionofbiofuelsand/orbiomassfeedstocks,aswellassequesteredcarbonassociatedwithsuchtypesofbioenergyfeedstock13,mustbeincludedalongsidethecompany’sinventoryandmustbeincludedinthetargetboundarywhensettingascience-basedtargetandwhenreportingprogressagainstthat12SeealsoSmartFreightCentreandMITCenterforTransportation&Logistics’SustainableAviationFuelGreenhouseGasEmissionAccountingandInsettingGuidelines,whichprovidesdetailedguidanceonaccountingforandallocatingemissionreductionbenefitsofSAFacrossairtransportationvaluechains.13Non-bioenergyrelatedbiogenicemissionsmustbereportedalongsidetheinventoryandincludedinthetargetboundary.GHGremovalsthatarenotassociatedwithbioenergyfeedstockarecurrentlynotacceptedtocountasprogresstowardsSBTsortonetemissionsintheinventory.Partnerorganizationstarget.Ifbiogeniccarbonemissionsfrombiofuelsand/orbiomassfeedstocksareaccountedforasneutral,thecompanymustprovidejustificationoftheunderlyingassumptions.CompaniesmustreportemissionsfromN2OandCH4frombioenergyuseunderscope1,2,or3,asrequiredbytheGHGProtocol,andmustapplythesamerequirementsoninventoryinclusionandtargetboundaryasforbiogeniccarbon”MeasuringGHGbenefitsofSAFuseGuidanceonmeasuringSAFusehasbeendevelopedbasedontheimplementationelementforCORSIAeligiblefuelsofAnnex16,VolumeIVofICAO’sStandardsandRecommendedPractices,anditssupportingdocuments.TheICAOrulesforCORSIAhavebeenadaptedtoensureconsistencywithSBTiprinciples:CategoryConsiderationSBTiRequirementsforSAFMeasuringtheimpactEmissionsfactorsused●SAFuseshouldbemeasuredbasedoneitherthedefaultCORSIAlifecyclevaluesortheactualcorelifecyclevaluecertifiedbyICAOapprovedverifierorRSB/ISCCinadditiontothedefaultinducedland-usechange(ILUC)valueInclusionofLUC●SAFemissionsfactorsshouldincludepositiveandnegativeLandUseChangevalues,but,withacapontotallifecyclereductionsat100%emissionsvs.thefossiljetbaselineAdditionalcarve-outs●Additionalcredits(e.g.MSWlandfillorrecyclingcredits)orlowLUCdesignationscannotbeclaimedforuseofSAFtowardsascience-basedtargetFossilbaseline●SBTirequiresthatcompaniesusetheCORSIAbaselineof89gCO₂e/MJforimpactmeasurement.Thismaybeupdatedinthefuture.(Notalljurisdictionsusethe89gCO2e/MJbaseline.Whenfuelsarecalculatedwithanotherbaseline,theymustbeconvertedtoa89gCO2e/MJbaselinetocounttowardsSBTs.CriteriaandrestrictionsReductioncriteria●SAFusedtomeetscience-basedtargetsmustmeeta10%minimumreductionthreshold●Additionally,SBTirecommendsfuelsmeetingaminimumreductionthresholdof50%(60%fornewinstallations)suchasthosecertifiedbyRSBSustainabilitycriteria●SBTirequirescertificationofSAFagainstthe3requiredICAOcriteriaandthe14additionalsustainabilitycriteriacurrentlyunderPartnerorganizationsconsideratione.g.,Water,Soil,Air,Conservation,WasteandChemicals,Human&LaborRights,LandUseRights,WaterUseRights,Local&Socialdev.andFoodSecurityAccountingImpactclaims●ReductionimpactfromSAFusecanonlybeusedonvolumesofSAFconsumed(excl.offtakeswithfuturedeliverables)inordertomeetscience-basedtargets●ThisguidancemaybeupdatedinthefuturetoreflectanyrelevantdoublecountingprovisionsdevelopedundertheGHGP,UNFCCCorICAO.Impactoninventory●TheremustbealignmentwithGHGPandexistingSBTiprecedent–impactofSAFcombustionandLUCremovalsassociatedwithSAFtobeaccountedoutsidethescopesTable1:SBTimeasurementcriteriaforuseofSAFtomeetSBTsPartnerorganizationsApplicabilityofCompensationandNeutralizationCorporatescience-basedreductiontargetsarejustonecomponentofawidearrayofclimateactionthatisrequiredtomeettheobjectivesoftheParisAgreement.Theglobalenergyandlandsystemwilllikelyrequirebothrapiddecarbonization(50%by2030)andtheuseofcarbonsequestrationsolutionsinordertoachieveastatewherethereisnotnetaccumulation(orindeednetreduction)ofCO₂intheatmosphere.WhilstbothreductionsinemissionsandremovalsofGHGsarerequiredimmediatelyandinparallel,science-basedreductiontargetsfocusexclusivelyontheformer-defininghowmuchandhowquicklyacompanyneedstoreduceemissionswithinitsvaluechain.TheroleofcorporateuseofCO₂removalsisconsideredinSBTiNetZeroguidance;however,itisnotpartofthispathway,whichfocusesonemissionreductionsonly.Weunderstandhowfasttheglobalsystemneedstodecarbonize,butthequestionofhowmuchandhowquicklyacompanymustreduceinitsvaluechainismorecomplex.Toanswerthis,theSBTiusesdatafromIntegratedAssessmentModels(IAMs)suchastheIEAETP.TheETPmapstheglobalenergysystem,acrossallsectorsandgeographies,illustratingscenariosofdecarbonizationconsistentwiththegoalsoftheParisAgreementandbasedonarangeofinputassumptions,e.g.,aglobalcarbonpriceandavailabilityofmitigationlevers.Theseassumptionsareweightedtogethertodeterminetherateandvolumeofdecarbonizationrequiredineachsector.TheoutputoftheETPrepresentsanoptimizeddecarbonizationscenario,whereineacheconomicsectorhasbeenallocateda“fairshare”ofthedecarbonizationburden.Becausethismodelalreadyallocatesreductionsacrosssectors(toadegreebasedoneconomicefficiency),itisrequiredthateachsector’s“fairshare”ofGHGreductionsoccurwithintheindustryvaluechain.Theconceptofin-valuechainreductionsisacorepremiseofscience-basedreductiontargetsandisalogicalconclusionfromthescientificunderpinningsofthemethodologies.Asaresult,theuseofcarboncreditsthateitherreducecarbonemissionsoutsideofthevaluechainorremovecarbonfromtheatmospherecannotbeconsideredequivalenttoin-valuechainreductions,andhencearenotsuitableleverstomeetscience-basedreductiontargets.Whilstscience-basedreductiontargetsmustbeachievedwithouttheuseofcredits,recentguidanceonscience-basedNetZerotargetsoutlinestheprospectiveroleforneutralizationcredits(tradeableGHGremovals)andcompensationcredits(tradeableGHGreductionsoravoidedemissionsfromoutsideofacompany'svaluechain,e.g.,avoideddeforestation)inattainmentofCorporateNetZero.PartnerorganizationsTARGETSETTINGFORUSERSOFAVIATIONSERVICESScope3emissionsfromuseofaviationservicestypicallyfallintotwoprimarygroups:(1)thetransportationanddistributionofgoods,e.g.,contractedfreightrelatedtoscope3category4“upstreamtransportationanddistribution”and/orscope3category9“downstreamtransportationanddistribution”and(2)scope3category6“businesstravel”foremployeeairlinetravel-relatedemissions.AsperSBTiguidance,organizationswithmorethan40%oftheirtotalfootprintinscope3arerequiredtosetSBTsthatcoveratleasttwo-thirdsoftheirscope3emissions.Forcompaniesthathavesignificantemissionsarisingfromaviationservices,thetargetsettingtoolandguidancebelowprovidespecificconsiderationsfortargetsettingrelatedtoscope3categories4,6and9.Understandingthescope3baselinefortargetsettingInaccordancewithSBTicriterionC18,companiesshouldsettargetsthatcollectivelycoveratleast⅔oftotalscope3emissions.Thistargetsettingguidanceandmethodologyissuitableforuseagainstasubsetoftargetswithinscope3category4andscope3category6.Withinthesecategories,onlyemissionsrelatingtoaviationemissionsfromoperationofaircraftmaybeincluded.Aspecificconsiderationforthissectorrelatestothetreatmentofnon-CO2factors.Asdiscussedinsection2.5.3,inclusionofnon-CO2factorsinthetargetsettingboundaryisnotcurrentlyconsideredcrediblegiventhehighdegreeofscientificuncertaintyandlackofavailablemitigationlevers.Similarly,non-CO2factorsshouldthereforenotbeincludedinacompany'sscope3inventorywhencalculatingacompany’sSBTiscope3targetboundary.Scope3categories4and9targetsettingmethodCompaniescanfollowthestepsoutlinedinSection3andapplytheairfreightpathwayavailableintheSBTaviationtooltomodeltargetscoveringemissionsfromairtransportactivitiesfromcontractedfreight(bellyanddedicatedfreight),i.e.,scope3category4“upstreamtransportationanddistribution”and/orscope3category9“downstreamtransportationanddistribution”.Whilesupplier-specificemissionsandactivitydatacanbechallengingtoobtain,companiesareencouragedtoimprovedataqualitybeyondtheuseofdefaultfactorsthatmaynotaccuratelyrepresentactualcarbonintensityoftheirtransportationsuppliers.PartnerorganizationsScope3category6targetsettingmethodThescience-basedtargetsettingmethodforbusinesstravelaviationemissionsbuildsontheSBTiaviationpathway.Duetothedifferentiatedgrowthratesofagivenfirm’sbusinesstravelrelativetotherestoftheaviationsector,14aswellaslogicalinconsistenciesinthetargetsettingmethod,15theSectoralDecarbonizationApproach(basedontheprincipleofintensityconvergence)isnotconsideredappropriateforbusinesstraveltargetsetting.AsanalternativetouseoftheSectoralDecarbonizationApproach,multipleoptionswereconsidered,includingotherintensityconvergencemodels,intensitycontractionandsectoralabsolutecontraction.Afteranalysis16oftheseoptions,AbsoluteContractionwasconsideredthemostcredibleandrobustapproachforbusinesstraveltargetsetting.ThisapproachbuildsupontheAbsoluteContractionmethodologyasoutlinedintheSBTipaper,FoundationsofScience-basedTargetSetting.AbsoluteContractiontargetsmaybemodelledthroughadedicatedinterfaceintheSBTaviationtool.Theinterfacerequiresscope3category6targetsetterstodiscloseabsoluteemissionsfrombusiness-relatedairtravelinadefinedbaseyear(themostrecentyearwithacompleteGHGinventory17)andselectatargetyear5-15yearsfromthecurrentdate.Ascope3category6aviationtargetwillbecalculatedbasedontheminimumannuallinearreductionrateforScope3targets,definedbytheSBTi(1.23%).WhileAbsoluteContractiontargetsarecalculatedbasedonanabsoluteemissionsfootprint,theSBTirecommendsthatscope3category6aviationbusinesstraveltargetsarecommunicatedasanintensitymetric:gCO₂e/full-timeemployee(FTE).Theuseofstandardizedintensitymetricisasector-specificcriterionofscope3category6aviationbusinesstraveltargetswhichallowsforefficientcomparisonandinterpretationoftargetsacrossfirms.Targetformulationsmustindicatetheemissionscovered,thebaseyearandtargetyearselected,thepercentagereductionandtheunits.Asperthesector-specificcriterionforscope3category6emissions,targetsshouldbeexpressedonanintensitybasisintermsofgCO₂e/FTE.14AviationsectorgrowthratesusedintheSDSincludebothleisureandcorporatetraveldemand15TheSDAmethodologyassumesaclosedmarketsystemwherebyeachactorrepresentsamutuallyexclusiveandcollectivelyexhaustiveshareofthetotalmarket.AdditionofacustomerofaservicedoesnotsupportthisassumptionandhenceisdeemedalogicalinconsistencyforuseoftheexistingSDApathwaytosupportBusinessTraveltargetsetting16MethodologyselectionwasbasedontheprinciplesofPlausibilityandResponsibilityasoutlinedintheFoundationsofScience-BasedTargetSetting17Since2015andexcluding2020/2021(duetoCOVIDimpact)PartnerorganizationsExampletargetlanguage:“CompanyAcommitstoreducescope3GHGemissionsfromaviationbusinesstravel75%perFTEby2035froma2019baseyear.18”Category-specificrecommendations:TheSBTirecommendsthatcompaniesusingthismethodaddafootnotestatingwhethertheirtargetcoveringScope3Category6emissionsincludesimpactofnon-CO₂ERF.Methodstorealizescope3category6targetsForsomeorganizations,suchasfinancialorprofessionalservicesfirms,businesstravelrepresentsoneofthelargestandmostsignificantcategoriesofemissions.Businesstravelaviationemissionscanbeaddressedthroughacombinationoflevers,including,butnotlimitedto:●Reducingtheneedtotravel,e.g.,substitutingtravelbyusingvideoconferencing●Modalityshiftfornecessarytravel,e.g.,fromaviationtohighspeedrail●Supplierselection,e.g.,flyingonlywithmoreefficientairlines●Seatingselection,e.g.,flyingincoachclassratherthanpremiumseating●Routeselection,e.g.,flyingonlyforlessGHGintensivemedium-longhaultravel●Useofalternativefuels,e.g.,directprocurementofbiofuels(seeguidancesection4.2)FormeasuringandreportingGHGemissionsrelatedtoairtravel,companiescanusedefaultemissionfactors(e.g.fromDEFRAemissionsfactors,EPAemissionsfactors,theICAOEmissionsCalculator,etc.)orengagewithairlinestoutilizespecificemissionfactorstogiveamoreaccuratemeasurementofGHGemissions.Deepdive:SustainableAviationFuel(SAF)usetomeetscope3targetsTobuildontheguidanceinSBTiCriterionC4(seesection4.2.2),SAFmaybeusedbyconsumersofaviationservicestoachievescience-basedtargetssetagainstjetfuel-relatedemissions.UseofSAFbyconsumersofaviationservicescouldfollowa“Book-and-Claim”approachifconsistentwiththeGreenhouseGasProtocolaccountingframework.TherearetwomainmechanismsforSAFprocurementconsideredinthisguidance:directpurchasefromafuelsupplierandindirectpurchaseviaanairline.Inbothinstances,itis18Non-CO2factors,whichmayalsocontributetoaviation-inducedwarming,arenotincludedinthistargetPartnerorganizationsanticipatedthatuseofa“Book-and-claim”method,wherebytheenvironmentalattributesassociatedwiththefuelaredecoupledfromthephysicalsupply,willbemostpractical.TheSBTiacknowledgesthatthepracticalitiesofcorporateSAFprocurementandaccountingarecurrentlypoorlydefinedinthemarket;however,itisbeyondthescopeofthisguidancetoendorseorrecommendspecificframeworksthatarenotformallyrecognizedbytheGreenhouseGasProtocol(GHGP).Hence,untilstandardizedguidanceonSAFaccountingisavailableandendorsedbyGHGP,corporateuseofSAFtomeetSBTiscope3targetsshould:●Obtainreasonableproofoffuelconsumption/combustion●DemonstrateenvironmentalbenefitsassociatedwiththeSAFused(e.g.,CertificateofSustainability(CoS)19,includingSAFlifecyclevalues)●ProveclearchainofcustodyfortheSAFconsumptiondown,ratherthanacross,thevaluechain(i.e.,abusinesstravelercouldonlypurchaseSAFfromanupstreamsupplier,eitheranairlineorafuelproducer20)●IncludefullaccountingofWell-to-Wakeemissionsfromallfuelconsumption(SAF+fossilfuel)inafirm'sscope3inventoryTheimpactofSAFconsumptionshouldbecalculatedbyusingthefuel-basedmethodoutlinedintheGHGPscope3category6guidance,alongsideICAOguidanceonlifecycleemissionsfactorsforfeedstocktypesasoutlinedinguidanceinsection4.2.2.ThedeltabetweenSAFWTWemissionsandafossilbaselinemaythenbesubtractedfromemissionsinthescope3category6inventorycalculatedthroughuseofthefuel-,distance-orspend-basedmethods21.TheuseofSAFcertificates22tradedonamarketplace/exchangeorcarboncredits/offsetscannotatthistimebecountedtowardsascience-basedtargetduetopotentialinconsistencieswithGHGprotocolguidance23-atthetimeofwriting,nosuitableandrecognizedaccountingframeworkiscommerciallyavailableforuseofSAFcreditmechanisms.Futurerecognitionofsuchframeworksmaybeconsideredinupdatestothisguidance.19CertificationofSustainabilityasdefinedbyIATA20ThisguidancedoesnotaimtoaddressallpotentialmechanismsforSAFprocurement-duetoalackofrecognizedaccountinginfrastructureatthetimeofwriting,SAFprocurementviaothermechanismscannotbeassessed.21Thedistance-basedmethodcombinedwiththefuel-basedapproachrisksdoubleclaimingtheenvironmentalbenefitsofSAFinasituationwheredistance-basedemissionsfactorsincorporatereductionsrealizedfromSAFuse.However,thisisconsideredimmaterialinthecurrentmarketduetotheavailablevolumeofSAF.2223SubjecttochangebasedonupdatedGHGPguidanceand/orfuturedefinitionsofSAFprocurementframeworksPartnerorganizationsCONCLUDINGREMARKSANDFUTUREOPPORTUNITIESTheSBTiendeavorstokeepourresourcesandsector-specificmethodologiesuptodatetoalignwiththelatestclimatescience,dataavailabilityandresearch.Consequently,asknowledgeanddatadevelopwithinthisarena,potentialfutureupdatestothisguidancecouldinclude:(1)a1.5°C-alignedpathwayfortheaviationsector,(2)moredetailedresearchandguidelinesonnon-CO₂factorsand(3)improvementsofSAFaccountingmethodologiesandframeworkstomeetSBTs.PartnerorganizationsGLOSSARYCarbondioxideemissionbudget(orcarbonbudget)Foragiventemperatureriselimit(forexample,a2°Clong-termlimit),thecorrespondingcarbonbudgetreflectsthetotalamountofcarbonemissionsthatcanbeemittedfortemperaturestostaybelowthatlimit.Stateddifferently,acarbonbudgetistheareaunderacarbondioxide(CO₂)emissiontrajectorythatsatisfiesassumptionsaboutlimitsoncumulativeemissionsestimatedtoavoidacertainlevelofglobalmeansurfacetemperaturerise.Carbondioxideequivalent(CO₂e):Awaytoplaceemissionsofvariousradiativeforcingagentsonacommonfootingbyaccountingfortheireffectonclimate.Itdescribes,foragivenmixtureandamountofgreenhousegases,theamountofCO₂thatwouldhavethesameglobalwarmingability,whenmeasuredoveraspecifiedtimeperiod.SectoralDecarbonizationApproach(SDA):TheSDAisdifferentiatedfromotherexistingscience-basedtargetmethodsbyvirtueofitssubsector-levelapproachandgloballeast-costmitigationperspective,inlinewiththecarbonbudgetrelatedtoagiventemperaturegoal.Currently,theSDAtoolusesthesectordecarbonizationtrajectoriesoftheInternationalEnergyAgency(IEA).ConvergenceapproachusedintheSectoralDecarbonizationApproach(SDA):TheconvergenceapproachforhomogeneoussectorsintheSDAisbasedontheassumptionthattheGHGintensityofacompanyconvergestowardstheGHGintensityofthesectorataratethatensuresnotexceedingthesectoralcarbonbudget.TherateofconvergenceofacompanyisafunctionoftheinitialGHGintensityofthecompany,theGHGintensityofthesectorandthegrowthofthecompanyrelativetothegrowthofthesector.Tank-to-Wakeemissions(TTW):Tank-to-Wakeemissionscoveralltheenergyusedoncetransformed,i.e.,emissionsoccurringduringthecombustionofthefuelsbyvehicles.PartnerorganizationsWell-to-Tankemissions(WTT):Well-to-Tankemissionsarebasedonattributionallife-cycleassessmentstudiesoffossil-derivedfuels(e.g.,gasoline,diesel,compressedandliquefiednaturalgas),biofuelsandelectricity(basedontime-andscenario-specificestimatedaveragegridGHGintensity).Energyuseandemissionsresultingfrompipelinetransportareaccountedforunder“Energyindustryownuse”intheInternationalEnergyAgency’sownmodeling.Well-to-Wakeemissions(WTW):Together,TTWandWTTmakeupWTWGHGemissions.Thisdoesnotincludeemissionsfromvehicleorbatterymanufacturingorthoseoffsetbymaterialrecycling,amongothers.RevenuePassengerKilometer(RPK):AnRPKistheunitofmeasurementrepresentingthetransportofonepaidpassengerbyairoveronekilometer.RevenueTonneKilometer(RTK):AnRTKisaunitofmeasureoffreighttransportwhichrepresentsthetransportofonetonneofgoods(includingpackagingandtareweightsofintermodaltransportunits)byairoveradistanceofonekilometer.Scope1emissionsfortransport:Emissionsderivedfromthecombustionoffossilfuelsinavehicle;generallyderivedfrominvoices(e.g.tonsoffuelpurchased).Scope2emissionsfortransport:Emissionsderivedfromthecombustionoffossilfuelstoproduceelectricitythatisconsumedinavehicle.Scope3Category3“Fuelandenergyrelatedactivities”:Thiscategoryincludesemissionsrelatedtotheproductionoffuelsandenergypurchasedandconsumedbythereportingcompanyinthereportingyearthatarenotincludedinscope1orscope2.Thiscategoryincludesemissionsfromfourdistinctactivities:(1)upstreamemissionsfrompurchasedfuels(extraction,productionandtransportationoffuelsconsumedbythePartnerorganizationsreportingcompany);(2)upstreamemissionsofpurchasedelectricity(extraction,productionandtransportationoffuelsconsumedinthegenerationofelectricity,steam,heatingandcoolingthatisconsumedbythereportingcompany);(3)transmissionanddistribution(T&D)losses(generationofelectricity,steam,heating,andcoolingthatisconsumed(i.e.,lost)inaT&Dsystem–reportedbytheenduser)and4)generationofpurchasedelectricitythatissoldtoendusers(generationofelectricity,steam,heatingandcoolingthatispurchasedbythereportingcompanyandsoldtoendusers–reportedbyutilitycompanyorenergyretailer).Scope3Category6“Businesstravel”:Thiscategoryincludesemissionsfromthetransportationofemployeesforbusiness-relatedactivitiesinvehiclesownedoroperatedbythirdparties,suchasaircraft,trains,busesandpassengercars.Scope3Category4“Upstreamtransportationanddistribution”:Thiscategoryincludesemissionsfromthetransportationanddistributionofproducts(excludingfuelandenergyproducts)purchasedoracquiredbythereportingcompanyinthereportingyearinvehiclesandfacilitiesnotownedoroperatedbythereportingcompany,aswellasothertransportationanddistributionservicespurchasedbythereportingcompanyinthereportingyear(includingbothinboundandoutboundlogistics).Scope3Category9“Downstreamtransportationanddistribution”:Thiscategoryincludesemissionsfromtransportationanddistributionofproductssoldbythereportingcompanyinthereportingyearbetweenthereportingcompany’soperationsandtheendconsumer(ifnotpaidforbythereportingcompany),invehiclesandfacilitiesnotownedorcontrolledbythereportingcompany.
VIP
