Carbon dioxide equivalent (CO₂e)

Unit of measurement that allows the radiative forcing of a GHG to be compared with that of carbon dioxide (CO₂), considering the related Global Warming Potential (GWP).

A carbon footprint is the total greenhouse gas (GHG) emissions caused by an individual, event, organization, service, place or product, expressed as carbon dioxide equivalent (CO₂e).

Non-Profit Organization operating worldwide for the management and communication of self-reported information about the environmental impacts associated with climate change, water management and forest commodities. By leveraging market forces including shareholders, customers and governments, CDP has incentivized thousands of companies and cities across the world’s largest economies to measure and disclose their environmental information.

As defined by the United Nations, Climate Change refers to long-term shifts in temperatures and weather patterns. Since the 1800s, with the advent of industrialization, human activities have been the main driver of climate change, primarily due to burning fossil fuels (such as coal, oil and gas) that generate Greenhouse gases emissions (GHG).

Climate Change causes changes in the climate systems considering phenomena such as melting glaciers, rising sea levels or more frequent extreme weather events. Scientists have made it clear that limiting global temperature rise to no more than 1.5°C, if compared to pre-industrial era, would help us avoid the worst climate impacts of climate change.

Gases, both natural and man-made, that absorb and trap heat (i.e. infrared radiation) from the Sun in the Earth’s atmosphere, that contribute to the greenhouse effect. The gases included are: carbon dioxide (CO₂), methane (CH₄), nitrous oxide (N₂O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), Sulphur hexafluoride (SF₆) and nitrogen trifluoride (NF₃). An increasing concentration of greenhouse gases in the atmosphere is the direct cause of climate change.

The SBTi was established between CDP, the UN Global Compact, the World Resources Institute and the World Wide Fund for Nature (WWF) in order to support companies in setting GHG emissions reduction targets consistent with the latest climate science.

Direct GHG emissions occur from sources that are owned or controlled by the company, for example, emissions from combustion in owned or controlled boilers, vehicles and fugitive emissions related to refrigerants leaks.

• Location-based: reflects the average emission intensity of the national grid, considering both renewable and non-renewable productions. The GHG emissions are calculated using an average emission factor that reflects the national electricity mix: the higher the share of renewable energies used by a specific country the lower the related location-based emission factor.

• Market-based: considers the share of certified electricity purchased from renewable sources. To be considered as renewable the electricity purchased should be covered by contractual instruments such as Guarantees of Origin (GoO). The part of electricity purchased covered by GoO is considered as zero emissions, while the remaining part is multiplied by a factor called residual mix, whose take into consideration emissions intensity of the national grid considering only non-renewable production.

Other indirect GHG emissions that are generated as a consequence of the activities of the company, but occur from sources not owned or controlled by the company itself - for example as a result of suppliers, employees and consumers activities.

These emissions can be generated all along the value chain.