Reducing portfolio life-cycle emissions and emissions intensity
To support a net-zero future for society, it is essential that companies fully understand their net emissions and have a means of comparing themselves against others in their industry. Most importantly, the approach needs to equip and incentivize companies to make investments that will reduce their emissions – not simply encourage companies to back away from meeting society’s needs and pass portions of their carbon footprint to someone else.
We take a life-cycle approach when working to reduce emissions, which offers advantages that are not available in other frameworks. First, it allows for consideration of “negative emissions,” such as direct air capture, reflecting a “net” emissions number. Second, it considers the relative carbon burden associated with different energy products, helping to answer critical questions about the best way to meet society’s needs for energy. Finally, LCA offers a view of the emissions intensity of all aspects of a company’s value chain. Read more about our life-cycle approach in our 2023 Advancing Climate Solutions Progress Report