Issue link: https://resources.tangoanalytics.com/i/1538218
Copyright © 2025 Tango. All rights reserved. www.tangoanalytics.com Net Zero in the Built Environment 3 Absolute vs. Intensity Targets Net zero targets can be framed in two primary ways: Absolute targets: A fixed reduction in total GHG emissions over time (e.g., reduce total emissions 90% by 2040 from a 2020 baseline). Preferred for long-term targets and high- emitting operations. Intensity targets: Reduction in emissions per unit of output (e.g., kg CO₂ per square foot, per dollar revenue, or per occupant). Useful when business growth is expected, but must still align with absolute reductions over time. SBTi recommends sector-specific target pathways using either approach based on emissions profile, growth trajectory, and data availability. Carbon Neutral vs. Net Zero It's critical to differentiate between the two. Only net zero is recognized by SBTi and aligned with limiting global warming to 1.5°C. Carbon neutral: May rely heavily on offsetting current emissions without making deep internal reductions. Often used for products, events, or limited scopes. Net zero: Requires real, verifiable reductions across the value chain, with only residual emissions removed via carbon removal. The 4 Pillars of a Credible Net Zero Strategy Pillar 1 Set near-term Science-Based targets (Required) Pillar 1 Pillar 1 Pillar 1 Reduce scopes 1, 2- partial scope 3 within 5-10 yrs Set long-term net zero target (Required) Deep decarbonization across all scopes by 2050 Neutralize residual emissions with carbon removal (Required) Permanent carbon removal of residuals Support climate solutions beyond internal operations Support beyond- value-chain mitigation (Recommended)