Net Zero Initiative Lays the Groundwork for a Carbon Neutrality Framework for Businesses at COP24

Katowice, December 13, 2018 –

The Net Zero Initiative business network—which includes ENGIE, RATP, EDF, L’OREAL, ORANGE, Groupe BPCE, UNIMA, REMADE, HAVAS PARIS, and CARBONE 4—is co-organizing a side event at COP24: "Once Upon a Time: Corporate Carbon Neutrality". It lays the groundwork for a future framework to guide organizations seeking to achieve net-zero emissions: a triple-entry carbon accounting system.

Carbon neutrality represents the highest goal in the realm of climate action. Countries around the world committed to it in Paris in 2015.

The Net Zero Initiative believes that a company committed to carbon neutrality must take action on three fronts in the fight against climate change: • reducing its emissions across its entire scope, both direct and indirect, • contributing to the reduction of emissions outside its scope, • and contributing to the development of carbon sinks. Net Zero Initiative aims to standardize corporate carbon neutrality through a future set of standards that is rigorous, credible, and harmonized.

“The goal of the Net Zero Initiative business network: a framework and three non-cumulative action levers that redefine carbon neutrality for all companies worldwide.” Benoit LEGUET, member of the NZI Scientific Advisory Board and Director of I4CE

The Foundation of the Net Zero Initiative Framework: A Triple-Entry Carbon Accounting System

When it comes to corporate carbon neutrality, a precise, fair, and transparent framework is essential. The experts at Carbone 4, in consultation with the member companies of the Net Zero Initiative and with the approval of a high-level scientific advisory board, are laying the foundation for this future framework. This carbon neutrality “dashboard” will feature indicators designed to refocus priorities on reducing a company’s own emissions, while encouraging companies to contribute to reducing emissions outside their scope and to developing carbon sinks.

This framework will encourage companies to develop an ambitious and responsible climate strategy aimed at achieving carbon neutrality. It will provide a standardized explanation of the actions taken by companies that already have such a strategy in place.

At the heart of this framework is a carbon accounting A triple-entry system consisting of 3 completely separate accounts that are not cumulative: • The induced emissions, which account for the greenhouse gas emissions generated by a company across all its scopes (1+2+3): by design, they include reductions achieved within the scope of the commitment; • The emissions avoided, which account for everything the company does to contribute to the decarbonization of the economy outside its own operations: marketing low-carbon products, financing renewable energy, purchasing carbon credits resulting from emissions reductions… • The negative emissions, which account for everything the company does to contribute to the development of anthropogenic carbon sinks, whether natural (reforestation, afforestation, etc.) or technological (BECCS, etc.).

Implementation of the Net Zero Initiative Framework

This future framework, the broad outlines of which have already been defined, will be expanded in the first half of 2019. It will be implemented in an initial phase with beta-testing companies, which will assess their climate performance against this new framework. Finally, the Net Zero Initiative aims to forge partnerships with key stakeholders and international networks to promote the large-scale adoption of this framework by companies, regardless of their size, industry, or level of maturity on climate issues.

About the Net Zero Initiative:

The Net Zero Initiative is a unique network of companies working to define a rigorous, credible, and harmonized approach to carbon neutrality. Conceived and led by Carbone 4, a leading climate consulting firm, it brought together companies of various sizes and from diverse sectors in 2018 (RATP Group, ENGIE, EDF, L’OREAL, ORANGE, Groupe BPCE, REMADE, UNIMA, and HAVAS PARIS) with the primary goal of developing a common framework validated by an independent scientific advisory board.

*** Press Contact Claudia Brun-Vargas - claudia.brun-vargas@havas.com – 06 16 16 48 97 Contact Carbone 4 Renaud Bettin - renaud.bettin@carbone4.com – 06 63 32 98 52

Follow Net Zero Initiative on Twitter: @_NetZero_ Find all the information on the website www.netzero-initiative.com