Corporate Sustainability Agenda: CBAM, CDP, SBTi and WEPs
Sustainability continues to gain importance in today’s business environment and is becoming an increasingly prominent part of corporate agendas.
In this context, the Carbon Border Adjustment Mechanism (CBAM), CDP, the Science Based Targets initiative (SBTi), and the Women’s Empowerment Principles (WEPs) have emerged as key sustainability topics for companies in recent years.
CBAM (Carbon Border Adjustment Mechanism)
The Carbon Border Adjustment Mechanism (CBAM), introduced by the European Union, is a regulatory mechanism that takes into account the carbon emissions embedded in certain products imported into the EU.
CBAM primarily aims to reduce the difference between the carbon costs faced by EU producers under the EU Emissions Trading System (EU ETS) and imported products, while helping to prevent the risk of carbon leakage.
In its initial scope, CBAM covers the iron and steel, aluminium, cement, fertilisers, electricity, and hydrogen sectors.
As a result, carbon management is no longer important solely from an environmental performance perspective. For companies exporting to the European Union, areas such as calculating embedded emissions and ensuring the reliability of emissions data have also become increasingly important.
CDP (Carbon Disclosure Project) and Environmental Transparency
CDP is a global environmental disclosure system that enables companies to disclose their environmental impacts, risks, and actions. It helps companies transparently communicate and systematically monitor their performance on environmental issues, particularly climate change, water security, and forests.
Within the CDP process, companies are expected not only to disclose their greenhouse gas emissions but also to demonstrate how environmental issues are integrated into their management processes. How companies address environmental risks and opportunities, the targets they establish, and the actions they take toward achieving these targets are also evaluated.
CDP’s scoring system assesses companies across different levels of environmental disclosure, awareness, management, and leadership. Regular data monitoring can help companies identify areas where environmental performance can be improved and develop an appropriate action plan.
SBTi (Science Based Targets initiative) and Science-Based Climate Targets
Simply announcing carbon reduction or net-zero targets may not be sufficient. It is also important for these targets to be aligned with climate science and for related actions to be supported by measurable results.
The Science Based Targets initiative (SBTi) provides companies with standards and methodologies for setting greenhouse gas emission reduction targets in line with climate science.
Within this framework, companies need to consider their Scope 1 and Scope 2 emissions, as well as Scope 3 emissions where applicable. This approach enables companies to manage their emission reduction efforts in a structured and systematic manner.
WEPs and Social Sustainability
Corporate sustainability covers a wide range of issues, including important social topics such as gender equality in the workplace.
The Women’s Empowerment Principles (WEPs), developed by UN Women and the UN Global Compact, consist of seven principles designed to promote gender equality and women’s empowerment in the private sector.
While WEPs aim to advance gender equality in the workplace, they also address areas such as employee health and safety, education, and professional development.
WEPs therefore represent one of the international frameworks that companies can use to support their social sustainability objectives.
Benefits for Companies
While CBAM, CDP, SBTi, and WEPs address different dimensions of sustainability, they share a common objective: helping companies integrate sustainability into their operations with a long-term perspective.
At A&A Consulting, we support organizations across areas including sustainability strategy, carbon and climate management, and corporate sustainability. Contact us to assess your company’s current position and further develop your sustainability initiatives.
