We asked ENTEGA´s Sustainability Manager, Michael Congdon, about his experience with our new XDC webApp and this is what he had to say:
How accessible did you find the XDC webApp?
Using the XDC webApp is rather simple. Just open your browser, find the website and register yourself as an interested party with a few bits of information.
Was it easy to access the data required for calculating your Standard XDC?
For ENTEGA it is quite easy to access the data required for calculating our Standard XDC. We have all necessary financial data in the summary of our annual business report. Our emissions data is listed in our sustainability report. With these two sources the data collection is done quickly.
The XDC webApp reduces the complexity of calculating your Standard XDC to a minimum. All you need is your financial data (EBITDA, personal costs and revenue) and your emissions (Scope 1, 2 and optionally 3).*
Was the resulting XDC what you expected it to be?
The XDC calculation is not what we expected due to our strong focus on renewable energy generation and sales.
Do you find the resulting XDC reliable? Do you plan to work with it in any way? If so, what are your options?
By calculating our initial XDC we have a basis for discussion with right. based on science. As a German utility company, we have a multi-scope business and are not certain that the XDC fully reflects the diversity of our business models. We had to choose one sector - electricity generation - although our business involves other important sectors like electricity distribution, electricity sales, natural gas distribution and natural gas sales and others. We plan to work with the results and to determine how to include these different business segments. It is important for ENTEGA to find its starting point and develop a strategy toward climate neutral business operations.
How to deal with multisectoral companies?
Multisectoral companies can use the XDC Scenario Explorer to model each of their business segments separately from a base year up to 2050. The emission and gross value-added growth rates can be chosen for each segment individually. The afterwards combined economic emission intensity defines the companies XDC.*
Is it helpful to know how you perform when compared to your peers? For what main purposes?
A comparison with peers can be useful. However, due to the diversity of business models from one business in a sector to the next, it is rather difficult truly compare one another. ENTEGA has to determine its own XDC and then set goals on how to reach a <2°C compatibility. This is the essential level that our business needs to meet.
Would you be interested in having other features calculated? If yes, which ones?
It would be extremely useful to integrate various scenarios into the webApp, so ENTEGA and other companies could calculate various paths and check their 2°C compatibility. Since many companies report their emissions to CDP and also their risks and opportunities (in accordance with TCFD), it would be sensible to link these results and integrate them into the XDC calculation method.
How to set an individual Target XDC?
To set an individual Target XDC, the necessary emission reduction for each business segment to contribute their fair share to a 2°C world, is derived from internationally recognized climate scenarios, e.g. the IEA 2DS. These scenarios define emission reduction requirements for individual economic sectors.*
Thanks to Michael Congdon for his support. ENTEGA AG is an energy supply company based in Darmstadt (Germany). The company has been investing in climate-friendly energy for many years, above all in wind power.
* Remarks by right. based on science
For the first time, companies are able to independently calculate their contribution to global warming. Our XDC webApp is an easy way to do so. Pioneering companies having used our XDC webApplication, are coming back with questions such as:
Is it possible to calculate my science-based climate target with the XDC webApp?
What are your questions? On Tuesday, 22 January 2019, from 10am-11am CET, we will be using the XDC webApp to determine the Standard XDC of the Italian utility company Enel S.p.A. Save my spot