Frequently Asked Questions
FAQs
1. What is Viable Pathway, and how does it assist investors?
Viable Pathway is an intuitive, data-driven web application designed to deliver comprehensive net-zero due diligence quickly and accurately, even when time and data are limited. It enables investors to assess whether a potential acquisition has a viable pathway to net-zero emissions by estimating emissions based on industry benchmarks tailored to the company's geography and size.
2. How does Viable Pathway estimate emissions for companies with limited data?
When detailed operational data is scarce, Viable Pathway leverages a robust database of industry benchmarks from over 10,000 companies. These benchmarks allow the tool to estimate Scope 1, 2, and 3 emissions based on similar companies' profiles, considering factors like geography and company size.
3. What future emissions pathways does Viable Pathway project?
Viable Pathway models three distinct emissions pathways extending to 2050:
Business-as-Usual (BAU) Pathway: Assumes the company continues operations without significant changes, providing a baseline scenario.
Exogenous Pathway: Accounts for external trends influencing the company's emissions, such as societal, technological, environmental, economic, and political factors.
Internal Transformation Pathway: Models the impact of internal measures the company might implement to reduce emissions, like energy efficiency upgrades or transitioning to renewable energy sources.
4. How does Viable Pathway handle Scope 3 emissions estimation?
Estimating Scope 3 emissions can be challenging due to their indirect nature. Viable Pathway addresses this by utilizing national economic Use Tables, scaled to company levels, to estimate emissions from purchased goods and services. Additionally, it incorporates benchmark data for other Scope 3 categories, such as business travel and transportation, ensuring a comprehensive emissions profile.
5. Can Viable Pathway accommodate different emissions reporting methodologies?
Yes, Viable Pathway is designed with flexibility in mind. While it prioritizes the GHG Protocol Standards for emissions estimation, it can adapt to alternative methodologies required by specific jurisdictions, such as the National Greenhouse and Energy Reporting (NGER) Scheme in Australia. This adaptability ensures compliance with various regulatory requirements.
