Setting Science-based Targets for PayPal
Situation
PayPal had to ambition to set science-based targets (SBTs) for PayPal aligned with a 1.5°C reduction pathway to achieve its net zero goals.
Impact
PayPal committed to reducing scope 1 and 2 emissions by 25%, scope 3 emissions (FERA) by 25%, and ensuring 75% of suppliers have SBTs by 2025. Pledged to achieve net zero emissions before 2040 to position PayPal as a climate leader in the financial services sector.
Situation
Achieving climate stability is critical to PayPal’s mission of financial health and inclusion for all people. According to its latest materiality assessment, climate change mitigation is among the top ESG priorities for PayPal and its external stakeholders. In 2019, the company took steps towards managing its own emissions and set a goal to power its data centres with 100% renewable energy by 2023. Additionally, to advance on its overall climate mitigation strategy, PayPal pledged to develop ambitious science-based targets (SBTs) in line with the objective of limiting temperature rise to no more than 1.5 degrees Celsius. SBTs represent a robust commitment to profoundly reduce the climate-related impact of PayPal’s operations and value chain activities.
Solution
Anthesis guided PayPal through the entire science-based target development journey from creating a complete inventory of its value chain baseline emissions, internal stakeholder engagement, emission reduction identification and strategy, through to SBTi validation.
Key services included:
- Provided engagement and education of internal working groups and leaders.
- Conducted value chain screening and baseline emissions inventory.
- Modelled emissions pathways and proposed reduction strategies, including plans to update the inventory in subsequent years.
- Prepared summaries, data visualization models, and communication support for internal engagement.
- Supported the Science-Based Targets Initiative (SBTi) submission and target validation process.
- Continuing to provide support in the development and implementation of PayPal’s vendor engagement program and monitoring annual progress against set targets.
Impact
PayPal has signalled a deep commitment to mitigating its climate impacts by setting ambitious SBTs aligned with a 1.5°C reduction pathway positioning the organisation as a climate leader in the financial services sector. From a 2019 base year, PayPal commits to:
- Reducing its scope 1 and 2 emissions by 25% by 2025.
- Reducing its scope 3 emissions from fuel and energy-related activities (FERA) by 25% by 2025.
- 75% of its suppliers by spend covering purchased goods and services, capital goods, business travel, upstream transportation and distribution will have science-based targets by 2025.
In addition to these SBTs, PayPal has further augmented its commitment by pledging to achieve net zero emissions before 2040.
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