The private sector has an increasingly important role in limiting the temperature rise to below the crucial 1.5°C of the Paris Agreement. In order to assess how well a portfolio is aligned to the goals of the Paris Agreement, benchmarks need be used. The creation of benchmarks is complex and varying methodologies with associated opinions exist. The purpose of this thesis is to examine two different approaches for creating benchmarks; Single scenario and Warming function. The usability of the benchmarks is examined from the perspective of a financial institution. The methodology is based on a literature review of earlier research. Using empirical data the different methods are tested in a smaller Case study and on a larger data set. The results give insights in different advantages and disadvantages of the methods. Using a Single scenario approach allows for a more granular analysis, however it is criticized for being misleading as the result is easily manipulated. The Warming function is less granular, as almost all companies in the empirical data are assessed against the same benchmark - creating unfair results for companies active in sectors with different demands on emission reduction. In order to gain sectoral granularity the Warming function methodology need to be investigated further. By lowering the demands on the final benchmarks, the adaptation to different sectors can increase inthe Warming function approach. / Den privata sektorn har en växande roll i kampen för att begränsa den globala uppvärmningen till Parisavtalets kritiska gräns på 1,5°C. För att utvärdera hur väl ett företag presterar klimatmässigt jämfört med kraven i Parisavtalet behövs jämförelsemått. Skapandet av jämförelsemått är komplext och en mängd olika metodologier existerar med olika grader av popularitet. Syftet med denna uppsats är att undersöka två olika tillvägagångssätt för att skapa jämförelsemått; Single scenario och Warming function. Användarbarheten av metodologierna utvärderas från perspektivet av en finansiell institution. Metodologin baseras på en litteraturstudie av tidigare undersökningar. Warming function och Single scenario utvärderas i en mindre fallstudie och i tester på ett större data set med hjälp av empiriska data. Resultatet ger insikter i olika för- och nackdelar med metoderna. Att använda Single scenario tillåter en mer granulär analys, dock kritiseras denna metod för att vara missledande då de slutgiltiga resultaten är enkla att manipulera. Warming functio när mindre granulär då de flesta företagen utvärderas mot samma jämförelsemått vilket skapar orättvisa resultat för företag som är aktiva i sektorer med olika höga krav på utsläppsminskning. För att öka granulariteten måste metodologin för Warming function undersökas djupare. Genom att sänka kraven på de slutgiltiga jämförelsemåtten kan sektoranpassade jämförelsemått öka i Warming function.

Steel production is today one of the most CO2-demanding activities and causes 8% of the global emissions of GHG. It is crucial for the industry to reduce its emissions radically in order to be in line with the goals of the Paris Agreement and the Science-Based Target initiative. Ovako AB, one of the leading producers of high-strength engineering steel, has been at the forefront when it comes to sustainability initiatives within the industry. Heavy investments are being made into sustainable steel production methods and technologies and to make this viable, the company has, from January 1st, 2022, started to put a price premium on their steel products of 30 € per tonne. This study aims to answer the question of how Ovako's customers, based on the three different industries of mining, automotive, and bearing, experience this price premium and how a green steel can justify this surcharge. Furthermore, this case study aims to understand the extent to which those customers require carbon neutrality when sourcing steel. Connected to the findings from the innovation theories and the literature, this study aims to answer the question of how sustainable innovations may influence future competitiveness regarding engineering steel. To answer these questions, interviews with key individuals from different customers of Ovako were conducted. Moreover, focus groups at Ovako with relevant employees have been held at the same time as a literature study has been conducted. Based on the answers obtained from the data collection, a thematic analysis has been performed where overarching themes have been identified. Additionally, a carbon impact calculator has been used to calculate the carbon reduction potential of using a carbon-neutral engineering steel in three different applications connected to the three industries investigated, namely a complete bearing, a drill bit, and a final drive unit. The results from the calculations as well as the answers obtained regarding the research questions will be presented in the conclusion chapter of the report.