The urgent issue of climate change has led to companies increasingly taking climate action by setting science-based emission reduction targets aligned with the goals of the Paris Agreement. The purpose of this study was to investigate how Swedish companies are working to reduce their greenhouse gas emissions through science-based targets. The study was performed through a survey to the Swedish companies committed to the Science Based Targets initiative, and by an assessment of progress against targets using public emission data. The results showed that science-based targets as a tool for climate action raises the climate ambition of companies and provides a good basis for climate strategy. Benefits of committing to science-based targets were primarily that it builds credibility and a good reputation. The main drivers were to improve company climate action, reduce greenhouse gas emissions as well as to gain market advantages. Most companies reported climate results annually, but reporting practices were often insufficient or lacked transparency. Most science-based targets were on track to be achieved, though the results showed more limited progress against targets covering scope 3 emissions. The key activities for progress were primarily linked to energy, transportation and fuel, and product development. Overall, the study shows that science-based targets can play a significant role in companies’ efforts to reduce greenhouse gas emissions and serve as a useful climate action tool. However, increased transparency is needed to strengthen the integrity of the targets.

I samband med ökade förväntningar på hållbart företagande har fler företag valt att fastställa hållbarhetsmål som överensstämmer med vetenskapliga riktlinjer. Detta gäller inte minst inom industrisektorn, vars stora klimatavtryck har väckt debatt i media. Denna studie undersökte två svenska industriföretag tillvägagångssätt och utmaningar i arbetet med att uppnå sina Science Based Targets (SBT). Studien tillämpade en kvalitativ metod, där representanter från SKF och SSAB intervjuades om deras arbete för att nå SBT. Vidare utfördes en dataanalys av sekundärdata för att ge en nyanserad bild av företagens arbete med SBT. Studien utgick från teorin om organisationsförändring som behandlar företags tillvägagångssätt för att förändra verksamheten. För att kategorisera företagens förändringsprocess och utmaningar tillämpade studien Huong Has förändringsmodell.  Studien fann såväl skillnader som likheter i företagens tillvägagångssätt och utmaningar i arbetet med SBT. I synnerhet identifierades den påverkan som intressenters agerande har på förändringsprocessen. Effektiv kommunikation och samarbete mellan organisationer och aktörer framträdde därför som centralt för att minska företagens klimatavtryck.

We are currently experiencing a climate crisis. The planet’s temperature is rising considerably due to the emission of greenhouse gases generated by human activities. This situation poses a challenge for everyone, including companies. Private sector actors are taking actions to mitigate the consequences of climate change, such as global warming. Some of these measures are imposed by national regulations, and others are motivated by the firms' own will. The latter include Science Based Target initiative (SBTi), a voluntary initiative that supports companies in setting climate targets to reduce emissions in line with climate science and the Paris Agreement. The number of companies taking action through participation in it is growing. However, SBTis a young initiative that should be further explored, as more research is needed on its effects. This master’s thesis responds to this gap by studying the impact of joining the SBTi on the financial performance of companies measured through stock returns, volatility and financial risk. For this purpose, the Difference-in-Differences (DiD) statistical technique has been applied through a linear regression model to a sample of 4869 companies. It includes both SBTi member and non-members. At the same time, this research also addresses a second objective, to estimate the determinants to join SBTi, since this is a voluntary action, through a Probit model. It has been found that there is a negative relationship when the financial variable is stock return. While when volatility and financial risk are measured, there is no statistically significant effect. These findings show that being a member of SBTi could reduce investor returns, but does not influence the other two financial indicators. This suggests that investors are not attracted to these companies and may indicate that they see the initiative as a costly distraction. Also, as investors manage their portfolios to reduce market downturns, investing in firms that are part of the initiative will not be something they will consider in terms of their votality. Although the initiative's objectives and commitments help to mitigate climate risks by encouraging the reduction of carbon dioxide emissions, they do not generate significant impacts on the level of financial risk, according to the observations. Regarding the results on the likelihood of joining SBTi, it was found that companies that produce lower returns to investors, have lower stock price fluctuations, have higher financial risk and pollute less, are more likely to be members. This suggests that the initiative should drive its efforts towards companies with these characteristics. This study is innovative in its field in that it addresses a topic of current interest but that has been little explored, the SBTi. It applies two methodologies, regression analysis through DiD and Probit model, but with global panel data, which makes it more challenging. This master’s thesis contributes to the research community in three ways. First, it fills a gap providing new insights into SBTi from a financial perspective. Second, it informs the initiative itself of the implications of its activity and makes it easier to identify potential members and attract them. Third, it can be useful for investors who want to be part of the fight against climate change and include these companies in their portfolios, but want to know the financial consequences of doing so. / Vi upplever för närvarande en klimatkris. Planetens temperatur stiger avsevärt på grund av utsläppen av växthusgaser som genereras av mänsklig verksamhet. Denna situation utgör en utmaning för alla, inklusive företag. Privata aktörer vidtar åtgärder för att mildra konsekvenserna av klimatförändringar, såsom global uppvärmning. Vissa av dessa åtgärder föreskrivs av nationella regleringar, medan andra motiveras av företagens egna vilja. Det senare inkluderar SBTi, en frivillig initiativ som stödjer företag i att fastställa klimatmål för att minska utsläppen i linje med klimatvetenskapen och Parisavtalet. Antalet företag som vidtar åtgärder genom deltagande i initiativet ökar. Dock är SBTi en ung initiativ som bör undersökas mer, eftersom merforskning behövs om dess effek. Denna avhandling fyller detta gap genom att studera effekten av att delta i SBTi på företagens finansiella prestationer, mätt genom aktieavkastning, volatilitet och finansiell risk. För detta ändamål har den statistiska tekniken DiD tillämpats genom en linjär regressionsmodell på ett urval av 4869 företag. Det omfattar både medlemmar och icke-medlemmar av SBTi. Samtidigt behandlar denna forskning även ett andra mål, att uppskatta faktorer som påverkar beslutet att delta i SBTi, eftersom detta är en frivillig åtgärd, genom en Probit-modell. Det har konstaterats att det finns ett negativt samband när den finansiella variabeln är aktieavkastning. När volatilitet och finansiell risk mäts finns det däremot ingen statistiskt signifikant effekt. Dessa resultat visar att att vara medlem i SBTi kan minska avkastningen för investerare, men påverkar inte de andra två finansiella indikatorerna. Detta tyder på att investerare inte lockas av dessa företag och kan indikera att de ser initiativet som en kostsam distraktion. Dessutom, eftersom investerare hanterar sina portföljer för att minska marknadsnedgångar, kommer investeringar i företag som är en del av initiativet inte vara något de överväger med avseende på volatilitet. Även om initiativets mål och åtaganden bidrar till att mildra klimatrisker genom att främja minskning av koldioxidutsläppen, genererar de inte signifikanta effekter på finansiell risknivå enligt observationerna. Vad gäller resultaten angående sannolikheten att delta i SBTi, visade det sig att företag som ger lägre avkastning till investerare, har lägre aktieprisfluktuationer, har högre finansiell risk och förorenar mindre, har större sannolikhet att vara medlemmar. Detta tyder på att initiativet bör rikta sina ansträngningar mot företag med dessa egenskaper. Denna studie är nyskapande inom sitt område genom att den behandlar ett ämne av aktuellt intresse men som är relativt outforskat, nämligen SBTi. Den tillämpar två metoder, regressionsanalys med DiD och en Probit-modell, men med globala paneldata, vilket gör det mer utmanande. Denna avhandling bidrar till forskarsamhället på tre sätt. För det första fyller den en lucka genom att ge nya insikter om SBTi ur ett finansiellt perspektiv. För det andra informerar den själva initiativet om konsekvenserna av dess verksamhet och underlättar identifieringen av potentiella medlemmar och att locka dem. För det tredje kan den vara användbar för investerare som vill vara en del av kampen mot klimatförändringar och inkludera dessa företag i sina portföljer, men som vill känna till de finansiella konsekvenserna av att göra det.

This thesis focuses on addressing the challenge of managing the climate impact of system engineering projects within a large global industrial company. The research design is a case study within the selected company, and it integrates qualitative and quantitative methodologies to provide a holistic understanding of environmental challenges. The principal objective is to provide direction on efficient management of system engineering projects’ environmental footprint delivered by large global industrial companies. This is achieved by quantifying greenhouse gas emissions and identifying critical factors that significantly influence environmental outcomes. Based on the results together with the qualitative results from the interviews, effective countermeasures have been developed to reach set science-based emission reduction targets aligned with the Paris Agreement. The research has contributed to a better understanding of the climate impact of system engineering projects, provided guidance on measuring their environmental impact and offered strategies for reducing GHG emissions to mitigate climate change risks. The thesis further delves into various relevant concepts, including system engineering, science-based emission reduction targets, carbon footprint analysis, motivators and barriers for greenhouse gas emissions reductions and the decarbonization of system engineering projects.  The research underscores the importance of user-friendly calculations of CO2e emissions aligned with ISO standards. It also emphasizes the necessity of addressing emissions throughout the value chain and optimizing key components for achieving successful outcomes. Furthermore, standardization and incorporating environmental considerations during the design phases are highlighted as important aspects supporting science-based emission reduction targets. To conclude, this research aims to provide valuable insights into effectively managing the climate impact of system engineering projects in a large global industrial company. It offers practical strategies, recommendations, and considerations to support a company's sustainability goals and environmental commitments.

The world is jeopardized by several social and environmental threats. The limited resources are being used at a rapid rate which contributes to negative effects on global warming. Along with increased poverty, human rights are being violated and labor is exploited. Therefore, sustainability is perhaps a more urgent topic than ever. CSV is proposed as an answer to these environmental and social threats, which is identified by a gap in the concept of CSR. Sweden is a leading country in terms of sustainability, and therefore the purpose is to gain knowledge on how Swedish companies work with shared value creation in their sustainable practices. This study follows an interpretive philosophy through a qualitative study, and semi-structured interviews are conducted with six companies. The empirical data is analyzed through coding where four themes are evolved. This study develops existing concepts through an inductive approach and further proposes that the companies pursue CSV by the mediating role of CSR. Sustainable innovation, innovative raw materials, and digitalization are the major contributors to shared value creation. Sustainable development goals and science-based targets are essential tools to guide companies toward a sustainable future. However, two barriers to pursuing shared value creating activities are being a small company and adapting to the local context.

Interest in ‘science-based targets’ (SBTs) as a means of helping the private sector achieve greater environmental sustainability has sharply increased in recent years. However, the significant ambiguity around what SBTs for Earth systems are and how they relate to broader sustainability issues has received little attention. This study adopts an interpretive approach to explore how different ‘framings’ of SBTs reflect very different storylines about sustainability problems and the role of SBTs in delivering solutions. It treats environmental governance not as a search for solutions to a pre-defined problem, but as a struggle over the definition of the environmental problem itself. In doing so, the study addresses deeper questions about whether sustainability science and practice should work within ‘the system’ to change it or critique it as part of the problem. It uses Q methodology to explore the perspectives of 22 scientists and practitioners engaged in SBTs for Earth systems. The results show two main framings of SBTs: ‘we need to develop science-based targets for the Earth system’ and ‘we need systemic economic, political and social change – and science-based targets.’ Results indicate that two distinctive storylines exist around SBTs, which emerge from reformist and radical environmental discourses. Alongside areas of consensus, they diverge on crucial issues regarding the nature of SBTs, sustainability problems and solutions, and the role of SBTs in transformation. The study suggests that the SBT is a boundary object; its ambiguity can both promote collaboration between diverse actors and conceal more radical discourse. It concludes that the plural interpretations of SBTs and their contribution to sustainability transformations have important implications. This highlights a need for greater reflexivity within sustainability science and practice, which could move them towards their sustainability aims.

In order for the aviation industry to meet the targets of the Paris agreement and reach net-zero by 2050, significant amounts of greenhouse-gas emissions are to be reduced. However, as the industry is essentially dependent on conventional jet fuel, it becomes necessary for alternative technologies to develop and phase out fossil-based fuels. The thesis aims to provide valuable insights into the challenges and potentials of alternative technologies, which include sustainable aviation fuel (SAF), hydrogen, and electric-powered aviation. Additionally, the thesis investigated the Science-Based Targets initiative, and challenged the interim 1.5oC aviation pathway. The findings emphasize the crucial role of stakeholder cooperation in achieving net-zero emissions by 2050. Moreover, the thesis underscores the need for significant investments in alternative technologies, in order to enable growth and make the solutions increasingly attractive compared to conventional jet fuel. Collaboration and innovation are essential for attaining environmental targets while balancing economic growth. The thesis also highlights the urgency of policies and regulations to promote additional SAF production investments in order to vastly increase the supply. Furthermore, while the Science-Based Targets initiative (SBTi) is an effective means of securing airlines' commitment to the Paris Agreement, the thesis concludes that the SBTi 1.5oC interim pathway for airlines is overly optimistic. While the SBTi 1.5oC interim pathway’s SAF estimates for 2050 could be achieved, the thesis suggests around 2 to 4 times lower SAF supply for 2030 compared to the SBTi’s estimates. This further emphasizes the airlines' difficulties in following the 1.5oC pathway and the need for the industry to accelerate its transformation and make space for alternative solutions in order to meet the environmental targets. / För att flygindustrin ska nå målen i Parisavtalet och uppnå netto-nollutsläpp år 2050 måste betydande mängder växthusgasutsläpp minskas. Eftersom branschen är i grunden beroende av konventionellt flygbränsle blir det nödvändigt att utveckla alternativa teknologier för att fasas ut fossilbaserade bränslen. Avhandlingens syfte är att ge värdefulla insikter i utmaningarna samt möjligheterna med alternativa teknologier, vilket inkluderar hållbart flygbränsle (SAF), väte och elektriskt driven flygning. Dessutom undersökte avhandlingen Science-Based Targets-initiativet och utmanade det interimistiska 1.5°C-målet för flygindustrin. Resultaten betonar den avgörande rollen som samarbetande intressenter spelar för att uppnå netto-nollutsläpp år 2050. Dessutom understryker avhandlingen behovet av betydande investeringar i alternativa teknologier för att möjliggöra tillväxt och göra lösningarna allt mer attraktiva jämfört med konventionellt flygbränsle. Samarbetet och innovationen är nödvändiga för att uppnå miljömålen samtidigt som ekonomisk tillväxt möjliggörs. Avhandlingen betonar också brådskan med att införa policys och regleringar för att främja ytterligare produktion av hållbart flygbränsle (SAF) för att drastiskt öka tillgången. Medan Science-Based Targets-initiativet (SBTi) är ett effektivt sätt att säkerställa flygbolagens åtagande att uppfylla Parisavtalet, drar avhandlingen slutsatsen att SBTi:s interimistiska 1.5°C-mål för flygindustrin är alltför optimistiskt. Medan SBTi:s SAF-estimat för 2050 skulle kunna uppnås, föreslår avhandlingen en SAF-tillgång som är ungefär 2-4 gånger lägre för 2030 jämfört med SBTi:suppskattningar. Detta understryker ytterligare svårigheterna för flygbolag att hålla sig till 1.5oC målet samt nödvändigheten för flygindustrin att accelerera omställningen och skapa utrymme för alternativa lösningar för att uppnå miljömålen.

Many companies acknowledge the threat from global carbon emissions and how it affects climate change. Despite the continuous warnings, many organizations lack the necessary and recommended action plans that can hamper their negative impact on the environment. One of the managerial tools that companies use globally in order to work proactively and strategically on issues related to the environment, is to set up carbon reduction targets. With time companies have in-house strategies on how to reach the carbon reduction targets by creating a roadmap of cutting measures. Unfortunately, the majority of companies do not have carbon reduction targets that are in line with what science think is needed to avoid contributing to global warming. Nonetheless, forward-thinking early adopters have been using “science-based” methods to challenge the status quo by developing ambitious carbon targets that are in line with today’s best carbon science. This qualitative research investigates the challenging steps from setting a long-term carbon target, using the guidelines and methods presented by the Science-based target initiative. With an exploratory research approach, a case study was conducted at a global leader in appliance manufacturing and industry leader within sustainability. The data was gathered by using semistructured interviews combined with observational findings with a focus to examine how carbon targets emerge in a situated organizational setting. The interviewee's representatives come from two categories, internal company representatives and, external companies that have used the guidelines to set science-based carbon targets. For manufacturing firms, the findings from investigating three steps of the process: calculating the base-year, target integration and predicting future technology development. Calculating the base-year was identified as the most challenging step. The empirical findings helped build an understanding of the different dimensions that facilitate corporate sustainability management. This research has helped to contribute to the lack of empirical findings within the carbon management and carbon target area. Specifically, the sciencebased carbon target topic. / Många företag har idag uppmärksammat det globala hotet från de enorma utsläppen av koldioxid och dess drivande roll i framtidens klimatförändringar. Trots att många företag kontinuerligt arbetar mot att minska sina koldioxidutsläpp, saknar många de nödvändiga handlingsplanerna för att hämma deras negativa påverkan på miljön. Ett av verktygen företag globalt har för att arbeta med proaktivt och strategiskt i frågor som rör miljö, är att sätta upp koldioxidreduktionsmål. Men tyvärr har flertalet av företagen idag mål som inte ligger i linje med vad vetenskapen anser är nödvändigt för att undvika den framtida globala uppvärmningen.Vad ett företag bidrar med har visat sig ofta bygga på okunskap och är därför hamnar sällan målen i linje med vad naturen efterfrågar. För att utmana detta problem har några banbrytande företag använt sig av metoder som kallas "science-based". Dessa metoder är en samling ramverk för att skapa långsiktiga koldioxidreduktionsmål som bättre ligger i linje med vad forskningen tror är nödvändigt för att undvika den globala uppvärmningen. Denna kvalitativa studie undersöker hur ett tillverkningsföretag skapar långsiktiga koldioxidreduktionsmål genom att använda vetenskapligt baserade metoder. En explorativ fallstudie genomfördes hos en global ledare inom tillverkning av vitvaror och hushållsapparater och, som även är branschledare inom hållbarutveckling. Uppgifterna samlades in genom att använda halvstrukturerade intervjuer i kombination med observationer med fokus på att undersöka målsättningsprocessen i ett företags miljöer. De intervjuade kommer från två kategorier, representanter inom företaget och, externa företag som redan har använt dessa ramverk för att skapa vetenskapligt baserade koldioxidreduktionsmål. Resultaten visar att för tillverkningsföretag finns det tre utmanande steg: att beräkna basåret, målintegration och förutspå nödvändig framtida teknikutveckling. De empiriska fynden bidrar till att skapa en bättre förståelse kring hur företag idag arbetar med att sätta upp koldioxidreduktionsmål med fokus på att använda ”science-based” ramverken.

As CO2 emissions increase, so does the average temperature, leading toenvironmental consequences such as rising sea levels, drought, and starvation.Therefore, it is essential to act towards the reduction of the CO2 emissionsto counteract these dire consequences. The Science Based Target initiative(SBTi) which is a non-governmental organization has created a framework fororganisations to set net-zero targets for 2050. The goals are accompanied byguidelines, demands and recommendations for how to measure and reportemissions across a supply chain. There are challenges and problems attached to measuring CO2 emissions formultinational companies (MNC). The emissions are divided into three scopes.Scope 3 which consists of indirect emissions coming from up- anddownstream of the focal companies has proven to be challenging to gatherdata for due to lack of proper company capabilities. This thesis aims toidentify challenges related to measuring and reporting the emissions caused bythe use of sold products, which is one of the 15 categories of Scope 3.Moreover, this study aims to create a standardized framework for MNCs byaddressing the necessary steps for collecting data for developing an emissionscalculation tool and to suggest how to properly calculate and illustrateemissions ty the focal company. Lastly, the implementability of the frameworkwill be assessed. The research methods include a case study with a set of unstructuredinterviews of nine participants. These includes engineers, innovationmanagers, sustainability managers and product managers. Moreover, aniterative process for developing a calculation tool was performed includingtesting of the tool as it was developed. The case study identified challenges of calculating emissions from soldproducts. These were of lack of IT infrastructure, insufficient data forcalculating emissions, high uncertainties of how the organization shouldconduct measuring of emissions and how to allocate resources in the SBTiimplementation. Moreover, the risks of interpreting calculated dataincorrectly were identified. Lastly, a framework was created consisting of aseven-step process including: communicating transition, assembling projectteams, covering emission, mapping data, creating the tool, task delegation andeducation and standardization.