Horizon Zero

Horizon Zero is a project from RMI’s Climate Intelligence program that seeks to accelerate the decarbonization of supply chains by making it possible to understand the greenhouse gas (GHG) emissions impact of what companies are purchasing and selling.

Horizon Zero’s current work focuses on product-level greenhouse gas accounting and technical enablement to promote the exchange of GHG information.

The product-level GHG data and the technical architecture to disseminate it will enable us to develop green product procurement practices. From there, we’ll have the necessary elements to build climate-differentiated markets where companies are equipped to decarbonize their supply chains through informed purchases and investments.

Horizon Zero enables organizations to report emissions to their buyers by:

• Demonstrating emissions reductions actions: Horizon Zero’s accounting methodologies employ fixed system boundaries to increase transparency and comparability at the product level, making it easier for organizations to demonstrate specific decarbonization efforts like low-emissions technology deployments or investments in renewable energy sources.
• Facilitating seamless transmission of data: The use of common data standards for emissions data exchange increases interoperability between various emissions software platforms, making it easier for suppliers to send buyers the information they are requesting and for buyers to integrate that data into their own systems.

Horizon Zero complements the existing work on emissions transparency and traceability by providing product-level, sector-specific solutions in carbon accounting methodology and emissions reporting digitization. The below graphic highlights the unique, complementary value we provide to existing initiatives.

Horizon Zero’s emissions accounting methodology is founded on three key principles:

1. Product-level disclosures which increase the transparency of a product’s emissions and can drive low carbon purchasing decisions.
2. A fixed reporting boundary that encompasses all the high emission processes required to make a product, not just those with an organization’s scope. This creates bounds for comparison, allowing like products to be compared on an emissions basis.
3. Encouraging the use of primary emissions data to increase the accuracy and reliability of reporting, instead of emissions factors that rely on averages and assumptions.

Rather than creating new accounting standards, Horizon Zero aims to harmonize methodologies and standards where adequate options exist. For international reporting and standards organizations such as the Greenhouse Gas Protocol, the International Standards Organization, and World Business Council for Sustainable Development’s (WBCSD) Pathfinder Framework, our work complements theirs by providing sector specific methodologies and guidance for reporting on additional information that they do not require, with the goal of increasing transparency and comparability.

For industry associations creating sector specific guidance, such as the International Aluminum Institute (IAI), World Steel, ResponsibleSteel, and Together for Sustainability (TfS), there are several paths through which Horizon Zero can complement existing efforts. If the guidance for a given sector does not include product-level disclosures, Horizon Zero provides product-level reporting guidance as an extension of the corporate-level reporting standards for the sector. If the guidance for a given sector does include product-level disclosures, Horizon Zero expands on that effort by providing more granular details and transparency or by providing guidance upstream or downstream of the production boundary.

Horizon Zero’s technology work is comprised of three core tenets to increase the visibility and accessibility of GHG emissions data:

• Data Standards: Describe product-level emissions using a defined, agreed-upon, and machine-readable schema.
• Interoperability: Enable seamless communication between carbon management and other software systems; vendors can use a single data format for multiple customers, and buyers receive data in a single format, produced using a common methodology, from all vendors, making comparisons possible.
• Track & Trace: Standardized data, able to flow from node to node in a supply chain, becomes the foundation for being able to track and trace emissions across multiple supply chain tiers.

Horizon Zero is not a software platform. Our approach is to leverage existing solutions and work with buyers, vendors, and software providers to increase interoperability between systems, reducing the reporting burden of producers and facilitating access to emissions data.

We are always looking for partners both on a project and sector level to help us refine our accounting methodologies, pilot test our solutions, and drive adoption of our principles. For more information, please reach out to Nicole Labutong, Horizon Zero principal nlabutong@rmi.org, or Hao Wu, market activation manager hwu@rmi.org.