Climate & Environment
Sectoral Decarbonization Approach (SDA)
Definition
The sectoral decarbonization approach is a target-setting methodology, developed by the Science Based Targets initiative with CDP and partners, that allocates sector-level decarbonization pathways to companies. For homogeneous, emissions-intensive sectors (power, cement, steel, aluminium, buildings), companies are set convergence targets: their emissions intensity must decline toward the sector's 1.5°C-consistent 2050 intensity at a defined rate, regardless of starting point.
References
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This reference provides supporting context for how “Sectoral Decarbonization Approach (SDA)” is defined and used.
Overview
How it is used
Companies use SDA tools to formulate targets for SBTi validation; investors use sector pathways to assess portfolio alignment and benchmark holdings.
Why it matters
SDA is the machinery that turns "Paris-aligned" from a slogan into a calculable company number — the bridge between climate science and corporate strategy.