NETZEROwbcsdINITIATIVEGUIDANCEON AVOIDEDHELPING BUSINESS DRIVE INNOVATIONSAND SCALE SOLUTIONS TOWARD NET ZEROContentsForeword 36Communicating and reportingavoided emissions 40Executive summary 66.1 Guidelines for reporting avoidedemissions|40Introduction 126.2 Communicating avoided1.1 Purpose and intent 14emissions |411.2 Core principles 15Limitations of the guidance 421.3 Audience 151.4 Scope of the guidance 15Closing remarks 44Understanding avoidedemissions |17FAQ 453Leveraging avoided emissions 213.1 From a company perspective 21Glossary 483.2 From aninvestor perspective 223.3 From a policy perspective 23Avoided emissions accountingprinciples 494Validating claim eligibility 24Independent stakeholder4.1 Gate 1:Climateaction credibility 24statement 504.2 Gate 2:Latestclimate science alignment 24Assessing avoided emissions 285.1 Key principles 285.2 Overview of the 5-step approach I 285.3 Step 1:Identifythe timeframe of the avoidedemissions assessment 295.4 Step 2:Define the reference scenario 315.5 Step 3:Assess the life cycle emissions of thesolution and the reference scenario 355.6 Step 4:Assessing avoided emissions I 365.7 Step 5:Assess avoided emissions at the scaleof the company (optional)|375.8 Assessing the specificity level of a claim 37Guidance on Avoided Emissions:Helping business drive innovetionsand scale solutions toward Net Zero 2