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ICE is uniquely positioned to be a leader in the transition to a reimagined energy economy. We do that by responding to changing consumer and institutional preferences around energy consumption and associated trends in the market, and by offering risk management and hedging tools. With respect to our own footprint, we disclose our full greenhouse gas emissions and have set reduction targets for Scope 1 and 2.
We have made a commitment to work toward the reduction of Scope 1 and 2 emissions by 50% by 2032 from a 2021 baseline. This target aligns with the SBTi 1.5-degree methodology.
As it relates to Scope 3, we disclose all relevant Scope 3 categories. With more than 85% of our Scope 3 emissions in categories 1 and 2, supplier engagement is critical to any Scope 3 reduction targets we set. Putting in place a robust system to engage, manage and reduce our supply chain emissions is the first step toward setting a quantifiable target and is our focus beginning in 2023.
Our calculations are performed using the GHG Protocol and with assistance from a third-party firm with expertise in this area. Our calculations are a mix of activity-based and, in the case of several Scope 3 categories, spend-based and hybrid supplier-specific / spend-based methodologies.
Additional details on our footprint are provided in our Task Force on Climate-related Financial Disclosures report, located in the Data and reporting frameworks section of annual sustainability report.
While we work toward our interim carbon reduction targets, we are taking steps available to us today to mitigate our current footprint, including the purchase of renewable energy certificates and carbon credits.
Our existing Scope 1 and 2 emissions are largely driven by electricity consumption related to our real estate footprint, particularly our data centers. We have a multi-prong approach to addressing this impact that includes increasing energy efficiency and facilitating renewable energy resources.
Categories 1 and 2 account for more than 85% of our Scope 3 emissions, making supplier engagement critical for any Scope 3 reduction targets we set. We are focused in 2023 on building a robust system to engage, manage and reduce our supply chain emissions as a first step toward setting a quantifiable target.
Additional detail can be found in the Decarbonization strategy section of our annual sustainability report.
Governance of our carbon reduction targets is similar to that of our broader approach to sustainability:
Climate-related risks that are most pertinent to ICE fall broadly into two categories:
Our enterprise risk management team, overseen by the Board Risk Committee and led by our Corporate Risk Officer, has developed an approach based on the Task Force on Climate-Related Financial Disclosures framework to assess the range of impacts from climate-related risks to our businesses. The team implements that framework in collaboration with leadership across our organization to identify, assess, and manage climate risks and opportunities.
An assessment of those risks and opportunities, including consideration of climate-related scenario analysis, is available in our TCFD report, located in the Data and reporting frameworks section of our annual sustainability report.
ICE’s sustainable finance products and services offer customers data, tools and markets that provide transparency into risks and opportunities to enable sustainable decision-making and include:
A comprehensive list of these products and services is available in our TCFD report, located in the Data and reporting frameworks section of annual sustainability report.