RCP and SCP, what they are and the usage??

EcoVision
Nov 24
2 min read

RCP and SCP are two concepts that often appear in sustainability and ESG contexts, though they refer to different but complementary frameworks. Let’s break them down clearly and professionally

RCP — Representative Concentration Pathways

Definition:

RCP (Representative Concentration Pathway) is a set of scientific climate scenarios developed by the Intergovernmental Panel on Climate Change (IPCC).

They describe possible greenhouse gas (GHG) concentration trajectories and the corresponding radiative forcing (warming effect on the Earth’s energy balance) by the year 2100.

Main RCP Scenarios

RCP	Radiative Forcing (W/m² by 2100)	Approx. Global Warming Outcome	Description / Use in ESG
RCP2.6	+2.6	≈ 1.5–2.0 °C	*Strong mitigation, net‑zero before 2100. Aligns with Paris Agreement* and Net Zero pledges.
RCP4.5	+4.5	≈ 2.5 °C	Stabilization pathway with moderate policy action.
RCP6.0	+6.0	≈ 3 °C	Limited mitigation, moderate climate risk.
RCP8.5	+8.5	≈ 4 °C+	“Business‑as‑usual”, high emissions and severe climate risks.

Use in ESG and Sustainability Investment

RCPs serve as the scientific baseline for climate scenario analysis in ESG risk management and sustainable finance (e.g., TCFD, ISSB IFRS S2 requirements).
Investors and institutions use RCPs to model:
- Transition risk (policy, technology shift)
- Physical climate risk (flooding, drought, temperature rise)
- Portfolio resilience under different temperature futures

Example:

An ESG portfolio stress test might assess how its assets perform under RCP2.6 (Paris-aligned) vs. RCP8.5 (high emissions).

SCP — Sustainable Consumption and Production

Definition:

SCP (Sustainable Consumption and Production) is a policy and behavioral framework promoting more efficient use of resources and responsible consumption patterns while minimizing environmental impacts.

It is one of the United Nations’ Sustainable Development Goals (SDG 12).

Core Concept:

“Doing more and better with less.” Reduce resource use, emissions, and waste along the entire lifecycle — from production to disposal — while improving quality of life and promoting economic inclusivity.

Key ESG Applications

Environmental (E): Material efficiency, circular economy, waste minimization, carbon reduction.
Social (S): Ethical production, fair trade, community well‑being.
Governance (G): Responsible supply chain management, transparency, reporting.

Common SCP Strategies in ESG Practice

Lifecycle assessment (LCA) and sustainable design
Circular economy models (reuse, recycle, repair)
Green procurement and supplier engagement
Consumer education on responsible behavior
Linking product footprints to corporate ESG goals

Relationship Between RCP and SCP in ESG

Aspect	RCP (Scientific Climate Pathway)	SCP (Corporate & Societal Action)
Nature	Climate modeling framework (top‑down)	Sustainability policy & practice (bottom‑up)
Focus	Greenhouse gas concentrations and warming outcomes	Reduction of emissions and resource impacts through human actions
Use in ESG	Scenario analysis, risk quantification, target‑setting (e.g., 1.5 °C alignment)	Implementation framework to achieve those targets
Complementarity	Provides the climate science and temperature benchmarks	Provides the behavioral and operational solutions to meet them

In Summary

Term	Full Form	Role in ESG / Sustainability
RCP	Representative Concentration Pathway	Scientific climate scenarios underpinning ESG risk and resilience analysis.
SCP	Sustainable Consumption and Production	Practical policy and operational framework guiding companies and consumers toward sustainable behavior.

Together, RCPs define the future climates we may face, and SCPs define the actions needed to shape a sustainable one. Don't mix up and confuse with this two terms anymore!