1. Determine the starting point - calculate the organization's carbon footprint
The construction of the decarbonization strategy of the enterprise begins with Selection of the base year and Calculating the organization's carbon footprint. This is the foundation of the whole process according to the principle: It is impossible to effectively manage something that has not been analyzed. A full calculation of emissions should be carried out in accordance with an international standard Greenhouse Gas Protocol (GHG Protocol) and cover three ranges:
- direct emissions from own sources (Scopio 1),
- indirect emissions associated with purchased energy (Scopio 2),
- emissions generated throughout the value chain of the organisation (Scopio 3).
Choosing a base year is crucial because it represents Benchmark for monitoring progress in emission reductions. In the case of undertakings planning designation Objectives in line with the Science Based Targets initiative (SBTi) the base year should be based on reliable and well-documented data. According to the guidelines of the initiative, the base year should not be earlier than 2015.
2. Identify the main sources of emissions (hotspot analysis)
Once the organization's emission levels have been determined, the next step is an in-depth analysis of their sources, often referred to as identification of so-called emission hotspots. At this stage, the enterprise analyzes which areas of activity they have largest share of the total carbon footprint. In many sectors, the biggest emissions may not come from their own operations, but from the supply chain or the use of products by customers (Scope 3). Understanding the structure of emissions allows you to identify areas with the greatest reduction potential and identify actions that can have the greatest impact both on the environment and on the business side.
3. Check how others do it — market benchmarking
In the next step, it is worth carrying out analysis of industry benchmarks. It includes comparison of emissions levels, climate targets and transformation strategies pursued by other companies with a similar business profile. The analysis can cover both domestic competitors as well as leaders of climate change on the international market. Particular attention should be paid to the applied production technologies, availability of low-carbon energy sources and regulatory considerations in individual countries. Benchmarking allows you to assess the level of ambition of the planned strategy and to better understand at what stage of climate transformation a given organization is in comparison with other actors in the sector.
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We will create a decarbonization strategy for your company based on reliable data. We will combine the systematic reduction of the carbon footprint with the development of the company and indicate practical tools to implement the reduction.
4. Set emission reduction targets in line with global standards
Based on the conducted emissions analysis and market benchmarks, the company can proceed to Defining reduction targets. More and more companies are choosing to appoint them according to the standard Science Based Targets Initiative. As part of this methodology, organizations determine short-term targets (near-term targets) covering the horizon from 5 to 10 years and Long-Term Targets, otherwise called Net-Zero, leading to a deep reduction in emissions in the future until 2050 After joining the initiative, the company has 24 months to prepare and report your reduction goals unto validation by SBTi, which additionally strengthens the credibility of the adopted strategy.
5. Combine decarbonization strategy with business strategy
However, setting reduction targets does not end the construction of the strategy. It is not a question of indicating what (ranges), to when and by how much should be reduced, but also how to do it. They serve this emission reduction scenarios and identification of decarbonization leversthat will achieve the agreed goals. At this stage, the potential of improving energy efficiency, changing production technologies, electrification of processes, purchasing energy from renewable sources, optimization of transport and logistics or implementations in the field of circular economy are analyzed. Activities involving cooperation with suppliers and changing the parameters of products and services offered to customers are also increasingly important (Scopio 3). In practice, companies often they also analyze the costs and reduction potential of individual activitiesto determine the most an effective path of transformation from the business, technological or legal side. For the decarbonisation strategy to be effective, must be linked to the long-term business plan of the company. This means incorporating reduction targets in investment plans, acquisitions, entering new markets and segments, and risk management processes.
6. Develop a strategy and communicate it
The result of the above activities is the development of a detailed decarbonization strategy that defines specific reduction projects, includes KPIs and schedule for their implementation and Organizational/managerial responsibilities. The strategy should also indicate the required investments, key indicators for monitoring progress and mechanisms for reporting results. At this stage, the strategy usually takes the form Formal document approved by the management of the enterprise, which should be communicated to all interested parties in the formal path.
7. Deploy and monitor progress
The final stage is implementation of the strategy in the organization and Systematic monitoring of the progress of emission reductions. In practice, this means integrating climate objectives into the day-to-day operations of the company, collaboration between different departments and regular data collection and reporting of results. The decarbonisation strategy should be updated with technological, regulatory and business developments.
