How to develop an effective decarbonisation strategy for your business

Decarbonisation refers to the transition towards an economy that is no longer dependent on fossil fuels and carbon dioxide (CO2). This means replacing fossil fuels with carbon-free, renewable energy sources in order to reduce emissions of harmful substances — and eventually eliminate them entirely. Decarbonisation is therefore a crucial step in combating global warming.

To recap: when fossil fuels are burned, greenhouse gases such as CO2 are released into our atmosphere. This intensifies the greenhouse effect, causing our climate to warm further. A temperature rise of more than 1.5 degrees Celsius — the limit set in the Paris Agreement — would have irreversible consequences for the climate. That is why, with the Paris Agreement in 2015, the international community committed to drastically reducing global CO2 emissions by 2050. Businesses play a crucial role in this by reducing their own emissions and thus contributing to the global targets.

Short-, medium- and long-term targets

An effective decarbonisation strategy begins with setting clear short-, medium- and long-term targets. These targets must be aligned with the Paris Agreement’s 1.5-degree objective. Short- and medium-term targets help companies make step-by-step progress and hold them accountable for their actions. This creates a consistent and sustainable approach, allowing companies to monitor their CO2 emissions annually and adjust where necessary.

For example, in the first phase (short term), a company can focus on immediate measures such as energy efficiency improvements and reducing transport-related emissions. In the medium term, they can invest in renewable energy sources and make their supply chain more sustainable. Long-term actions often involve larger investments in new technologies and full transitions to carbon-neutral processes.

A structured approach: the roadmap

The complexity of decarbonisation calls for a structured approach. An effective roadmap looks like this:

• Start with a baseline measurement in accordance with the GHG Protocol to map out your current CO2 emissions.
• Identify reduction measures within your organisation and value chain, such as transport, energy consumption and raw materials.
• Draw up a roadmap in which you set your level of ambition and plan both short-term actions and long-term technologies.
• Base your reduction policy on a plan that is in line with the 1.5-degree target of the Paris Climate Agreement.

By systematically following these steps, your company will develop a feasible and effective decarbonisation strategy. It offers a clear and structured way to integrate CO2 reduction into your business strategy and thus achieve significant and sustainable results.

Decarbonisation in practice: where does the greatest reduction potential lie?

Decarbonisation is crucial to reducing greenhouse gas emissions, and certain sectors offer particularly significant opportunities for reduction:

• Industry: Two-thirds of all industrial emissions result from energy consumption. This can be largely reduced by adapting processes and adopting renewable energy and low-carbon technologies. Residual emissions can be offset through carbon offset projects.
• Buildings: Older buildings often have a negative carbon footprint. Emissions can be reduced through energy-efficient renovations, upgrading heating systems with sustainable options such as heat pumps and solar collectors, and by replacing fossil fuel heating systems with those based on synthetic fuels.
• Transport: Transport accounts for more than 20% of global CO2 emissions. These emissions can be significantly reduced by making optimal use of multimodal transport options, switching to sustainable modes of transport, and promoting the expansion of e-mobility.

By focusing on these sectors, companies can take substantial steps in their decarbonisation process and contribute to reducing total emissions.

Together for a green future

Implementing a decarbonisation strategy is crucial for companies that want to ensure a sustainable future. By aligning their policies with the Paris Agreement’s 1.5-degree target, companies not only contribute to limiting climate change but also stand stronger in the face of tomorrow’s challenges.

Decarbonisation is no longer a matter for the distant future; it is an urgent necessity. Companies that take action now are building a solid foundation for their long-term success and demonstrating responsibility towards their stakeholders, employees and society.