In the face of global warming and climate change, businesses find themselves at the forefront of a critical challenge: reducing carbon emissions. This urgent problem demands proactive measures across all sectors of society, from individuals to governments, non-governmental organizations to the business realm. For companies, the task is monumental – meeting the ambitious targets of the Paris Agreement, halving emissions by 2030, and achieving net zero emissions by 2050.
However, despite many companies having established their Greenhouse Gas (GHG) inventory and initiated carbon accounting, the pivotal question remains: how can they develop an impactful yet realistic decarbonization strategy that resonates with investors, customers, and other key stakeholders?
As pressure mounts to take immediate and meaningful steps, the complexity of crafting a strategy that not only meets environmental goals but aligns with business objectives can be overwhelming.
Our guide is here to support you. We’ll cover:
We’ll also show you how Sweep can support you not just in your carbon accounting, but also with creating and implementing a targeted reduction strategy that is tailored to your business.
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Before you begin work on your decarbonization strategy, it’s important to get a baseline measure of your business’ carbon footprint across the entire value chain. This starts with setting the boundaries of your GHG inventory, selecting a measurement framework, and gathering data to set your baseline.
If you’d like to read more about these subjects you can do so here:
Mapping your suppliers is crucial as it gives you a clear picture of the activities, processes, and systems involved in the entire chain. It also helps you identify your top emitters. Provide your procurement and sustainability teams tools to automate data collection for purchased goods and services. Empower them to send surveys to suppliers to collect missing data.
If you’d like to learn more about supply chain decarbonization, read our guide.
1. Simplified carbon tracking
From the outset, Sweep is designed to simplify carbon emissions tracking. You'll start with a basic understanding of your company's emissions, using CDP data models to establish the footprint of your organization and value chain.
2. Clear data visualization
With a clear map (we call it a "tree" in Sweep), you'll be able to visualize exactly what data you need and who to ask for it. You can also use it to make a baseline measurement of your emissions, using the physical or expense-based data you have available.
3. Automated data cleansing using AI
With reliable data, you can guarantee the accuracy of your GHG inventory. Use Sweep AI for automated data quality to ensure there are no duplicates, errors or inconsistencies in your datasets.
4. Intelligent survey responses
Sweep AI provides contextual information for survey responses, improving the accuracy and relevance of collected data.
Selecting the right climate targets for your business is pivotal in navigating the complexities of emission reduction strategies. Science-based targets are the bedrock of a credible sustainability plan, aligning your company's commitment with the latest climate science.
When considering absolute emission reduction targets, such as cutting emissions by a specific percentage within a defined timeframe, it's crucial to recognize their direct contributions to global climate goals. Policymakers and environmental organizations often favor these targets, yet challenges arise in their uniform application to diverse companies.
On the other hand, intensity-based targets offer a dynamic and adaptable approach, accounting for variations in business activities and fostering efficiency improvements. As businesses aim for transparency, sustainability, and growth, the choice between absolute and intensity targets becomes a strategic decision in aligning with global objectives while acknowledging the intricacies of individual operations.
You can read more about absolute and intensity based targets here.
1. In Sweep’s platform you can set both various absolute and intensity targets or simply apply SBTi targets (1.5°, 2.0°).
2. Intensity targets can be set with various metrics in Sweep, such as revenues, headcount or production units.
3. You can build scenarios and forecast your emission trajectory, and build initiatives to ensure you hit your targets.
Example:
Science based targets (SBTs) are ambitious emissions reduction goals set by the Science-Based Targets initiative. They are designed to align your carbon accounting with the objectives of the Paris Agreement on climate change. Through a rigorous scientific methodology, SBTs calculate how much we need to lower GHG emissions to prevent global temperatures from rising more than 1.5°C above pre-industrial levels.
More and more companies across various industries are adopting SBTs as they recognize the urgency to take bold action on climate change. By setting SBTs, you are not only reducing your environmental impact but also improving your reputation and demonstrating your commitment to sustainability, which is increasingly crucial to investors, consumers, and other stakeholders.
Decarbonization levers are strategic tools and approaches employed by organizations to reduce their carbon footprint. They encompass a range of measures, from investments in low-carbon technologies to incorporating environmental, social, and governance (ESG) criteria into decision-making. Identifying and leveraging these levers is crucial for crafting effective decarbonization strategies tailored to industry-specific needs.
Begin by understanding the unique environmental challenges and opportunities within your industry. Investigate successful decarbonization strategies adopted by similar businesses. Identify levers that align with your industry's characteristics, considering both sector-wide practices and specific challenges. Assess the potential impact of each lever on your carbon footprint, prioritizing those that promise meaningful reductions.
Perform an in-depth analysis of your organization, considering current operations, future growth plans, and resource utilization. Evaluate your carbon footprint across scopes, understanding emission hotspots. Identify areas where specific levers, such as grid greening, on-site solar, or fleet electrification, can have the most significant impact. Assess the feasibility and alignment of each lever with your business objectives, taking into account financial considerations and regulatory landscapes.
Create a phased implementation plan that accounts for the complexity of decarbonization levers. Prioritize levers based on their feasibility, impact, and alignment with your business strategy.
Establish clear timelines, milestones, and performance indicators for each lever. Consider dependencies between levers and integrate them into a cohesive strategy. Ensure flexibility to adapt the plan to evolving circumstances, technological advancements, and changes in market dynamics.
Regularly monitor and assess the effectiveness of implemented levers, making data-driven adjustments as needed. By developing a strategic and flexible roadmap, your organization can systematically select and deploy decarbonization levers that align with its unique goals and operational context.
In Sweep’s platform, you can easily identify hotspots or gaps with data-driven visualizations and reports.
You’ll also find a "Decarbonization Lever Library" – a meticulously curated catalog of tasks, ranging from major initiatives like energy supplier transitions to specific actions like carpool program implementation. Organized by industry, these predefined levers empower suppliers and facilitate seamless value chain decarbonization.
Sweep facilitates real-time collaboration among stakeholders and suppliers. Share dashboards for transparent progress tracking and swiftly adjust initiatives or introduce new strategies for effective carbon reduction.
Example:
In the pursuit of effective decarbonization, leveraging deep insights and modeling reduction pathways is essential. A robust tool can provide you with an at-a-glance view of carbon hotspots and the potential impact of specific reduction levers on your trajectory.
Use data-driven insights to guide reduction efforts, easily identifying areas for improvement through data-driven visualizations. Simulate reduction pathways to project the impact of specific activities on your carbon footprint.
Sweep enables you to test the impact a specific activity will have on your footprint, and map out scenarios to inform your initiatives.
It’s then important to regularly monitor and analyze the impact of each reduction activity you implement. Encourage employee engagement and awareness, as a committed workforce is crucial to the success of reduction efforts. Regularly reassess goals based on the milestones that you reach.
Implementing a real-time tracking tool is very useful for immediate intervention and adjustment.
In Sweep’s platform, all your measurement data is automatically tied to your targets.
You can monitor how you’re doing in real time, and quickly adjust based on your incoming data.
If you discover an initiative with great momentum, you can deploy it to other business units or geographies for a bigger impact.
It might be tempting just to carry on emitting as much greenhouse gas as usual and compensate for it by purchasing negative carbon elsewhere. But the truth is that we'll never reach planetary net zero this way. Here are just two of the reasons why:
We don't have time: We need to halve global greenhouse gas emissions by 50% by 2030. A tree, while it is great at absorbing carbon, will only do so slowly and gradually over its lifetime.
We don't have unlimited storage capacity: Most emerging technologies, such as direct air capture, need carbon sinks to store the captured carbon (in rock, for example). But the total storage capacity of the planet is only a fraction of the total emissions we produce.
So it's important that we all focus on reducing our own emissions first. And then for emissions that cannot be reduced further, we need to make contributions to climate projects, too.
The business community is moving away from “carbon offsets” and leaning towards “contributions”. The terminology is important, because different language shapes different approaches.
Offsetting, while well intended, can raise the wrong expectations. It implies that you can pay another company to remove their emissions, or suck carbon out of the air with a high-tech device, instead of curbing your own. And then claim you are ‘net zero’ or ‘carbon neutral’ (see above).
But when you contribute, you’re investing in solutions that tackle climate change, and contributing to global efforts to reach planetary net zero. But you’re not using it as a replacement for reduction.
We propose a three step process to build a strategic portfolio of climate projects. To read more about these, take a look at our Contributions whitepaper.
After identifying your emissions, establishing targets, and implementing your initiatives, it's time to communicate these efforts effectively. Publish your report, share it with stakeholders, and use social media to engage your audience.
However, exercise caution in your messaging, as consumers and investors are adept at spotting greenwashing. Given the evolving regulatory landscape, ensure your claims align with substantial actions taken.
Transparency is paramount; share insights with the business community as we collectively navigate the ongoing learning curve on the journey to net zero.
1. Focus on targets
In Sweep’s platform, all your measurement data is automatically tied to your targets.
2. Real time measurement
You can monitor how you’re doing in real time, and quickly adjust based on your incoming data.
3. Maximized impact
If you discover an initiative with great momentum, you can deploy it to other business units or geographies for a bigger impact.
It might be tempting just to carry on emitting as much greenhouse gas as usual and compensate for it by purchasing negative carbon elsewhere. But the truth is that we'll never reach planetary net zero this way. Here are just two of the reasons why:
We don't have time: We need to halve global greenhouse gas emissions by 50% by 2030. A tree, while it is great at absorbing carbon, will only do so slowly and gradually over its lifetime.
We don't have unlimited storage capacity: Most emerging technologies, such as direct air capture, need carbon sinks to store the captured carbon (in rock, for example). But the total storage capacity of the planet is only a fraction of the total emissions we produce.
So it's important that we all focus on reducing our own emissions first. And then for emissions that cannot be reduced further, we need to make contributions to climate projects, too.
The business community is moving away from “carbon offsets” and leaning towards “contributions”. The terminology is important, because different language shapes different approaches.
Offsetting, while well intended, can raise the wrong expectations. It implies that you can pay another company to remove their emissions, or suck carbon out of the air with a high-tech device, instead of curbing your own. And then claim you are ‘net zero’ or ‘carbon neutral’ (see above).
But when you contribute, you’re investing in solutions that tackle climate change, and contributing to global efforts to reach planetary net zero. But you’re not using it as a replacement for reduction.
We propose a three step process to build a strategic portfolio of climate projects. To read more about these, take a look at our Contributions whitepaper.
The rise of ESG disclosure regulations, such as the CSRD and SFDR, means that organizations like yours will need to ensure that their climate data is accurate and reliable. That way you’ll be able to confidently drive ESG compliance across your business and value chain, avoid ‘greenwashing’ and stand head and shoulders above the competition.
Sweep is built to comply with leading international ESG standards and regulations, including the GHG Protocol, CSRD, SFDR, SECR and ISSB to name just a few.
We reduce audit preparation time by half with our automated internal control systems.
We provide a dashboard for auditors to identify essential standards with the ability to deep-dive into data, down to the smallest granularity.
Embarking on your decarbonization journey may feel like a challenge, but the benefits are significant. Beyond meeting regulatory requirements, you'll unlock cost savings, enhance operational efficiency, boost corporate reputation, and elevate stakeholder satisfaction. Actively engaging in the sustainability movement opens doors to valuable networks, shared knowledge, and goodwill, positioning you on the right side of history.
We’re here to support you at every step. And your suppliers can get started for free!
Our free plan lets companies measure their emissions in Sweep – so you can invite all your suppliers. And once their measurements are in our platform, we can help them get further along their own carbon track.
Get in touch today.
