Carbon Emissions Reduction Strategies For Your Business
Reducing carbon emissions is critical for businesses aiming to combat climate change and improve their sustainability performance. So, how can businesses reduce carbon emissions? It can be difficult to know where to begin with reducing emissions, so developing a thorough strategy for reducing your business’s carbon emissions is crucial to start taking action. Developing the perfect emissions reduction strategy will depend on your unique business context and your industry. Here are some general tips to get you started:
- Kickstart your emissions calculation
This is arguably the most important step as without knowing your starting point, you cannot be targeted in your emissions reduction strategy. By understanding your baseline emissions, you can ensure that your reduction efforts are focused and effective, thereby allowing your actions to have the greatest impact possible. We suggest starting by calculating your scope 1 and 2 emissions using usage-based data where possible, and your scope 3 emissions initially using spend-based methodology where usage-based data is not available. Once you have an idea of your scope 3 emissions using spend-based methodologies, you can be targeted in supplier engagement to get usage data or supplier-specific emissions factors for your largest scope 3 emissions. Once you’ve calculated your baseline emissions you can identify the largest sources of your emissions to identify where to focus your emissions reduction efforts.
- Set realistic and actionable emissions reduction targets
The next step is to set your emissions reduction targets. Having well-defined targets creates a roadmap for your emissions reduction strategy, helps steer your focus and creates accountability for your emissions reduction efforts. When setting emissions reduction targets, the SMART goals framework will help you to achieve leading practice:
- Specific: Targets should focus on a specific area of emissions reduction and be clearly defined for your business context. For example “reduce our scope 1 and 2 emissions”, “reduce our emissions from international business travel” or “replace our gas boiler at Facility 1”
- Measurable: Targets need to be based around percentage reductions of emissions or specific emissions reduction activities. For example, “reduce our emissions from international business travel by 10%”, or “replace our gas boiler at Facility 1 with ground-source heat pump”
- Achievable: Targets should be ambitious and science-based. They should align to the 1.5’C of the Paris Agreement, and should also consider sector-specific guidance and best practices from peers. Targets should also be achievable and realistic. There is no point setting yourself up to fail! Use science, sector-specific guidance and look to peer’s targets for guidance, then apply these to your business context. This may mean adjusting the timeframes of your targets to better align to your business needs.
- Relevant: Targets need to be relevant to your business’s context, industry, and your most material emissions sources. Calculate your baseline emissions and identifying where the largest sources of emissions are within your value chain, as well as applying a holistic view by considering where the most crucial areas of your business’s value chain intersect with these emissions-intensive areas.
- Time-bound: Targets should have a defined time period. For example, “reduce our emissions from international business travel by 10% by 2030”, or “replace our gas boiler at Facility 1 with a ground-source heat pump in the next 3 years”
- Take action
Once you have defined your emissions reduction targets, it’s time to take action! Setting percentage reduction targets can make it challenging to prioritise actions and plan effectively. It’s not always clear how to focus your efforts to meet these goals.
Climatise can help by suggesting emissions reduction activities that are prioritised based on your business’s emissions data. Allowing your businesses to identify opportunities that can be achieved with the right SMART goals and objectives.
- Monitor, report, adjust
Emissions reduction strategies are an ongoing process which needs to be constantly monitored, tracked, and refined. To stay accountable to your targets, we suggest monitoring your progress on a regular basis that makes sense for your business.
To effectively achieve your emissions reduction targets, regular reporting is essential. By tracking progress frequently, you gain valuable insights that help you adapt your strategies in real time. The responsiveness of your strategy is crucial for staying on course and being able to make necessary adjustments to ensure you keep to your emissions reduction plans.
Monitoring should be aligned with your business needs, whether monthly, quarterly or semi-annually. The more often you review your progress, the better you can fine-tune your actions to meet your targets. External reporting to stakeholders should be done on an annual or semi-annual basis. The frequency of reports should be based on stakeholder interest and to ensure transparency and accountability.
As your business evolves, such as through acquisitions or other major changes, you need to be prepared to assess and adjust your objectives. Regular monitoring and tracking help you refine your strategies accordingly.
Charter a sustainable path with Climatise
Reducing carbon emissions is essential for sustainable business growth and environmental responsibility. Setting SMART goals is how you create your strategy, but Climatise is the best way to stick to and adjust your goals.
Talk to one of our experts today for tailored carbon reporting solutions that suit your strategies and take the right step forward towards a greener tomorrow.