What Constitutes an Emissions Reduction Strategy and Why Is It of Significance?
An emissions reduction strategy for greenhouse gases (GHGs) encompasses a set of deliberate actions, programs, and policies aimed at mitigating or lessening the carbon footprint of a specific entity, whether it be a corporation, an individual, a local municipality, or any level of government. The primary objective is to attain a specified reduction target for GHG emissions.
A comprehensive GHG emissions strategy is comprehensive in scope, addressing emissions "hot spots" or activities with high emissions within an organization's immediate operations (Scope 1 & 2), as well as in its value chains or product usage (Scope 3). Common measures include enhancing energy efficiency, increasing the utilization of renewable energy in owned facilities, and collaborating with value chain partners to transition to low-carbon transportation options.
Developing an emissions reduction strategy serves multiple purposes for companies, helping them pinpoint the sources of their emissions, establish science-based targets for emission reduction, put into practice actions to attain these targets, and efficiently monitor progress towards those goals.
Companies often discover that, by instituting an emissions reduction strategy and setting targets, they can:
Minimize their environmental impact.
Enhance profitability.
Bolster investor confidence.
Realize cost savings and operational efficiencies.
Gain competitive advantages.
Strengthen their brand reputation.
Emissions Reduction Strategy and Target Establishment:
Setting targets constitutes an integral facet of the emissions strategy, as it defines specific objectives to be reached in emissions reduction by an organization, industry, or government entity.
Typically, companies first concentrate their emissions reduction strategy on a near-term target, such as committing to achieve a 50% reduction in emissions by 2030. Achieving this near-term target necessitates an initial assessment of baseline emissions levels via a GHG inventory. Subsequent strategy work involves modeling different reduction levels, enabling companies to make informed decisions on how and when to reach their near-term targets before publicly committing to them.
In cases where a company has already pledged to a target or requires strategy adjustments due to operational changes, the modeling work centers on identifying the necessary measures to meet the reductions by the target date. It is common for companies to revisit their emissions reduction strategy throughout the target period and adjust the roadmap created to achieve the target.
S3CO provides support for clients in setting Science-Based Targets for both short-term and long-term goals, or at the very least, aligning targets with the Paris Agreement's objectives of limiting global warming to 1.5 degrees Celsius above pre-industrial levels. This ensures that emissions reduction strategies and targets are robust enough to fulfill our shared global responsibility in combating severe climate change outcomes.
How Does an Emissions Reduction Strategy Facilitate Achieving a Net Zero Commitment?
Developing an initial emissions reduction strategy and working towards achieving a net zero operational scenario can appear daunting. A detailed roadmap for reductions serves as a bridge between short-term targets (e.g., reducing emissions by 30% by 2030) and long-term net zero goals (e.g., achieving Net Zero by 2050). This roadmap outlines key milestones, actions, and timelines essential for each stage of the journey and offers various initiatives and scenarios to inform decision-making over time.
By ensuring that long-term emissions reduction roadmaps adhere to the Science-Based Targets Net Zero Standard, we assist our clients in staying on course toward their net zero targets over an extended period.
Our 5-Step Process for Establishing an Emissions Reduction Strategy:
Evaluate direct and indirect emissions: Conduct a comprehensive inventory of scope 1, 2, and 3 emissions and meticulously analyze the current emissions profile of the organization, including identifying sources of both direct and indirect emissions. This information guides the organization in understanding where emissions are most prominent and where efforts should be focused to reduce them, establishing a baseline for measuring reduction progress.
Prioritize emissions reduction measures: Based on the analysis, prioritize reduction measures across material categories to address emissions hot spots and opportunities, aligning with a 1.5°C climate change scenario. Prioritization takes into account factors such as feasibility, willingness for leadership and innovation, decarbonization potential, risk management, and cost analysis.
Set short- and long-term targets: We assist in formulating specific, measurable, achievable, relevant, and time-bound (SMART) targets for emissions reduction, both in the near and long term. This target-setting process heavily relies on the analysis and prioritization of various reduction measures, ensuring that the targets are attainable.
Develop a roadmap and implement an action plan: SMART targets necessitate detailed roadmaps that outline the overall emissions reduction strategy over the specified timeframe, whether it spans 10 or 25 years. The roadmap and action plan encompass crucial milestones and detailed actions related to the initiatives, programs, and reduction measures to be implemented during the target period.
Monitor and report progress over time: Emissions reductions across the range of reduction measures must be transparently tracked and reported on throughout the target period. This annual process is vital for any Science-Based Target, and there is an increasing expectation in all markets that progress towards non-SBT emissions reduction targets is also reported annually.