Decarbonization Journey

Effective decarbonization begins with establishing a comprehensive and accurate emissions baseline. This involves measuring direct and indirect emissions using standardized methodologies and ensuring third-party verification to provide transparency and credibility. Without a reliable baseline, it is not possible to track progress or prioritize action effectively.

Once emissions are measured, science-based targets must be set to provide direction and accountability. Targets aligned with the 1.5 degree Celsius scenario create a clear benchmark for action and support alignment with international climate commitments. These targets serve as the foundation for long-term planning and investment decisions across business units.

Identifying and prioritizing abatement levers is the next critical step. This requires a detailed analysis of emissions hotspots across operations, supply chains, and product lifecycles. Prioritization enables the allocation of resources to the most material reduction opportunities and supports integration into operational planning.

With priority areas defined, organizations must build decarbonization pathways that translate targets into practical trajectories. These pathways combine technology options, operational changes, and supplier engagement strategies into structured plans that outline when and how reductions will be achieved over time.

Implementation depends on effective resource allocation and internal coordination. Teams must be equipped with the tools, guidance, and incentives to execute the plan. Success also relies on embedding emissions reduction into core decision-making processes, including procurement, logistics, and capital expenditure.

Communication plays a critical role in supporting both execution and accountability. Internally, it ensures alignment across departments and leadership. Externally, transparent updates on progress and challenges help build trust among stakeholders, from investors to regulators and customers.

Regular disclosure reinforces transparency and continuous improvement. Emissions reporting should follow established frameworks and cover Scope 1, Scope 2, and relevant Scope 3 categories. These disclosures inform stakeholders of current performance and provide a basis for tracking alignment with climate goals.

Understanding emission scopes is essential for comprehensive decarbonization. Scope 1 covers direct emissions from owned sources. Scope 2 includes emissions from purchased energy. Scope 3 spans upstream and downstream activities, such as supplier operations, transportation, and product end use. Addressing Scope 3 requires collaboration across the value chain and the integration of sustainability criteria into procurement and product design.

Source: Terrascope

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