Issue link: https://resources.tangoanalytics.com/i/1523348
The global shift towards sustainability has significantly encouraged businesses to decarbonize their operations to remain competitive in 2024 and beyond. Decarbonization refers to the process of reducing carbon dioxide (CO₂) emissions associated with human activities, particularly those from the burning of fossil fuels like coal, oil, and natural gas. The goal of decarbonization is to mitigate the impact of climate change by transitioning to low-carbon or zero-carbon energy sources. In the context of business, decarbonization refers to the process of cutting emissions from corporate operations and value chains. Whether the imperative to decarbonize business operations is driven by regulators, consumers, stakeholders, or the ever-present existential crisis of a pending global climate collapse, the need for businesses to act is clear. Thus far, collecting data on emissions has been at the forefront of many organizations' sustainability agendas to meet the demands of emerging climate reporting regulations like the EU's CSRD, California's new climate laws SB 253 and 261, and the SEC climate rule. However, firms should understand that this data is meant to be used. Shifting the focus from meeting data compliance reporting laws and necessities to making data and disclosures actionable for meaningful decarbonization is the next frontier for business. The world is already witnessing a significant shift towards a clean energy economy, with renewable energy, particularly solar PV, and electric vehicles at the forefront. This transition is driven not just by climate concerns but also by economic and energy security factors. Government policies, such as the Inflation Reduction Act in the U.S., play a crucial role in accelerating the adoption of clean energy technologies and corporations should seek to take advantage of the financial incentives provided for renewables adoption while they can. This comprehensive guide is meant to aid businesses looking to begin their journey toward decarbonizing their portfolios to meet sustainability goals and comply with evolving regulations and investor expectations. INTRODUCTION Sustainability & Energy Management Simplified