Issue link: https://resources.tangoanalytics.com/i/1523348
HOW: STRATEGIES & LEVERS FOR DECARBONIZATION Decarbonization is typically associated with high-profile commitments by corporations to lower carbon targets, but the steps toward actualizing those goals can be a daunting task. When it comes to reducing operational emissions and environmental impact onsite, organizations have many options, including reducing employee commute, implementing energy efficiency projects, procuring onsite or offsite solar for their energy, and utilizing combined heat and power energy. However, decarbonizing the value chain is one of the most critical actions for many firms, as well as the most challenging. Firms should note that different approaches will make sense for different types of businesses. Before embarking on a strategy to achieve carbon neutrality or net zero emissions, it's essential to understand the distinct decarbonization levers available in every sector — whether it is in finance, energy, building, transportation, or manufacturing. We outline some general measures that make sense for most industries to get started with below: Collecting Data Trustworthy emissions calculations are a prerequisite to effective carbon reduction initiatives. Organizations should use science-backed carbon accounting tools based on the GHG Protocol methodologies to calculate their full emissions profile, which provides a foundation for effective carbon management. However, tracking emissions isn't the same as reducing them; it's only a step in the process. When taking indirect emissions into account, otherwise known as scope 3, organizations should anticipate difficulties. Decarbonizing scope 3 requires organizations to engage with others - such as suppliers, shippers, and end users - along their value chain, which can be tricky when it comes to negotiating contracts, changing procurement policies, and even requesting necessary data from third parties. However, organizations can and should be taking proactive steps to account for scope 3 emissions where they can, regardless of said difficulties, by negotiating with suppliers to put pressure on their data acquisition process. In the meantime, companies can confidently account for their scope 1 and 2 emissions and begin significant reductions at the operational level. Sustainability & Energy Management Simplified