The need to address climate change has increased in recent years, and businesses are under greater pressure than ever to create and implement a credible net-zero strategy. The link between stewardship and financial performance is well known to investors. The message to corporations is clear: climate risk boosts instability which leads to potential financial risk and lower value.

To meet their goals, many corporations are developing decarbonisation programmes to reach carbon neutral goals. These include renewable energy sources, creating new product lines, moving factories, and investing in carbon mitigation and capture. There are fundamental components that apply to any organisation, but the specific tactics differ greatly among industries.

At S317, we believe that this process should follow six main pillars:

1. Revise the company strategy to include climate goals. Ensure that you have all the organisation mobilised towards climate goals and that all employees understand why it is so important for the business and the world to shift.
2. Calculate the company’s carbon footprint. Identifying the various sources of emissions and understanding the impact of the company’s activities in global CO_2e emissions is crucial to manage these emissions.
3. Develop a decarbonisation plan (electrify, increase renewables, enhance energy efficiency, adopt circular economy practices, reuse water). A decarbonisation plan is a patchwork of many operational projects that should be ranked depending on their expected impact and investment need. Always choose based on CO_2e reduction per EUR or USD
4. Understand that your suppliers’ carbon footprint affects your own footprint. Mobilise them to decarbonise their operations. Include in your procurement standards increased decarbonisation goals.
5. Offset your carbon emissions as an additional way to support climate. Understand that you cannot reach carbon zero, but you can support the offset of these emissions either by investing in forests, or carbon capture technology projects. Look for certified projects by Verra or Gold Standard.
6. Be accountable, be transparent. Clients value companies that are accountable. We all know that this is a very challenging time. Demonstrate provable progress with customers, investors, lenders, and stakeholders to maintain your reputational and financial benefits.

Our experts support organisations around the world to achieve their decarbonisation goals.