Decarbonisation and your business

What is decarbonisation??

Decarbonisation aims to reduce carbon dioxide emissions, with the eventual goal of reaching net-zero emissions (balancing greenhouse gas emissions with removal). This is achieved using low-carbon technologies and energy sources. Renewable energy, regenerative agriculture and digital energy management are some examples.

Where did the concept of decarbonisation come from?

The notion of decarbonisation was first raised at the 2015 Paris Climate Agreement.?

The main outcome of this meeting of world leaders was to limit global warming to below 2°C above pre-industrial levels and pursue efforts to limit it to 1.5°C. To reach these ambitious targets, countries are required to find ways to cut emissions rapidly. The goal is to reach carbon-neutrality by 2030 and net-zero emissions by 2050.

With less than ten years remaining on the Paris Agreement, an 80 to 90 per cent reduction in global emissions is required to meet the targets. Decarbonisation of the industries that contribute the most emissions is the only way that this can be achieved.

How does this affect businesses?

Net-zero targets require everyone to pull their weight. Governments, businesses, and society are all subject to the detrimental and often deadly effects of climate change, and all need to play a part in making things better.

Many businesses have already committed to becoming carbon-neutral by 2050. Yet at the end of the last financial year, just 45 per cent of FTSE companies were committed to net-zero by 2050, and 84 per cent did not have a robust strategy in place to meet the global goal.

It has become clear that the world is not on track to meet the Paris targets. Government commitments made under the Paris Agreement and more recently, COP26, haven’t yet been translated into noticeable business action.?

Where should I start with decarbonisation in my business?

Reframe decarbonisation as an investment??

Many decarbonisation tools and methods represent a return on investment. A bit of innovative thinking can go a long way, not only in terms of the bottom line but also in providing your company with marketable green credentials.?

For example, Unilever has introduced laundry detergent capsules made from CO2.

Other businesses have embraced the carbon credits model; selling the right to emit greenhouse gasses in return for counterbalancing the emissions elsewhere. Tesla generated US$1.4billion in 2020 by selling carbon credits.

Understand your carbon footprint?

Undertaking an audit will help you understand your full carbon footprint, and the results may surprise you. It’s not all about renewable energy sources. As much as 45% of global emissions come from making and using products, alongside food production.?

Understanding your full carbon footprint will allow you to identify key opportunities to save on cost and reduce carbon output. This will also give you data that can be used for benchmarking.?

Decide what tools and technology you need for decarbonisation

Once you understand your carbon footprint and where the greatest opportunities for decarbonisation lie, you can begin to develop a strategy that achieves maximum value.

The capacity of digital technology for optimising processes, tracking emissions and creating models for improvement is almost limitless these days. Blockchain, digital fingerprints, artificial intelligence and machine learning are just a few options available.

Creating a virtual replica of a physical asset by using a digital twin has yielded impressive results around the world in recent years. This allows users to monitor and analyse data, get a head start with problems and model future scenarios.?

The idea of decarbonisation can seem daunting. Start small and look for quick wins. Speak to one of our Energy Consultants to discuss a free energy audit, or for advice on how you can start reducing your emissions and moving towards net-zero.?