Defining and steering your company's low-carbon path

Why commit to a low-carbon path?

Despite the efforts made by governments and numerous global initiatives, total human-caused greenhouse gas (GHG) emissions continue to rise. According to current projections, global average temperatures could rise by 2°C to 4°C by the end of the century. Even taking into account existing national commitments, estimates show that global emissions in 2030 will exceed those expected under a 1.5°C warming limit scenario by about 90%.

Businesses play a central role in these emissions, as they are responsible—directly or indirectly—for the majority of global GHG emissions. They play a vital role in achieving the goals set by the 2015 Paris Agreement, which aims to limit global warming by keeping the rise in global average temperature below 2°C (or even 1.5°C) compared to pre-industrial levels. With this in mind, companies must define and implement their own low-carbon pathways, thereby contributing to the collective effort to combat climate change by adopting a responsible approach to innovation.

📉 Comply with the National Low-Carbon Strategy (SNBC)

The National Low-Carbon Strategy (SNBC) is an ambitious plan implemented by France to address the global challenge of climate change. Introduced by the Energy Transition for Green Growth Act (LTECV), this strategy plays a crucial role in the country’s transition to a low-carbon, circular, and sustainable economy.

🎯 The SNBC's Objectives and Guidelines

The SNBC sets out a clear path for reducing greenhouse gas emissions through 2050. Its main goal isto achieve carbon neutrality (see definition) by that date, which means that greenhouse gas emissions will be offset by equivalent removals, such as those achieved by forests or carbon capture technologies.

To achieve this, the SNBC also sets short- and medium-term targets, known as “carbon budgets.” These budgets establish limits on greenhouse gas emissions for various time periods, thereby encouraging concrete actions to gradually reduce them.

The SNBC has a second major goal: to reduce the carbon footprint of French consumers’ consumption, which involves rethinking consumption habits and committing to more environmentally friendly lifestyles.

🏭 The Scope of the SNBC

The SNBC applies to all sectors of the country’s economy. It encompasses manufacturing, transportation, agriculture, construction, energy, and many other fields. No sector is exempt, as the transition to a low-carbon economy and the goal of carbon neutrality for businesses require comprehensive and coordinated action.

Public policymakers, at both the national and local levels, play a key role in implementing the SNBC. They must incorporate this strategy into their policies and actions by adopting concrete measures to reduce greenhouse gas emissions. As a result, both businesses and local governments must decarbonize their operations to contribute effectively to the SNBC.

How can you chart a low-carbon path?

Establishing a low-carbon pathway tailored to the specific needs of each organization is essential for achieving sustainable development goals and contributing to the fight against climate change. However, this process may seem complex and confusing to some. That is why we have outlined below the key steps you must not overlook when developing an effective low-carbon pathway tailored to your organization, whether you are a business or a local government.

🌿Tailoring a low-carbon path to the needs of your business or community

Before you begin planning a low-carbon path, it is essential to understand your company’s or community’s current carbon footprint. This involves assessing the greenhouse gas emissions generated by your activities, processes, travel, and energy sources using the Bilan Carbone®. This assessment will provide a solid foundation for setting realistic and achievable reduction targets. It will also help you understand your needs and identify the reduction targets you need to meet. This step therefore consists of: understanding—assessing—setting your goals.

📊Regularly reassess your goals based on the progress you've made

To ensure your trajectory remains relevant and up-to-date, it is crucial to monitor progress toward reducing greenhouse gas emissions. To do this, it is essential to establishmonitoring metrics to assess the effectiveness of the measures taken. If the results do not meet expectations, your company must be prepared to adjust its trajectory accordingly. Reassessing your goals is therefore a key step that should not be overlooked! This step allows you to: monitor, reassess, and adjust.

Setting Science-Based Targets (SBT)

Science-Based Targets (SBT) provide a clear framework that enables companies to developlong-term low-carbon strategies while taking into account climate risks and emerging opportunities. Thus, for organizations wondering what emission reduction targets to set, these SBTs offer an opportunity to align with global emission reduction goals. This approach also promotes a coordinated and consistent response to climate change.

🔎 What are Science-Based Targets (SBTs)?

Science-Based Targets are greenhouse gas (GHG) emission reduction targets that are aligned with the latest scientific findings on combating climate change. These targets are developed with an eye toward the urgency and scale of the action needed to limit global warming to 1.5 degrees Celsius, in accordance with the recommendations of the Paris Agreement.

🔬 The Science Based Targets Initiative (iSBT)

The Science Based Targets initiative (iSBT) is a collaboration among several renowned organizations, including the CDP (Carbon Disclosure Project), the United Nations Global Compact, the World Resources Institute (WRI), and the WWF (World Wide Fund for Nature). The goal of this initiative is to provide a methodological framework for companies to set GHG emission reduction targets that are aligned with scientific recommendations for limiting global warming to below 2°C (or even 1.5°C).

⚠️ Not all organizations that establish SBTs necessarily submit them for validation by the SBTi. However, this validation offers them the opportunity to join a growing group of organizations committed to setting science-based targets and having their targets validated by the SBTi.

✅ What are the benefits of a low-carbon path?

In addition to the obvious environmental advantages, a low-carbon path offers many benefits:

1. Increased credibility and reputation 💯

Companies and local governments that implement decarbonization projects and low-carbon strategies gain credibility in the eyes of consumers, investors, and stakeholders. This increased credibility can provide acompetitive advantage in the market, as more and more customers are turning to environmentally responsible companies that are attuned to environmental issues.

2. Increased stakeholder trust 🤝

By committing to a low-carbon path, businesses and local governments demonstrate that they take their responsibility toward the environment and society seriously. This helps build trust among stakeholders, including customers, employees, suppliers, and local communities.

3. Reducing regulatory risk and the future Carbon Tax Base®💰

As governments around the world adopt increasingly strict regulations on carbon emissions, businesses and local governments are facing growing regulatory risks. By adopting a low-carbon trajectory, these entities can protect themselves against potential penalties and fines resulting from noncompliance with environmental regulations and reduce the cost of the future Carbon Tax Base®.

4. Increased Profitability and Carbon® Competitiveness 🏅

Although the transition to a low-carbon pathway may require initial investments, it can also generate long-term savings. By optimizing resource use, improving energy efficiency, and adopting sustainable practices, businesses and communities can reduce their operating costs and strengthen their competitiveness in the market, as well as their Carbon Competitiveness®.

5. Reducing the risks associated with dependence on fossil fuels 🌿

By moving away from fossil fuels and toward renewable energy sources, businesses and communities reduce their exposure to fluctuations in fossil fuel prices. This makes them less vulnerable to economic shocks related to energy resources and ensures greater long-term financial stability.

6. Increased opportunities for sustainable technological development 📈

The transition to a low-carbon pathway drives innovation in clean and sustainable technologies. By investing in the research and development of low-carbon solutions, businesses and communities contribute to the growth of a green and sustainable economy, thereby paving the way for new business opportunities.

🌐Chart your low-carbon path and improve your Carbon Competitiveness® with Decarbo’Solution®!

The Decarbo’Solution® platform allows users to create and manage their own Science Based Targets (SBT) pathways. These greenhouse gas emission reduction pathways, defined within the SBT framework, can be exported and easily viewed in a comprehensive report generated by Decarbo’Solution®. By comparing emissions reports for different years, users can easily compare actual emissions with the trajectory they have chosen.

This feature allows them to accurately track their progress and ensure that their actions are fully aligned with the goals set by the SBTs as part of the company’s decarbonization efforts.

The potential of Decarbo’Solution® is undeniable, and with this innovative approach to setting SBTs, users are firmly on the path to a more sustainable and environmentally responsible future.

For more information: 

• The Specifics of a Carbon Footprint Assessment for a Company in the Construction Industry
• Carbon Plan: How Should You Structure Your Reduction Goals and Actions?