How does my company's low-carbon strategy create value?

What is the SNBC?

🌿 Definition

Adopted ahead of COP21, the SNBC (National Low-Carbon Strategy) is a roadmap intended for all sectors of activity. It provides guidance on implementing the transition to a low-carbon, circular, and sustainable economy, drawing in particular on the principles of responsible innovation.

In particular, it sets GHG emission reduction targets at the national and sectoral levels, as well as carbon budgets that must be adhered to (greenhouse gas emission caps set for 5-year periods that must not be exceeded at the national level in France in the short and medium term).

🎯 The SNBC's Objectives and Sectoral Guidelines

Why these two goals?

✅ To ensure that France remains consistent with the commitments it has made under the Paris Agreement

✅ To combat climate change

✅ To ensure a healthy future for present and future generations

✅ To improve the quality of life (climate, health, etc.) of the French people

✅ To comply with the law

To help organizations plan their carbon strategy with the aim of achieving these two main objectives, the National Low-Carbon Strategy has issued 45 guidelines grouped into three broad categories:

• Guidelines for Governance and Implementation at the National and Regional Levels,
• Cross-cutting Guidelines on Carbon Footprint, Economic Policy, Research and Innovation, Urban Planning, Education, and Employment
• The Guidelines for each sector, namely transportation, buildings, agriculture, forestry and wood products, industry, energy production, and waste.

🤔 How to implement it in a company

Companies are thus called upon to contribute to the implementation of a low-carbon strategy, with the goal of combating climate change.

A low-carbon strategy involves three main steps:

1️⃣ The first step is to calculating your carbon footprint®. This involves calculating greenhouse gas emissions to identify opportunities for reduction in areas such as waste, overconsumption, and misuse, etc.

It is also important during this first stageto involve suppliers. They account for 50 to 80 percent of a company’s emissions; it is therefore necessary to engage them—that is, to ask them specifically for the emission factors of the products and services they sell to us—in order to successfully decarbonize procurement, which is an essential condition for a successful low-carbon transition.

2️⃣ Once the most significant emission sources have been identified and potential improvements for each have been assessed, an action plan to reduce GHG emissions will be implemented. This is the second step. This plan will help identify and manage the reduction measures to be implemented, such as optimizing the production process, prioritizing suppliers based on the carbon footprint of their supplies, and promoting more sustainable logistics.

3️⃣ The third step—which is entirely optional—involves voluntarily participating in carbon offset or carbon contribution projects to mitigate one’s residual emissions.

The Different Steps for Developing a Carbon Strategy for My Company

📝 Calculate Your Carbon Footprint®

Conducting a comprehensive GHG inventory (BEGES), commonly known as Bilan Carbone®, involves quantifying all greenhouse gas emissions generated by any product, service, activity, or human entity.

These emissions are reported according to three scopes. The purpose of these scopes is to categorize greenhouse gas emissions by category or by type of business activity.

A carbon footprint® assessment must be conducted in accordance with recognized rules, standards, and methods. Therefore, choosing the right tool to carry it out is essential.

The uniqueness and strength of Decarbo’Solution® lie in two key features:

👉 Demystifying the BEGES: Thanks to the user-friendly design and educational resources of the Decarbo’Solution® platform, everyone—from microbusinesses, small and medium-sized enterprises, and mid-sized companies to large corporations and local governments—can independently create their own comprehensive BEGES (Scopes 1, 2, and 3) that complies with (GHG Protocol, ISO 14064-1, Méthode Bilan Carbone®)

👉 Democratizing BEGES: The proposed prices (€350/€950 for microbusinesses and SMEs, €1,450/€2,450 for mid-sized companies, and €3,450/€4,450 for corporate groups) guarantee a strong ROI

The assessment provided by this GHG emissions report then enables the implementation of reasonable and effective decarbonization strategies.

🛒 Involving Your Suppliers

A company's activities are not limited to its own operations but also include those of its suppliers.

If we consider only direct emissions (Scope 1 and 2), we therefore have a limited view of an entity’s climate responsibility. Only a comprehensive view across the value chain allows us to identify the most relevant courses of action.

To accurately measure and reduce Scope 3 emissions, organizations need a clear understanding of, governance over, and oversight of the entire value chain.

By using data from suppliers, it is possible to identify the most relevant sources of emissions. This supplier data thus makes it possible to determine where to focus efforts to improve primary data, emissions calculations, and, of course, the reduction of these emissions.

Here are some concrete examples ofeco-friendly measures that suppliers can implement:

• • Providing sustainable raw materials: Suppliers can help companies reduce their carbon footprint by providing sustainable raw materials and reducing emissions associated with the extraction, production, and delivery of those raw materials.
  • Provide low-carbon products and services: They can commit to providing low-carbon products and services such as energy-efficient technologies, renewable energy sources, electric vehicles, etc.
  • Measuring Their GHG Emissions: Suppliers can help organizations measure and track the greenhouse gas emissions associated with their operations by providing accurate data on their own emissions.

To encourage its suppliers to provide their “carbon footprint,” the company offers the following on the Decarbo’Solution® platform:

• • A "distribution" service: sending an automated request for emission factors to suppliers and tracking their responses
  • A tool for analyzing the “carbon footprint” of bids, allowing it to prioritize those that can demonstrate a lower carbon footprint associated with their goods or services

Suppliers have no choice but to accept this legitimate request, as they can calculate the “carbon footprint” of their products and services (PCF, Product Carbon Footprint, calculated in accordance with ISO 14 067) for free on the Decarbo’Solution® platform. It’s hard to imagine them refusing to invest just a few dozen minutes of their time to meet this legitimate request from their customers.

Through this collaborative approach to managing the environmental performance of its suppliers, the concept of sustainable procurement becomes a reality.

🌱 Reducing and Managing Your Carbon Footprint

The phase of identifying emission sources is a key step in conducting a carbon footprint® assessment and must be as comprehensive as possible. This data makes it possible to create a complete map of the company’s activities and to assess its total GHG emissions.

Once this phase is complete, the data will be analyzed to identify the company’s activities with the highest emissions. It is during this step that an action plan begins to take shape.

Companies can receive support from Decarbo’Solution®’s certified experts in developing and implementing their action plan:

• • Identification of areas for improvement (comparative analyses, uncertainty calculations, benchmarking, waterfall diagrams, etc.).
  • Simulating the potential impacts of mitigation measures to make the right decisions regarding their low-carbon trajectory
  • Monitoring its progress toward the SBT (Science-Based Target) or SNBC (National Low-Carbon Strategy).
  • Incorporation of the Action Plan into the BEGES

It is essential to ensure that the solutions under consideration do not yield results that are too insignificant—or even counterproductive. It is necessary to assess the net reduction resulting from an action before implementing it or launching a communication campaign, in order to avoid:

• • unwarranted expenses and a waste of time.
  • to fall into the trap of “greenwashing” and be accused of misleading communication.

🌎 Participate in a Carbon Offset Project

This is a key step on the path to a low-carbon future: getting as close to zero as possible, and offsetting residual emissions—those that could not be reduced any further—by removing and/or sequestering an equivalent amount in carbon sinks (forests, mangroves, oceans, etc.).

Decarbo’Solution® offers projects that comply with certification standards, as well as socially responsible projects that address factors such as job creation, support for local communities, the preservation and development of so-called “at-risk” natural areas, and other significant local socioeconomic factors.

These carbon offset projects are available in several regions around the world, such as Europe and Latin America, as well as locally in France. Each one is aligned with the 17 Sustainable Development Goals (SDGs) established by the UN to address the global challenges we face.

Contributing to these projects also allows organizations to highlight their commitment to environmental issues and their low-carbon initiatives.

The benefits achieved through this low-carbon strategy

Being a responsible company therefore involves these three principles: calculate—reduce—contribute/offset.

Decarbo’Solution® enables everyone to succeed in this endeavor and thus move toward a new hybrid economic model that combines sustainable economic development with the energy transition.

A low-carbon strategy offers numerous benefits that extend to all activities, both internal and external to the company.

💪 Improving Profitability

Conducting a BEGES assessment makes it possible to identify potential savings—what is known as ROI. For example, in terms of reductions:

💡Energyconsumption: By using renewable energy sources or reducing waste, companies improve their energy efficiency and thus consume less energy

🚮 Waste : Waste often leads to additional costs (production costs, transportation costs, etc.). Therefore, reducing waste helps improve profitability.

🚛 Unnecessarytravel and transportation: Optimizing routes to reduce the number of kilometers traveled not only helps reduce GHG emissions but also lowers transportation-related costs (maintenance, fuel, etc.).

✅ Standing Out from the Competition

A comprehensive low-carbon strategy is an effective way to set yourself apart from competitors. It allows you to position yourself strategically in the market— particularly by investing in clean technologies—and to tap into new opportunities.

In fact, a company that has completed its Carbon Footprint® assessment has a significant competitive advantage when submitting bids for contracts.

First and foremost, because this allows the company to gain an accurate understanding of its own environmental impact and thus implement measures to reduce its GHG emissions.

The Carbon Competitiveness® of product or service offerings is becoming an increasingly important criterion in requests for proposals.

💸 Attracting Investors

Committed companies will be able to more effectively attract funding from investors seeking environmentally friendly projects. How? By highlighting their commitment to decarbonizing their business and the actions they have taken to improve their environmental footprint.

💯 Boost brand image

Companies that commit to a low-carbon approach are responding to growing consumer demand: consumers want to know the environmental impact of their consumption so they can make choices that align with their desire to consume in a more responsible and sustainable manner.

As a result, their employer brand is positively impacted, thereby meeting the expectations of younger generations and strengthening this intangible asset.

The LCL Group's Low-Carbon Strategy

LCL, an urban bank, has implemented its low-carbon strategy with Decarbo’Solution®.

Their motivation: Banks have a major role to play in this transition, which is why LCL has committed to reducing its own emissions but also wants to take the lead in supporting economic stakeholders.

LCL implements this strategy across four major categories, which account for nearly 90% of the total:

🛒 purchases (50%),

🚘 travel (20%),

🏢 real estate assets (10%),

💡 Energy (10%).

By adopting a low-carbon strategy, LCL has improved not only its carbon competitiveness but also its proactivity. Projects to reduce GHG emissions are already underway with its customers—a competitive advantage that also enjoys the support of its employees!

Thank you to the LCL Group for trusting us to independently conduct their Carbon Footprint® assessment and develop their action plan on the Decarbo’Solution® platform.