What is decarbonisation? – part II.

Decarbonization of the business sector is an integral part of reaching drawdown, that is, the moment when the amount of greenhouse gases (GHG) in the atmosphere begins to decrease. Enormous opportunities open up for businesses that become supporters of reducing emissions. It is already proven that climate leaders in the private sector can benefit in many ways from the transition to zero emissions.

Studies have shown that companies with lower carbon emissions are more attractive to investors, have better talent retention, higher financial performance, cost savings, lower regulatory risks and access to cheaper capital. Enterprises that are the first to adapt to low-carbon business models create greater value for shareholders and stakeholders.

In addition, low-carbon production is a key part of environmental social governance (ESG). ESG integration provides companies with a clear competitive advantage, as studies have shown that investors and consumers prefer sustainable and ethical brands. Being a low-carbon company also reduces risk, as businesses can avoid greenwashing and its negative consequences while preparing for upcoming news and regulations.

What is good decarbonization?

The benefits of decarbonizing your business are clear and numerous. But how to achieve real decarbonisation? In order to set science-based targets (SBTs) and strategically reduce their emissions, businesses must first understand where and how they produce greenhouse gases throughout their supply chain.

Therefore, the first step to reducing a company's carbon footprint is to monitor scopes 1, 2 and 3 using carbon accounting. Accurate carbon accounting allows companies to see where they have the highest emissions and where efforts to reduce them could have the most significant impact. In the field of environmental impact, the more information you have, the more effectively you can act.

A good decarbonisation process is characterized by a strategic, informed and committed approach to reducing carbon emissions in all aspects of business operations. These efforts not only contribute to the creation of a decarbonized economy, but also provide compelling evidence of the economic viability and growth potential for businesses that adopt decarbonization. By consistently carbon accounting, setting ambitious but achievable SBTs and investing in clean technology, businesses can lead the way in building a more sustainable and low-carbon future. (Co2AI).