5 Strategic Steps for Decarbonisation
What is Decarbonisation?
Decarbonisation refers to the process of reducing carbon dioxide (CO₂) emissions to the lowest possible level, or ideally, achieving net zero. It has become a cornerstone of the global climate agenda, reinforced by the Paris Agreement’s goal to limit global temperature rise to 1.5°C above pre-industrial levels.
As climate change accelerates and sustainability regulations become tighter, for many, decarbonisation is no longer optional. It is a legal, financial, and strategic necessity for businesses seeking to remain competitive and resilient.
Why is Decarbonisation Essential?
- Climate change is already creating economic, social, and health risks.
- Investors, customers, and employees increasingly demand transparency and accountability.
- Global regulators are mandating carbon disclosure and, in many regions, implementing carbon pricing.
- Companies that delay decarbonisation risk fines, higher costs, lost opportunities, and reputational damage.
5 Steps to Build a Decarbonisation Strategy
- Measure Your Carbon Footprint (Scope 1-2-3): Begin with a comprehensive and accurate baseline. Use international standards (GHG Protocol, ISO 14064) to measure direct emissions from operations (Scope 1), indirect energy-related emissions (Scope 2), and value chain emissions such as logistics and suppliers (Scope 3).
- Align with Global Frameworks: Ensure long-term credibility by integrating global sustainability frameworks into your strategy:
- TCFD (Task Force on Climate-related Financial Disclosures) helps companies disclose climate risks and opportunities.
- ISSB Standards (IFRS S1 & S2) provide a global baseline for sustainability and climate disclosures.
- SBTi (Science Based Targets initiative) enables companies to set science-based emissions reduction targets aligned with the Paris Agreement.
- With a globally aligned approach, complying with the EU’s CSRD, ETS, CBAM, and other regional carbon markets becomes much simpler.
- Set Science-Based Targets: Use frameworks like SBTi to define clear, measurable reduction goals that align with global net-zero pathways for 2030 and 2050.
- Implement Low-Carbon Solutions: Transition your energy mix to renewables, electrify company fleets, invest in energy-efficient technologies, and engage suppliers to reduce Scope 3 emissions across the value chain.
- Track, Report, and Continuously Improve: Adopt digital tools to monitor emissions, ensure compliance with frameworks such as CSRD/TCFD, and share transparent progress reports. Continuous improvement and transparency foster trust and safeguard your company against greenwashing risks.
How Can Faradai Help?
Faradai Net Zero Intelligence Platform supports businesses in building and executing their decarbonisation strategies with:
- Accurate and up-to-date carbon accounting across Scope 1, 2, and 3, covering 2000+ activity data points (energy, water, waste, transport, supply chain).
- Integrated compliance support aligned with global frameworks (TCFD, ISSB, SBTi) and regional regulations such as CSRD, ETS, and CBAM.
- Target-setting aligned with SBTi and automated reporting.
- Real-time dashboards for tracking progress, ensuring transparency, and enabling data-driven decision-making.
Faradai empowers businesses to navigate the complexities of decarbonisation with clarity, precision, and measurable impact.