Strategies for a Sustainable Future: Successfully Decarbonizing Your Business

Decarbonizing a business involves reducing those emissions produced in connection with that company’s activities and products. This means all the emissions made by the company’s own business activities, as well as in its upstream and downstream value chain. Reducing emissions isn’t just necessary because of encroaching climate change. It is also increasingly stipulated by laws such as CSRD. According to CSRD, businesses will have to report much more extensively about what they are doing towards sustainability. The content of these reports will also have to be quantified more thoroughly, so that the things stated in them can be properly measured and compared. Testing standards are also being defined so that reports can be checked externally. According to estimates, the number of obligations that have to be fulfilled will rise from 11,600 to 49,000, although very small businesses are exempt from them.

Most emissions (up to 80%) are created in the upstream and downstream supply chain (Scope 3 emissions) rather than in a company’s own area of business (Scope 1) or in purchased energy (Scope 2). That’s why it’s important to collaborate extensively with suppliers (and to choose the right ones), so that emissions can be permanently reduced.

Decarbonization in Specific Industries

If we look at how greenhouse gases have been reduced since 2018 in different sectors, we observe the following: The consumer goods industry has taken increasing steps in recent years to make its operating procedures more sustainable. According to Landesbank Baden-Württemberg, it takes a leading position in reducing emissions—with an annual average of around 13%, which is approximately three times the minimum level. The minimum level is the minimum benchmark of around 4%, which is needed to reduce global warming to 1.5 degrees Celsius above pre-industrial levels. The retail industry has also advanced significantly, with an annual reduction rate of more than 6%. The chemical industry, however, faces considerable challenges. Because of its carbon-intensive nature, quickly restructuring traditional value chains in businesses belonging to this industry can prove quite difficult. Its annual average reduction has been below 2% so far. Reduction levels in the construction and energy industries also remain low at below 2%. But greater potential for sustainable development is evident in construction.

How Your Business Can Be Efficiently Decarbonized

To us, sustainability is more than just a buzzword. It’s a duty. That’s why we have undertaken to support you with competent advice and expertise. We’ve defined three steps that we can use to implement your project quickly and efficiently:

1st step: Hot Spot Assessment

Our Expertise

  1. Identify your main emission sources (“hot spots”) along the value chain (using the Greenhouse Gas Protocol for Scopes 1, 2, and 3).
  2. Conduct emissions workshops to prioritize your most important commodity groups, suppliers, business areas, and areas of action.
  3. Define your greenhouse gas emission data model and calculation logic (“CO2 baselining”): as the project progresses, we take an “iterative path” from expenditure-based secondary data (hot spot assessment) to company-specific primary data.

Your Benefits

  • Confidence: this will give you certainty about carbon hot spots in your supply chain, as well as data transparency. That, in turn, will allow you to prepare properly for the coming demands of different stakeholders.
  • Ensure competitiveness: good carbon accounting gives you transparency about carbon emissions, as well as an accurate idea of your future costs.
  • Information advantage: integrating robust carbon data helps you not only in your reporting, but also when it comes to making decisions in procurement and top management.
     
2nd step: Developing an Emissions Strategy, Targets, and Roadmap

Our Expertise

  1. Define decarbonization targets and baseline. What is important is that defined targets correspond with specific regulations, such as those of the Science-Based Targets Initiative (SBTi).
  2. Derive custom decarbonization measures.
  3. Develop decarbonization strategy and roadmap.

Your Benefits

  • Value enhancement: you concentrate on the “right” action areas and suppliers, because your decarbonization strategy and roadmap pursue only those targets that contribute to achieving your sustainability goals.
  • Compliance: make an active contribution to safeguarding future generations’ quality of life by observing ecological standards and regulations. This helps you safeguard your social “license to operate”.
  • Reputation: enhance your company’s reputation through a strategic approach to decarbonization that delivers visible results and clearly demonstrates your value proposition to internal and external stakeholders

 

3rd step: Pilot and Roll-Out Decarbonization Program

Our Expertise

We will launch pilot and lighthouse projects together with you, so that you can move quickly to operative implementation. These will either deliver “quick wins” or serve as blueprints for a Group-wide roll-out. We look at prioritized commodity groups, suppliers, and business areas while establishing a reporting structure and governance processes. That’s how we get your decarbonization path off to the best possible start and pave the way for demonstrably low-carbon supply chains. The final step therefore involves the following:

  1. Execute emission reduction projects (such as material and waste reduction, transportation optimization, and circular economy).
  2. Roll out emissions reduction initiatives with strategic partners and suppliers.
  3. Establish impact management/controlling and reporting structure.

Your Benefits

  • Ensure competitiveness: realize and implement your sustainability ambitions to ensure long-term competitiveness for your business in an increasingly regulated business environment.
  • Value enhancement: combine emissions-related and economic aspects through targeted initiatives. This gives you twice the added value within your company.
  • Secure your supply lines and make your business resilient: you can make your business processes future-proof and resilient by deploying holistic carbon management and targeted decarbonization measures.

 

Our References

 

“Together with the team at HÖVELER HOLZMANN, we undertook a brief, intensive project, laying the foundations for sustainable procurement. The aim was to assess our site and then, on that basis, draw up specific opportunities that would incorporate sustainability more fully into procurement processes in infrastructure projects.”


- Mirco Lehners, Head of Procurement at Gasunie Deutschland GmbH

Read more about our references


HÖVELER HOLZMANN - a valantic company

Bahnstraße 16
40212 Düsseldorf
Tel.: +49 (0) 211 - 56 38 75 - 0
Fax: +49 (0) 211 - 56 38 75 - 69
Mail: info@hoeveler-holzmann.com

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