Define and manage your company's low-carbon trajectory

Why embark on a low-carbon trajectory?

Despite the efforts of governments and numerous global initiatives, total emissions of man-made greenhouse gases (GHGs) continue to rise. According to current projections, average global 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 be around 90% higher than those expected in a scenario limiting global warming to 1.5°C.

Businesses play a central role in these emissions, being responsible, directly or indirectly, for the majority of global GHG emissions. They occupy an essential position in achieving the objectives set by the Paris Agreement in 2015, which aims to limit global warming by keeping the rise in average global temperature below 2°C (or even 1.5°C) compared with pre-industrial levels. With this in mind, companies have an imperative to define and implement their own low-carbon trajectory, thereby contributing to the collective effort in favor of the climate.

📉 Respecting the National Low Carbon Strategy (SNBC)

The National Low-Carbon Strategy (Stratégie Nationale Bas-Carbone - SNBC) is an ambitious plan put in place by France to meet the global challenge of climate change. Introduced by the French Law on Energy Transition for Green Growth (LTECV), this strategy plays a crucial role in the country's transition to a low-carbon, circular and sustainable economy.

🎯 SNBC Objectives and Guidelines

The SNBC defines a clear trajectory for reducing greenhouse gas emissions up to 2050. Its main objective is toachieve carbon neutrality by that date, which means that greenhouse gas emissions produced will be balanced by equivalent absorptions, 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 set limits on greenhouse gas emissions for different periods, thus encouraging concrete action to progressively reduce them.

The SNBC has a second major ambition: to reduce the carbon footprint of French consumption, which implies a review of consumer practices and a commitment to more environmentally-friendly lifestyles.

🏭 The scope of the SNBC

The SNBC is aimed at all of the country's business sectors. It encompasses industry, transport, agriculture, construction, energy and many other areas. No sector has been spared, as the transition to a low-carbon economy requires global, coordinated action.

Public decision-makers, at both national and regional level, play an essential role in implementing the SNBC. They must integrate this strategy into their policies and actions, adopting concrete measures to reduce greenhouse gas emissions. As a result, companies and local authorities alike must decarbonize their activities if they are to make an effective contribution to the SNBC.

How do you define your low-carbon trajectory?

Implementing a low-carbon trajectory tailored to the specific needs of each organization is essential to achieving sustainable development objectives and contributing to the fight against climate change. However, this process can seem complex and confusing to some. That's why we've outlined below the key steps you need to take to develop an effective low-carbon trajectory tailored to your organization, whether you're a company or a local authority.

🌿Adapting the low-carbon trajectory to the needs of your company or community

Before starting to plan a low-carbon trajectory, it's essential to understand the current carbon footprint of your company or local authority. This involves assessing the greenhouse gas emissions generated by your activities, processes, travel and energy sources using the GHG inventory®. This assessment will provide a solid basis for defining realistic and achievable reduction targets. It will also enable you to understand your needs, and what your reduction targets are. This stage therefore consists of: understanding - evaluating - setting your targets.

📊Regularly reassess goals based on progress made

To keep your trajectory relevant and up to date, it's crucial to monitor progress towards reducing greenhouse gas emissions. To do this, it is essential to set uptracking indicators to assess the effectiveness of the measures taken. If results fall short of expectations, your company will need to be ready to adjust its trajectory accordingly. Reassessing objectives is therefore a key step not to be overlooked! This stage enables you to: monitor - re-evaluate - adjust.

Setting Science-Based Targets (SBT) trajectories

SBT (Science-Based Targets) trajectories provide a clear framework for companies to develop long-term strategies, taking into account climate risks and emerging opportunities. So, for organizations wondering what emission reduction targets to meet, these SBT trajectories offer an opportunity to align with global emission reduction goals. This approach also promotes a coordinated and coherent response to climate change.

🔎 What are Science-Based Targets (SBT)?

Science-Based Targets are greenhouse gas (GHG) emission reduction targets aligned with the latest scientific findings in the fight against climate change. These targets are developed taking into account the urgency and scale of action required to limit global warming to 1.5 degrees Celsius, in line with the recommendations of the Paris Agreement.

🔬 Science Based Targets (iSBT) initiative

The Science Based Targets (iSBT) initiative is a collaboration between several renowned organizations, including the Carbon Disclosure Project (CDP), the United Nations Global Compact, the World Resources Institute (WRI) and the World Wide Fund for Nature (WWF). The aim of this initiative is to provide companies with a methodological framework for setting GHG emissions 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 SBT trajectories submit them for SBTi validation. However, this validation offers them the opportunity to join a growing group of organizations committed to setting scientifically-based targets and having obtained SBTi validation of their targets.

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

In addition to the obvious environmental advantages, a low-carbon trajectory brings numerous benefits:

1. Enhanced credibility and reputation 💯

Companies or local authorities that implement decarbonization projects and low-carbon strategies gain credibility in the eyes of consumers, investors and stakeholders. This increased credibility can be acompetitive advantage in the marketplace, as more and more customers turn to eco-responsible companies that are sensitive to environmental issues.

2. Increased stakeholder confidence 🤝

By committing to a low-carbon trajectory, companies and communities show that they take their responsibility to the environment and society seriously. This builds trust with stakeholders, including customers, employees, suppliers and local communities.

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

With governments around the world adopting increasingly stringent regulations on carbon emissions, companies and local authorities are facing growing regulatory risks. By adopting a low-carbon trajectory, these players can protect themselves against potential sanctions and fines linked to non-compliance with environmental regulations, and reduce the cost of the future Carbon Tax Base®.

4. Increased profitability and Carbon Competitiveness® 🏅

While the transition to a low-carbon trajectory may require up-front investment, it can also generate long-term savings. By optimizing the use of resources, improving energy efficiency and adopting sustainable practices, businesses and local authorities can reduce their operating costs and boost their competitiveness in the marketplace, as well as their Carbon Competitiveness®.

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

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

6. Increased opportunities for sustainable technological development 📈

The transition to a low-carbon trajectory is driving innovation in clean, sustainable technologies. By investing in the research and development of low-carbon solutions, companies and communities are contributing to the growth of a green, sustainable economy, opening the way to new business opportunities.

🌐Pilot your low-carbon path and improve your Carbon Competitiveness® with GCI!

The GCI platform enables users to create and manage their own Science Based Targets (SBT) trajectories. These SBT emission reduction trajectories can be exported and easily consulted in a comprehensive report generated by GCI. By reconciling emissions declarations for different years, users can easily compare actual emissions with the trajectory they have chosen.

This feature enables them to accurately track their progress and ensure that their actions are perfectly in line with the objectives set by SBT.

GCI's steering potential is unequivocal, and with this novel approach to defining SBTs, users are firmly on the path to a more sustainable and ecologically responsible future.