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

What is the NCBS?

🌿 Definition

Adopted ahead of COP21, the SNBC, the National Low-Carbon Strategy, is a roadmap for all sectors of activity. It provides guidelines for implementing the transition to a low-carbon, circular and sustainable economy.

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

🎯 Objectives and sectoral orientations of the SNBC

Why these two objectives?

✅ For France to be consistent with its commitments 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...) of the French

✅ To comply with the Law

To help organizations plan their carbon strategy to achieve these two main goals, the National Low-Carbon Strategy has issued 45 guidelines grouped into 3 main categories:

• Governance guidelines and implementation at the national and territorial levels,
• Cross-cutting guidelines on carbon footprint, economic policy, research and innovation, urban planning, education and employment
• The Guidelines for each sector of activity, namely transport, buildings, agriculture, forestry, industry, energy production and waste.

🤔 How to set it up in a company

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

A low-carbon strategy involves 3 main steps:

1️⃣ The first step is to to make a carbon footprint®.. This involves taking an inventory of greenhouse gas emissions in order to identify ways to save on waste, over-consumption, misuse, etc.

It is also important during this first stage toinclude the commitment of suppliers. They represent 50 to 80% of a company's emissions; it is therefore necessary to involve them, i.e. to ask them for the precise emission factors of the products and services they sell us, in order to succeed in decarbonizing its purchases, an essential condition for the success of a Low Carbon trajectory.

2️⃣ Following this identification of the most important emission items and the potential progress for each of them, an action plan to reduce GHG emissions will be set up. This is the second step. This plan will make it possible to identify and manage the reduction actions to be carried out, such as optimizing the production process, positively discriminating against suppliers based on the carbon footprint of their supplies, or promoting more sustainable logistics.

3️⃣ The third step, which is completely optional, consists of voluntary participation in carbon offset projects to mitigate its residual emissions.

The different steps to define the carbon strategy in my company

📝 Carrying out a carbon footprint

The realization of a complete GHG assessment (BEGES), commonly called GHG inventory®, corresponds to the quantification of all greenhouse gas emissions emitted by any product, service, activity or human entity.

The scope of accounting for these emissions is based on three scopes. The objective of these scopes is to categorize greenhouse gas emissions by item, or by type of activity of a company.

The Carbon Footprint® must be carried out according to recognized rules, standards and methods. Thus, the choice of the tool to perform it is essential.

GCI 's originality and strength is based on two essential characteristics:

👉 Deacralization of the BEGES: thanks to the ergonomics and pedagogy of the GCI platform, everyone, from VSEs, SMEs and ETIs to large groups and local authorities, can autonomously produce their own complete BEGES (scopes 1, 2 and 3) in compliance with the GHG Protocol, ISO 14 064-1, GHG inventory® method.

👉 Democratization of the BEGES: the proposed prices (350/950 € for VSE-SME, 1450/2450€ for ETI, 3450/4450 for groups) guarantee a strong ROI

The assessment of GHG emissions thus made by this report allows the implementation of reasonable and effective decarbonization strategies.

🛒 Involve your suppliers

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

If we only look at direct emissions (scope 1 and 2), we have a limited vision of the climate responsibility of an entity. Only a global vision along the value chain allows us to identify the most relevant courses of action.

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

By using supplier data, it is possible to examine the most relevant emission sources. This supplier data can then be used to determine where to focus efforts to improve primary data, emissions calculations, and of course, emissions reductions.

Here are some concrete examples ofgreen actions that suppliers can implement:

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

To commit its suppliers to provide their "carbon profile" the company has on the GCI platform :

• • A "propagation" service: sending an automatic request for emission factors to their suppliers and following up on the responses
  • A "carbon" analysis tool for bids, enabling it to give preference to those who will be able to present a better carbon "weight" associated with their supplies or services

Suppliers can only accept this legitimate request because they have the possibility to calculate the "carbon weight" of their products and services (PCF, Product Carbon Footprint, calculated according to ISO 14 067) on the GCI platform for free. It is hard to see them refusing to invest just a few dozen minutes of their time to satisfy this legitimate request from their customers.

Thanks to this collaborative management of the environmental performance of its suppliers, the concept of Sustainable Purchasing becomes real and concrete.

🌱 Reduce and manage your carbon footprint

The identification of emission sources is a key step in the carbon footprint® process, and must be as exhaustive as possible. This data allows us to obtain a complete map of our activities and to evaluate the company's total GHG emissions.

Once this phase is completed, the data will be analyzed to identify the company's most emitting activities. It is during this stage that an action plan begins to take shape.

Companies can be accompanied by Global Climate Initiatives' accredited experts in their Action Plan and its management:

• • Identification of areas for improvement (comparative analyses, uncertainty calculations, benchmarks, waterfall diagrams, etc.).
  • Simulation of the potential impacts of reduction actions to make the right decisions regarding their low-carbon trajectory
  • Monitoring of its SBT (Science Base Target) or SNBC (National Low Carbon Strategy) trajectory.
  • Integration of the action plan in the BEGES

It is essential to ensure that the solutions considered are not too insignificant or even counterproductive. It is necessary to evaluate the net reduction resulting from an action before implementing it or launching a communication campaign, to avoid :

• • unjustified expenses and waste of time.
  • to fall into the trap of "greenwashing" and be accused of dishonest communication.

🌎 Participate in a Carbon Contribution project

This is a key step in the low-carbon trajectory: get as close as possible to zero, and compensate for residual emissions, those that we have not been able to reduce more, by eliminating and/or sequestering an equivalent amount in carbon sinks (forest, mangrove, ocean, etc.).

GCI offers projects that comply with certification standards, but also human projects that address factors such as job creation, support for local communities, preservation and development of natural areas at risk, and other impactful local socio-economic factors.

These carbon contribution projects are available in several regions of the world, such as Europe or Latin America, or locally in France. Each is aligned with the 17 Sustainable Development Goals (SDGs) set up 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 approach.

The values acquired through this low-carbon strategy

Being a responsible company therefore implies these 3 principles: calculate - reduce - contribute/offset.

Global Climate Initiatives allows everyone to succeed and thus move towards a new hybrid economic model combining sustainable economic development and energy transition.

The benefits of a low-carbon strategy are multiple, and concern all activities, both internal and external to the company.

💪 Improve profitability

The realization of its BEGES, makes it possible to detect the possible savings to be carried out, what one calls R.O.I. As for example, in terms of reduction :

💡ofenergy consumption: by using renewable energy sources or reducing waste, companies improve their energy efficiency and thus consume less energy

🚮 of waste: waste is often the cause of additional costs (production costs, transportation costs...). Therefore, reducing waste contributes to better profitability.

🚛 unnecessary travel and transportation: optimizing routes to reduce the number of kilometers traveled, contributes not only to reducing GHG emissions, but also the cost of transportation (maintenance, fuel ...).

✅ Differentiate yourself from the competition

A comprehensive low-carbon strategy is an effective way to differentiate from competitors. It allows you to position yourself intelligently in the market, notably by investing in clean technologies, and to access new opportunities.

Indeed, a company that has carried out its carbon footprint® has a significant competitive advantage when bidding on tenders.

Firstly, because it allows the company to have a precise knowledge of its own environmental impact, and to be able to implement actions to limit its GHG emissions.

The Carbon Competitiveness® of product or service offers is becoming an increasingly important criterion in calls for tender.

💸 Attracting investors

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

💯 Boosting the brand image

Companies that are committed to a low-carbon approach are responding to a growing demand from consumers: to know the impact of their consumption on the environment, in order to make choices in line with their desire to consume in a more responsible and sustainable manner.

Thus, their employer brand is positively impacted, responding to the demands of younger generations and reinforcing this intangible value.

LCL Group's low-carbon strategy

LCL, an urban bank, has implemented its low-carbon strategy with GCI.

Their motivation: Banks have a major role to play in this transition, which is why LCL is committed to reducing its own emissions but also wants to be a driving force in supporting economic players.

LCL applies this strategy in 4 major families which represent nearly 90% of the total:

🛒 purchases (50%),

🚘 travel (20%),

🏢 real estate assets (10%),

💡 energy (10%).

By adopting a low-carbon strategy, LCL has improved its carbon competitiveness and also its proactivity. GHG emission reduction projects are already working with their customers, which is a competitive advantage that is also supported by their employees!

Thank you to the LCL group for trusting us to carry out their carbon assessment® and action plan in complete autonomy on the GCI platform.