By Mike Orth President, Governments and Environment market sector Black & Veatch.
Some of the world’s largest companies and countries are working to reduce their carbon footprint, and according to a Climate Impact Partners report, 42% of the Fortune Global 500 have delivered or promised to deliver a significant climate milestone by 2030. Yet “there is still 37% that have yet to make any significant climate commitment.”
Since the same report states that “emissions generated through the corporate value chain make up an estimated 80% of the Fortune Global 500’s footprint,” there is obviously still work to be done. But with the right strategies and plans in place, I believe it is possible to achieve our decarbonization goals—even those ambitious goals set by the Biden Administration to achieve net-zero emissions by no later than 2050.
Let’s explore the current landscape and steps your organization can take now to plan and achieve your decarbonization goals.
Turn Pledges Into Action
An analysis by Accenture of greenhouse gas reduction commitments and data from the largest global public and private companies showed that “only 7% of companies are on track to achieve their net-zero targets.” This report—and many others like it—illustrates a gap between the pledge to take action and the actual execution. The challenges companies face lie in finding ways to meet sustainability goals while working through a tangled web of government incentives, regulations, pressures from shareholders and demands from their workforce.
As your company or organization begins strategic planning to meet its decarbonization goals, consider these questions to start the conversation.
• Where are we as we currently working toward the target goal?
• Where do we want to be in a specified timeframe?
• What gaps need to be identified?
Achieving net-zero greenhouse gas emissions is no small task. It will take a lot of planning and enlisting consulting partners with deep expertise in developing decarbonization solutions for your organization.
Develop A Working Strategy
As companies figure out how and where to start, they will need to make informed choices and stay up to date on the constantly changing landscape and trends. To accomplish this, it will be important to maintain flexibility in making choices and exploring options.
Sacramento, California and surrounding communities developed a great example of a working plan to improve air quality and greenhouse gases. The Sacramento Municipal Utility District (SMUD) has set an aggressive goal to achieve zero-carbon emissions in its electricity supply by 2030. Through a mix of carbon capture, hydrogen, solar and wind, the utility will achieve what they describe as “the most ambitious zero-carbon goal of any large utility in the United States”—with solar and onshore wind identified as the lowest-cost energy options on a levelized basis.
The report is updated annually to reflect changing trends and to communicate timely information to customers and stakeholders. The plan website invites input from customers and stakeholders and gathers feedback through the public comments link.
Create A Flexible, Adaptable Roadmap
To achieve decarbonization goals, your company or organization needs a strategic roadmap to make executing your decarbonization strategy and meeting targets more achievable. Your decarbonization roadmap should be flexible, forward-looking and provide intricate details. While the targets may seem far off right now, 20 or 30 years is a short time to revolutionize the way your company will operate now and in the future.
As you consider options and alternatives, mapping out strategic decarbonization plans can be overwhelming. These steps can help to make the process less daunting.
1. Start Small
Identify easy-lift projects that can immediately shrink the carbon footprint. These identified projects can be a first step in getting the ball rolling. Once you prioritize where to begin, match each solution with the right technology to make it happen.
2. Embrace New And Emerging Technologies
Every strategic roadmap needs technology expertise to make sure the organization is positioned to make the best choices possible to meet decarbonization goals. Research available technologies that align with your location and situation and that can help move your company toward its decarbonization goals. For example:
• Should your company invest in electric vehicles?
• Can wind, solar or geothermal power generation work for your company’s locations?
• Is partnering with a company that can recycle emissions a workable option?
• Should we engage a consulting firm with decarbonization solutions expertise to assess where we are and what we need to do?
Your roadmap should contain an analysis of technologies your company or organization can pursue in the short and long term. An analysis conducted by your company and consulting experts should uncover applicable and available cost-effective technology options.
There is no one-size-fits-all approach to achieving decarbonization goals. It is a complex undertaking that will require partnering with decarbonization solutions experts to help your company or organization explore all available options and scenarios. Getting started is the first step in a long but worthy process.
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