Low carbon strategies

24 October 2016

strategieWith the adoption of the Paris Agreement that has committed national governments to a 2°C trajectory for the world economy, increasing numbers of public and private-sector organizations seek to take a pro-active approach and build their own carbon strategy in keeping with this 2°C objective. This trend will push them to question their priorities regarding market position, commercial offers, investments, managerial policy, etc.

A carbon strategy serves economic agents in several ways:

  • boosting resilience for the future,
  • responding to investors’ criteria,
  • anticipating carbon risks,
  • publicizing commitments and making them known to stakeholders,
  • aligning with national climate aims.

With expert knowledge of sectoral energy and climate stakes and of operational levers for advancing towards the transition, Carbone 4 works with its clients to draft their low carbon strategy and climate roadmap.

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2°C Objectives and trajectories

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Action plan

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Support for change

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Internal carbon price

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Carbone 4 accompanies organizations who want to set up a 2°C strategy, helping them identify the principal stakes in their case. This involves a Bilan Carbone® carbon assessment based on the most pertinent scope for the activity, covering direct and indirect emissions (scope 1, 2 and 3). This is the essential first stage in developing a strategy.

  • Which of my greenhouse gas (GHG) emissions have the greatest impact? How are they changing over time?
  • What new risks and opportunities are associated with these emissions and trends (regulatory, economic, competitive, internal, etc.)?
  • How does the carbon footprint of my activity (via my products and services) compare with the footprint of other entities in my sector of activity?
2°C Objectives and trajectories

Having identified the carbon stakes in the audit phase, Carbone 4 works with the client who wants to build a carbon strategy, to determine reduction targets that are both ambitious and realistic, in various timeframes. These targets can be set to make the client’s emissions trajectory compatible with the 2°C objective, using for example the Science-Based Targets methodology.

  • What levers are at my disposal to reduce GHG emissions? What are the potential reductions? How should I rank my objectives?
  • How can I define objectives that are consistent with the global 2°C objective?
  • What are the GHG emission trajectories for my activity under different scenarios?
  • What strategic options do I have for compensation of my emissions?
Action plan

Translating the roadmap into an operational action plan is the second crucial phase, addressing essential issues.

  • How must I change my daily work routine to attain the roadmap goals?
  • What are the highest priorities, measures with high impact or significant knock-on effects?
  • What do I need in terms of material and financial resources and support to ramp up my capabilities and competence in these new areas?
  • What are the relevant performance indicators and at what interval should they be tracked? What monitoring tools should I choose?

Carbone 4 works with different corporate divisions to integrate the roadmap into operations, and to maintain the collective momentum via climate committees in charge of following the roadmap.

Support for change

Working with a partner specialized in global approaches to social responsibility, collective knowledge, dialogue with stakeholders and support for sustainable development action, Carbone 4 helps its public and private-sector clients implement their action plans and find answers to the following questions:

  • What are the stakeholders to be mobilized, and how should my relationship with them be structured in order to make my action plan successful?
  • What mode of governance should I adopt for effective implementation of my action plan?
  • How can I ensure that the action plan is progressing at a good pace, and what conditions should be created to facilitate its execution?
Internal carbon price

An increasing number of companies are setting an internal carbon price, following practices recommended in economic circles. Implementing a carbon price raises questions, however, and Carbone 4 can help find answers.

  • What impacts are to be expected for my company after introduction of an internal carbon price?
  • What internal carbon pricing mechanisms should my company adopt to achieve its own objectives?
  • What effects will an internal carbon price have on my business model and financial performance?
  • What strategy should I adopt to prepare for introducing an internal carbon price in my company?

Insetting refers to the process of creating carbon compensation projects within the company’s value chain.

Going beyond traditional carbon compensation that is disconnected from the organization’s activity, insetting correlates climate change mitigation to a great many positive and long-term impacts that carry immediate benefits for the organization: supply security, stronger ties with suppliers, reinforced brand image, lesser dependence on fossil fuels throughout the value chain, etc.

Carbone 4 works in partnership with Pur Projet to help clients fight climate change within their own sphere of influence, e.g. suppliers, services providers, etc.

  • What insetting schemes should be supported to act within my value chain?
  • What are the positive economic, environmental and social effects of the designated projects?