As countries around the world are paying more and more attention to reversing the harmful effects of climate change, businesses are realising the importance of decarbonisation.
Decarbonisation refers to the process of reducing emissions of CO2 created by various business activities. The ultimate goal of decarbonisation is to eliminate emissions completely. Hence, the UK has a goal of becoming carbon neutral by 2050.
Decarbonisation also aims to replace fossil fuels with energy sources that are less detrimental to the environment (renewable energies, hydrogen, etc).
Three highest sources of carbon emissions are:
- Electricity generation – it can be decarbonised by using more renewable energy sources that are not only greener but also cheaper and more efficient
- Manufacturing – it can be decarbonised through renewable technologies or using alternative fuel sources such as hydrogen
- Transport – it can be decarbonised by popularising the use of electric vehicles (the UK also aims to phase out new petrol and diesel vehicle sales by 2030)
Why does decarbonisation matter?
In many sectors, energy is sourced from fossil fuels. This is bad for the environment as a lot of CO2 is emitted during the process of burning coal or oil. This contributes to global warming and increases the levels of pollution.
Fossil fuels are one of the biggest challenges in the fight against climate change. For decades, people in the UK and around Europe have been relying on them to heat their homes and run businesses.
‘We cannot drop the old ways of producing and consuming energy overnight. But the emergency of the situation mandates that we drastically accelerate our zero carbon emission transition,’ says Virta.
By focusing more on decarbonisation and using alternative sources of energy such as green gas, businesses can lower the amount of CO2 that they release into the atmosphere. Through that, they can do something good for the Planet.
And, in addition to curbing emissions to reduce the impact on the environment, decarbonisation can provide opportunities for businesses to be more competitive.
What benefits do businesses get from decarbonisation
Nowadays customers pay attention to whether companies they get their products and services from are environmentally aware. So, decarbonisation can help businesses acquire new clients and retain the existing ones. Other benefits businesses get from decarbonisation include:
- Being attractive for investors
- Having a sustainable business model
- Being able to beat competitors
- Serving new market needs
- Having proof of being committed to being a responsible company
Businesses that overlook the importance of decarbonisation might not be able to meet the demands and needs of society.
‘For companies, decarbonisation means the complete reduction of carbon emissions, on all scopes of carbon emissions. Each company must establish a decarbonisation strategy in line with its industry. Then, it is essential for a company to evaluate the number of emissions it is directly or indirectly responsible for as a result of its business operations, and to then identify the options for reducing them,’ explains Plan A.
How to decarbonise companies?
A great way to identify opportunities for carbon reduction is carbon footprint monitoring which measures the greenhouse gas emissions caused by a business.
Carbon footprint refers to the quantity of greenhouse gas emissions that are released into the atmosphere as a result of your company’s activities. Carbon footprint is made up of not only CO2 but also other harmful greenhouse gases that are:
- Sulphur Hexafluoride – SF6
- methane – CH4
- hydrofluorocarbons – HFCs
- nitrous oxide – N2O
- Perfluorocarbons – PFCs
To measure their carbon footprint, companies should typically look at the total quantity of greenhouse gas emissions they generated over the course of one calendar year. Monitoring companies’ carbon footprint should be the first step in the decarbonisation journey. Once they know what their emissions are, they can think of strategies to reduce them.
How to shape business decarbonisation plan
‘Just 30% of UK businesses have a net-zero strategy and nearly half (42%) feel overwhelmed by the steps needed to achieve that goal,’ reports Economist Impact.
Even though many companies are aware of the impact their operations have on the environment and are willing to introduce positive changes, they do not know where to start.
To make this easier, we share some tips.
When preparing a business decarbonisation plan, companies should consider the following areas:
- Look for decarbonisation opportunities
Every company is different and has a different level of emissions. This is why businesses should analyse their operations and investigate opportunities to reduce emissions that are created during their activities.
- Get an accurate carbon footprint
Implementing effective changes is only possible if companies are aware of their exact emissions. Businesses should measure the three scopes of emissions: direct emissions, emissions related to electricity and gas, and indirect emissions that occur in the value chain. Collecting and analysing this information is crucial to introducing decarbonisation initiatives.
- Invest in decarbonisation technology
There is technology available to help businesses be more sustainable and reduce their emissions. This includes smart sensors that switch the lights off when there is no one in the room or thermostats that maintain the temperature at the desired level. Getting such technologies might require an upfront investment but can help companies quickly achieve their decarbonisation goals.
- Create an environmentally friendly supply chain
Transportation contributes greatly to global warming and is one of the main sources of emissions of harmful greenhouse gases. If you want to reduce the carbon footprint of your business, you should change the method of travel and the distance travelled during the process of transporting goods and supplies. You can do it by using local supply chains.
- Form partnerships
To achieve net zero, everyone has to realise the importance of decarbonisation and UK businesses must work together. By forming partnerships and working with other companies similar to yours, you can share practices and achieve your respective environmental goals quicker.
What is building decarbonisation?
‘Building decarbonization is the process of reducing or eliminating the carbon dioxide emissions that contribute to climate change from a building’s energy sources. Upgrading 100 million homes to electricity instead of natural gas can reduce 40 million metric tons of carbon dioxide a year — equivalent to taking over 8 million cars off the road. And building decarbonization has many added benefits, like improved indoor air quality,’ Elevate explains.
To be successful at building decarbonisation, businesses could also look into producing renewable energy on-site instead of purchasing it through the power grid. On-site generation can be done with the use of solar panels, biomass, or hydropower projects.
Ensuring that business premises are sustainable and emit as little greenhouse gas emissions as possible should be a key element of decarbonisation strategies for companies.