Strategies to minimize your CO2 footprint
Posted by | Arun Kumar
Climate change poses an imminent threat to our planet, making it imperative for individuals, businesses, and governments to adopt strategies to minimize their CO2 footprint. This article provides a comprehensive overview of effective strategies on how to reduce carbon footprints effectively and solutions to mitigate the impact of climate change, achieve sustainability goals, and promote a greener future.
Understanding carbon emissions
With 76% of all greenhouse gases being carbon dioxide, it is the most prevalent gas in the world. As a result, the natural greenhouse effect that keeps the earth’s atmosphere above freezing and depends heavily on carbon dioxide. Without it, the majority of living things and ecosystem cycles, including combustion, photosynthesis, and anaerobic and aerobic respiration, would not survive.
Rising CO2 and its impact
Currently, industries contribute significantly to CO2 emissions globally1. The main sources of CO2 emissions2 are from power, transport, and industrial activities3 such as manufacturing and construction. The Global Carbon Budget 2022 states that since the middle of the 20th century, annual emissions from burning fossil fuels have increased every decade4, from around 11 billion tons in the 1960s to 36.6 billion tons in 2022.
The increase in CO2 emissions accelerates climate change, which poses a severe threat to the planet.
Greenhouse gas emissions overview: Scope
Emissions of greenhouse gases from industry are classified as “direct” or “indirect” emissions. Furthermore, according to worldwide and national carbon accounting rules, they can be divided into three groupings, or “scopes5“. “Direct emissions” from sources that the corporation owns or controls are considered Scope 1 emissions. The emissions into the atmosphere that result from using electricity are known as Scope 2 emissions. Actual emissions produced at another site, such as a power plant, are referred to as “indirect emissions”. All additional indirect emissions that take place along the whole value chain, and are not under the firm’s direct control are categorized as Scope 3 emissions.
It’s time to act
Large multinationals are responsible for at least 50% of the greenhouse gas emissions into the atmosphere. Now, industries are making sustainability a top priority, and most businesses want to be net zero by 2050 abiding by the Paris Agreement.
As of mid-2022, more than one-third of the world’s largest publicly traded companies have net-zero targets. However, as per McKinsey’s report6, 76% of the companies are focusing on only reducing their Scope 1 and 2 emissions. Only 24% of the companies are concentrating on reducing their Scope 3 emissions as these emissions are much more challenging for companies to track and control.
Challenges in reducing carbon reduction
Strategies for reducing Co2 emissions
By incorporating environmental considerations into their supply chain operations, businesses are now attempting to reduce their negative effects on the environment. Industry must contend with a range of challenges, and performance indicators in order to reduce carbon emissions. Here, we have provided the common strategies7 adopted by industry in order to reduce their carbon footprint.
Most multinational corporations align with the goals of the Paris Agreement to reduce carbon emissions. Here, are a few of examples of the steps taken by businesses:
Figure 8. Strategies followed by companies from different sectors to reduce emissions – click on chart to view larger image
Nevertheless, businesses are concentrating on carbon reduction techniques. Long-term decarbonization initiatives will need major technological advancements, including the utilization of novel sustainable materials/ technologies, alternative fuels, electrification of heavy-duty vehicles, and a dedication to execution.
Setting carbon reduction goals for businesses can be a crucial first step; doing so poses both challenges and prospects to benefit from decarbonization in the long run. The short-term goals should also be carefully considered, as they will be critical for inspiring the organization to take action.
This article was based on research carried out by our Technology and Innovation Research practice. Get in touch to find out more about how we can help you create cutting-edge solutions, gain a competitive edge, and secure the first-to-market advantage