Build a sustainability strategy for your organisation – Part 3

We will look at developing a comprehensive strategy that includes designing, executing, measuring, reporting, and monitoring sustainability goals.

At ecoHQ, we have been posting articles on developing a sustainability strategy for companies (designing, executing, measuring, reporting, and monitoring goals). 

The first article discussed how an organisation can set purpose and values, redesign the business model, benchmark itself among peers in the industry, and set short-term and long-term Environmental, Social, and Governance (ESG) targets.

The second article discussed how the organisation can execute Greenhouse Gas (GHG) accounting and conduct risk analysis and scenario planning analysis to be resilient for the future. At the same time, the company would also conduct socio-ecological and climate modelling to understand its double materiality impacts. Then, the company chooses various ESG frameworks for disclosures and sustainability reporting. 

The third article will check out the climate transition strategy and emission reduction roadmap, focusing on implementation.

Decarbonisation Strategy

Once we understand the emissions in our business’ supply chains, we can develop a climate transition/ decarbonisation plan with the help of the Science Based Targets Initiative (SBTi) or Carbon Disclosure Project (CDP). 

Also, a quick segue here:

Carbon Management Strategies

Carbon Abatement

Reducing greenhouse gas emissions at their source — the most straightforward and effective strategy. A few examples are increasing energy efficiency, developing cleaner industrial processes , and moving to renewable energy.

Carbon avoidance

The practice of avoiding emissions altogether, frequently by taking an alternative route. Two examples are choosing a product with a lesser carbon footprint or taking public transit rather than driving.

While Carbon Abatement focuses on actions taken to reduce GHG emissions, avoidance focuses on preventing emissions from occurring in the first place.

Carbon Offset

Using Carbon credits to make up for emissions that cannot be directly decreased. These credits reflect removing or reducing emissions elsewhere, frequently due to initiatives like developing renewable energy sources or reforestation.  In essence, you’re paying someone else to cut emissions for you. Check out more on Carbon Credits here.

Carbon Insetting

Similar to offsetting, this involves removing or reducing emissions within a company’s value chain. A business could invest in sustainable farming methods in its supply chain, which lowers emissions and produces carbon credits that the business can use to compensate for any remaining emissions. Compared to traditional offsetting, carbon insetting is more integrated into corporate activities.

Carbon Dioxide (CO₂) Removal(CDR)

The process differs from the Carbon reduction strategies mentioned above. It involves actively removing CO₂ from the atmosphere, also known as negative emission technologies( NETs). Sometimes, NETs are used to remove other GreenHouse Gases (GHGs) and pollutants as well. It is not the same as merely lowering or avoiding emissions; it also involves storing and sometimes carbon sequestration (the long-term storage of captured CO2 to keep it from returning to the atmosphere). 

You can check out CDR Primer for a lowdown on all carbon-related concepts. 

Tech	Type	Description
soil sequestration	Nature based	The process of absorbing atmospheric carbon dioxide and storing it in the soil. Changes in land management raise the amount of carbon in the soil.
Afforestation/reforestation	Nature based	Planting trees to absorb CO₂ from the atmosphere.
Biochar	Nature-based / Engineered based	A substance made from biomass that resembles charcoal, biochar can store carbon and enhance soil health. When partially burned biomass is mixed with solids, more CO₂is absorbed.
Ocean Fertilisation/ Ocean Alkalinity Enhancement	Nature-based / Engineered based	Adding nutrients and alkaline elements to the seawater promotes the growth of phytoplankton, which improves negative acidification and absorbs CO₂ from the atmosphere.
Aquatic/ Terrestrial Bio-energy with carbon removal and storage (BECCs)	Nature-based / Engineered based	Plants convert CO2 into biomass. Growing biomass (on land or in water) for energy generation and absorbing and storing the associated CO₂ are two aspects of this tech.
Accelerated Weathering/ Enhanced Rock Weathering (EHR)	Nature-based / Engineered based	Accelerating the weathering of rocks like olivine to capture CO₂is often considered a more environmentally friendly approach on land and coastal areas.
Carbon Capture, Utilisation and Storage	Nature-based / Engineered based	Absorbing CO₂ or emissions from the air and either storing it underground permanently or using it in various goods.
Direct Air Capture (DAC)s	Nature-based / Engineered based	Removes CO₂ straight from the atmosphere.
Enhanced Mineralisation / Carbon Mineralisation	Nature-based / Engineered based	Accelerates the natural process by which rocks absorb CO₂ from the atmosphere and transform it into stable minerals.
Biomass carbon removal and storage (BiCRS)	Nature-based / Engineered based	Prevents the release of carbon into the atmosphere by combining biomass growth with the capture and storage of that carbon.
Peatland restoration	Nature-based / Engineered based	The process of rewetting degraded peatlands and promoting the growth of peat-forming plants (carbon-rich ecosystems).
Carbon Materials (carbon upcycling)	Nature-based / Engineered based	Turns waste carbon, or CO₂, into valuable goods, including construction materials, fuels, and plastics.

Climate-transition Strategy

To start the transition, we gather information and implement carbon-abating strategies using strategies like the Absolute Abatement Cost Curve (AACC) and Marginal Abatement Cost Curve (MACC).

Please note that AACC provides a macro perspective that enables a more comprehensive, strategic approach to environmental policy by demonstrating the overall cost-effectiveness of all available pollution reduction options.

In contrast, MACC helps you understand the cost of reducing a single unit of pollution for one specific approach. So, once you factor in additional sustainability efforts through AACC, you re-calculate the MACC to identify the highest carbon abatement potential. 

You choose 2 or 3 short-term and long-term solutions to start with the transition after aligning all your stakeholders to the proposed solutions. While you prioritise and implement the GHG emissions abatement projects, you need to consider some points:

• Give priority initially to projects with the most significant potential for carbon abatement.
• Continue to undertake carbon abatement efforts even when they call for investment; don’t just focus on cost-cutting and revenue-generating ones.
• Instead of just considering upfront investments, use the curve to select carbon-abating projects based on the lowest cost over time.
• Consider both the good and negative ecological and societal effects while selecting abatement programs.

Emission Reduction Roadmap (Implementation)

Once you have a decarbonisation strategy in place, the next step is to create, develop, and Implement a Corrective Action Plan (CAP) with measurable Key Performance Indicators. CAPs reduce liabilities, improve environmental compliance, and fix deficiencies. They record the necessary corrective and/or preventive measures to resolve management system failures and environmental compliance findings. They might also offer suggestions for Best Management Practices (BMPs) and observations for enhancement.

Next, you create a circularity plan to regulate and standardise in-house and supplier waste management practices (e.g., waste collecting, sorting, storing, packing, and tracking). While you are at it, you create a buying policy for secondary raw materials and reduce the usage of energy, water, and chemicals while you work on cutting down emissions.

Finally, you review and improve your current management systems for social and environmental compliance, Occupational Health and safety (OHS), and chemical management.

In the upcoming articles, we will look at ESG implementation in the company and crafting a pathway to net zero, Including a carbon market pathway to net zero. We will also look at stakeholder communications, data improvement plans, and corporate social responsibility (CSR) programs, with separate articles dedicated to circularity, waste management  , and decarbonisation in detail. 

Credits

The article is written by Deepa Sai, the founder of ecoHQ.