Zero carbon world
Analysing of decarbonization matrix from PWC and the WBCSD
Following the ease and impact matrix of decarbonization methods create by PWC and the WBCSD (World Business Council for Sustainable Development) we are going to analyse each type of decarbonization methods.
Easiest to implement, lowest impact
- Upskilling
- Peer benchmark
- Public recognition
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Easiest to implement, highest impact
- Decarbonization criteria in procurement
- Mandatory carbon reporting
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Hardest to implement, lowest impact
- Contract termination
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Hardest to implement, highest impact
- Carbon price
- Longer term investment
- Pay for performance​
EASIEST TO IMPLEMENT, LOWEST IMPACT
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UPSKILLING
It involves equipping individuals with the knowledge, skills and competencies needed to towards low-carbon and sustainable practices.
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Assessment and awareness
- Identification of knowledge already acquired
- Raising of awareness by the impact of decarbonization on the business sustainability
Training programs
- Workshop sessions with expert and sustainability organization for training employee and collaboration.
- Practical application
Incentives
- Recognition of individuals or teams that demonstrate contributions to decarbonization of the company
- Provide bonuses such as promotions or professional opportunities
Continuous learning
- Keep data about what is done and how it is done. Regularly check and search for improving the methods.
PEER BENCHMARK
It involves comparing organization's carbon emissions and sustainability performance against those peers and competitors of similar industry
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Data collection and benchmarking
- Analyse our own emission while doing the same for competitors, learn about how they are managing it and what action did they took to improve decarbonization.
It required data from direct emissions and indirect emissions and further adjustment.
Action planning and monitoring
- Develop comprehensive plan with specific measures to achieve goals
- Prioritize action based on impact and feasability aligned with the business current objectives and resources.
- Monitor progress regularly with KPI related to carbon emissions reduction, efficiency improvements and targets, and share the results around the company.
Continuous improvement
- Learn from collected data and keep looking at competitors for new ways of improvement.
PUBLIC RECOGNITION
It involved acknowledging and rewarding those who demonstrate efforts and achievements in reducing carbon emissions and promoting sustainability within the company.
Establish criteria
- Recognize every stakeholders
- Raise awareness about decarbonization and sustainability without the company
- Create current state of art criteria, energy consumption, type of energy used, period of time by days depending of the weather and season.
Select committee
- Create a volunteer committee of employee responsible to gathered and judged the impact of each and every action performed for decarbonization and sustainability.
Public announcement and awards
- Select award categories that reflect different aspects of decarbonization and sustainability such as : community, person to follow, best impact idea
- Share the results with all the company member and stakeholders and celebrate the victory
Continuous engagement
- Maintain engagement with new awards and events
- Repeat each year and make it known
EASIEST TO IMPLEMENT, HIGHEST IMPACT
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DECARBONIZATION CRITERIA IN PROCUREMENT
It involves integrating carbon emissions reduction goals and sustainability criteria into the procurement process of any projects.
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Assessment
- Conduct a comprehensive assessment of the carbon footprint associated with the activities including sourcing, processes, transportation and other activities
Define criteria and evaluate stakeholders
- Based on a list of criteria evaluate the abilities of different stakeholder to maintain your carbonization criteria, request sustainability reports, carbon emission data and relevant information.
- Use a scoring system to rank external stakeholders and give preferences.
- Look at carbon emission, efficiency, source, ethics, materials, transport, lifecycle of product.
- Include carbonization criteria on new contracts by incorporating clauses that incentivize external stakeholders to adopt environmental practices.
Continous improvement
- While analysing results keep reviewing and update carbonization criteria based on industry standards and practices.
MANDATORY CARBON REPORTING
It involves the requirement for organizations to measure disclose and report their carbon emissions and related sustainability performance.
Regulatory framework
- Government or industry regulators can enact legislation for the regulation of companies carbon emissions.
- Guidelines and scopes will be given.
Data collection and reporting
- Companies will be require to measure and collect data on their carbon emissions from every type of activities, transportation, supply chain, manufacturing, installation phase
- Establish protocol to stay on the regulatory scope and act quickly to avoid penalties
- Publicly disclose carbon emissions data and sustainabiliy performance.
Compliance and enforcement
- Enforce compliance with mandatory carbon reporting requirements
Continous improvement
- Review and update mandatory carbon report to stay aligned with evolving practices, knowledge and standards.
HARDEST TO IMPLEMENT, LOWEST IMPACT
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CONTRACT TERMINATION
It involves establishing process for terminating contracts with stakeholders if they fail to meet specified carbon emissions reduction, targets or commitments.
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Establish targets
- The company have to set specific targets about decarbonization and sustainability commitments
Incorporate clauses in new contracts
- New contracts with any stakeholders will now include clauses outlining the carbon reduction targets
- The clauses specify the consequences of non compliance including contract termination.
Review performance and corrective actions
- The company collect data about the stakeholder performance in decarbonization.
- It reviews progress towards meeting carbon reduction target while sharing practices and training for ancient stakeholders.
Termination and transition
- If stakeholders fail at reaching targets or making progress despite remediation efforts the company will consider contract termination following established procedures.
- Company is reviewing alternative stakeholde and gradualy transfer them responsibilities to minimizes disruptions.
Continuous improvement
- The company continuously reviews and refines its contract termination processes based on experience and newly acquire targets.
HARDEST TO IMPLEMENT, HIGHEST IMPACT
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CARBON PRICE
It involves assigning monetary value to carbon emission to internalize the costs of greenhouse gas pollution and to incentivize emission reductions.
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Establishing carbon price
- Governments set a price on carbon emissions through policies such as carbon taxes.
Internalizing carbon costs
- Companies incorporate the cost of carbon emissions into their decision making processes, the carbon price serves as an economic signal to reduce and invest in cleaner practices.
Applying taxes
- Governments impose a direct tax on carbon emissions requiring companies to pay a specific amount for each ton of CO2 emitted.
Public awareness
- Raise public awareness about the importance of carbon pricing in achieving emissions reduction targets, engage with stakeholders internal and external for optimization.
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LONGER TERM INVESTMENT
It involves to fund initiatives and projects that aimed to reduced carbon emissions for transitioning the company through a low carbon strategical plan.
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Establishmment of decarbonization funds and capital allocation
- Investment are made specficaly in the development and deployment of renewable energy infrastructure to reduce reliance on fossil fuels and lower carbon emissions.
Long term investment and risk mitigation
- Long term investment commitments are made to support the transition to low carbon solutions, focusing on efficiency and mitigating climate risk.
- Long term investment support the development of transformative technologies, support and restoration of natural ecosystems.
Stakeholder engagement
- Engagement are made by all the stakeholders to ensure that decarbonization investments are followed by everyone, investments are set to deliver economic development while improving public health.
PAY FOR PERFORMANCE
It involves incentivizing and rewarding stakeholders based on their performance in reducing carbon emissions and achieving sustainability goals.
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Establishing performance metrics
- New contracts sets specific carbon reduction targets and incorporate performance based clauses, greenhouse gaz emissions, adoption of renewable energy sources, waste reduction.
- Bonuses payement are linked to performance metrics.
Measurement and reporting
- Verification are made to established if targets are reach or not.
- To ensure integrity and reliability verification are made by a third party.
Penalties and rewards
- Bonuses may not be reach if targets fails and penalties can occured including financial sanctions or contract renegociation.
Continous improvement
- Continuously monitor and evaluate the effect of pay for performance and make adjustments as needed to optimize outcomes.
