Expertise

Cost-efficient decarbonization

We develop a holistic Climate Transition Plan (CTP).

Cost-efficient decarbonization

Climate change is one of the major challenges of our time. Politicians, society, investors, supply chain partners and customers are demanding that companies in a wide range of industries contribute toward reducing emissions. But we see that many companies are struggling with how to shape their climate transformation. One reason for this is the regulatory framework, which changes regularly. Cost pressures also represent a key challenge here, alongside the task of translating ambitious climate targets into concrete measures. What is needed is a clear Climate Transition Plan (CTP). This brongs together environmental objectives and financial feasibility, and as such ensures the best possible cost efficiency in decarbonization. Our experienced team makes the CTP the central management tool for decarbonizing and sustainably transforming your business.

Solution approach

Our solution approach

A foundation for climate transformation : Together we develop transparency and ambition

The starting point for your CTP has to be transparency about your sources of emissions. At the same time, it is important that you already have set climate targets and fixed ambitions for your company. 

  • Transparency: We create a solid foundation for your climate transformation. We do this by means of a GHG accounting process, analyzing the drivers of emissions and mapping them in the cost estimation. This results in a Company Carbon Footprint (CCF) which forms the basis for further analyses, as well as the evaluation of actions and management.
  • Ambition and goals: If you have not already set climate goals, the first step is to define your objectives. These are externally validated as climate targets in the next step – for example in the context of an SBTi. This makes the selected climate goals credible while also creating an obligation to implement them. It can also be useful to link the climate targets to the evaluation of measures and specifically break them down for allocation to functions and/or business areas. 

Cost-efficient climate scenarios : We develop a smart decarbonization roadmap

The distance between your carbon footprint and your ambition is the “gap to the goal”. We close it by using reduction measures and other levers, thereby preparing for concrete decarbonization in a measurable way. 

  • Levers and measures: We define, evaluate and document GHG reduction measures. Keeping the challenge of Scope 3 emissions in mind, together we then evaluate the fields of action. In this process we take a holistic view of emissions reduction, simultaneously working on increased transparency and organizational empowerment. Our focus here is on cost efficiency.
  • Scenarios and roadmap: Climate transformation costs money – but so does putting it off. We undertake a scenario analysis to determine the best scenarios for your company, whether your approach is to decarbonize as quickly as possible; at the lowest cost; or with the greatest possible external impact. We ensure the link to financial planning is established so that corresponding budgets are also taken into account in medium-term planning, for example. 

Management of climate transformation : We manage GHG reduction holistically

For consistent monitoring of the gap to the goal and to maintain capacity to take action, it is important to put decarbonization on the daily agenda. We integrate relevant KPIs and information into external and, in particular, internal management reporting, but also into existing management models and decision-making processes. This is how decarbonization is successfully integrated. 

  • Management and governance Management instruments are essential for successful decarbonization. Together with you we develop a set of a maximum of ten top KPIs along Scopes 1 to 3, with variables that are clearly understandable, measurable and can be influenced.
  • Reporting: A well-developed CTP means that reporting is no longer a challenge, so we are able to produce an ESRS-compliant representation of the CTP. With the KPIs integrated into internal management reporting, climate transformation also becomes part of your day-to-day business. 

When we support companies in the area of climate transformation, we are always actually focused on infusing transparency into decision-making and creating certainty for the planning and implementation of decarbonization. It is important to develop a robust model that enables CTP planning and financial modeling to be joined together in a way which pragmatically enables scenario analyses. We will accompany you at every step of your decarbonization journey, no matter what point you are at today. Drawing on our relevant project experience, we have created a maturity level assessment via which you can assess your own CTP maturity level with the aim of identifying specific fields of action. 

Client results

Client results

Contact

Science-based frameworks (e.g. SBTi) provide guidance for ambitious, credible targets; a centrally managed climate transition plan brings together actions, assesses CapEx/OpEx and CO₂ potentials and provides a reliable, central data basis. This enables ambitions to be translated into fundable decisions and measurable impact

Markus Wenzel | Partner OPS SCM & Production

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