Companies that take an active role in ESG programs and commit to sustainable business transformation by setting bold targets rooted in science will focus a positive change in corporate culture that propels market leadership, and future-proofs operations making it resilient to price shocks for energy and climate change effects.
How do you get your organization moving? Here is a primer on what leading corporations are doing today to overcome inaction and mitigate climate risks to corporate operations.
What are scope emissions?
Let's review what scope emissions are:
Scope 1: Emissions directly responsible for generating. (Fleet vehicles - onsite sources of power generations, i.e. Boilers.)
Scope 2: Grid-sourced generation of power.
Scope 3: Indirect emissions are typically the highest amount of your organization's total emissions. (Air Travel, waste management and supply chain decarbonization.)
How do you decarbonize your Scope Emissions?
Getting data management in place to measure emissions is often one of the first steps Zam Energy suggests clients tackle by setting targets, such as energy efficiency strategies. Low or zero-carbon replacement of fuels and technologies that generate Scope 1 and Scope 2 emissions are another good place to start. The most common strategy is using renewable electricity (solar photovoltaic), offsite generation via power purchase agreement (PPA) and Clean-tech. Not as common are reviewing electrification, and alternative fuel sources (biogas, hydrogen, and renewable natural gas).
Are you aware of Energy Attribute Certificates (EACs)? EACs carbon offsets are the most commonly used balancing mechanisms today?
EACs—the tradable commodities that underpin all global renewable electricity transactions—are a useful and flexible mechanism to address Scope 2 emissions where other alternatives, such as PPAs, are unavailable. Often, the first signal that a new market is ready to mature its renewable energy development is the establishment of an EAC trading scheme. EACs can be purchased unbundled from energy generation throughout the world, and can provide a bridge to Scope 2 reductions in the absence of other, more direct options.
Overall, setting climate action goals and understanding science based targets to aim your targets in the right direction should be studied. You can go to the Science Based Targets website at: https://sciencebasedtargets.org/step-by-step-process to help your organization target the right goals. Your team will likely conduct a roadmapping exercise that covers Energy Efficiency strategies, which run from basic to extensive. Here Zam Energy offers Energy as a Service, which finances each level of becoming energy efficient, essentially reducing energy use, and reducing your operation costs using third party finance and tech to implement on site. Your organization will also need to look at decarbonization strategies. Here you are focusing on the scope emissions discussed above. Finally, reviewing basic renewable energy strategies, such as EACs for your scope two emissions, and/or working with Zam Energy to build and finance a renewable energy plant, using a Power Purchase Agreement, or even reviewing carbon offsets for your Scope 1 emissions.
Underpinning your goal setting is getting a comprehensive data management plan in place so you can manage your organizations consumption and emissions. Zam Energy can recommend third party companies to get this process underway, immediately, building a portal, so you have a real time window into your current consumption and scope emissions. Comprehensive data backed with an integrated team, across your organization to forge mandates and resources to set science based targets and timelines, including building incentives to meet corporate climate action goals, ensures positive outcomes.
Corporate goals and solutions used to connect strategy to action are happening in your industry. Yes, competitors are taking an active role in ESG programs too. Your organization will be better off committing to sustainable business transformation as soon as possible. Setting bold targets rooted in science will give your customers another reason to believe in the Brand your marketing team has spent millions building. Zam Energy encourages clients to look for opportunities to collaborate not only organizationally, but with your suppliers and clients as the one sure way to future-proof your business.