Decarbonization Strategies to Reach Net Zero
The Mission to Remove Emissions
Congratulations, you have implemented Salesforce Net Zero Cloud or another sustainability management solution. You now have visibility to your company's GHG emissions by office, asset, scope and other factors.
So, what comes next?
Now it's time to move from measuring your carbon footprint to reducing it.
The next step is to adopt decarbonization strategies that reduce greenhouse gas emissions and operating costs. This parallel path will accelerate your sustainability ROI and program longevity.
A decarbonization strategy shows your pathway to reduce or eliminate carbon dioxide (CO2) and other greenhouse gas (GHG) emissions.
For most companies it's a two-step process. The first step is to reduce GHG emissions created by the combustion of fossil fuels. This can be accomplished with electrification. That is, gradually replacing energy from fossil fuels with electricity produced from renewable sources such as wind, solar, hydropower, geothermal and biomass.
For companies seeking net zero emissions, the second step is to remove residual emissions with natural carbon sinks such as agricultural lands and forests. This is done with carbon offsets.
A company achieves Net Zero when it removes as many greenhouse gas emissions from the atmosphere as it adds through its operations.
Decarbonization Strategies to Remove Greenhouse Gases
Johnny Grow sustainability consultants have helped many companies shift from baseline carbon reporting to a journey of carbon reductions.
We've learned that three decarbonization strategies stand above all others in terms of feasibility, impact and payback. They include conservation, electrification and circular economy.
We've also learned that progress and success are improved when these strategies are tightly managed within scope-wise categories.
Here's how it works.
Scope 1 GHG Reductions
Company owned vehicles or fleets are the largest Scope 1 emissions contributor for most organizations.
Lowering these emissions can take a path of optimization or electrification.
Optimization pursues measures to improve fuel efficiency and reduce operational costs. Below are some examples.
- Use telematics to collect information such as engine diagnostics or vehicle data such as speed, location and maintenance alerts. These wireless telecommunication devices retrieve vehicle data such as GPS position, speed, engine light information and maintenance notifications.
- Optimize travel routes using GPS technology and online mapping programs. This will reduce fuel consumption, number of stops and travel time duration.
- Use more sustainable fuels such as biofuels. These may include ethanol, biodiesel, and renewable diesel.
- Deliver workforce training to adjust driver habits. For example, shifting from rapid acceleration and hard braking to smooth acceleration and gentle braking will improve fuel consumption by about 26%. Maintaining consistent speeds will improve fuel efficiency even more.
- Use fleet management software to measure vehicle performance, driver behavior, and fuel consumption.
Finding the right mix of small changes delivers a big impact across large fleets.
According to the EPA, 28% of U.S. greenhouse gas emissions come from transportation.
Road transportation represents 81% of these emissions.
One gallon of gasoline produces about 20 pounds of carbon dioxide. This means the average vehicle emits approximately 6 to 9 tons of carbon dioxide annually.
Electrification is a more accelerated approach that decarbonizes your fleet by using hydrogen or electric vehicles.
Our experience in working with clients is that the acquisition of electric cars, vans and light duty trucks can deliver reduced overall cost savings when including the many tax credits, rebates, incentives and exemptions.
Unfortunately, that's not yet the case with medium and heavy duty trucks (classes 4 through 8). This may change as the EPA has proposed new regulations that require heavy duty trucks (class 8 vehicles) to emit 20% fewer greenhouse gases by 2027.
Scope 2 GHG Reductions
Electricity for commercial buildings is the largest Scope 2 emissions contributor for most companies.
Power generation, including electricity and heat production, accounts for 30 percent of global carbon dioxide emissions. Commercial buildings alone are responsible for 6 percent of these emissions.
Similar to Scope 1, you can apply a path of optimization or electrification to lower consumption and your carbon footprint.
Below are some asset and energy optimization reduction measures.
- Plug your hydrofluorocarbon (HFC) leaks in refrigeration and air-conditioning units. HFCs are entirely human-made and extremely potent. They have a global warming potential that can be hundreds to thousands of times greater than carbon dioxide per unit of mass.
- Lighting is another easy option. Use energy-efficient lighting such as LED lights. These consume up to 90% less energy than traditional lighting. You can also replace incandescent bulbs with compact fluorescents and upgrade fluorescent lighting fixtures to higher-efficiency alternatives.
- Monitor water usage and conserve water by installing automatic on-off faucets in sinks. See where you can use cold water instead of hot. Use drip technology to water plants, or even better find an alternative to grass.
- Don’t forget the easy stuff like improving insulation or sealing windows, doors and other gaps.
- Consider market-based electricity Contact your utility provider to understand what clean energy alternatives are available. For example, you may be able to shift from location-based grid energy (sourced from fossil fuels) to market-based energy (sourced from solar, wind, hydro and the like). And you can make this change with a phone call.
- You may want to consider a Virtual Purchase Power Agreement (VPPA). This is typically a long-term contract with a developer of a renewable energy project.
Electrification is a step up and delivers a much bigger impact.
Electrification replaces power sourced from fossil fuels – such as coal, oil and gas - with electricity generated from renewable energy sources, such as solar, wind, hydro and geothermal.
Examples of electrification include the following:
- A photovoltaic system installed on a roof or open area can produce solar energy on a continuous basis. When solar panels are combined with Battery Energy Storage Systems (BESS) they become even more efficient as this renewable energy can be stored and consumed when needed. Buildings can become carbon negative by using solar panels to supply their own energy and feed excess back to the grid.
- Low- and medium-temperature heat pumps are three times more efficient than boilers and save an average of 46% on heating bills.
- Digitize the building power infrastructure for centralized control of smart thermostats, integrated appliances, and LED lighting. These systems can also use AI to autonomously adjust lighting and room temperature based on occupants’ habits. Other digital technologies such as sensors and IoT-based applications can make energy use even more efficient.
- Electrification also allows companies to better participate in Demand Response programs. This allows your company to reduce or shift electrical usage during peak periods or in response to time-based rates or other forms of financial incentives.
Scope 3 GHG Reductions
Waste is the fourth largest source of GHG emissions after combusting fuels, agriculture, and industrial processes, in that order.
It can be a Scope 1 emission if the waste is associated with a stationary asset and the disposal is onsite. However, that's unusual. Most waste is Scope 3 because it originates from operations, such as the processing of raw materials or activities such as offsite end-of-life disposal.
The three primary types of waste are fossil or biogenic waste (mostly Co2), landfill waste (CH4), and the disposal of refrigeration and air conditioning units (HFCs). So, these are the areas to focus as they will deliver the biggest impact.
Recycling should be an early consideration for most companies.
Waste disposal methods are incinerated, landfilled, or recycled. Clearly, it's this last option that can reduce the other two.
Most company waste products consist of paper (including cardboard and coffee cups), plastics, food and aluminum cans. Most or all of these items can be recycled.
Recycling also contributes to a Circular Economy, which is a much bigger carbon reduction opportunity.
Lowering carbon emissions often focuses on energy efficiency and a shift to renewable energy. These are important levers for sure, but according to a study by the Ellen MacArthur Foundation, only address 55% of emissions. The remaining 45% come from our "take-make-waste" economy. A broader perspective is needed to transform the way we make and use products.
The Circular Economy is a shift from a linear economy of – take, make, use, dispose – to a more perpetual economy designed to re-purpose, re-use and recycle. Sometimes, it's described with additional actions such as re-furbish, re-manufacture, repurpose and re-cover.
Examples include things like responsible or ethical sourcing, sustainable packaging and raw material tracing. It involves designing products that last and can be reused, repaired and remanufactured.
In a circular economy, waste from one activity is valuable for another. Everything has value, and nothing is wasted.
The bottom line is that circularity principles dramatically reduce waste and create a replenishable material flow.
The Sustainable Enterprise
The prior scope 1, 2 and 3 decarbonization strategies and reduction examples are pretty routine. We've implemented them many times for many clients.
However, every company is unique. So, to figure out what makes sense for your company you will want to first prioritize your goals. You can then identify and sequence the carbon reduction measures according to investment, payback and GHG impact. This will deliver a clear roadmap and a plan which you can measure.