How to create a roadmap for decarbonising your business – The Irish Times

With climate change an ongoing threat, government and business are focused on decarbonizing the economy, but how can organizations set realistic and achievable decarbonization targets and make a real contribution to climate action? What standards can they apply?

Decarbonization is a global priority for mitigating climate change, says Derarca Dennis, assurance partner and sustainability services leader at EY Ireland. “The European Union and Ireland have set ambitious targets to decarbonise the economy.

“At EU level, the European Green Deal aims to make Europe climate neutral by 2050. This ambitious target is supported by individual Member States, including Ireland. Ireland has committed to reducing its greenhouse gas emissions by 51 percent compared to 2018 levels by 2030, and to achieving net-zero emissions by 2050.”

Dennis says the ambitious decarbonisation targets set by the government present challenges and opportunities for organisations. “To align with the government’s decarbonization targets, organizations must reduce their greenhouse gas emissions by setting ambitious but achievable targets, increasing energy efficiency, reducing dependence on fossil fuels and taking steps to transition to cleaner energy sources, and by improving the circularity of resources,” she adds.

Organizations can set informed and effective decarbonization targets by first conducting a baseline assessment of carbon emissions, which “accurately quantifies the organization’s greenhouse gases across their operations and value chain.”

“This is calculated across three scopes (Scope 1, 2 and 3) and provides a basis for understanding the organisation’s emissions profile and identifying their primary emissions sources.

“Benchmarking with industry peers can help organizations gain valuable insights into successful decarbonization strategies and initiatives. This can also provide opportunities for sector-combined cooperation.”

Assessing internal capabilities is key to setting a realistic and achievable decarbonization target, says Dennis. He added: “It provides resources, feasibility and facilitates support to drive the development of a decarbonisation roadmap, ensuring specific actions are allocated to the right individuals on agreed timelines and across borders . different functional units within the organization.

“Regularly monitoring and tracking performance against objectives is crucial for maintaining progress and managing risk. By following these steps, organizations can begin to effectively contribute to climate action through their decarbonization efforts.”

Setting effective decarbonization targets requires a structured approach; organizations can adopt different frameworks and standards to guide their efforts, Dennis says.

“The GHG Protocol provides organizations with a standardized methodology and guidelines to accurately calculate their carbon footprint,” she says.

“The Science-Based Targets initiative (SBTi) provides guidance for setting ambitious targets that are aligned with climate science. The Carbon Disclosure Project (CDP) enables organizations to measure, manage and disclose their impact on the environment.”

The Task Force on Climate-Related Financial Disclosures (TCFD) provides organizations with a structured approach to assessing and managing climate-related risks and opportunities, which can support their efforts to decarbonize the economy. By understanding and addressing these financial implications, organizations can make informed decisions and deploy resources effectively to achieve their decarbonization goals, Dennis explains.

“In addition, ISO 14064 provides guidance for quantifying and reporting greenhouse gas emissions. It can be used by organizations of all sizes to establish a robust emissions management system.”

The climate change-related disclosure requirement of the European Sustainability Reporting Standards (ESRS) under the Corporate Sustainability Reporting Directive (CSRD) represents a step toward greater transparency and accountability for the organization’s climate-related activities, says Dennis.

“In-scope organizations are required to disclose detailed information on their GHG emissions in Scope 1, 2 and 3, along with their decarbonization targets and strategies.”

There are a range of resources available on the market where organizations can access expertise and support to set and achieve effective decarbonisation targets, including specialist advisors, government agencies, NGOs and online resources such as the GHG Protocol, CDP, SBTi, Future Planet and Change by Graden, to name just a few, says Dennis.

Aoife O’Donnell, head of sustainability at Jones Engineering, points out that the construction and engineering sector is responsible for a significant proportion of global greenhouse gas emissions, mainly through building materials and energy consumption.

“As a company, we recognize the critical need to decarbonize and we have made it a priority to reduce our emissions across our operations and supply chain, including working with our customers and suppliers in decarbonizing the economy,” said O ‘Donnell.

Jones Engineering has committed to reducing Scope 1 and 2 greenhouse gas emissions by 50.4 percent by 2032 compared to the 2022 baseline, she added.

“We also set a Scope 3 greenhouse gas emissions reduction target of 50.4 percent over the same period. Our targets have been approved by the SBTi and are part of our wider sustainability strategy.”

To determine its decarbonization targets, Jones conducted a thorough baseline assessment of its emissions associated with its value chain and operations, identified key emissions hotspots, and used the Science-Based Targets initiative’s decarbonization pathways to ensure to ensure their targets were in line with a 1.5 degree trajectory. says O’Donnell.

“We have developed a decarbonization plan in collaboration with key stakeholders within the company. This gives us a clear path to achieving our objectives.”