Decarbonisation strategy: the journey towards net zero
Your expert for questions
Oskar Achten
Senior Manager, Sustainability Services at PwC Germany
Tel: +49 1512 9800922
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Your climate goals to meet the 1.5°C limit
The Paris Climate Agreement is the framework for limiting global warming to 1.5°C, a target which aims to avert the most catastrophic impacts of climate change. For companies, there are three key factors driving a move towards meeting the 1.5°C target in business:
- Regulations: The Paris Climate Agreement is far from the only place where ambitious goals for reducing the economy’s CO2 emissions are enshrined in law. At the national level, there are also laws on protecting the climate and sector-specific regulations. Growing reporting requirements are also part of this development: the law increasingly requires companies to provide detailed information on their climate goals and their position regarding the 1.5°C threshold. The European Sustainability Reporting Standards (ESRS) under the Corporate Sustainability Reporting Directive (CSRD) are an example of this kind of regulation.
- Sustainable finance: Banks, investors, insurance companies and pension funds are increasingly adopting net zero strategies of their own, which require portfolio companies to decarbonise. Provision of capital is increasingly being made conditional on measurable progress.
- Pressure from customers: As customers develop supply chain climate strategies, they are increasingly requiring the carbon intensity of the products and services they purchase to be reduced.
“If you’re going to bring your company’s climate goals into line with the 1.5°C target in the Paris Agreement, you first need to understand what this really means for you, and then develop an outline strategy that factors in your entire value chain.”
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A holistic climate strategy towards net zero
Companies are under ever-growing pressure to play their part in the transition to a sustainable economy, in limiting global warming to 1.5°C and in achieving climate neutrality by 2050. Increasing regulations, financial risk and companies’ own aspirations around sustainability and climate action are creating a need for a holistic approach and specific measures to reduce greenhouse gas emissions.
We can help you develop a transition plan to secure your business model for the future. Our plans are in line with leading sectoral decarbonisation scenarios, such as the International Energy Agency’s Net Zero Emissions Scenario, the University of Sydney’s One Earth Climate Model, or “Climate-Neutral Germany” by Agora Energiewende. The Science Based Target initiative standards are also important guidelines for our advice on developing corporate decarbonisation targets.
Our services at a glance
- Science-based targets and net zero strategy
- A transition plan for your business model
Science-based targets and net zero strategy
We will use our industry expertise and long experience to help your company get to grips with external demands, develop decarbonisation strategies and targets, and understand the costs and implications for your business.
Our holistic decarbonisation strategies are typically made up of four elements:
- Short-term science-based targets: science-based decarbonisation targets in line with the 1.5°C limit for a period of five to ten years.
- Long-term science-based targets: science-based targets for in-depth decarbonisation in line with the 1.5°C limit to be achieved no later than 2050.
- Net zero: a target to achieve climate neutrality no later than 2050 by offsetting residual emissions once long-term decarbonisation targets have been achieved.
- Climate plan going beyond your own value chain: complementary commitment for climate action outside your value chain in addition to your targets by directly investing in high-quality conservation programmes or purchasing carbon credits.
Net zero transformation – stay one step ahead with PwC
We at PwC have pooled our resources to create a holistic approach so that we can guide you on your way to net zero. Our community of solvers will help you to put sustainability at the heart of your company’s transformation, identify risks and seize new opportunities. We’re here to guide you on your journey – from strategy through to execution.
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Gunther Dütsch
Partner, Sustainability Services & Climate Change, PwC Germany
Tel: +49 160 3739019
