Step 1: Measure footprint and risks

How will climate change affect my business?

Climate-related risks are expected to grow as the planet continues to warm. Production sites, access to raw materials as well as transportation of goods, your physical stores as well as logistics to your end customer can be affected. You might be facing expensive disruptions, which in turn can affect consumer trust and potentially your competitiveness if peers manage these risks better.

Companies should also be aware of transition risks and opportunities that arise from the transition to a low carbon world. These may include policy, technological and market changes among others. For example, if a carbon tax is introduced, do you know how that will affect your business? Internal and external prices on carbon will most likely increase which, along with changing regulations, will pose a transition risk that you may be unprepared for. This transition also brings opportunities – changing the product mix can attract more sustainability-conscious consumers, and using energy-efficient and circular manufacturing methods and/or product design will save costs and foster innovation.

How can I measure my organization's footprint?

Understanding your carbon footprint is the first step towards taking climate action. Calculating your CO2 footprint will enable you to identify the key drivers of your emissions – and the 'hotspots' with the biggest reduction potential for the lowest cost. It is important to know exactly where your emissions originate, from raw materials to the shipping of your products. The analysis should include your direct operational emissions, such as company fleets and energy supply, as well as your indirect emissions related to your upstream and downstream supply chain.

Step 2: Set targets & create roadmap

What climate action should my organization take?

In 2021, the Science-Based Targets initiative (SBTi) published its corporate net zero standard, aligning the global community around a shared definition and clear requirements for what a company must do to reach net zero. Following the SBTi net zero standard allows you to make a commitment that can withstand stakeholder scrutiny and gives you clear guidance on how to achieve it.

What does net zero mean?

The Intergovernmental Panel on Climate Change (IPCC) defines net zero as a state where there is no incremental addition of GHGs to the atmosphere. This means all avoidable emissions have been reduced and residual emissions are to be removed from the atmosphere.

What should my company’s roadmap to net zero look like?

Once you've defined your target, you need to start planning how to get there. Your net zero roadmap should include science-based milestones that show exactly how you will reduce company emissions, year by year. Following an international standard, such as the 2021 corporate net zero standard published by the Science-Based Targets initiative (SBTi), provides guidance and protects you against greenwashing accusations.

Step 3: Reduce footprint

How can I reduce my company's emissions?

To reduce direct emissions, companies should consider transitioning to renewable energy. Reducing the bulk of your emissions within the supply chain is more challenging as companies lack the traceability and influence to implement emission reduction actions. Therefore collaborating with your peers and suppliers is crucial to achieving scope 3 reductions.

One promising opportunity for reducing emissions is supporting farmers in adopting novel agricultural techniques. Since late 2022, companies in the Forest, Land use and Agriculture (FLAG) sector have a new guidance that allows them to account for removals within their supply chain.

How can circularity be leveraged?

Circular systems minimise resource inputs – keeping products, equipment, and infrastructure in service longer – while reducing waste, the need for raw materials, and carbon emissions. In other words, circularity isn't just good for the planet, it's good for business too.

However, transitioning to circular systems can be a challenge. Our team will work closely with you to develop long-term and integrated strategies. These could include; reducing the amount of plastic that is being produced by building certified plastic reduction projects into the supply chain, identifying waste from operations that can be reduced, and building value chain-wide guidelines for the adoption of sustainable materials.

Step 4: Finance global climate action

Why should I compensate for my footprint?

Net zero can't be achieved overnight. Given the urgency of the climate crisis, the corporate net zero standard also encourages businesses to invest in emission reductions beyond their value chains, starting today. So, while you work to reduce your emissions, you can address remaining emissions by investing in high-quality carbon credits that finance climate action projects helping to avoid or remove emissions from the atmosphere.

How do carbon credits work?

Carbon credits are measurable, verifiable emission reductions from third-party certified climate action projects. These projects reduce, remove, or avoid GHG emissions. They also bring a whole host of other co-benefits aligned to the UN's Sustainable Development Goals; empowering communities, protecting ecosystems and reducing reliance on fossil fuels, among others. With the largest availability of projects in the world, our experts can help you design a portfolio to suit a range of budgets and needs.

How can my customers get involved?

Climate Click is the scalable ecommerce compensation tool that turns every purchase into positive climate action.

Calculate the carbon footprint of every purchase with our expert-designed methodology. Tailor the experience to the needs of your business and your customers. And select from the largest portfolio of certified climate action projects on the planet – reducing carbon emissions, protecting biodiversity, and supporting local communities.

Step 5: Communicate and lead

Delivering on climate targets is only possible by bringing everyone on board

Therefore, it has never been more important for businesses and brands to communicate on climate and engage the world around them.

Customers, investors and employees are increasingly expecting the private sector to raise the bar on climate action and champion causes close to their core. At the same time, growing scrutiny puts high pressure on businesses sharing their ambitions and progress.

Loosely communicated climate action can pose serious reputational risks. To avoid accusations of greenwashing, companies must disclose transparently and make credible claims that resonate with their stakeholders. South Pole's experts can advise companies on best-in-class climate communications and help protect their reputation while engaging and inspiring their audiences.

Credible claims are built on a robust foundation, learn more about our approach to climate communications here.

How can you engage your supply chain?

The race to net zero cannot be accomplished alone. Organizations committed to building a future-proof system will need to work closely with their supply chain. Sharing your climate ambition with your partners can inspire them to take action as well, amplifying your impact.