The Strategic Imperative for Your Company's Long-Term Success

In the face of the climate emergency and rapidly evolving regulatory requirements, decarbonization has become a strategic imperative for any company seeking long-term viability and competitiveness. It is no longer an option,  it is a major opportunity to innovate and strengthen resilience.

From the Paris Agreement and the global objective of reaching net-zero emissions around mid-century, to evolving European sustainability regulations such as the Corporate Sustainability Reporting Directive (CSRD), the direction is clear: organizations must significantly reduce their greenhouse gas (GHG) emissions.

But how can this regulatory pressure be turned into a concrete, effective roadmap?

The 4 Key Steps to a Robust Climate Strategy

Step 1: Measure Your Corporate Carbon Footprint to Build a Strong Foundation

You can’t manage what you don’t measure. The essential first step in any climate strategy is to establish a comprehensive assessment of the company’s emissions and dependencies: the Greenhouse Gas Emissions Inventory (GHG Assessment).

To be credible, this assessment must comply with recognized international standards such as the GHG Protocol or ISO 14069, or with national standards such as Bilan Carbone®. It requires a detailed mapping of all activity-related flows people, materials, energy, and waste, that generate emissions.

Emissions are then categorized into three scopes:

• Scope 1: Direct emissions from sources owned or controlled by the company (e.g., boilers, company vehicles).

• Scope 2: Indirect emissions from purchased electricity, heat, or steam.

• Scope 3: All other indirect emissions across the value chain (procurement, logistics, employee travel, product use, etc.).

Scope 3 is often the most significant, in most sectors, it represents the majority of total emissions. Analyzing it is crucial to identify key risks and the most effective levers for action.

This step requires a rigorous analysis to pinpoint risks, critical dependencies, and “hot spots” where action will have the most impact. At ClimateSeed, we can support you for measuring and reducing your carbon footprint.

Step 2: Define a Science-Aligned Climate Trajectory

Once your emissions baseline is established, the next step is to define a credible pathway for reducing emissions in line with climate science.

The Science Based Targets initiative (SBTi) provides companies with a recognized framework for setting science-based targets aligned with the transition to net-zero emissions. Its new Corporate Net-Zero Standard V2.0, published in 2026, places greater emphasis on turning targets into concrete action, linking climate targets with transition planning, governance, and business decision-making.

Under the updated framework, companies are expected to set actionable targets across their emissions, prioritize direct decarbonization, and use available levers to address implementation barriers. Progress should be regularly monitored, disclosed, and used to strengthen future action.

SBTi V2.0 also introduces an Ongoing Emissions Responsibility (OER) program, recognizing additional climate action that complements emissions reductions. This can include emissions reductions, carbon removals, mitigation funding, and other climate actions, subject to the Standard's requirements. These actions complement—not replace—the reduction of a company’s own emissions.

Companies will be able to submit targets for validation under V2.0 from February 1, 2027. Version 1.3.1 remains available during the transition period, with V2.0 becoming mandatory for new target submissions from February 1, 2028.

A credible transition plan should also be connected to financial planning, with companies assessing the investments and resources required to deliver their climate targets.

Step 3: Build an Operational Transition Plan

A strategy comes to life through a concrete action plan detailing the decarbonization levers to activate. Projects should be prioritized based on their reduction potential and feasibility.

Typical action areas include:

• Energy: Improve energy efficiency, switch to renewable electricity providers, invest in self-generation (e.g., solar panels), or recover waste heat.

• Mobility: Electrify the vehicle fleet, optimize routes, and promote low-carbon employee mobility (remote work, public transport, etc.).

• Supply chain (Scope 3): Often the main emissions source. It is crucial to engage suppliers, encourage them to reduce their own emissions, and integrate ESG criteria into procurement policies (local sourcing, recycled materials, eco-design).

Climate Contribution and Ongoing Emissions Responsibility

Reducing a company’s own emissions remains the foundation of any credible climate strategy. However, companies can also take action to support additional climate mitigation while progressing toward their net-zero targets.

The SBTi Corporate Net-Zero Standard V2.0 introduces Ongoing Emissions Responsibility (OER), a framework that recognizes climate contributions made alongside emissions reduction efforts. These contributions can support a range of climate actions, including emissions reductions, carbon removals, mitigation funding, and other climate solutions. They are intended to complement—not replace—decarbonization across a company’s own operations and value chain.

For companies looking to take action through high-integrity carbon projects, this can include supporting:

• Avoidance and reduction projects that prevent or reduce emissions, such as renewable energy or forest conservation.
• Carbon removal projects that remove and store CO₂ from the atmosphere, such as reforestation or biochar.
• Projects with additional environmental and social benefits, supporting outcomes such as biodiversity conservation, ecosystem restoration, and community livelihoods.

The quality and integrity of these projects are essential to ensuring that climate contributions deliver meaningful impact. A diversified portfolio of rigorously selected projects can provide exposure to different climate solutions while supporting broader environmental and social outcomes.

ClimateSeed helps companies identify and build portfolios of high-integrity avoidance and removal projects, selected through rigorous due diligence and aligned with their climate strategy and objectives. For more information, please contact us. 

Step 4: Implement Governance, Management, and Reporting

An action plan can only succeed with proper governance and performance monitoring.

Governance and Management

Effective governance requires clear climate leadership:

• The Board of Directors defines the strategic vision and allocates resources.

• The Executive Committee (Comex) oversees implementation and monitors progress.

• Business unit leads ensure operational execution.

To manage effectively, companies must set precise indicators (emission trends, renewable energy consumption, etc.) and link them to SMART objectives (Specific, Measurable, Achievable, Realistic, Time-bound).

Reporting and Transparency

The final step is transparent communication of your climate strategy and results, using two main frameworks:

• CSRD/ESRS: The EU framework for sustainability reporting applicable to companies within its scope.
• CDP: A widely used voluntary disclosure framework that enables companies to report on climate and environmental performance.

Building a climate strategy is a continuous improvement journey that requires commitment across the entire organization. To learn more about this topic, we invite you to read our free guide: How to build an effective climate strategy and transition plan.

How ClimateSeed Can Support You?

With our expert consultants and digital tools, ClimateSeed can help you design and implement an ambitious climate strategy: measure your emissions, build a concrete transition plan, ensure reliable CDP reporting, and invest in high-integrity carbon projects.

Conclusion 

Developing a climate strategy is not just a compliance exercise, it is a powerful lever for transformation. It offers an opportunity to rethink your business model, drive innovation, and strengthen sustainable performance.
By taking decisive action today, you prepare your company to thrive in tomorrow’s economy.

We invite you to contact us to learn more about how we can support your journey.