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, which aims for carbon neutrality by 2050, to new European regulations such as the Corporate Sustainability Reporting Directive (CSRD), the direction is clear: organizations must significantly reduce their greenhouse gas (GHG) emissions. In this context, international frameworks such as the Science Based Targets initiative (SBTi) provide companies with a recognized methodology for defining reduction pathways aligned with the 1.5°C target.
In particular, the CSRD requires companies to publish a robust transition plan demonstrating how their business model aligns with the 1.5°C trajectory.
But how can this regulatory pressure be turned into a concrete, effective roadmap?
The 4 Key Steps to a Robust Climate Strategy
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.
With a clear diagnostic, it’s time to set the course. The emission reduction pathway must be ambitious, realistic, and above all, credible.
The global benchmark for this is the Science Based Targets initiative (SBTi).
Committing to the SBTi ensures that your reduction trajectory is aligned with the 1.5°C goal of the Paris Agreement.
SBTi offers different ambition levels, including near-term targets (5–10 years) and a long-term Net-Zero Standard, which requires a deep decarbonization of the entire value chain, at least a 90% reduction in emissions, before addressing any residual emissions through permanent carbon removals.
Setting such goals demands methodological rigor, as they are independently validated, ensuring external credibility.
ClimateSeed’s experts support companies in defining SBTi-aligned pathways and preparing for successful validation.
A transition plan is only credible when it is integrated into the company’s financial planning. Under the CSRD, companies must disclose the share of CapEx (capital expenditures) and OpEx (operational expenditures) linked to their climate 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).
Achieving global carbon neutrality (Net Zero) relies on two inseparable pillars: drastically reducing one’s own emissions and contributing to decarbonization beyond the company’s value chain.
The top priority is reducing your own footprint (Pillar A of the Net Zero Initiative).
However, to accelerate the transition and address residual emissions, companies should also act through carbon contribution:
Pillar B: Supporting others in reducing their emissions (e.g., financing renewable energy or avoidance projects).
Pillar C: Removing carbon from the atmosphere (e.g., financing reforestation or carbon sequestration projects).
The quality and integrity of financed carbon projects are essential to ensure real impact.
ClimateSeed helps companies build portfolios of rigorously selected carbon projects with strong social and environmental co-benefits.
An action plan can only succeed with proper governance and performance monitoring.
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: The mandatory European directive for sustainability reporting.
CDP (Carbon Disclosure Project): The leading voluntary market standard, widely used by investors as a signal of transparency and maturity.
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.
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.
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.