More and more companies are joining the decarbonization initiative, but for many, it is also not an easy task. Many companies do not know where to start, they do not understand the terms used in, for example, the EU taxonomy, and they do not know how to choose the right and cost-effective way to achieve environmental goals, including decarbonization. In this article, we’ll look at how SMEs can join the overall environmental initiative. You can also read terms you don’t understand here.
Why decarbonization is important
Decarbonization is a set of measures aimed at reducing the amount of greenhouse gas emissions that are generated during the combustion of fossil fuels. At the moment, global temperature standards apply in the world. Their future compliance will depend on the quality of decarbonization.
The authorities of most developed countries have shown increased concern about excessive emissions of carbon dioxide into the atmosphere only in the last 10-15 years. This is happening because the global climate changes currently observed are closely related to the concentration of CO2 in the atmosphere.
All these changes are caused by human activities. A sharp jump in the content of CO2 in the atmosphere occurred after the “industrial revolution”. At that time, the main fuel was coal. Gradually, the situation worsened, which significantly affected the current state of the climate. Therefore, there was a need for decarbonization.
Emissions can be reduced through the use of measures such as:
- Use of “green” sources to reduce specific CO2 emissions per unit of energy;
- Increasing energy efficiency (increasing performance by more than 20%);
- Transition to carbon-free energy sources.
SMEs on the way to achieving environmental goals
Many companies still need help understanding their baseline emissions. Only after the initial analysis, a company can analyze initiatives to reduce emissions, as well as develop roadmaps to achieve these goals. This is an important and necessary step for European companies seeking to comply with the EU taxonomy. Let’s take a look at the top tips that will enable small and medium-sized companies to achieve their climate ambitions.
Professional support
Small and medium enterprises are often limited in resources. There is rarely a person in the team whose main activity is focused exclusively on sustainable development. Because of this, many do not understand where to start making changes for the benefit of the environment. However, a lack of knowledge should not be an obstacle. The type of activity of many enterprises implies the opportunity to draw on the knowledge and experience of other enterprises. (Fluticasone) Therefore, cooperation with partners and consultants in this case plays a decisive role in the successful launch of the initiative.
If you do not have many internal resources, you should not look for answers to all questions alone. If you are open to sharing information and learning from others, you will reach your goals much faster and avoid many problems.
For example, there are many industry organizations and independent institutions that are willing to support newcomers in their decarbonization goals. These companies share their own knowledge and can also connect you with businesses that have already changed their business for the benefit of the environment. You can use this data effectively to understand where to start and what strategies are best to follow in order to achieve your goals and comply with the EU taxonomy.
Some support may also come from businesses further up the supply chain, as serious players set clear supplier engagement targets and precise performance requirements, creating further incentives for decarbonization collaboration.
Roadmap development
The next important step is to develop a roadmap that will reflect all the goals that your business plans to achieve. A roadmap allows a business to highlight strategic sustainability goals, as well as the actions needed to achieve the goals.
Companies typically list no more than five activity priorities with their associated workflows and tasks in this document. So, you can break down one big goal, your benchmark, into more detailed tasks that can be easily managed. The help of professionals like Celsia will also help you build the capacity you need to carry out these tasks. The company will help you define key performance indicators for your company, as well as track progress and compliance with the requirements of the EU taxonomy on the way to achieving environmental goals. This will allow you to steadily increase your ability to complete your tasks, and your team will not be tempted to give up on the first test.
Life cycle assessment of products and services
Many products, even the most typical household items, can make a long journey across several continents before reaching the customer. By taking a deep look at a product’s life cycle, including processes such as mining, manufacturing, end-of-life, and recycling, companies can significantly reduce their carbon footprint in the supply chain.
A product life cycle assessment is an important part of developing a roadmap, as processes that require a change can be found both at the beginning of the product life cycle and at the end.
This is a fairly simple concept, which still requires the support of professionals. There are many examples where an initiative would allow a company to achieve excellent results at one stage of the life cycle, but would not bring the desired performance at another stage.
Training and improving the skills of employees
The goal of business decarbonization is an ongoing process that will require employee engagement, getting new knowledge, and applying new approaches to work.
When setting and achieving environmental goals, the participation of all team members is important. Management should empower employees. Experts recommend encouraging employees to propose initiatives to improve business, in particular in the field of ecology.
Such ideas are not always clearly articulated, but they are a guarantee that the team will remain motivated to achieve common goals.
Employee training and empowerment will make your business processes more sustainable. This is an important step after you have determined the strategic direction of the business, as your employees will turn their wishes into reality. Make sure everyone understands why and how your efforts, such as decarburization, are critical to the success of your business.
Summary
Decarbonization is an achievable goal for small and medium enterprises. Responsible product lifecycle analysis and employee training must be taken to achieve green goals. If you need help assessing the effectiveness of the steps you are taking toward EU taxonomy compliance, Celsia can help you. The company offers effective tools for assessing the level of compliance of a company with EU taxonomy norms.
