Decarbonisation Roadmap : A Guide for Process Industry Leaders

The Urgent Call for Decarbonisation

As the effects of climate change become more apparent, there is an increasing demand for urgent and collective action to mitigate further environmental damage. Industry leaders, in particular, hold a critical role in this process, as they have the power to reshape operational practices, influence supply chains, and drive innovation towards sustainable solutions. By committing to decarbonization—the reduction or elimination of carbon dioxide emissions—industry leaders not only address the pressing need to combat climate change but also future-proof their businesses in an evolving global marketplace.

Decarbonization is not just about regulatory compliance or responding to stakeholder pressure—it is also a powerful driver of competitive advantage. Companies that take the lead in reducing their carbon footprint can position themselves as innovative and forward-thinking, which appeals to a growing base of eco-conscious consumers, investors, and partners.

In a world where environmental, social, and governance (ESG) factors increasingly influence investment decisions, companies with strong decarbonization strategies are more attractive to investors seeking sustainable, long-term growth. Investors are looking for businesses that mitigate climate risks and capitalize on opportunities in the green economy—an economy that prioritizes sustainability, energy efficiency, and renewable resources.

Breakdown of the Primary Sources of Carbon Emissions Across Industries

Industrial activities are among the largest contributors to carbon emissions, releasing vast amounts of CO2 and other greenhouse gases (GHGs) into the atmosphere. These emissions result from a variety of sources across industries, with some sectors being more carbon-intensive than others. Below is a breakdown of the primary sources of carbon emissions across industries:

Addressing these primary sources of carbon emissions requires comprehensive and sector-specific decarbonization strategies. Reducing energy consumption, transitioning to renewable energy, improving manufacturing efficiency, optimizing transportation, and innovating in waste management are key to minimizing the industrial carbon footprint. Industry leaders must recognize that cutting emissions not only addresses climate change but also presents opportunities for long-term sustainability and competitiveness in a low-carbon economy.

Read how Energy efficiency in Manufacturing reducing costs and Carbon Footprint

Key Steps to Achieve Decarbonisation

Decarbonizing industrial operations requires a well-structured plan that addresses emissions at every level of the organization and its value chain. Below is a detailed guide to the critical steps for building a successful decarbonization roadmap:

Step 1: Conduct a Comprehensive Carbon Audit

The first step in any decarbonization journey is understanding where your emissions are coming from. A comprehensive carbon audit provides a baseline from which to measure progress.

Importance of Establishing a Baseline: A carbon audit helps companies assess their current carbon footprint, breaking it down into Scope 1 (direct emissions), Scope 2 (indirect emissions from purchased energy), and Scope 3 (indirect emissions throughout the supply chain). Without this baseline, it’s impossible to track improvement or set realistic goals.
Tools and Technologies: There are many tools to help measure and track emissions accurately, including sensors, smart meters, and digital platforms. Advanced analytics software can integrate with existing systems to provide real-time data on energy use and emissions, helping to identify inefficiencies and areas for improvement.

Step 2: Set Science-Based Targets

Once a carbon baseline is established, the next step is to set clear, science-based targets that align with global climate goals.

Aligning with Global Benchmarks: The Science-Based Targets initiative (SBTi) provides a framework for companies to set targets that are aligned with the Paris Agreement. These targets ensure that businesses are doing their part to limit global warming to 1.5°C.
Short-, Medium-, and Long-Term Objectives: Decarbonization is a long-term commitment. Industry leaders should set short-term goals (e.g., reducing emissions by 20% within 5 years), medium-term goals (e.g., a 50% reduction in 10 years), and long-term goals for achieving net-zero by 2050 or earlier. Each target should be supported by concrete actions to ensure progress.

Step 3: Prioritize Energy Efficiency

Energy efficiency is often the easiest and most cost-effective way to begin reducing emissions.

Identifying Energy-Intensive Processes: Conduct energy audits to identify the most energy-intensive processes in your operations. This could include heating, cooling, lighting, and machinery operations. Once identified, these areas should become the focus of energy-saving efforts.
Implementing Energy-Efficient Technologies: Upgrading to energy-efficient equipment, such as high-efficiency motors, LED lighting, and smart HVAC systems, can significantly reduce energy consumption. Additionally, optimizing maintenance schedules and improving operational processes can enhance efficiency without significant investment.

Step 4: Shift to Renewable Energy Sources

Transitioning from fossil fuels to renewable energy is a critical step in reducing carbon emissions.

Transition to Clean Energy: Renewable energy options, such as solar, wind, and hydropower, can significantly lower your carbon footprint. Many industries are also exploring geothermal and biomass as alternative energy sources.
On-Site Renewable Generation and PPAs: Companies can generate renewable energy on-site by installing solar panels or wind turbines. For those without the capacity for on-site generation, Power Purchase Agreements (PPAs) allow businesses to buy renewable energy directly from producers, securing long-term access to clean power.

Step 5: Invest in Low-Carbon Technologies

The industrial sector is witnessing rapid advancements in low-carbon technologies, which can dramatically reduce emissions.

Carbon Capture and Storage (CCS): CCS technology captures CO2 emissions from industrial processes and stores them underground or repurposes them for other uses. This is particularly important for industries that are difficult to fully decarbonize, such as cement and steel.
Hydrogen Fuel and Electrification: Green hydrogen, produced using renewable energy, can replace fossil fuels in high-temperature industrial processes. Additionally, the electrification of processes, particularly in manufacturing, can cut emissions when powered by renewable electricity.
Automation for Optimized Energy Use: Digitalization and automation can optimize operations, reduce waste, and improve energy efficiency. Smart factories using AI and machine learning can monitor energy use and make real-time adjustments to minimize emissions.

Step 6: Supply Chain Decarbonization

Scope 3 emissions—those from a company’s supply chain—often make up the largest share of a company’s carbon footprint. Collaborating with suppliers is essential for holistic decarbonization.

Collaborating with Suppliers: Industry leaders should work closely with their suppliers to encourage and support their efforts to decarbonize. This includes setting sustainability requirements for suppliers and helping them transition to more energy-efficient and renewable-powered operations.
Circular Economy and Sustainable Procurement: Companies should adopt circular economy principles, which prioritize reducing waste, reusing materials, and recycling by-products. Sustainable procurement practices, such as choosing suppliers that use eco-friendly materials or produce goods with lower emissions, can also play a significant role in reducing the overall carbon footprint.

Step 7: Foster a Decarbonization Culture

Decarbonization is not solely a top-down effort—it requires the involvement and commitment of the entire organization.

Engaging Employees in Sustainability: Employees are key players in driving decarbonization initiatives. Companies should involve employees by encouraging them to adopt energy-saving practices, participate in sustainability programs, and provide feedback on potential areas of improvement.
Incentivizing Innovation: Offering incentives for employees who come up with innovative low-carbon solutions can stimulate creativity and engagement. Recognizing and rewarding sustainability efforts can drive a positive cultural shift towards a more environmentally-conscious workplace.
Aligning Corporate Values with Sustainability: Industry leaders should ensure that their decarbonization strategies align with broader corporate values. This creates a unified message both internally and externally that sustainability is a core component of the company’s mission.

Conclusion

Building a decarbonization roadmap is critical for industry leaders who want to remain competitive while addressing the urgent challenge of climate change. By following these steps leaders can position their organizations for long-term success in a low-carbon future.