Decarbonisation as a lever: Decide today how strong you will be tomorrow.

Decarbonisation refers to the process of systematically reducing or avoiding CO₂ emissions, in particular by replacing fossil fuels (coal, gas, oil) with climate-friendly alternatives such as renewable energy, electrification or energy efficiency measures.

This transformation particularly affects the industrial sector, energy supply, transport and building infrastructure. The aim is to reshape the economy and society so that they can operate in a climate-neutral manner in the long term – without exceeding the planet’s carrying capacity.

Companies are coming under increasing pressure – not only from regulatory requirements such as:

• Supply chain risks & ESRS (EU guidelines on sustainability reporting)
  Future carbon pricing schemes
• GHG Protocol (a globally recognised standard for carbon accounting)
• Future carbon pricing schemes

But also due to rising expectations from:

• Investors (e.g. in the context of ESG criteria)
• Customers who demand climate-friendly products
• Competitors who use sustainability as a key differentiator

At the same time, energy prices and supply chain risks are on the rise. Sustainability has now become a decisive factor in securing funding, winning tenders and capitalising on market opportunities. Companies that fail to decarbonise now risk losing market share and damaging their reputation – or face the risk of being held back by political regulations.

Did you know: According to the UBA, industry accounts for around 23% of CO2 emissions in Germany – and is considered one of the key sectors for the transition.

Global decarbonisation is making progress – albeit at varying speeds and with differing levels of intensity. Whilst some countries have already embarked on consistent pathways to transformation, other regions still face major challenges, for example due to high reliance on fossil fuels or limited access to technology.

International developments:

• With the Green Deal and the Fit for 55 package, the European Union is pursuing ambitious targets for reducing greenhouse gas emissions: by 2030, emissions are to be cut by at least 55% compared with 1990 levels
• Countries such as Denmark, Sweden and Norway are among the pioneers of industrial decarbonisation – through clear carbon pricing, support for innovation and electrification.
• China and the US have their own industrial transformation programmes and are stepping up investment in hydrogen, carbon capture and storage (CCS) and green infrastructure.

Did you know: According to the International Energy Agency (IEA), global CO2 emissions would need to fall by 45% by 2030 to meet the 1.5-degree target.

An effective decarbonisation strategy begins with the targeted identification of the most effective decarbonisation measures. In almost every company, there are clear areas with particularly high potential for reducing greenhouse gas emissions – both within the company’s own processes (Scope 1 & 2) and throughout the supply chain (Scope 3).

Below are the key areas for CO₂ reductions – including typical decarbonisation measures:

Energy supply – significant potential for CO2 savings

• Switch to certified green electricity
• Self-generation via photovoltaic systems
• Utilisation of industrial waste heat

Processes & Production – significant potential for CO2 savings

• Improving energy efficiency
• Decarbonisation of process heat
• Introduction of circular economy concepts

Buildings & Infrastructure – moderate CO2 reduction potential

• Energy-efficient refurbishment of buildings
• Use of heat pumps
• Conversion to energy-efficient LED technology

Mobility & Logistics – moderate CO2 reduction potential

• Electrification of the vehicle fleet
• Optimisation of routes and supply chains
• Efficient fleet management

Procurement & Suppliers – significant potential for CO2 savings (Scope 3)

• Application of sustainable procurement criteria
• Conducting supplier audits
• Taking CO2 criteria into account when selecting suppliers

IT & Digitalisation – moderate CO2 reduction potential

• Use of low-carbon cloud services
• Energy optimisation for data centres
• Implementation of comprehensive green IT strategies

Tip: There is particularly significant potential in the areas of procurement and supply chains (Scope 3). According to the BMWK, indirect emissions in supply chains account for a substantial proportion of the overall carbon footprint. Through targeted procurement, supplier audits and partnerships with climate-friendly suppliers, companies can significantly reduce their emissions.

The Science Based Targets Initiative (SBTi) and the net-zero concept define science-based targets for reducing greenhouse gas emissions – with the aim of limiting global warming to a maximum of 1.5°C, as set out in the Paris Agreement.

• Science Based Targets (SBTi): Companies voluntarily commit to measurable emissions targets that are consistent with the latest climate science. The reduction pathways are based on global carbon budgets and take into account sector- and company-specific data. The targets are reviewed and validated by the SBTi.
• Net-zero: Net-zero refers to the state in which a company fully offsets all remaining greenhouse gas emissions after having first reduced all avoidable emissions. The SBTi’s net-zero approach calls for significant emissions reductions by 2050 at the latest (in Germany, generally by 2045) – only then may remaining residual emissions be offset through carbon removal.

For businesses, both approaches not only provide clear guidance but also reflect rising expectations from stakeholders, investors and regulators. They help to structure decarbonisation targets and make them credible – and to meet regulatory requirements and market needs in the long term.