Climate protection measures in companies: Step-by-step guide

Climate protection measures are also becoming an increasingly important issue for companies. Fridays for Future launched the call for help from the heart of society. However, it is also becoming clear that decisive action for climate protection is required at a political, regulatory and economic level. With the legal decision to strengthen climate protection in Germany in May 2021, the country is committed to meeting even more ambitious climate targets. This will be reflected in concrete terms in new regulatory requirements in the economy. Last but not least, more and more investors are also recognising climate change as a financial risk and focus on climate-friendly investments.

From now on, companies will (have to) take responsibility for measuring and reducing their emissions, as stipulated by the now higher climate targets. So doing nothing is no longer an option. But how exactly can companies implement climate protection? In our step-by-step guide, we show approaches and possible means.

Content of the article

• What is climate protection and what is not?
• What does the path to climate protection in the company look like?
• Firstly: Calculate the CO2 footprint
• Secondly: Identify levers
• Thirdly: Stakeholder dialogue
• Fourthly: Collect climate protection measures
• Fifthly: Realisation
• Sixth: Controlling
• Seventh: Compensation
• Additional step: Transparency
• Permanent anchoring through qualification
• Conclusion

What is climate protection in companies and what is not?

The word climate protection is used a lot and in different contexts. Climate protection is a comprehensive topicas the climate itself influences a large part of our planet's processes and is also influenced by many. It is therefore important to be able to clearly differentiate between climate protection and other sustainability issues.

If we look at our actions as humanity, then climate protection largely means two things:

• the avoidance of climate-damaging emissions and
• the preservation of so-called CO2 sinks such as forests.

Of course, the global climate is influenced by other factors such as the water vapour content of our atmosphere or ocean currents. But we only have a marginal influence on these. They are therefore negligible in this context.

We also want to sensitise people to the fact that other topics such as fair trade, water conservation, etc. are hugely important when it comes to sustainability. But they are at most indirectly related to climate protection.

On the other hand, we want to emphasise that climate protection in companies is more than just energy efficiency and green electricity. Energy consumption is one of the main causes of climate-damaging emissions. And green electricity as supposedly climate-neutral electricity is also part of the solution. However, the production capacity of wind, solar and other forms is still far from covering our needs. We therefore need innovative and bold approaches. If we only want to implement climate protection by increasing the energy efficiency of the machines, products etc. we use, then changes will only ever be incremental. In order to achieve committed climate targets, we need to rethink processes, products and business models. And in such a way that they are designed from the outset to be climate-neutral or even climate-positive. 

So if companies want to implement climate protection, they should be aware of what climate protection means and what measures and problems are involved. Experience has shown that such a clear orientation facilitates the targeted development of climate protection programmes.

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What do step-by-step measures for climate protection in the company look like?

Firstly: Calculate the CO2 footprint

The basis for any improvement in climate protection within the company is the calculation of the CO2 footprint. With this effective tool, a company analyses how many CO2 equivalents it emits. It also shows where the biggest emitters are in the company and the supply chain.

The calculation of the CO2 footprint is now a standardised process. Emissions are usually calculated in Scopes 1, 2 and 3 and the calculation itself is ideally carried out according to the Greenhouse Gas Protocol (GHG P). The TÜV now also tests according to an ISO standard (ISO 14064) for calculating the CO2 footprint. Companies can use this to calculate and certify their carbon footprint.

The calculation itself can be carried out internally, through in-house calculations or the use of common tools. Alternatively, it can be realised by external service providers. Here we have Simple instructions for calculating the carbon footprint compiled.

Secondly: Identify levers

The CO2 footprint not only reveals the pure size of the emissions. It also reveals how many CO2 equivalents are emitted in which value creation step or company division. This can vary enormously from company to company.

• For a mechanical engineering company, electricity consumption in production will be the largest emitter.
• For a chemical company, these can be direct emissions (methane, nitrous oxide and other CO2 equivalents) from chemical production processes.
• For consulting companies, it is usually business trips.

A detailed carbon footprint therefore provides individualised information about the largest emitters. The company should place the greatest focus on these with its climate protection measures. In this way, it can take committed steps towards climate protection. A company should calculate its carbon footprint at regular intervals (approx. every 2 years). This allows it to respond to changes and progress.

The smaller emitters then also play a more important role in the company's ongoing climate protection programme. They are important in order to come closer to the possible goal of climate neutrality.

Thirdly: Stakeholder dialogue

The carbon footprint therefore provides a quantitative assessment of the main causes of climate protection in the company. A stakeholder dialogue, in turn, enables a qualitative assessment.

This means that a company enters into dialogue with its stakeholders. The aim of this dialogue is to determine which levers are most relevant from the perspective of the respective stakeholders in order to implement climate protection. There are two reasons why this assessment is so important:

• On the one hand, because the purely quantitative evaluation only looks at the existing company system. Stakeholders with their perspective and expertise can broaden the view. They can provide impetus beyond the purely quantitative CO2 footprint.
• On the other hand, a CO2 footprint only ever provides a retrospective analysis. Stakeholders, in turn, can include the planned business activities in their assessment.

Last but not least, stakeholder statements can be a validation of the carbon footprint itself.

An example of the value of stakeholder dialogue:

An organic coffee brand has calculated its CO2 footprint. They found out that they have reduced the largest emissions by switching from conventional to organic cultivation. The next largest emissions are caused by transporting the coffee from South America to the customer. In the stakeholder dialogue, however, it emerged that an enormous ecological footprint in coffee preparation could lie with consumers. A new analysis is carried out. It shows that the greatest leverage lies in sensitising users to energy-saving preparation. The coffee brand did not take this point into account in the first CO2 calculation and was only able to reveal it through the stakeholder dialogue.

Fourthly: Collect measures for climate protection in the company

The CO2 footprint and the stakeholder dialogue have now revealed the most important levers. The task now is to establish measures to reduce emissions. It is advisable to take a structured approach to identifying measures. To do this, the organisation should collect possible climate protection measures for each lever individually. The measures can often be found through the expertise of the employees themselves. It also helps to research best practices or involve external experts.

We would also like to point out that climate protection measures can take different forms. We often distinguish between three types of measures:

• Efficiency measures: They help to reduce the consumption of resources in the existing system. These are often process changes, technological innovations or changing habits.
• Effectiveness measures: They reduce the consumption of resources by changing the system itself. This includes product innovations, changes to the business model or completely scrutinising processes.
• Measures with positive extra benefits: These do not serve to change the systems or processes, but are intended to bind CO2 in addition to or integrated into the activity. These are often projects for planting trees, financing the conservation of wild areas or supporting alternative energies.

It is advisable to first collect as many measures as possible and then select them. It often makes sense to implement those measures first that deliver great benefits with little effort.

If a company already has a sustainability strategy or is currently developing a sustainability strategy, the measures should be selected in such a way that they fit in with this strategy.

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Fifth: Implement climate protection measures

Climate protection measures are usually implemented in accordance with the company's usual management processes. In any case, it is important to define clear responsibilities. In addition, budgets should be planned where necessary and capacities released for implementation.

Experience shows that it is worth involving as many employees as possible in the implementation of climate protection in the company. This gives the topic a better dynamic and runs with more motivation and self-organisation.

It may also be a good idea to involve local initiatives and other organisations. Experience has shown that new sustainability topics that are relevant to the local community become visible through this exchange. Just like the established business networks, the emerging sustainability networks also contribute to the creation of valuable exchanges of experience. Many Local Agendas 21 in Germany are a good example of this.

Sixth: Controlling

As with all packages of measures, controlling is also extremely important in climate protection. The degree of implementation should be reviewed both at the end of the implementation period and at defined milestones in between. Depending on the size of the company, simple key figures and a dashboard or implementation in the existing management system may be sufficient.

It is often after the first major climate protection measures that new insights are gained on the specific topic of climate protection in the company. The implementing employees acquire more expertise and can thus implement the measure even more effectively by making changes. Accordingly, regular and results-oriented controlling should enable and promote this gain in expertise.

At the end of the implementation period, the organisation should check whether it has achieved the targets for reducing CO2 emissions.

Seventh: Compensation

Only very few companies are able to reduce their CO2 emissions to zero through their climate protection measures. Ambitious targets may not have been achieved. Or the current business model does not yet allow for climate-neutral operations.

If a company wants to make a determined contribution to climate protection, the goal must be climate neutrality. To achieve this, it must offset the remaining climate emissions through suitable measures.

The most common way is to provide financial support for projects that bind CO2 or promote its reduction. Such projects include, for example

• Reforestation projects
• Projects to protect ancient forests and other ecosystems
• Projects for access to clean energy for developing countries
• The development of renewable energy production
• Technical storage of CO2 from the air

With all reputable providers, the calculation of the compensation can be viewed and the company receives a certificate stating the amount of emissions saved.

Additional step: Transparency on climate protection in the company

Transparency is a hugely important factor in companies' sustainability efforts. These measures also play a major role in climate protection for companies. It should be open about the initial assumptions, the measures taken, the progress made and the unfinished business.

Transparent communication, e.g. in a climate report, almost always leads to a positive response. Regional stakeholders as well as national NGOs are much more positive and supportive when reporting is honest. The more abstract and vague such a report or other communication is, the more sceptical such organisations are.

Qualification as a measure for permanently anchoring climate protection in the company

All efforts to protect the climate require a certain continuity. Experience shows that climate protection becomes an important part of the company when the employees are behind it. Measures can then be implemented with the appropriate motivation and curiosity for new things.

In order to empower employees to promote climate protection and sustainability, the topics should be reflected in training and further education. Training courses, workshops and excursions are used to generate enthusiasm and create a professional basis.

Conclusion

Climate protection is still a new topic for many companies. However, due to social, political and economic developments, it is worth putting more energy into it than the legal situation requires.

With a few clear steps and measures, every company can implement climate protection in its own organisation and thus create very individual added value. From employer attractiveness to market advantages and image enhancement. Climate protection will become an increasingly important topic in the coming years and companies that take action now will enjoy significant advantages.

If a company adheres to the basic steps that have been shown, climate protection can be implemented well. In conclusion, we would like to emphasise two points in particular:

1. The involvement of employees is an enormously valuable point. This builds motivation and expertise and the topic is effectively promoted and anchored.
2. The dialogue with stakeholders cannot be valued highly enough. The external perspective and the contacts that are formed are enormously helpful for a complex topic such as climate protection.

For a complete overview, our Comprehensive guide to sustainability strategies for companies.