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Navigating climate action across heavy industry

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, April 3, 2024

Energy & Climate Consulting
Energy & Climate Consulting

Heavy industry is at a critical juncture globally with growing urgency to act on climate change and various sector-specific guidelines being released. Our teams put together an infographic that outlines proactive steps those in heavy industry can take toward reducing their carbon footprint and preparing for new requirements.Heavy industry is at a critical juncture globally, with growing ambition to act on climate change – and varying sector-specific climate guidance has been released by the Science-Based Targets initiative (SBTi) while others remain in development. While the SBTi guidance for all of heavy industry is ongoing, other frameworks have been released, like the International Energy Agency’s (IEA) Net Zero 2050 Roadmap, that highlight that it's essential for companies in heavy industry to take proactive steps towards reducing their carbon footprint and preparing for future market changes. Calculate your emissions footprint to set a credible climate target across all three scopes Measure scope 1, 2, and 3 emissions Scope 1, 2, and 3 emissions must be clearly calculated and understood. Scope 1 covers direct emissions, scope 2 includes indirect emissions from purchased electricity, and scope 3 encompasses all other indirect emissions. Significance of scope 3 emissions Scope 3 emissions are grouped into 15 categories by the Greenhouse Gas Protocol (GHGP). These emissions, especially the “Purchased Goods & Services” and "Use of Sold Product" categories, play a significant role in the heavy industry carbon footprint. Define an effective calculation methodology for operational emission sources Heavy industry energy use, or your scope 2, accounts for about one-third of global energy use, according to World Economic Forum. Develop a framework for identifying the most material of your energy emissions sources. Identify leading scope 3 GHG emission sources Discover the primary greenhouse gas (GHG) emissions sources in your production value chain and where you should focus your efforts. Upcoming policies and regulations World Economic Forum calls out that emissions from the heavy industry sector need to decline 93% by 2050 in order to achieve net zero. These drastic cuts are leading to more stringent policies and national targets for the sector. Stay informed about these forthcoming policies and regulations, such as Carbon Border Adjustment Mechanism (CBAM), as they may affect current decarbonization targets and cause them to be insufficient. Build a roadmap and decarbonization strategies Move from easy to difficult When developing your roadmap to reach your climate target, prioritize decarbonization efforts, starting with the easiest-to-reach opportunities—as in those levers that have low cost (or cost savings), high reduction potential, and immediate feasibility. Embrace renewable energy procurement Adopting renewable energy strategies and sustainable procurement practices can help you make significant progress toward emissions reductions. Build a credible, high quality carbon credit strategy Create a credible and high quality carbon credit strategy that is aligned with your company’s goals to address residual emissions that cannot be addressed with technologies available to day. Targeted actions for heavy industry companies Reduction pathways for industrial emissions can be found through material efficiency, energy efficiency, and investing in new technologies for material production like hydrogen, direct electrification, and carbon capture, utilization, and storage. Set climate targets and validate Use all of the information you’ve gathered from the earlier steps to set a climate target, or ensure you have a current target that is effective, verifiable, and aligned with climate science. Benefits of early action Reduced emissions Early climate action can lead to significant reductions in GHG emissions and put you on track to meet upcoming guidance and regulations. Cost savings Proactive sustainability efforts can also result in long-term cost savings.

Download the infographic and reach out to our teams to start your climate action journey today.