Carbon offset projects
Reduction targets can be based on scientific data. This involves measuring how large the reductions would have to be within your sector and within your own company to limit global warming to two degrees. The starting point is therefore not the specific reduction potential of individual companies ("What is possible?") but the CO2 reductions required to reach our climate goals ("What is necessary?").
But it's not just about setting targets. Management also has an important role to play. A company's carbon reduction strategy has to be implemented in practice, which for large and complex organisations can often be a significant challenge involving the reconciliation of competing priorities. How can climate change goals be reconciled with economic efficiency?
Here a carbon pricing strategy can have a role to play. This involves all decisions taking due account just of the actual costs involved but also of the negative effects on the climate and then factoring those costs in. Once these external costs are taken into account, a seemingly cheap flight can work out a good deal more expensive than taking the train. In this way, even complex organisations can ensure that they take account of climate protection in their procurement and investment decisions.
Companies can take even more account of the external consequences of their actions if they use an impact assessment system. The aim is to show both the positive and negative impacts of the company's activity across the entire value creation chain or the entire product lifecycle. This might include social impact. The results of a comprehensive impact assessment can be used to minimise negative impacts over the long term.