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Decarbonization can refer to the process in which any entity that generates emissions such as a company, organization, or sector, reduces its carbon footprint by reducing its greenhouse gas emissions.
Decarbonization is a strategy taken up by many corporations worldwide to reduce their impact on the climate and to mitigate the effects of global warming. Decarbonization has become more relevant in recent years due to increased pressure put on organizations by various international accords such as the Paris Agreement, the COP26 discussions, and the G7 meetings to name a few. Decarbonization is a fundamental part of mitigating climate change to 1.5C by 2050.
The goal of decarbonization is to lower an organization’s carbon footprint and ultimately align their business practices with global climate targets aimed at limiting warming to 1.5 as outlined by the Paris Agreement.
In order for businesses to successfully commit to and implement decarbonization practices, they must first complete a carbon footprint assessment to identify their Scope 1, 2, and 3 emissions. This will help businesses to determine which areas of their operations are most carbon intensive and where positive changes to reduce those emissions long-term can be made.
Once these emissions have been measured, companies can then develop a decarbonization roadmap, which often includes carbon emission reduction strategies such as implementing the use of renewable energy, improving energy efficiency, redesigning products to be more eco-friendly, choosing more sustainable suppliers or investing in low-carbon technologies.
As a whole, decarbonization isn’t merely taking environmental responsibility on a voluntary basis – but it’s increasingly becoming a requirement for businesses, especially as stricter regulations such as the ESRS and CSRD require companies to disclose emissions data and demonstrate progress toward reduction targets.
Decarbonization can be beneficial for businesses as it allows for improved brand reputation, attracts eco-conscious consumers, and ensures long-term business resilience.
Decarbonization is important not only as it serves as an effective strategy to mitigate climate change, but also allows companies to adhere to sustainability regulations, ensure compliance, and mitigate potential financial and reputational risks linked to high emissions.
Decarbonization is different from carbon neutrality as it focuses on reducing emissions from the source, while carbon neutrality seeks to balance emissions by offsetting what cannot be reduced.
Greenly can help companies to decarbonize as we provide the tools necessary to successfully measure emissions, analyze reduction opportunities, and build personalized decarbonization strategies. We also help to ensure compliance with frameworks like the ESRS, CSRD, and international climate targets.