Sustainability & ESG

Carbon Reduction & Net-Zero Roadmap

SBTi-validated decarbonisation pathways engineered against MACC, TRL, and capital reality

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Programme overview

Carbon Reduction &
Net-Zero Roadmap

Most corporate net-zero pledges made between 2020 and 2023 are now under scrutiny — by SBTi (which removed 200+ companies from its Net-Zero Standard in 2024 for missed validation deadlines), by NGOs (NewClimate Institute, CarbonMarketWatch), and by litigators (Holcim, KLM, Shell rulings). A credible net-zero roadmap now requires SBTi 1.5°C-aligned near-term targets (typically 2030, 42% Scope 1+2 reduction from a 2020 base), long-term targets (typically 2050, 90% absolute reduction), and an interim BVCM (Beyond Value Chain Mitigation) and residual-removals strategy. The engineering core is MACC modelling against TRL-adjusted abatement options — energy efficiency (negative cost), electrification and process intensification (CCUS for high-temperature heat, hydrogen for chemicals reduction), and renewable energy procurement (additionality-tested PPAs, not unbundled RECs). The hardest scenarios — cement, steel, hard-to-abate chemicals, aviation — require explicit dependence on supplier transitions, technology curves, and policy assumptions made transparent.

Carbon Reduction & Net-Zero Roadmap — Overview
How we deliver it

Our implementation model

A practical, phased delivery approach — from gap assessment through operational embedding — built around your regulatory context.

Baseline GHG Inventory & SBT Target

Establish baseline GHG inventory per GHG Protocol / ISO 14064-1 (typically 2018-2020 base year); set Science-Based Target per SBTi Net-Zero Standard — near-term (2030, 1.5°C aligned 4.2% pa reduction), long-term (2050, 90% reduction).

Decarbonisation Lever Identification

Identify decarbonisation levers per IEA Net Zero by 2050 / IPCC AR6 — energy efficiency (industrial, building, transport), electrification (heat pumps, EVs), low-carbon fuels (H₂, biofuels, biogas), renewable electricity (PPA, on-site), CCUS, behavioural change.

Marginal Abatement Cost Curve (MACC)

Build MACC per McKinsey / EPA / Vivid Economics — abatement potential (tCO₂e/year) vs marginal cost ($/tCO₂e) for each lever; identify low / no-cost levers and high-cost-but-essential levers; align with corporate capital allocation.

Multi-Year Capital Plan

Sequence decarbonisation projects across capital plan — near-term (energy efficiency, fuel switching), medium-term (electrification, renewable PPA), long-term (CCUS, hydrogen, novel technology); align with corporate stage-gate and TCFD transition risk.

Residual Emission & Removal Strategy

Design residual emission strategy per SBTi Net-Zero — minimise (typically <10% by 2050), then neutralise via carbon removal (afforestation, BECCS, DAC, biochar, mineralisation); align with ICVCM Core Carbon Principles and high-integrity removals.

Governance, Monitoring & TCFD Integration

Design governance — board oversight, executive accountability, scope-level KPIs, internal carbon pricing; integrate with TCFD / IFRS S2 climate disclosure, EU CSRD ESRS E1, CDP Climate Change; align with annual SBTi progress reporting.

What the programme covers

Carbon Reduction & — in full scope

SBTi near-term (5–10 yr) and long-term (2050) target derivation per Absolute Contraction or SDA
MACC modelling — abatement potential, capex, opex, TRL, and dependency mapping
Energy efficiency screening (typically 15–25% reduction at negative cost in heavy industry)
Process electrification feasibility — boilers, heat pumps, electric crackers (BASF/SABIC pilot data), MVR
CCUS evaluation for unavoidable process CO2 (cement, steel BF-BOF, ammonia, ethylene)
Green and blue hydrogen integration for high-temp heat and chemicals reduction (DRI, ammonia, methanol)
Renewable PPA structuring — physical, virtual, additionality-tested per CDP/RE100 criteria
Residual-emission removals strategy — engineered (DAC, BECCS, biochar) vs nature-based with permanence and additionality scoring
BVCM commitment design per SBTi for Scope 3 leakage and just-transition
Transition plan disclosure per TPT (UK), ISSB IFRS S2 climate-related transition plan
Carbon Reduction & Net-Zero Roadmap — Coverage
Business value

Value of Carbon Reduction & Net-Zero Roadmap

Stranded Asset & Transition Risk Reduction
  • Builds climate-adaptation logic into asset siting and lifecycle decisions
  • Surfaces stranded-asset risk while reinvestment options remain
  • Tightens transition-risk management for board and audit committee
  • Anchors just-transition planning for workforce and community
TCFD / SBTi Net-Zero Defence
  • SBTi Net-Zero Standard validation-ready (target + transition plan)
  • Aligns to ISSB IFRS S2 transition-plan disclosure and TPT requirements
  • Supports CBAM levy exposure mitigation through verified upstream reductions
  • Defends against greenwashing litigation under new EU Green Claims Directive
Decarbonisation Programme Governance
  • Embeds carbon-cost in capital allocation via internal carbon pricing
  • Re-engages supplier base around verified Scope 3 reductions
  • Builds engineering literacy on H2, electrification, and CCUS pathways
  • Sequences capex against MACC priority — avoiding lock-in to soon-stranded technologies
Carbon Reduction Cost-Effectiveness ROI
  • Unlocks sustainability-linked debt pricing at 5–15 bps tighter than vanilla
  • Defers CBAM levy exposure projected at €70–100/tCO₂ from 2026
  • Captures EU ETS allowance value through verified internal reductions
  • Reduces stranded-asset write-down risk on long-lived industrial assets
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