How to create an effective decarbonisation plan

Our greenhouse gas emissions are changing the climate at a dangerous rate. This leads to more extreme weather events and loss of biodiversity. In turn, these evolutions pose increasing financial and health risks and disrupt value chains. Companies play a key role in addressing the climate crisis. By decarbonising their operations, they help stabilise the climate while also strengthening their position in a market that is moving towards a climate-neutral economy.

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May 22, 2025

by

Marjan Jacobs

Koenraad Coel

Climate

Due Diligence

What is a decarbonisation plan?

An organisation's impact on the climate is known as its carbon footprint: the total sum of all greenhouse gases it emits. These emissions are typically expressed in carbon dioxide equivalents (CO₂e), allowing the climate impact of various gases – such as methane, nitrous oxide (N₂O) and hydrogen – to be measured as a single unit.

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A decarbonisation plan is a strategic roadmap for reducing your carbon footprint. It starts with an emissions inventory, broken down into:

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scope 1: direct emissions;
scope 2: emissions from purchased energy;
scope 3: indirect emissions throughout the value chain.

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The plan includes clear reduction targets, as well as the mitigating measures and technologies required to achieve them. Monitoring progress against these targets is a vital component.

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The overarching framework for decarbonisation is the 2015 Paris Climate Agreement, which set the goal of limiting global warming to well below 2°C, and ideally less than 1.5°C. To meet this goal, the global economy should be net zero by 2050. The European Green Deal translates this ambition into a concrete EU action plan to become the world’s first climate-neutral continent.

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A decarbonisation plan is an essential part of your climate transition plan, which also includes a strategy to address future climate risks. Under the CSRD, such a plan is a mandatory disclosure. Read more in our insight on the climate transition plan.

Why create a decarbonisation plan?

A decarbonisation strategy is more than just a sustainability ambition. It’s an economic and strategic necessity, offering a range of tangible benefits:

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‍Market pressure: Customers, suppliers, banks and insurance companies are increasingly requesting data about your carbon footprint, as your emissions form part of their own scope 3 footprint.‍
Reputation: Consumers, shareholders and partners are drawn to sustainable companies. A credible decarbonisation plan boosts your brand value and builds stakeholder loyalty.‍
Financial: Reducing your CO₂ emissions can help you avoid rising costs, including levies under the European Emissions Trading System (ETS 1 and 2). Lower energy bills are another benefit, since energy efficiency and renewable energy are standard features of any decarbonisation plan.‍
Regulation: You’ll be better prepared for stricter legislation linked to European and Flemish climate targets, as well as mandatory reporting such as the CSRD.

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In short: a well-developed, evidence-based decarbonisation plan benefits both the climate and your organisation's competitiveness and financial resilience.

The building blocks of a decarbonisation plan

An effective decarbonisation plan is always tailored to your company and sector. But at the minimum, it should include the following steps:

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STEP 1: Carbon footprint calculation

Measure your organisation's carbon emissions using the internationally recognised Greenhouse Gas Protocol. Map out scope 1, 2 and 3 emissions. These baseline measurements will serve as a reference point for future reductions and allow you to track progress. Transparent communication about your methodology and results builds trust among stakeholders.

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STEP 2: Science-based targets

Set ambitious yet achievable targets aligned with global frameworks such as the Paris Climate Agreement. Where possible, adopt science-based targets (such as the SBTi targets) to ensure they are firmly grounded in climate science.

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STEP 3: Reduction strategy and measures

Identify the most suitable measures and technologies for your organisation and value chain. To reduce scope 1 and 2 emissions, this will include investing in energy efficiency or renewable energy. For scope 3, consider alternative raw materials, more efficient transport, or products that help your customers save energy.

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STEP 4: Implementation plan

Embed the selected measures step by step into your day-to-day operations, business strategy, business model and product development. Draw up an implementation plan with short-, medium- and long-term actions and investments. Be sure to outline both capital and operational expenditures (CapEx and OpEx).

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STEP 5: Supplier engagement

Reducing scope 3 emissions requires active collaboration across your value chain. A supplier engagement programme can help you involve suppliers in the decarbonisation journey. Offering training and support will help raise awareness and build commitment to shared goals.

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STEP 6: Monitoring, reporting and communication

Monitor emissions on an annual, biannual or monthly basis, compare them with your targets, and report regularly. This gives you a clear picture of CO₂ progress and allows you to make timely adjustments. Customers, investors and financial institutions also value transparency around your carbon performance.

A well-developed decarbonisation plan benefits both the climate and an organisation's competitiveness and financial resilience.

Marjan Jacobs

Sustainability consultant at Pantarein

Ready to reduce your carbon footprint? Looking for an experienced partner to help you navigate your CO₂ journey? Pantarein has extensive experience in carbon footprinting, reduction plans, science-based targets (SBTi), scope 3 and FLAG emissions, supplier engagement, and effective CO₂ communication.

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Contact us at mail@pantarein.be.