Setting Renewable Energy Goals for Organizations

Food and candy maker Mars set a goal in 2021 to match 100 percent of annual electricity use at its offices and factories — roughly 2 terawatt-hours in 2025 — with contracts for clean energy such as solar and wind power.    Now, it’s committing to do the same on behalf of suppliers and customers.    The Renewables Acceleration program will use Mars’ experience in negotiating power purchase agreements to arrange additional contracts that cover the estimated amount of electricity used in production, distribution and consumption of its products. Initially, that could be another 6 to 7 terawatt-hours of electricity, three times what Mars is already planning to buy.   The rationale is that many Mars suppliers are too small and inexperienced to procure electricity from solar or wind farms on their own. While many large companies push suppliers to adopt emissions reductions strategies and buy renewables, they aren’t transitioning fast enough at a time when climate experts are calling for a tripling in renewable energy capacity by 2030.    Mars came up with the idea for this new approach three years ago, as it contemplated new ways to cut Scope 3 emissions, which reflect upstream activities at suppliers such as growing raw ingredients and downstream consumption of its products, such as heating up a rice pouch in a microwave oven. Product life-cycle metrics are used to calculate electricity consumption in each phase.    Mars figures about 10 percent of its total carbon footprint can be addressed this way.    There’s no established methodology for an approach like Renewables Acceleration under existing Greenhouse Gas Protocol reporting guidance, but there’s also no specific restriction. “If you’re looking for the answer from a standard that was written long before you had the idea, it becomes a hurdle to innovation,” said Kevin Rabinovitch, global vice president of sustainability and chief climate officer at Mars. More on Mars’ supply chain renewables initiative: https://lnkd.in/e_z9zE7a Autumn Fox Marty Spitzer Oliver Hurrey #renewableenergy #scope3

7 Phases of Decarbonization Thinking: A Roadmap to a Sustainable Future Navigating the path to decarbonization requires structured thinking and actionable steps. The following is a comprehensive breakdown of the 7 Phases of Decarbonization Thinking, designed to guide organizations in building a resilient and climate-conscious strategy. 1️⃣ Awareness and Understanding Key Actions: • Educate employees about climate change impacts and the role they play in addressing it. • Stay updated with industry trends and stakeholder expectations. • Assess risks and opportunities tied to carbon emissions. 2️⃣ Baseline Assessment Key Actions: • Conduct a thorough GHG inventory covering all emissions scopes (Scope 1, 2, and relevant Scope 3). • Identify major emission sources within operations and supply chains. • Establish a baseline year for tracking progress and improvements. 3️⃣ Goal Setting & Commitment Key Actions: • Set science-based targets (SBTs) for meaningful emission reductions. • Ensure organizational buy-in, particularly from top management. • Publicly commit to decarbonization goals, strengthening accountability. 4️⃣ Strategy Development Key Actions: • Identify emission reduction opportunities, such as energy efficiency and renewable energy adoption. • Prioritize initiatives based on impact, cost, and feasibility. • Develop a roadmap with clear timelines, responsibilities, and resources. 5️⃣ Implementation Key Actions: • Upgrade infrastructure and processes to enhance energy efficiency. • Invest in renewable energy sources and innovative technologies. • Engage suppliers and customers in reducing Scope 3 emissions. • Integrate decarbonization into the corporate culture. 6️⃣ Monitoring and Reporting Key Actions: • Set up monitoring systems to accurately track emissions reductions. • Report progress regularly in sustainability disclosures. • Use data insights to continuously refine strategies and improve effectiveness. 7️⃣ Review and Continuous Improvement Key Actions: • Periodically review strategies and performance to align with targets. • Incorporate feedback and lessons learned from past initiatives. • Update goals to reflect advancements in technology, regulatory changes, or evolving market conditions. Taking this journey requires a commitment at every organizational level, from awareness to ongoing improvement. These phases not only serve as a structured roadmap but also represent a cultural shift towards sustainable solutions and accountability. #Decarbonization #Sustainability #ClimateAction #GHGReduction #CorporateResponsibility #GreenEconomy #FutureofBusiness #SustainableDevelopment

#GHGReductionStrategy for Scope 1, 2, and 3 Emissions for an MNC in the Energy-Intensive Sector is focussed on cutting greenhouse gas (GHG) emissions across #Scope1 (direct emissions), #Scope2 (indirect emissions from purchased energy), and #Scope3 (indirect emissions across the value chain). The strategy will prioritize decarbonization in phases—short, medium, and long term. 1. Short-Term Strategy (0–2 Years): A. Scope 1 emissions: Conduct #energyaudits of all operational facilities (manufacturing, logistics, etc.) to identify high-energy-consuming processes. Implement energy-saving measures like improved insulation, process optimization, and regular maintenance of equipment to avoid energy waste. Switch from high-carbon fuels (coal, oil) to lower-carbon alternatives (natural gas, biofuels). B. Scope 2 emissions: Power Purchase Agreements (#PPA): Immediately transition to renewable energy sources by signing power purchase agreements for wind, solar, or hydropower. Install LED lighting, automated controls, and #HVAC system upgrades in all offices and industrial sites to reduce energy consumption. C. Scope 3 emissions: Start engaging top-tier suppliers, focusing on energy-intensive suppliers, and incentivize them to share their #GHG data and reduction plans. Reduce emissions from employee travel by adopting virtual collaboration tools and optimizing travel policies. Implement recycling and material recovery programs to reduce waste from packaging and operations. 2. Medium-Term Strategy (2–5 Years): A. Scope 1: Invest in onsite renewable energy generation at key manufacturing sites. Begin transitioning to electric machinery and equipment wherever feasible. Leak Detection and Repair (#LDAR): Implement LDAR programs to reduce #fugitiveemissions. B. Scope 2: Install #batterystoragesystems to reduce reliance on grid power and ensure energy availability during renewable energy intermittency. C. Scope 3: Collaborate with suppliers on #energyefficiency improvements, encourage renewable energy adoption, and promote #sustainablematerial sourcing. Redesign products for improved energy efficiency. Optimize #supplychain logistics, shifting to low-emission transportation modes 3. Long-Term Strategy (5+ Years): A. Scope 1: Achieve complete electrification of Operations. Carbon Capture and Storage (#CCS): Explore and deploy CCS technologies in facilities with hard-to-abate emissions. Introduce hydrogen-based technologies for energy-intensive processes. B. Scope 2: Achieve 100% #renewableenergy across operations globally, including electricity, heating, and cooling. Collaborate with energy providers to integrate operations with smart grid technologies, ensuring efficient energy distribution and consumption. Construct or retrofit facilities to be generating more energy than they consume. C. #Scope3emissions: Partner with suppliers, distributors, and customers to achieve Scope 3 #carbonneutrality. #sustainability

Energy-Related Climate Action Goals 🌎 Energy is one of the most critical levers for climate action—and one where companies can make measurable progress through structured steps. A practical framework by Schneider Electric outlines how organizations can evolve their energy strategy from compliance to leadership across three pillars: efficiency, decarbonization, and renewable energy. The starting point is regulatory alignment: conduct energy audits, ensure site-level consumption tracking, and report GHG emissions in line with established protocols. These are foundational steps to gain visibility and stay compliant. The next level involves more active management. Introduce submetering, set targeted reductions by site or process, upgrade outdated equipment, and disclose your performance through recognized platforms like CDP. Advanced organizations go further—using real-time energy data to optimize systems, committing to ISO 50001 or EP100 standards, and deploying on-site solutions like EV infrastructure, microgrids, or renewable heat. Efficiency becomes part of the value chain. Decarbonization begins with measurement. Track your full GHG footprint and set initial emissions reduction goals—whether absolute or intensity-based—to anchor your roadmap. Strengthen your decarbonization strategy by assessing Scope 3 emissions, setting long-term, science-aligned targets, and reporting emissions using both market- and location-based methods. Interim carbon neutrality goals may still rely on offsets. Leadership means setting net zero targets without offsets, aligning with the 1.5°C pathway through SBTi-approved targets for Scope 1, 2, and 3, and working closely with suppliers to decarbonize the full chain. Business models begin to shift around low-carbon value creation. On renewables, early actions include purchasing Energy Attribute Certificates (EACs) or using green tariffs to cover Scope 2 emissions. This provides a credible but indirect solution. More advanced steps include direct procurement through onsite or offsite sources, replacing Scope 1 offsets with clean technologies, and engaging your supply chain in renewable energy efforts. The goal: 100% renewable energy, achieved through real transformation—not accounting. Source: Schneider Electric #sustainability #sustainable #business #esg #climatechange #energy