A climate strategy describes how a company systematically reduces and manages its greenhouse gas emissions. It connects robust emissions data with clear targets and an implementation-oriented transformation plan.
The first step of a climate strategy is to create transparency about a company’s own emissions. Based on a reliable GHG inventory, emissions from Scope 1, 2, and relevant Scope 3 categories are captured and key emission drivers are identified. This analysis forms the foundation for prioritizing hotspots and focusing efforts where reductions will have the greatest impact. At the same time, data quality and uncertainties are consciously considered to make the development of the data foundation plannable.
Building on this, climate-related risks and opportunities are systematically analyzed. Physical risks, such as those from extreme weather events, and transition risks from regulation, markets, or technology are assessed and classified using various scenarios. This perspective is crucial for understanding and actively managing strategic risks associated with climate change.
A central element of the climate strategy is target definition. Medium- and long-term climate targets are established in alignment with the sustainability strategy and translated into a clear reduction pathway. The subsequent transformation plan breaks these targets down into concrete measures, prioritizes them based on effectiveness and feasibility, and embeds responsibilities and timelines within the organization.
A climate strategy is closely linked to sustainability reporting, as it provides the substantive foundation for climate-related metrics, target tracking, and disclosure. Through strategic integration, decarbonization is not only planned but effectively implemented and managed over the long term.
