Realize Climate Neutrality Across Your Value Chain
Climate neutrality involves reaching a state where human-caused greenhouse gas emissions are offset by natural absorption. This requires emissions reduction efforts. To achieve it, we must implement climate-neutral practices across all carbon emission categories in our value chain.
Achieving Climate Neutrality by 2050: A Commitment to Net Zero Carbon Emissions
Companies are committed to cut emissions to net zero by 2050. They have pledged to lower their carbon footprint, moderate energy consumption and carry out more circular practices by setting science-based targets1. These companies are racing toward climate neutrality, where their activities have no net effect on the environment.
Climate neutrality is important for companies because it decarbonizes operations and abates total greenhouse gas emissions in order to limit global warming to 1.5°C, as outlined in the Paris Agreement. Although the precise steps to emission reduction can sometimes be complex, a flexible and adaptive approach powered by digitalization promises to help companies succeed with sustainability initiatives.
Zero in on Carbon
Set climate-neutral efforts in motion to mitigate carbon emissions and accelerate to net zero.
Understanding Carbon Footprint: Scope 1, Scope 2, and Scope 3 Emissions
A company’s carbon footprint is categorized across three scopes:
Driving Sustainable Innovation with Virtual Twin Technology and Digitalization
With the virtual twin – a digital model of business processes – companies can explore new and more sustainable materials, designs and processes to drive sustainable innovation for the future. Powered by advanced digitalization, they’re set to realize their science-based targets by reducing carbon emissions across these scopes:
Scope 1 Emissions
Direct emissions from sources owned or controlled by the company, such as on-site generation and vehicle fuel consumption.
Scope 2 Emissions
Indirect emissions from purchased electricity, heat, steam or cooling.
Scope 3 Emissions
All other indirect emissions that occur in the value chain, such as the use of sold products and services.
Greenhouse gas inventories from scopes 1 and 2 are often the focus of science-based targets as they fall within company control. For example, companies can access their energy-consumption data, including direct gas and electricity purchases. Knowing where and how to limit energy-related carbon emissions allows them to explore renewable energy sources, vehicle fleet electrification or improvements in a building’s heating, ventilation and cooling system.
With digitalization on the right platform, companies can put decarbonization targets at their core. Virtual twin technology offers a digital environment to innovate more sustainable ideas or designs that can slash emissions in carbon-intensive industries such as steel manufacturing and aviation operations. Combined with lifecycle assessment, companies gain complete visibility over operational emissions to minimize carbon footprint and reduce energy use.
Integrating lifecycle assessment with virtual twin technology opens new possibilities to address environmental impacts very early on. It enables companies to put multi-criteria environmental assessments — such as carbon emissions, water or resource scarcity — at the heart of product design from the earliest stages.
Lifecycle assessment on a collaborative platform, such as the 3DEXPERIENCE® platform, makes standardized environmental data accessible to all. Since information is easily shared across the upstream and downstream value chain, companies can optimize their carbon-neutral efforts throughout the entire value network. This helps them implement emissions reduction within and beyond their own operations.
Scope 3 emissions represent the largest portion of a company’s greenhouse gas inventory. Hence, it’s crucial for companies to take responsibility and aim for carbon neutrality throughout the value chain. Although they may have less control over suppliers, distributors and customers, scope 3 emissions offer a unique opportunity to decrease the carbon footprint collaboratively.
A Spotlight on Value Chain Emissions
Scope 3 inventory accounts for most of a company's emissions2:
the average of value chain emissions compared to operational emissions
reported their scope 3 emissions from purchased goods & services in 2021
aren’t engaging with suppliers on climate change
are putting climate transition plans in motion
Sustainability initiatives on multiple fronts can create a positive loop: If each company actively abates emissions in its value chain, it can also benefit from the efforts of other companies. A significant emissions reduction lever in scope 3 is the design of products and services. Designing for disassembly enables companies to extract the most value from a product’s resources and lower its lifecycle emissions intensity. By enhancing product durability, they can keep materials and components in use. The results are seamless product recirculation, waste reduction and more circular practices.
It’s time to make meaningful progress toward climate neutrality. Leveraging new technologies will improve a company’s environmental footprint and nurture greener growth, with a win-win outcome benefiting not only the planet but also the bottom line.
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1Source: “Science-based Targets” by Science Based Targets initiative (SBTi)
2Source: “Global Supply Chain Report 2021” by CDP (February 2022)
FAQ About Carbon Neutral & Zero Emission
As explained at the beginning of the page, Climate neutrality, in alignment with the Paris Agreement, is the European Union's overarching objective to reach net zero greenhouse gas emissions by 2050. This ambitious target is grounded in the Paris Agreement's global blueprint for addressing the climate change crisis.
The aspiration of climate neutrality entails the aim to eliminate net greenhouse gas emissions entirely. This objective can be realized by employing a combination of emission reduction strategies and compensatory measures, such as utilizing carbon credits, embracing renewable energy sources, or engaging in activities that diminish or extract carbon dioxide from the atmosphere. By actively reducing emissions and counterbalancing any residual emissions, both individuals and organizations can achieve climate neutrality. This objective aligns with the broader mission of attaining net zero emissions, carbon neutrality, climate positivity, and fostering a sustainable environmental future.
Attaining climate neutrality stands as a critical global objective to combat climate change. This aspiration involves striking an equilibrium between emission sources, like fossil fuel combustion, and the absorption of carbon dioxide from the atmosphere. The pursuit of climate neutrality enables us to curtail atmospheric carbon dioxide levels and mitigate the environmental consequences of emissions. This objective aligns with the broader aims of achieving:
- Net zero emissions
- Carbon neutrality
- Climate positivity
- Sustainable environmental future
Climate neutrality and carbon neutrality share a close relationship, yet they each carry specific meanings within the realm of environmental sustainability. Climate neutrality encompasses a broader scope, encompassing the equilibrium between emissions originating from human activities and their subsequent removal from the atmosphere.
On the other hand, carbon neutrality is a subset of climate neutrality, focusing precisely on achieving net zero emissions of carbon dioxide (CO2) and other compounds containing carbon. These concepts are integral components of the broader efforts to attain net zero emissions, climate positive outcomes, and climate neutrality in our quest for a sustainable future.
Climate neutrality and net zero are frequently employed interchangeably in discussions related to environmental sustainability. However, it's important to note that they possess distinct nuances. Climate neutrality aims for emission balance, while net zero means emissions match removal, causing no net climate impact. These terms are integral to the broader discourse on achieving carbon neutrality, climate positive outcomes, and a sustainable future.
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