What is a low-carbon transition approach?

Roles and definitions of the low-carbon transition.

Role of organisations and need for the low-carbon transition

Organisations, like all stakeholders in society (local authorities, states, individuals), have a role to play in anticipating the low-carbon transition:

• To limit the organisation's impacts on climate change (estimate its impacts to reduce them)

• To limit the impacts of climate change on the organisation (reduce its dependence on fossil fuels or carbon; reduce its vulnerability to physical risks; anticipate barriers targeting carbon-intensive activities and the cost of inaction; develop its place in the world of tomorrow and its compatibility with a low-carbon world)

This struggle is part of Corporate Social Responsibility (CSR), in which an increasing number of actors are engaged. It addresses the many societal issues while also consideringother impact indicators.

Role of carbon accounting

Carbon accounting is a structuring tool to engage the first step of a low-carbon transition approach : it consists of identifying sources of greenhouse gas (GHG) emissions in order to be able to reduce them. Once emissions are known, an organisation can declare them – this is called reporting – and build a transition plan in response.

These actions can follow two complementary approaches: mitigation (limiting the organisation's impacts on climate change) and adaptation (limiting the impacts of climate change on the organisation).

In conclusion, the carbon indicator thus accounted for is an activity indicator that enables:

• To make decisions internally : in order to "count to act" (identify priorities, know where to act and how). It serves GHG emissions management and action steering. The carbon indicator then fits into a triple bottom line that aims to couple the organisation's economic, social and environmental performance.

• To publish it externally : for reporting regulatory or voluntary reporting, as well as to testify to its actions and commitments transparently to its stakeholders.

Note, carbon accounting is not a measurement but a calculation. It is not rigorously scientific but "science-based." It is an inherently uncertain assessment, but sufficient to move to action and reduce GHG emissions.

Role of low-carbon transition approaches

Low-carbon transition approaches advance organisations in their transition journey. These approaches, in general, follow a structured process in several key steps, presented in a “ transition pathway » below.

Account for ➡️ Plan and act ➡️ Assess

• Analyse the current situation : the first step is carbon accounting, prompted by a stakeholder demand, a regulatory obligation to quantify GHG emissions or by a willingness to commit to combating climate change. It enables a strategic analysis of the organisation and notably of its dependencies and vulnerabilities regarding fossil fuels and our society's transition to a low-carbon model. Stakeholder engagement of internal and external parties is crucial during this step, in order to share newly acquired knowledge, make the consequences of a status quo visible to all parties and to motivate as many people as possible to act.

• Build the transition plan : for carbon accounting to be both useful and usable, it must imperatively lead to the development of a transition plan. Concretely, it is a roadmap that details how the organisation plans to reduce its emissions and improve its resilience to climate and transition risks. The transition plan includes reduction targets, a transition strategy and the construction of an action programme.

• Implement the actions : Implementing the actions is the key step of the process. All other steps must enable the real, effective and smooth execution of the planned actions. This step is unique to each organisation, and requires an approach tailored to each to ensure its success.

• Evaluate the transition plan : in a logic of continuous improvement, monitoring the implementation of actions makes it possible to analyse their results, and thus to steer the organisation's emission reductions. More broadly, this evaluation makes it possible to verify the credibility of the achievement of the objectives set by the organisation.

• This transition pathway is not linear. In a logic of progression cycles, carbon accounting recurs to steer emission reductions, and if necessary, to adapt the transition plan and strategy to ensure constant decarbonisation.

Each organisation adapts this pathway has its profile and maturity, thus ensuring its own transition to a low-carbon model.

🔎 An overview of different transition pathways allows apprehending the different tools and methods available.

Figure 0.1.1: Example of a typical transition pathway for micro and small businesses (TPE and PME) - Source Réussir sa transition bas carbone, ABC, 2020.

To go further: These introductory elements are an indispensable prerequisite in a Bilan Carbone® approach. They must be known, understood and mastered by the stakeholders involved and will be addressed in the Stakeholder engagement. They are more fully detailed in the awareness and outreach resources of the issues.

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Do you have a comprehension question? Consult the FAQ. The method is living and therefore likely to evolve (clarifications, additions): find the change log here.