What is a low-carbon transition approach?

Roles and definitions of the low-carbon transition.

Role of organisations and the 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 effort is part of Corporate Social Responsibility (CSR), which an increasing number of actors are committing to. It addresses 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 report them – this is called reporting – and build a transition plan in response.

These actions can follow two complementary approaches: mitigation (limit the organisation's impacts on climate change) and adaptation (limit 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 is used for GHG emissions management and for steering actions. The carbon indicator therefore fits into a triple bottom line accounting which aims to couple the organisation's economic, social and environmental performance.

• To publish it externally : for regulatory or voluntary reporting reporting, and to demonstrate 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 assessment that is by nature uncertain, but sufficient to take action and reduce GHG emissions.

Role of low-carbon transition approaches

Low-carbon transition approaches advance organizations on 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 ➡️ Evaluate

• Analyse the current situation : the first step is carbon accounting, driven by a request from stakeholders, a regulatory obligation to quantify GHG emissions or 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. Mobilising internal and external stakeholders is crucial during this step, in order to share the 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 necessarily lead to the development of a transition plan. Practically, 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 program.

• Implement the actions : Implementing the actions is the key step of the process. All other steps must enable a 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 continuous improvement logic, monitoring the implementation of actions makes it possible to analyze their results, and thus steer the reduction of the organisation's emissions. More broadly, this evaluation makes it possible to verify the credibility of achieving the targets set by the organisation.

• This transition journey is not linear. In a progression cycle logic, carbon accounting is used recurrently to steer emission reductions, and if necessary, to adapt the transition plan and strategy to ensure continuous decarbonisation.

Each organisation adapts this journey has its profile and maturity, thereby 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 very small and small and medium-sized enterprises (VSEs and SMEs) - Source Succeeding in your low-carbon transition, ABC, 2020.

To go further: These introductory elements are an essential 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 action. They are more fully detailed in the awareness-raising and outreach resources of the issues.

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Do you have a question about understanding? Consult the FAQ. The method is living and therefore likely to evolve (clarifications, additions): find the track of changes here.