Pillar 1: Operational Emissions
Halve Direct Emissions Every Five Years
Transform your operations through efficiency and electrification. Scope 1 and 2 emissions are often the most straightforward to reduce, generating immediate business advantage while building credibility for your broader climate leadership.
Lower Costs
Reduce operational costs and exposure to energy price volatility
Energy Resilience
Strengthen energy supply chain resilience and security
Regulatory Readiness
Improve alignment to anticipated climate regulations
Targeting net zero by 2040 and halving own emissions before 2030 by measuring, setting strategy, and assigning resources to cut emissions from facilities, fleets, and production.
Why it matters for net zero?
Since global temperature rise depends on cumulative emissions, reductions must start today. Scope 1 and 2 emissions are often the most straightforward to reduce, allowing companies to generate immediate business advantage while maintaining credibility. Action towards interim targets should be front-loaded, with emissions decreasing exponentially.
How it benefits companies?
It reduces operational costs and exposure to energy price volatility, strengthens energy supply resilience, and improves alignment to anticipated climate regulations. Companies that act now build competitive advantage through cost savings, innovation, and market leadership.
What are Operational Emissions?
Operational emissions are referred to as Scope 1 and 2 emissions in the GHG Protocol Corporate Standard. They include direct emissions from owned facilities, vehicles and internal production processes, as well as emissions from purchased electricity, cooling, heating and steam.
While Scope 1 and 2 emissions may represent only a small proportion of your company's total GHG footprint, these emissions are often the most straightforward to reduce. This can generate an immediate business advantage, contributing to the global transformation towards net-zero while maintaining credibility.
Since global temperature rise is dependent on cumulative emissions, reductions must start today. Action towards interim targets should be "front-loaded", with emissions decreasing exponentially.
Focus Areas
Pillar 1 covers 5 key focus areas. Each represents a distinct domain of action within this pillar.
Energy Efficiency
Reducing energy consumption across all owned and leased facilities, equipment, and production processes.
Renewable Energy
Transitioning to renewable electricity and heat through on-site generation, PPAs, and green tariffs.
Fleet & Transport
Electrifying and decarbonising company-owned and leased vehicles and business travel.
Refrigerants & Fugitive Emissions
Eliminating high-GWP refrigerants and addressing methane and other fugitive emission sources.
Buildings & Space
Optimising building stock and space usage to reduce the emissions footprint of owned and leased premises.
Planning Your Approach
Map your emissions
Identify the main sources of emissions – your hotspots – and make sure your plans focus on how to mitigate these.
Decide on your base year
A base year will be used for comparison to measure progress towards emissions reduction goals. The base year is normally the earliest year for which good enough emissions data is available.
Set reduction targets
Both short-term and long-term, including a net zero target by 2050 at the latest, and interim targets not more than five years apart. The recommended pace: halving of absolute operational emissions every 5 years.
Develop transition plan
Decide on the timelines for reducing emissions from different sources. Start with 'low-hanging fruit' – economically attractive changes like energy efficiency and optimizing office space.
Disclose publicly
Disclose your company's Scope 1 and 2 emissions, targets and reduction plans as part of your annual public reporting.
Evaluate and update
Evaluate results, take corrective actions and update your plan on a yearly basis.
Key Actions to Take
Energy Efficiency
- Improve energy efficiency in owned and leased buildings through retrofitting, insulation and digital automation
- Improve energy efficiency in factory production processes and machines by investing in new technology
Renewable Energy
- Install new on-site renewable energy production and storage for own processes and owned buildings wherever possible
- Enter into power purchase agreements to contribute to increased renewable production
- Monitor and match supply and consumption of renewable energy, across both geography and time
Buildings & Space
- Require low-energy buildings, whether owned or leased, when expanding operations or establishing new businesses
- Optimise the use of building space in all operations to reduce emissions and costs
Transportation
- Move towards a low-emission vehicle fleet by requiring 100% electric or other low-emission owned and leased vehicles
Other Operations
- Implement a plan to halve methane emissions in Scopes 1 and 2 by 2030 at the latest
- Implement plans to phase out fluorinated GHGs at the earliest opportunity
Climate Performance Review Actions
These actions from the official Climate Performance Review (CPR) Form 2025 provide a comprehensive assessment framework for Pillar 1. Use these to evaluate your progress:
Improve energy efficiency in own buildings, eg through retrofitting, insulation and digital automation.
Improve energy efficiency in factory production processes and machines, eg by investing in new technology and digital automation.
Install new on-site renewable energy production and storage for own processes and owned buildings wherever possible.
When buying renewable energy enter into power purchase agreements to ensure additionality and to contribute to expanding production.
Monitor and match supply and consumption of renewable energy, by both geography and time.
Require low-energy buildings, whether owned or leased, when expanding operations or establishing new businesses or new locations.
Optimise the use of building space in all operations to reduce emissions and costs.
Work systematically to reduce use of resources, materials, chemicals and water in all operations.
Move towards a low-emission vehicle fleet by requiring 100% electrical or other low-emission owned and leased vehicles.
Implement a plan to halve methane emissions by 2030 at the latest.
Implement plans to phase out fluorinated GHGs at the earliest opportunity.
Your Strategic Position
Understand where your organization stands and what's possible at each stage of readiness for Pillar 1.
Foundation
Building the basics
Key Capabilities
- Emissions mapping completed
- Base year established
- Initial targets set
- Basic energy efficiency measures implemented
Advancing
Systematic transformation
Key Capabilities
- Comprehensive transition plan in place
- Renewable energy procurement initiated
- Regular public disclosure
- Executive compensation linked to climate KPIs
Leadership
Driving industry change
Key Capabilities
- Halving emissions every 5 years on track
- 100% renewable energy achieved or near-term commitment
- Leading industry transformation
- Driving policy and supplier engagement