Decarbonization plan for companies: how to reduce emissions step by step

A corporate decarbonization plan is the roadmap through which a company defines how it will reduce its greenhouse gas emissions over time. It includes carbon footprint measurement (scopes 1, 2 and 3 per the GHG Protocol), identification of priority emission sources, setting verifiable reduction targets and an action plan with concrete measures by business area. It must be updated annually with real data and aligned with the GHG Protocol and science-based frameworks such as SBTi or Net Zero.

The process has four stages: 1) Measure scope 1, 2 and 3 emissions with a verifiable inventory. 2) Identify the main emission sources and their reduction potential. 3) Define annual reduction targets with a scientific basis, aligned with SBTi or the company's climate commitments. 4) Execute concrete measures and track progress regularly with real data. Dcycle automates the measurement and tracking stages.

There is no universal legal obligation to have a decarbonization plan, but there is growing pressure from three fronts: ESG investors that require it as a financing condition, corporate clients that demand it from their suppliers as part of their own value chain commitments, and voluntary frameworks like SBTi that require a verifiable reduction plan to validate targets. For many companies, a decarbonization plan is already a market requirement, even if it is not strictly a legal obligation.

Scope 3 covers indirect value chain emissions: purchases of raw materials, transport, business travel, product use by the customer and end-of-life disposal, among other categories. Calculating it requires primary data from suppliers or secondary emission factors (databases like Ecoinvent). Dcycle enables direct collection of primary data from suppliers, assignment of default factors when data is unavailable and breakdown of scope 3 by the 15 GHG Protocol categories, with full data traceability.

For scope 1 you need data on fuel consumption (diesel, natural gas, LPG) and refrigerant gases. For scope 2, electricity invoices and, where applicable, heat or steam consumption data. For scope 3 you need purchase data, transport records, business travel data, waste generation information and data on product use and disposal. Dcycle centralizes the collection of all this data and classifies it automatically.

The first carbon footprint measurement (baseline inventory) can be completed in a few weeks with Dcycle, depending on the availability of internal data. Defining the decarbonization plan with targets and concrete measures typically takes one to two additional months. Many companies complete their first full inventory (including scope 3) before the end of the first quarter after contracting Dcycle.

The two main reference frameworks are the GHG Protocol, which defines the methodology for calculating scope 1, 2 and 3 emissions, and SBTi (Science Based Targets initiative), which sets the criteria for reduction targets aligned with climate science. For companies seeking Net Zero commitments, the SBTi Net-Zero standard defines long-term reduction requirements. Dcycle is aligned with both frameworks.

The benefits are primarily commercial and strategic. Commercially, it opens access to tenders with companies that require supplier emissions data, improves the profile with ESG investors and allows public commitments to be validated with real evidence. Operationally, the decarbonization process typically identifies energy inefficiencies and cost-saving opportunities. Strategically, it reduces exposure to climate risk as carbon pricing and market pressure increase.

The best tool automates emissions calculation (including scope 3), enables supplier engagement to collect primary data, provides real-time SBTi target tracking and generates verifiable reports year after year. Dcycle covers all these requirements in a single platform, with up-to-date emission factors, full traceability and support from sustainability experts. Unlike spreadsheets or one-off consulting solutions, Dcycle scales with the company and maintains data continuity year over year.