Greenhouse gases (CO₂, CH₄, N₂O, and fluorinated gases) trap heat in the atmosphere and drive global warming. Most excess emissions result from human activity. The GHG Protocol organizes emissions into three scopes: Scope 1: Direct emissions from sources a company owns or controls (e.g., fuel use, company vehicles). Scope 2: Indirect emissions from purchased energy such as electricity, heating, or cooling. Scope 3: All other indirect emissions across the value chain, including those from suppliers, product use, distribution, and disposal.

The global push for net-zero emissions is reshaping business. Germany leads with policy-driven change—carbon pricing under the Climate Action Programme, 80% renewable power by 2030 via the Renewable Energy Act, and €9 billion invested in green hydrogen. Circular economy laws target higher recycling, and ESG rules demand supply chain transparency. These measures raise costs and compliance needs but open access to clean energy, new markets, and investor trust. Germany shows how smart regulation can align climate goals with business strategy and drive sustainable growth in a low-carbon economy.

The Paris Agreement aims to limit global warming to below 2°C. We’ve already hit 1.36°C—and some months in 2024 exceeded 1.5°C. Beyond 2°C, climate risks rise sharply. Heatwaves, floods, droughts, and storms are disrupting operations—from flight cancellations at Delta to supply chain hits at Volkswagen, Nestlé, and Coca-Cola. Natural systems like forests and oceans, which help absorb carbon, may reach irreversible tipping points. Crossing 2°C means higher costs, supply shocks, and long-term business risk. Staying below is not just environmental—it’s economic.

The Kyoto Protocol (1997) set binding emission targets for developed nations but lacked global reach. Replaced by the Paris Agreement (2015), which involves all countries with voluntary, regularly updated climate goals (NDCs). Its aim: limit warming below 2°C, ideally 1.5°C. Progress is reviewed every five years via the Global Stocktake. Today, it is the central framework for global climate action.