How to devise the strategy to achieve your Climate Goals?

There’s no one-size-fits-all approach — the right strategy depends on several factors unique to your business. Once a company has set its emission reduction targets (Example: Reduction of emissions by 50% by 2030 compared to 2018 levels), below mentioned three-step guide can help to devise a strategy to achieve the same.

Step 1: Set an Internal Carbon Price

Internal Carbon Price (ICP) is a mechanism companies use to put a monetary value on their greenhouse gas emissions. It acts as a benchmark for any decision-making with respect to low-carbon transition investments. In practice, it works like a “shadow price” applied to each tonne of CO₂ emitted, often shown as a line item within a company’s financial models. It’s benefits:

Turns Carbon into a Business Cost & Accountability Tool: By pricing CO₂ alongside other expenses, emissions become a visible line item in budgets and Profit & Losses.

Drives Low-Carbon Investments: Internal Carbon Pricing turns climate goals into a built-in cost, so every team is already budgeting for cleaner options. That frees up cash and approval for the actual upgrades—renewables, efficiency fixes, new tech—making the move from “plan” to real emission cuts the natural next step.

Aids in Benchmarking: Once Internal Carbon Price is available, any capex investment into a project can be compared to it. So can be penalties, fines and other costs of not implementing the project.

So, internal carbon pricing ensures that organisations allocate the necessary funds for emissions-reduction initiatives, making it a critical first step. The next task is to identify every realistic way your business can cut emissions by mapping out decarbonization levers in Step 2.

Step 2: Identify your Decarbonization Levers

Across sectors, every decarbonization roadmap usually draws from these lever families—clean power, low-carbon processes, supply-chain optimisation, green logistics, low-impact product design, carbon offsets:

The optimal mix of decarbonization levers depends on each sector’s emissions profile. At this step, you would be required to map out decarbonization levers relevant to your sector.

Step 3: Select & prioritize the levers using the following parameters