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Climate Strategy Toolkit Overview

The document outlines a climate strategy toolkit developed by BCG, detailing frameworks and models for companies to achieve net zero emissions. Key components include the Science-Based Targets Initiative (SBTi) for setting reduction targets, CDP Disclosure Ratings for benchmarking transparency, and the Abatement Curve for prioritizing emission reduction strategies. It emphasizes the importance of aligning sustainability with financial priorities and effective communication to stakeholders.

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15 views10 pages

Climate Strategy Toolkit Overview

The document outlines a climate strategy toolkit developed by BCG, detailing frameworks and models for companies to achieve net zero emissions. Key components include the Science-Based Targets Initiative (SBTi) for setting reduction targets, CDP Disclosure Ratings for benchmarking transparency, and the Abatement Curve for prioritizing emission reduction strategies. It emphasizes the importance of aligning sustainability with financial priorities and effective communication to stakeholders.

Uploaded by

drsnsetty5
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

THE CLIMATE STRATEGY

TOOLKIT: LESSONS FROM


BCG
A breakdown of frameworks, models, and client-ready
strategies
FRAMEWORKS
1. SBTi - Science - Based Targets Initiative
2. EPA’s 3 Scopes of Emissions
3. CDP Disclosure Ratings
4. Abatement Curve
5. Opportunity - Risk Matrix
6. Communication Strategy
1. 3 SCOPES OF EMISSIONS
Net zero - When amount of GHG produced is balanced by removing it from
atmosphere. Achieving this exact balance is called Net Zero.

e.g. 1 ton carbon produced = 1 ton carbon removed

Scope 1 - Emissions directly produced by operations of company

rd
Scope 2 - Emissions caused due to consumption of some 3 party, like energy
purchased from external sources e.g. electricity.

Scope 3 - Emissions caused due to usage of products or services produced by


company. These are generated in company’s value chain.
[Link] – SCIENCE-BASED TARGETS
INITIATIVE
SBTi is used by companies for setting credible reduction targets.
i.e. How much should we reduce and by when?

Companies use it to estimate how much emission needs to be reduced,


aligning with Paris Agreement.

This helps to:


1. Set credible Targets
2. Ensure accountability
3. Stay Competitive
4. Drive real climate impacts
3. CDP DISCLOSURE RATINGS
CDP: Carbon Disclosure Project

Measures how transparently companies disclose climate data

4 levels : Disclosure → Awareness → Management → Leadership

It helps companies to benchmark themselves with their peers. Hence used in


context setting

This helps in:


1. Benchmarking
2. Prioritization
3. Tracking
4. ABATEMENT CURVE
It is a visual tool used to analyze and compare the cost - effectiveness of different strategies
for reducing greenhouse gas emissions.

X-axis: Tons of CO₂ reduced


Y-axis: Cost (or savings) per ton of CO₂
Below the axis = cost-saving measures
Above the axis = more expensive measures

It Shows:
[Link] are emission-reducing actions (e.g., energy efficiency, renewables, EVs, supply chain
improvements)
[Link] cost or savings (per ton of CO₂ avoided)
[Link] emission reduction potential (how much they can reduce emissions)
5. OPPORTUNITY-RISK MATRIX
Used to weigh the business impact of each climate action — helps align sustainability with
financial priorities
6. COMMUNICATION STRATEGY
Structured emails & presentations are key — crafting messages
differently for execs vs. investors helped maximize impact.

This includes not just pointing out the obvious; but finding what
next, why and how to get there.
SUMMARY
SBTi = Where you need to go

CDP = How you track and improve the journey

Abatement curve = Helps you prioritize actions logically

Climate promises ≠ real impact

Stakeholders now demand scientific targets + transparent


progress
THANK
YOU

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