Basic pillars for building a Carbon Neutral future

It is often said that the energy of the future must be 3D (Digital, Decarbonized, and Distributed), but it is also essential that it be Competitive. Indeed, any company aiming to become CARBON NEUTRAL within a more or less distant timeframe must implement a decarbonization strategy to ensure that the environmental sustainability we all aspire to is compatible with the indispensable economic sustainability in the short, medium, and long term. However, this is a complex process given the number of variables impacting decisions: on one hand, there is a wide range of constantly evolving solutions and technologies; on the other, an increasingly demanding regulatory framework (both national and European); and finally, the pressure exerted by different stakeholders (customers, users, shareholders, or employees) is very significant. Therefore, making the right decisions is crucial for decarbonization to be successful; however, making mistakes can have serious consequences for a company’s viability.

What to do to become Carbon Neutral without losing competitiveness?

Trying to simplify and summarize, the available alternatives could be grouped into 4. The first and fundamental step for any company is to be more EFFICIENT because if less energy is consumed, CO₂ emissions will be lower. Energy efficiency plays a very important role in achieving carbon footprint reduction goals. The second option we believe is basic is to be RENEWABLE. Evidently, if we manage to have part of the electrical or thermal energy we consume come from renewable sources, the resulting CO₂ emissions would be minimal. The third fundamental action is to be CIRCULAR. To the extent that production systems are designed considering the life cycle of products and services, and are capable of reusing waste or by-products, recycling them, and integrating them into the production process, the need for raw materials and the impact of emissions derived from their use will be reduced. The fourth way is to COMPENSATE, which involves developing, participating in, or contributing to projects that act as carbon sinks. This is an alternative used to neutralize those emissions that are more difficult to eliminate. There are multiple options that go beyond environmental projects through initiatives related to sustainable development goals. Which of these solutions is the right one? The answer is a combination of them. All are necessary, and it will also depend both on the circumstances of each particular company and on the moment at which each approach is to be addressed. To become Carbon Neutral, regardless of the timeframe in which it is to be achieved, it will be necessary to consider all 4 pillars. Starting from the situation a company is in and knowing that we have the 4 options, within which there are different energy solutions and compatible technologies, an appropriate combination of those that provide the most value to an organization will allow it to reach its sustainability goal. There are multiple paths to address a company’s decarbonization strategy. But we can affirm that there is a common point to all of them: digitalization, which we consider fundamental in all cases, being one of the initial approaches that any company wanting to be Carbon Neutral must undertake.