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The transformation plan: The guide to corporate climate strategies

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22.8.2024

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Governance & regulation

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The decarbonization of the economy is one of the key challenges of our time. Companies are increasingly confronted with the expectations of their customers, investors and regulatory requirements to improve their carbon footprint and make their contribution to climate neutrality. A transformation plan is a strategic tool for tackling this challenge in a targeted and planned manner. But what exactly is a transformation plan, how do you create one and what funding opportunities are available? In this article, we will give you an overview and show you how Five Glaciers Consulting can support you.

What is a transformation plan?

A transformation plan serves as a long-term roadmap for reducing greenhouse gas emissions and increasing a company's energy efficiency. It not only analyzes current emissions, but also defines specific measures to achieve the climate targets. The Federal Office of Economics and Export Control (BAFA) supports companies financially in the creation of such a plan as part of Module 5 "Transformation Concepts" of the "Energy and Resource Efficiency in the Economy" funding program.

The goal: A clear path to climate neutrality by 2045 or beyond, taking into account both technical and operational measures.

The path to a successful transformation plan

Certain steps are required to create a well-founded transformation plan. These steps are essential in order to understand the current situation, define objectives and implement suitable measures:

1. status quo assessment
We analyze the current situation of your company and create a detailed carbon footprint. This forms the basis for defining realistic and ambitious climate targets.

2. target definition and strategic orientation
In this phase, we define clear climate targets that are based on the long-term requirements of climate neutrality and are tailored to your company.

3. development of reduction measures
We identify technical, organizational and behavioural measures to reduce emissions. These are evaluated in terms of effectiveness and feasibility in order to create a customized catalog of measures.

4. implementation of the measures
We support the implementation of the measures and help to establish a climate protection management system to ensure that the measures are implemented effectively.

5. monitoring and continuous improvement
We monitor the implementation of measures, regularly review progress and adjust the plan as necessary to ensure long-term success.

Contents of the transformation plan

The path to climate neutrality is individual for each company. A wide range of analyses and measures are therefore necessary as part of a transformation plan, which are now also eligible for funding. These include, among others:

  • Preparation or update of a CO₂ balance sheet: We recommend a balance sheet in accordance with the GHG Protocol or ISO 14064-1 and can cover both individual sites and the entire company and includes at least Scope 1 and 2 (Scope 3 is optional). In addition to CO₂, other greenhouse gases such as methane (CH₄), nitrous oxide (N₂O) and fluorinated gases (HFC, PFC, SF₆, NF₃) as well as volatile organic compounds (VOC) are taken into account. An external audit or certification of the CO₂ balance can also be funded.‍
  • Measurements, data collection and data procurement: These are necessary to support the creation of the transformation plan and to create a sound basis for decision-making.‍
  • Creation of an action plan to achieve the target: The action plan shows how emissions can be reduced by at least 40% over the next ten years. CO₂ offsetting, balance sheet savings, production reductions or production outsourcing do not count towards the reduction target. The focus is on increasing energy efficiency.‍
  • Assessment of opportunities and risks: The various options for action are assessed in terms of their opportunities and risks. Current challenges for which no solutions are currently available are also addressed.‍
  • Introduction of climate protection management: In order to implement the measures, processes for climate protection management are being introduced throughout the company.

Promotion by the BAFA

The creation of a transformation plan is financially supported as part of the BAFA funding program. Among other things, the preparation and certification of a carbon footprint, consulting services, measurements and data procurement are eligible for funding. Depending on the size of the company, the funding rate is between 40% and 60% of the costs, with a maximum funding of €60,000 per location or €90,000 if the company is a member of an energy efficiency network.

How Five Glaciers Consulting can support you

Our consultants at Five Glaciers Consulting support your company at every step of the transformation process. From the collection of relevant energy data to the development of a reduction strategy and the creation of a detailed implementation plan, we are at your side with our expertise in funding management. We also support you in applying for funding to ensure that you receive maximum financial support for your transformation.

A transformation plan is more than just a document - it is the strategic basis for successfully achieving climate neutrality in the long term. With our support, you can be sure that your transformation is both sustainable and economically viable.

Contact authors

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We look forward to getting to know you!

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Contact us for all concerns and questions relating to sustainability. We are happy to make time for a personal meeting or a digital coffee.

Phone: +49 174 1305766
E-mail: info@fiveglaciers.com

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The transformation plan: The guide to corporate climate strategies

Best Practices
Governance & regulation

Table of contents

6
min |
22.8.2024

The decarbonization of the economy is one of the key challenges of our time. Companies are increasingly confronted with the expectations of their customers, investors and regulatory requirements to improve their carbon footprint and make their contribution to climate neutrality. A transformation plan is a strategic tool for tackling this challenge in a targeted and planned manner. But what exactly is a transformation plan, how do you create one and what funding opportunities are available? In this article, we will give you an overview and show you how Five Glaciers Consulting can support you.

What is a transformation plan?

A transformation plan serves as a long-term roadmap for reducing greenhouse gas emissions and increasing a company's energy efficiency. It not only analyzes current emissions, but also defines specific measures to achieve the climate targets. The Federal Office of Economics and Export Control (BAFA) supports companies financially in the creation of such a plan as part of Module 5 "Transformation Concepts" of the "Energy and Resource Efficiency in the Economy" funding program.

The goal: A clear path to climate neutrality by 2045 or beyond, taking into account both technical and operational measures.

The path to a successful transformation plan

Certain steps are required to create a well-founded transformation plan. These steps are essential in order to understand the current situation, define objectives and implement suitable measures:

1. status quo assessment
We analyze the current situation of your company and create a detailed carbon footprint. This forms the basis for defining realistic and ambitious climate targets.

2. target definition and strategic orientation
In this phase, we define clear climate targets that are based on the long-term requirements of climate neutrality and are tailored to your company.

3. development of reduction measures
We identify technical, organizational and behavioural measures to reduce emissions. These are evaluated in terms of effectiveness and feasibility in order to create a customized catalog of measures.

4. implementation of the measures
We support the implementation of the measures and help to establish a climate protection management system to ensure that the measures are implemented effectively.

5. monitoring and continuous improvement
We monitor the implementation of measures, regularly review progress and adjust the plan as necessary to ensure long-term success.

Contents of the transformation plan

The path to climate neutrality is individual for each company. A wide range of analyses and measures are therefore necessary as part of a transformation plan, which are now also eligible for funding. These include, among others:

  • Preparation or update of a CO₂ balance sheet: We recommend a balance sheet in accordance with the GHG Protocol or ISO 14064-1 and can cover both individual sites and the entire company and includes at least Scope 1 and 2 (Scope 3 is optional). In addition to CO₂, other greenhouse gases such as methane (CH₄), nitrous oxide (N₂O) and fluorinated gases (HFC, PFC, SF₆, NF₃) as well as volatile organic compounds (VOC) are taken into account. An external audit or certification of the CO₂ balance can also be funded.‍
  • Measurements, data collection and data procurement: These are necessary to support the creation of the transformation plan and to create a sound basis for decision-making.‍
  • Creation of an action plan to achieve the target: The action plan shows how emissions can be reduced by at least 40% over the next ten years. CO₂ offsetting, balance sheet savings, production reductions or production outsourcing do not count towards the reduction target. The focus is on increasing energy efficiency.‍
  • Assessment of opportunities and risks: The various options for action are assessed in terms of their opportunities and risks. Current challenges for which no solutions are currently available are also addressed.‍
  • Introduction of climate protection management: In order to implement the measures, processes for climate protection management are being introduced throughout the company.

Promotion by the BAFA

The creation of a transformation plan is financially supported as part of the BAFA funding program. Among other things, the preparation and certification of a carbon footprint, consulting services, measurements and data procurement are eligible for funding. Depending on the size of the company, the funding rate is between 40% and 60% of the costs, with a maximum funding of €60,000 per location or €90,000 if the company is a member of an energy efficiency network.

How Five Glaciers Consulting can support you

Our consultants at Five Glaciers Consulting support your company at every step of the transformation process. From the collection of relevant energy data to the development of a reduction strategy and the creation of a detailed implementation plan, we are at your side with our expertise in funding management. We also support you in applying for funding to ensure that you receive maximum financial support for your transformation.

A transformation plan is more than just a document - it is the strategic basis for successfully achieving climate neutrality in the long term. With our support, you can be sure that your transformation is both sustainable and economically viable.

Contact author

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