Decarbonization Strategy: The Path to "Net Zero" for Companies

The term „decarbonization strategy“ is increasingly becoming an integral part of corporate sustainability efforts. But what does it actually mean?

This article explains how a decarbonization strategy is structured, what specific levers companies can use, and why industrial firms in particular benefit from a well-founded climate strategy, both environmentally and economically.

Why Is a decarbonization strategy important?

The need for decarbonization arises not only from increasing regulatory pressure but also from economic and societal expectations. Companies are under pressure to balance climate goals, investor demands, supply chain transparency, and competitiveness. A clearly defined decarbonization strategy offers the right response here.

Five key reasons why companies should act now:

1. Meeting climate targets: Achieving climate neutrality by 2050 at the latest (as required by the EU and Germany’s Climate Protection Act) necessitates a clear reduction strategy.
2. Complying with regulations: Standards such as the CSRD, the EU Taxonomy, or Science-Based Targets (SBTi) require valid carbon data and measurable progress.
3. Improving resource efficiency: Reducing energy and material use not only lowers emissions but also cuts costs.
4. Securing market access: More and more B2B customers demand climate-related documentation along the supply chain - a transparent decarbonization plan becomes a competitive advantage.
5. Reputation and risk management: Sustainable business practices are increasingly expected by society. Companies that decarbonize credibly today strengthen their brand and resilience.

Key building blocks of a decarbonization strategy

An effective decarbonization strategy is not a one-time project, but an ongoing, data-driven process. It consists of several interlinked elements that systematically build on one another:

1. Create a carbon footprint:
   ‍Every strategy begins with data collection: What emissions are currently generated, and where? A complete footprint includes Scope 1 (direct), Scope 2 (energy-related), and Scope 3 (indirect, e.g., supply chain) emissions, in accordance with the Greenhouse Gas Protocol. Only with a clear data foundation can effective measures be identified.‍
2. Define reduction targets:
   ‍Based on the carbon footprint, companies set concrete short- and long-term goals – ideally science-based, such as via the Science-Based Targets Initiative (SBTi).Important: The goals must be realistic, measurable, and time-bound.‍
3. Derive and implement measures
   ‍Typical levers include:
   1. ‍Energy efficiency improvements (e.g., process optimization, heat recovery)‍
   2. Switching to renewable energy (own generation or green energy procurement)‍
   3. Climate-friendly supply chains (e.g., through supplier selection or transport changes)‍
   4. Product redesign to minimize emissions across the lifecycle
   Digital tools such as carbon management software (e.g., from Tanso) help prioritize actions, run simulations, and measure success.
4. Monitoring & reporting
   Implementation must be continuously monitored to meet legal reporting obligations such as the CSRD or environmental audits. Climate-relevant KPIs and progress should be regularly analyzed, adjusted as needed, and communicated transparently.

Practical Examples: How Tanso’s customers successfully implement decarbonization strategies

Implementing decarbonization strategies has long become a reality for many industrial companies. The following examples show how manufacturing companies are reducing their CO₂ emissions using data-driven approaches – and how Tanso supports them in doing so:

1. Iwis: Creating transparency across global value chains

As a global manufacturer of drive systems, iwis faced the challenge of consistently collecting emissions data across multiple locations. With Tanso, the company was able to automatically gather and analyze CO₂ data along the entire value chain and prioritize initial reduction measures. A structured entry into decarbonization with high data quality and CSRD-compliant reporting.

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2. Böllhoff: Efficient data processes as the foundation for sustainable corporate management

The Böllhoff Group is known for its high-quality fastening elements and related assembly and logistics solutions. As part of its efforts to achieve climate neutrality in Scope 1 & 2 by 2030, Böllhoff is optimizing its processes to enable more digital and decentralized CO₂ data collection. The software enables Böllhoff to consistently capture emissions data across all scopes and strategically prioritize and optimize climate measures.

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3. Crespel & Deiters: Tanso as a holistic solution for sustainability reporting

Crespel & Deiters, one of the largest European manufacturers of wheat starches and wheat proteins, has been using an established energy management system since 2013, allowing for precise tracking of Scope 1 and Scope 2 emissions and efficient energy consumption control. However, collecting and accounting for Scope 3 emissions proved significantly more complex. With Tanso, the company was able to complete a full CO₂ footprint for Scope 1-3 within just a few weeks and strategically leverage synergies between CCF, PCF, and CSRD across the value chain.

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The role of software & digitalization in decarbonization strategies

An effective decarbonization strategy is hardly feasible today without digital support. Especially for companies with complex structures, such as multiple locations, product lines, or supply chains, automated tools for tracking, analyzing, and managing emissions are essential.

• Digital CO₂ accounting and emissions management: Modern software solutions like Tanso’s enable structured tracking of emissions across Scopes 1, 2, and 3, integrating both internal and supply chain data. This provides companies with a reliable data foundation to identify hotspots and derive targeted measures.
• Compare scenarios & simulate measures: Digital tools allow for the simulation of reduction scenarios, for instance, switching to green electricity, using more efficient machinery, or optimizing logistics. Measures can thus be prioritized based on cost, impact, and time horizon.
• Reporting & audit-readiness: Tanso and similar tools support automated reporting, for example in accordance with CSRD, the EU Taxonomy, or other ESG standards. This reduces manual effort, improves data quality, and lowers risk during external audits.
• Cross-departmental collaboration: Decarbonization is an interdisciplinary initiative. Software provides a shared data foundation for sustainability officers, controlling, procurement, and production - enabling coordinated and strategic implementation.

Take a strategic approach to decarbonization now

Decarbonization is no longer just a sustainability issue, it is becoming a key element of long-term business viability. Companies that invest today can not only meet regulatory requirements such as CSRD, SBTi, or the EU Taxonomy, but also achieve energy and cost savings, reduce risks, and position themselves competitively for the future.

The key to success lies in a structured approach: carbon accounting, clear target setting, prioritized actions, continuous monitoring, all supported by digital tools like the software solutions from Tanso.