Decarbonisation strategy: A practical roadmap   

Article summary 

• A decarbonisation strategy is a sequenced plan that reduces a company’s greenhouse gas emissions , grounded in a verified baseline and aligned with recognised targets. 

• Four components make a strategy credible: a complete GHG inventory baseline, science-aligned targets, funded reduction levers, and governance with board-level accountability. 

• Scope 1 and 2 reductions through energy efficiency and electrification are the fastest wins. Scope 3 requires supplier engagement and product design changes. 

• CSRD ESRS E1 requires companies to disclose their transition plan from 2026. That transition plan is your decarbonisation strategy. 

• A strategy without a measurement foundation is not a strategy. It is a target. 

Almost every large company now has a public net zero commitment. Fewer than one in three have a credible plan to deliver it. 

A decarbonisation strategy goes much beyond a commitment. It is a working plan: one that connects your verified emissions baseline to funded reduction actions, tracks progress against science-aligned targets and holds specific functions accountable for delivery. 

In this article, we explain the practical framework Nexio Projects uses when building decarbonisation strategies with sustainability directors and their boards. 

Our decarbonisation roadmap consists of 4 main components: 

• A verified baseline 
• Science-aligned targets 
• Reduction levers 
• Governance & transition plan 

Component 1: Credible baseline 

A decarbonisation strategy cannot be credible without a complete and credible emissions baseline. This sounds obvious. It is routinely skipped or underinvested. 

Your baseline is the starting point against which all progress is measured. A target that says “reduce emissions 50% by 2030” is meaningless if no one agrees on what the 2030 base figure is, what methodology was used, or whether it covers all material emission categories. 

A credible baseline is: 

• Complete. Covering Scope 1, Scope 2, and material Scope 3 categories. For most companies, Scope 3 represents 70 to 90% of total emissions. A strategy that excludes Scope 3 is not a decarbonisation strategy. 
• Methodology-aligned. Built to GHG Protocol Corporate Standard, consistent with ISO 14064-1 principles, and prepared to support ISAE 3410 assurance review. 
• Documented. With a methodology document, data source log, and evidence pack your assurance provider can trace. 

CSRD ESRS E1 requires disclosure of your gross Scope 1, 2, and 3 emissions with limited assurance. Your baseline is the foundation of that disclosure. Build it to disclosure standards from the start. 

To achieve this, you need to conduct your corporate GHG inventory, that covers all scopes and provide a transparent, repeatable basis for carbon management, via excel-based or software-led modelling.  

“Every decarbonisation strategy we build starts in the same place: a verified baseline. Not because it’s the exciting part, but because everything else depends on it. If your emissions figure isn’t credible, your target isn’t credible either.” 

Component 2: Science-aligned targets 

Once your baseline is established, your targets should be set against a recognised framework. The Science Based Targets initiative (SBTi) is the most widely accepted standard for corporate net zero target-setting. 

SBTi’s Corporate Net-Zero Standard V2.0 requires: 

• Near-term targets: Under SBTi V2.0, near-term targets generally cover a five-year period and must follow the applicable SBTi method, metric and pathway. There is no universal requirement for a 42 to 50% reduction by 2030. 

• Net-zero targets: Companies pursuing SBTi net-zero validation must set long-term targets for no later than 2050. These targets must reduce Scopes 1, 2 and 3 to pathway-specific residual levels. Remaining residual emissions must then be neutralised through eligible carbon removals. 

• Scope 3 coverage: The 67% coverage requirement applies to the previous V1.3.1 framework. Under V2.0, Category A companies must generally address every Scope 3 category representing at least 5% of total Scope 3 emissions, subject to limited and justified exclusions. Do not state a fixed 90% coverage requirement for V2.0. 

• Targets outside SBTi: Non-SBTi targets should still be specific, measurable, time-bound and supported by credible evidence or external review where appropriate. 

• ESRS E1: Companies must disclose how their transition plan and emissions-reduction targets are compatible with limiting global warming to 1.5°C. SBTi validation can support the credibility of the target, but it does not replace ESRS disclosures, the transition plan or applicable assurance requirements. 

Download our SBTi guide to dive deeper into the new standards! 

Targets outside the SBTi framework should still be specific, time-bound, and externally verifiable. ESRS E1 requires disclosure of whether your targets are aligned with a 1.5°C pathway and whether they have been validated by an external body. 

Component 3: Funded reduction levers 

Targets without funded actions are aspirations. A practical decarbonisation strategy maps specific reduction levers to specific emission categories, with timelines, cost estimates, and responsible owners. Find below examples of levers per scope (Note: this is not an exhaustive list, only examples of possible levers).  

• Scope 1 levers. Fleet electrification. Fuel switching in industrial processes. Onsite renewable energy generation. Fugitive emission reduction programmes. Scope 1 levers are typically the highest-cost but most directly controllable. 

• Scope 2 levers. Renewable electricity procurement via power purchase agreements or energy attribute certificates. Energy efficiency programmes (building management, equipment upgrades). Grid connection improvements. 

• Scope 3 levers. Supplier engagement programmes for Category 1 emissions. Product redesign for Categories 11 and 12. Business travel reduction policies. Logistics optimisation. Category 15 (investments): portfolio-level screening. 

For each lever: who owns it, what it costs, what emission reduction it delivers, and when. 

Component 4: Governance and transition plan 

A decarbonisation strategy without governance is a document. Governance means: who is accountable for each lever, how progress is reported to the board, and how the strategy connects to financial planning. 

Under CSRD ESRS E1, companies must disclose their climate transition plan. This is a structured disclosure of: how the company plans to meet its climate targets, how it will finance the transition, and how the board oversees climate risk and opportunity. 

Your decarbonisation strategy and your CSRD transition plan disclosure are not two separate documents. They are the same programme, described at different levels of detail for different audiences. 

Key governance requirements for a credible strategy: 

• Board ownership. At least one board member or committee with explicit accountability for climate strategy and transition plan progress. 
• Annual review cycle. The strategy is reviewed and updated annually as the emissions baseline is refreshed. 
• Capital allocation integration. Reduction lever capex is included in annual budget cycles, not treated as a sustainability side project. 

Frequently Asked Questions 

What is the difference between a net zero target and a decarbonisation strategy? 

A net zero target is a commitment. A decarbonisation strategy is the implementation plan. You need both. The target sets the destination; the strategy defines the pathway, the funded actions, and the governance that will get you there. 

Does CSRD require a decarbonisation strategy? 

CSRD’s ESRS E1 requires disclosure of a climate transition plan, which describes how your company plans to reduce emissions and align with a 1.5°C pathway. A credible, funded decarbonisation strategy is the substance behind that disclosure. 

How far ahead should a decarbonisation strategy look? 

At minimum, to 2030 for near-term SBTi targets, and to 2050 for long-term net zero alignment. The practical planning horizon for funded actions is three to five years, with annual reviews. 

Should we set Scope 3 targets if our supplier data is incomplete? 

Yes, with appropriate caveats and a data collection roadmap. SBTi requires Scope 3 target coverage even where primary supplier data is limited. Use spend-based estimates as interim baselines, disclose the methodology, and set a timeline for transitioning to primary data. 

What does Nexio do differently in decarbonisation strategy work? 

Nexio integrates verified GHG accounting, science-based target-setting, and supplier engagement into a single, connected programme. We hold the number one position as a global EcoVadis strategic partner and have delivered 600+ sustainability projects since 2018, giving us practical experience across Scope 1 to 3 reduction programmes in manufacturing, chemicals, FMCG, and financial services. 

Strategy follows measurement 

Nexio Projects has delivered 600+ sustainability and climate projects since 2018. Our experts can support with end-to-end decarbonisation processes includising: 

• Your GHG inventory 

• Your SBTi target-setting and validation 

• Reduction measures 

• Climate transition plans 

A decarbonisation strategy built on a verified baseline, funded by credible levers, and governed through board-level accountability will withstand CSRD assurance, SBTi validation, and investor scrutiny. One built on targets alone will not. 

If your sustainability mandate includes a net zero commitment and you need to build the strategy behind it, speak to a Nexio Projects net zero specialist.  

Sources

EcoVadis (2026) 10th Edition Sustainability Ratings Index. Available at: https://ecovadis.com (Accessed: 16 October 2026).

EFRAG (2023) ESRS E1 Climate Change. Brussels: European Financial Reporting Advisory Group. Available at: https://efrag.org (Accessed: 16 October 2026).

Science Based Targets initiative (SBTi) (2026) Corporate Net-Zero Standard, Version 2.0. Available at: https://sciencebasedtargets.org (Accessed: 16 October 2026).

World Resources Institute and World Business Council for Sustainable Development (2004) The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard. Rev. edn. Washington, DC: WRI; Geneva: WBCSD. Available at: https://ghgprotocol.org (Accessed: 16 October 2026).