Blog

Updates to EU taxonomy

The organisation published a report with initial findings from extensive stakeholder engagement, particularly with companies, and is now seeking further consultation from the public. In introducing the note to the report, Helena Viñes Fiestas, Chair of the PSF, stated:

During this period, our priority has been to improve the usability and effectiveness of the Taxonomy and the broader sustainable finance framework. Once the necessary changes have been implemented, the Platform hopes that a future mandate will allow us to focus on incorporating many more activities into the Taxonomy.

Proposed changes include expanding the scope to include areas such as digital services or mining and smelting of key metals such as lithium, copper, and nickel. Other metal manufacturing, such as that of iron and steel, is included in the Taxonomy list of activities.

To be considered sustainable, an activity must contribute significantly to at least one of the following six objectives and Do No Significant Harm (DNSH) to any of the others, as well as complying with the minimum safeguards.

One aspect of the feedback was the call for the criteria and instructions to be made clearer and more practicable. This is essential for implementation and interpretation of results because, as in the technical screening criteria, the report states:

A clear description of the technical screening criteria reduces implementation costs and ensures that criteria be interpreted in the same way by different preparers and auditors, providing comparability of the reporting results.

Another area of improvement is in the DNSH criteria, particularly in regard to new activities proposed.

You can read the official report here.

The consultation is open to the public from January 8 to February 5, 2025. Stakeholders are invited to share their evidence-based feedback via the official consultation link.

Sources:

– “Call for feedback by the PSF on preliminary recommendations for the review of the Climate Delegated Act and the addition of activities to the EU taxonomy” by the European Commission (Jan 2025). Available at Call for feedback – Platform on Sustainable Finance
– “EU Platform on Sustainable Finance Proposes Key Updates to EU Taxonomy” by ESG News (Jan 2025). Available at EU Platform on Sustainable Finance Proposes Key Updates to EU Taxonomy – ESG News
– “EU Platform on Sustainable Finance Unveils Proposals to Simplify, Expand EU Taxonomy” by Mark Segal at ESG Today (Jan 2025). Available at EU Platform on Sustainable Finance Unveils Proposals to Simplify, Expand EU Taxonomy – ESG Today
– “EU Taxonomy Navigator” by the European Commission (n.d.). Available at EU Taxonomy Navigator
– “Platform on Sustainable Finance Draft Report on Activities and Technical Screening Criteria to be Updated or Included in the EU Taxonomy” by the Platform on Sustainable Finance (Jan 2025). Available at Platform on Sustainable Finance draft report on activities and technical screening criteria to be updated or included in the EU taxonomy

What exactly is EPR?

Extended Producer Responsibility (EPR) is a type of environmental policy that was first implemented in Sweden and has subsequently gained popularity in many countries around the world. The policy is based on the “polluter pays” principle, thus regulating the producer’s responsibility for the products they put on the market. Its application directly contributes to the development of a circular economy.

The main goal of EPR is proper waste management and sustainable consumption of raw materials.

According to the policy, manufacturers are responsible for the entire life cycle of products, from the moment they are manufactured to the end of their useful life. Accordingly, regulations govern the management of generated waste through payment of fees for collection, recycling, reuse and disposal.

Who is affected by the EPR regulations?

In short, the provisions of Extended Producer Responsibility apply to any person who takes part in a product’s introduction to the market. In other words, any legal or natural person whose business activity consists of developing, manufacturing, processing, selling or importing products, regardless of how they are placed on the domestic market.

Companies that sell their products directly to end consumers (B2C) are subject to different regulations than those that trade with retailers or distributors (B2B). Moreover, the requirements applied to domestic sellers differ from those applied to international sellers. Therefore, it is important to consider the type of business you are doing in order to correctly determine your obligations.

Who should apply for an EPR registration number?

• Individuals and companies that manufacture products subject to EPR
• Vendors of products subject to EPR

What products are subject to EPR?

In order to reduce waste and contribute to the development of a circular economy, the particulars of EPR are regularly updated. According to experts’ predictions, more and more products will be strictly regulated in the coming years.

Products covered by EPR:

• Packaging
• Batteries
• Electrical and electronic equipment
• Used industrial oils
• Tires
• Vehicles
• Furniture

What is a Producer Responsibility Organization (PRO)?

A Producer Responsibility Organization (PRO) (PRO) is an entity established under the Extended Producer Responsibility (EPR) system. Its task is to relieve producers of their responsibilities for managing waste resulting from their operations, in particular collection, recovery and recycling.

Key features and role of PRO:

• Assumption of producer obligations: PRO acts on behalf of producers, assuming their waste management obligations. Producers pay fees to the PRO, which funds recycling and recovery activities.
• Waste management: PRO is responsible for organizing the collection, transport, recycling, and reuse of waste generated from products placed on the market.
• Supporting a circular economy: Through waste reuse and recycling activities, PRO contributes to waste minimization and supports sustainable development.
• Regulations: PRO’s operations are strictly regulated in each country, often stemming from EU directives such as Directive 2008/98/EC on waste. These organizations are often subject to supervision to ensure compliance with regulations and the achievement of specific recycling targets.
• Application in various industries: PROs operate in many sectors, such as packaging, electronics, vehicles, batteries, and textiles. Each industry may have specific waste management requirements.

How to contact us?

Customers can contact our sustainability experts directly. At an arranged meeting, we determine how we can best meet your EPR needs. Although we operate mainly in Poland, we have many years of experience working with clients from all over Europe. Don’t hesitate to contact us if you think you could benefit from our expertise!

Responsibilities

Extended Producer Responsibility (EPR) regulations can vary from country to country, so it is important to verify exactly what obligations apply to the specific category of products a company markets. Despite the many differences, a common feature of the vast majority of cases is the presence of declaratory and financial obligations.

The main obligations of producers in Poland under the EPR:

1. Financing of waste management – manufacturers are required to cover the costs of collecting, transporting, recovering and recycling waste generated from their products. These costs include, among others:
   • Selective waste collection,
   • Environmental education,
   • Reporting on waste management activities.
2. Achieving recycling levels – manufacturers must meet certain recycling and recovery quotas, which are set by national and EU regulations. For example, in the case of packaging, a certain percentage of materials such as plastic, glass and paper are required to be recycled.
3. Cooperation with producer responsibility organizations (PROs) – producers can delegate their waste management responsibilities to PRO organizations, which manage collection and recycling processes on their behalf. The producer pays an appropriate fee for this.
4. Reporting – manufacturers are required to submit detailed reports on:
   • The amount and type of products marketed,
   • recycling and recovery activities undertaken,
   • Implementation of obligations related to environmental education.
5. Eco-design of products – EPR encourages manufacturers to design products in ways that minimize their environmental impact, such as by:
   • Limiting the amount of materials used,
   • Use of recyclable raw materials,
   • Facilitating product disassembly and repair.
6. Funding environmental education – manufacturers are required to conduct or finance educational activities that raise public awareness about separate collection, recycling and waste reduction.
7. Product labeling obligation – products placed on the market must be labeled in a way that facilitates their subsequent segregation and recycling. This applies especially to packaging.

Example: Obligations for the packaging industry in Poland

Manufacturers marketing packaged products must:

• report the amount of packaging put on the market,
• achieve certain recycling levels (e.g., for plastic or glass),
• pay fees to the waste management system, including to PRO organizations,
• ensure that their products are labeled in accordance with regulations to facilitate selective collection by consumers.

What do we offer?

We work with companies, manufacturers and individuals marketing electronic and electrical equipment, batteries and packaging, offering comprehensive support, including:

• Initial consultation to determine customer needs
• Individual case analysis
• Regulatory compliance analysis
• Calculation of estimated EPR charges
• Registration in the register of producers
• Support for appointment of attorneys
• Establish contact with Producer Responsibility Organizations
• Benchmarking and advising on EPR best practices
• Regular mapping and monitoring of legislative changes
• Advice on labeling responsibilities

What is a carbon footprint?

Carbon footprint is a gauge of the total amount of greenhouse gases, including carbon dioxide (CO₂), that have been emitted as a result of a company’s operations. It is an indicator that measures a company’s impact on climate change through greenhouse gas emissions associated with its production processes, operations, transportation, energy consumed in offices and other activities.

Carbon footprint is most often expressed in tons of carbon dioxide equivalent (tCO₂e), a unit that allows different greenhouse gases to be unified into a single measure, taking into account their global warming potential.

Why is carbon footprint an important issue from the perspective of ESG reporting companies?

The obligation to report on carbon footprint has gained significance in the context of changing legislation and a growing emphasis on the transparency of companies’ environmental activities. It has become one of the key indicators in assessing a company’s impact on climate change and thus sustainability.

Increased environmental awareness among consumers and investors is making carbon footprint not only an environmental indicator, but also a competitive element in the market. For example, companies that reduce emissions by optimizing production processes, switching to renewable energy sources or reducing water consumption can be assured of consumer loyalty and the positive evaluation of investors, who increasingly consider sustainability in their investment decisions.

Reducing carbon footprint is also an integral part of a sustainability strategy that aims to minimize the negative impact of business activities on the environment. Companies that engage in such initiatives are seen as responsible and forward. In the long run, such actions ensure an enhanced reputation and trust among all stakeholders: from employees to business partners.

How is carbon footprint calculated?

Calculating carbon footprint is a multi-step process that requires taking into account all sources of greenhouse gas emissions in a company’s operations. Carbon footprint can be divided into three ranges to be considered when calculating it:

• Scope 1 – Direct emissions: These are emissions that come directly from the company’s operations, such as the burning of fuels in furnaces, company cars or other company-owned equipment.
• Scope 2 – Energy-related indirect emissions: Include emissions related to the purchase of electricity, heat or steam. Companies should calculate emissions related to the energy consumed in their operations, taking into account the sources of that energy (e.g., coal, gas, renewables).
• Scope 3 – Indirect emissions from other sources: These are emissions resulting from the company’s entire value chain, including transportation, production of raw materials, waste, business travel, or consumer use of products. Scope 3 is typically the most complex to calculate, as it includes emissions from the activities of business partners, suppliers and customers.

When measuring carbon footprint, companies should use appropriate tools such as carbon footprint calculators, standards and protocols (a globally recognized one is the Greenhouse Gas Protocol) to help accurately determine greenhouse gas emissions.

What carbon footprint disclosures should be reported under ESRS guidelines?

Under the ESRS guidelines, which were developed by the European Union as part of the CSRD regulations, companies are required to disclose detailed information on their environmental impact, including greenhouse gas emissions. This reporting is intended to increase transparency and accountability in managing climate impacts. Companies will have to disclose:

• Total greenhouse gas emissions: Companies must disclose total greenhouse gas emissions, expressed in tons of CO₂ equivalent, broken down into direct emissions (Scope 1), indirect energy-related emissions (Scope 2) and other indirect emissions (Scope 3).
• Emission reduction targets: Companies will be required to disclose their GHG emission reduction targets, including timelines and strategies for achieving these targets, consistent with global climate goals (e.g., the Paris Agreement).
• Strategies and actions: ESG reports should outline strategies and specific actions taken to reduce greenhouse gas emissions, such as implementing energy-saving technologies or switching to renewable energy sources.
• Sustainability indicators: Companies must provide indicators to measure progress toward emission reduction targets. This could include, for example, emissions intensity per unit of production, emissions reduction per employee or energy efficiency.

Summary

A key element in managing carbon footprint is integrating appropriate operational activities into the company’s daily operations. Companies must focus on accurately monitoring and measuring greenhouse gas emissions throughout the value chain, which requires collaboration with suppliers, logistics partners and other stakeholders. Operational measures include optimizing energy consumption, introducing energy-saving technologies, reviewing production processes and efficient waste management, among others. In addition, it is necessary to regularly audit emissions, implement renewable energy solutions and transport efficiency. This approach not only ensures compliance with regulations, but also effectively contributes to reducing the company’s operational carbon footprint.

Main environmental objectives:

• countering climate change,
• climate change adaptation,
• Sustainable use and protection of water and marine resources,
• The transition to a circular economy,
• Pollution prevention and control,
• Protection and restoration of biodiversity and ecosystems.

If an activity is considered sustainable, it must first significantly contribute to one of these goals without harming others. The taxonomy aims to direct capital to projects that foster environmental transformation and to increase transparency and accountability in reporting sustainable activities.

In order for a company’s activities to be considered compliant with the taxonomy, it must meet all three conditions:

1. It must make a significant contribution to at least one of the six environmental goals.
2. It must not cause significant harm to any of the six goals.
3. Must demonstrate compliance with the Minimum Safeguards
4. In addition, the company must meet the Technical Qualification Criteria, but this condition is included in items 1 and 2.

Why is taxonomy important for companies preparing an ESG report?

For companies preparing an ESG report, the EU taxonomy provides a compliance framework and guidance to better understand the environmental impact of operations and meet regulatory requirements. The taxonomy’s provisions specifically affect:

• Transparency reporting – companies covered by the CSRD (Corporate Sustainability Reporting Directive) must demonstrate in their ESG reports the extent to which their activities are in line with the taxonomy.
• Attracting investors – sustainable actions in line with the taxonomy can increase a company’s attractiveness in the eyes of investors, who are becoming increasingly influenced by ESG criteria.
• Minimize reputational risk – Taxonomy compliance reporting helps avoid allegations of greenwashing and build credibility.

What steps should the company take?

When preparing an ESG report in accordance with the requirements of the EU taxonomy, a company should:

• Conduct an audit of activities – identify which activities are consistent with the objectives of the taxonomy and the Technical Qualification Criteria.
• Gather data – collect the necessary information on the impact of the activity on the environment.
• Understand DNSH (Do No Significant Harm) requirements – make sure that no activities violate other environmental objectives.
• Ensure compliance with the Minimum Safeguards – implement human rights and labor standards.

Summary

At EFF, we fully understand that meeting these requirements can be a challenge. Depending on the size of your company and the specifics of your industry, you may need to collect a large amount of data and meet numerous reporting requirements. Our experts are here to help you! We will analyze your operations to determine which data fits into the taxonomy criteria and how well it complies with the applicable requirements. In addition, we will support you in implementing social safeguards where needed.

Gap analysis

As experts in ESG reporting, we will analyze a set of nonobligatory standards and regulations, as well as benchmark the most important ones. We will work with you to determine which values and factors are most important within your company’s operations, including compliance with EU regulations, the attainability of aspiring decarbonization goals, and the efficiency of data collection processes.

With this in mind, we will make recommendations to fill the gaps and work with your team to create a strategy for further action.

Our team’s ESG experience allows us to provide individual support in the reporting process so that your documents not only meet regulatory requirements but also comply with market best practices.

What is ESG?

ESG, or Environmental, Social, and Governance, is a set of criteria for evaluating companies’ environmental, social, and governance impacts. These areas include efforts to reduce greenhouse gas emissions, improving working conditions, addressing social inequality, and transparency in corporate governance, among others. The introduction of the CSRD (Corporate Sustainability Reporting Directive) makes the topic of ESG even more relevant, especially in the context of mandatory reporting by companies.

What is an ESG strategy and how to prepare it in accordance with the CSRD?

An ESG strategy is a set of actions that a company takes to meet environmental, social and governance responsibility criteria. For companies required to report under the CSRD, the ESG strategy must follow the guidelines of the CSRD, covering not only sustainability goals, but also how they are measured and how ESG risks are managed.

Step 1: ESG baseline assessment – defining the starting point

The first step in developing an ESG strategy is to conduct a detailed ESG baseline assessment that will allow the company to determine the current status of its environmental, social and governance activities. It is important to understand where the company stands with respect to ESG requirements. The baseline assessment should include an audit of existing ESG practices and policies, an analysis of ESG indicators, and identification of factors that may affect the company’s operations. This analysis will give the company a complete picture of its strengths and areas that need improvement.

Step 2: Double Materiality Analysis

In the next step, it is best to conduct a double materiality analysis, which is one of the key elements in preparing an ESG strategy. This means that a company should assess which ESG factors have a significant impact on its business, as well as how the company’s activities affect society and the environment. By understanding both of these perspectives, you can not only meet CSRD requirements, but also develop a strategy that will have a real impact on the company’s sustainability. Learn more.

Step 3: Gap analysis – identification of gaps

This is followed by a gap analysis, which helps identify differences between the company’s current operations and CSRD requirements. In this step, the company makes a detailed comparison of its policies, procedures and practices with ESG disclosure requirements. Gap analysis identifies areas where the company does not yet meet the guidelines or needs further action to comply with the new regulations. Conducting a gap analysis shapes a roadmap for a company to determine what steps it needs to take to meet ESG reporting requirements. Learn more.

Step 4: Identify ESG goals

Based on the results of the baseline assessment, double materiality analysis and gap analysis, the company should proceed to define ESG goals. These goals must be clear, measurable and implementable. In doing so, it is worth keeping in mind that ESG goals are dynamic and should be tailored to the specifics of the company and the industry in which the company operates. Examples of goals might include reducing greenhouse gas emissions, improving working conditions, or increasing transparency in company management.

Step 5: Identify ESG indicators and methods to measure progress

The next step is to identify ESG indicators to monitor progress. It is important that the indicators comply with international standards and CSRD requirements. Examples of indicators include: greenhouse gas emissions, water consumption, number of hours of training, or governance-related indicators (e.g., transparency in reporting). It is also crucial to implement an effective data collection system to regularly monitor progress.

Step 6: Implement ESG measures in the company

Implementing an ESG strategy requires commitment at all levels of the company. At this stage, appropriate procedures should be put in place to achieve ESG goals, as well as education and training for employees.

Summary

Creating an ESG strategy is a complex process that requires a thorough analysis of the company’s existing policies, the identification of goals, indicators and methods for measuring them. Conducting a double materiality analysis and identifying gaps allows you to create an effective strategy that will have a real impact on the sustainability of your company

What is double materiality analysis?

Double Materiality analysis is an approach required for ESG reporting that considers two perspectives:

• Impact materiality, or how the company affects the environment and/or society.
• Financial materiality, or how the environment and/or society affects the company.

This approach provides a holistic view of the company’s relationship with the environment, indicating both its responsibilities and the potential risks and opportunities associated with sustainability.

Why is double materiality analysis crucial in the context of CSRD and ESRS?

The CSRD and ESRS standards prioritize transparency and accurate reporting of companies’ sustainability impacts. The reasons why double materiality analysis plays a key role in this process are:

• Regulatory requirements – Companies covered by CSRD must present in their ESG reports what factors are applicable to them from both a financial and environmental/social perspective.
• Report credibility – Transparency of the analysis results builds trust among investors, customers and other stakeholders.
• Risk management – By identifying relevant issues, a company can more effectively prepare for potential ESG risks, such as changing climate regulations or consumer expectations.
• Growth opportunities – Double materiality analysis also identifies business opportunities or sectors with increased potential, such sustainable agriculture or digitization of manufacture processes.

How do you conduct a double materiality analysis?

A double materiality analysis should be well planned and systematic. Here are the steps to consider:

1. Identifying ESG topics – start by analyzing which ESG topics are relevant to your industry and company. Consider, issues such as:
   • regulations (e.g., CSRD, ESRS, EU Taxonomy),
   • industry guidelines (e.g., GRI, SASB),
   • market trends,
   • stakeholder expectations.
2. Engaging stakeholders – consult key stakeholders such as customers, employees, investors, regulators or local communities. Their perspective will help you understand which ESG issues are most important to them. Dialogue with stakeholders is key in double materiality analysis, as it enables companies to understand the expectations of groups that influence and are influenced by the organization. Engaging stakeholders builds trust, increases transparency and efficiency, and long-term collaboration helps better manage the risks and opportunities of social and environmental change, improving reputation and providing added value for all parties.
3. Assessing environmental and social impact – analyze what effects your activities have on the environment and society, e.g.: greenhouse gas emissions, water and raw material consumption or human and workers’ rights.
4. Assessing financial materiality – identify what ESG risks and opportunities may affect your company’s operations, such as:
   • Regulatory risks (e.g., penalties for excessive emissions),
   • An increase in operating expenses,
   • Evolving market expectations.
5. ESG data gap analysis – the gap analysis is based on the findings of a previously conducted double materiality analysis and stakeholder dialogue. This process allows companies to accurately identify gaps between current sustainability efforts and regulatory requirements, industry best practices and stakeholder expectations. 
6. Integration with ESG report and company strategy – the conclusions of your double materiality analysis should be reflected in both the ESG report and the company’s sustainability strategy.

Challenges in double materiality analysis:

• Data collection – Companies often struggle to obtain accurate information about the environmental and social impacts of their operations. For example, manufacturing companies may struggle to monitor CO2 emissions during the various stages of production because they lack the right tools to measure them.
• Stakeholder engagement – Understanding the needs of different stakeholder groups, such as employees, local communities or environmental organizations, can require a great deal of time and resources. For example, it may be difficult for an organization to get the views of local residents on the environmental impact of its operations, which can delay the decision-making process.
• Regulatory complexity – Companies must keep track of changing regulations, such as the ESRS (European Sustainability Reporting Standards), which can vary by country or industry. For example, a company operating in the European Union may find it difficult to adapt ESG reporting to new transparency requirements that change from year to year.

Double materiality analysis is vital to ensure the compliance of ESG reporting with the CSRD and ESRS standards. It enables companies to understand both their impact on the environment and the risks and opportunities arising from global sustainability trends.

If your company is preparing for ESG reporting in accordance with CSRD and ESRS, and double materiality analysis seems challenging, our experts are here to help you! Get in touch so we can start working to develop effective and compliant solutions.

Solutions for companies

In the face of rising transportation costs and growing environmental awareness, responsible business travel planning is becoming crucial not only from an environmental perspective, but also from a corporate image perspective. What solutions can both companies and employees implement to minimize the impact of business travel on the planet? Here are five suggestions for companies and five tips for employees.

• Sustainable transportation choices. Companies can promote the choice of greener modes of transportation, such as trains, which in Poland are becoming an increasingly comfortable and environmentally friendly alternative to airplanes. It is also worth investing in electric or hybrid car rentals, which reduce carbon emissions. For international air travel, some airlines offer a CO2 offset option, which is a favorable solution for environmentally conscious companies.
• Employee education and technology to support sustainability. Companies are increasingly implementing technology platforms to support travel planning that take into account CO2 emissions for different transportation options. With these, employees can make decisions more easily, choosing transportation with a lower environmental impact. In addition, educating employees about sustainable business travel aims to build environmental awareness and show the benefits of such choices.
• Sustainable accomodation. Choosing the right accommodations is another important step. Eco-certified hotels that use renewable energy sources and conserve water are choices that reduce the carbon footprint of travel. In Poland, more and more hotels are beginning to implement such practices, creating a wide range of environmentally friendly options for companies.
• Remote meetings and travel optimization. Companies can reduce the number of necessary business trips by holding meetings online. Video conferencing technologies make it possible to communicate effectively without traveling, reducing greenhouse gas emissions. Advance travel optimization allows several meetings to be combined into one trip, reducing the number of days in travel and the associated carbon footprint.
• Involvement and foreseeing climate regulations. Governments, including Poland, are increasingly introducing regulations requiring reporting of greenhouse gas emissions associated with corporate operations. Organizations that implement sustainable business travel strategies can not only reduce their environmental footprint, but also prepare for the upcoming regulations, gaining a competitive advantage.

Solutions for employees

• Minimize baggage. When traveling on business, it’s a good idea to take only the most necessary items, which avoids unnecessary excess baggage fees and reduces fuel consumption on airplanes.
• Choosing eco-friendly means of transportation. Whenever possible, it is advisable to choose bicycling, walking or public transportation instead of using cabs or rental cars.
• Taking care to conserve energy in the hotel. When you arrive at the hotel, it’s a good idea to turn off electrical appliances, not to use air conditioning and heating in excess, and to take advantage of the recycling options available at the hotel.
• Choosing eco-friendly meals. Look out for restaurants that offer plant-based, organic or local dishes, which reduces the carbon footprint associated with food production and transportation.
• Conscious use of resources. Conserving water and energy when traveling for business is a simple but effective way to reduce your environmental impact. It’s worth remembering to turn off lights or not to leave appliances on standby mode.

Summary

Sustainability in business travel is a matter of responsibility for both companies and employees. By implementing transportation, accommodation and technology solutions, companies can significantly reduce the environmental impact of their travel. At the same time, employees, by making conscious decisions on a daily basis, can further support sustainability. Through such measures, business travel will become greener and companies will gain a reputation as socially responsible organizations.

What is zero-emission?

Under zero-emission is a comprehensive approach:

• Step 1: minimize emissions at every stage of operations
• Step 2: invest in solutions to neutralize unavoidable emissions

Linking zero-carbon with carbon footprint by scope

Striving for zero-carbon is closely linked to reducing the carbon footprint in all three emission bands defined by the Greenhouse Gas Protocol.

Scope 1 covers direct emissions over which companies have the most control, such as emissions from technological processes or vehicle fleets.

Scope 2 refers to indirect emissions related to purchased energy, where a key element is the transition to renewable energy sources and energy efficiency improvements.

Scope 3, which is the most challenging, addresses the entire value chain, including suppliers, logistics and product usage. A comprehensive approach to reducing carbon footprints in these scopes not only allows companies to move closer to climate neutrality, but also responds to the growing demands of stakeholders and customers, who increasingly expect transparency in emissions reporting.

How to achieve zero-emission in each scope?

Scope 1: Reduction of direct emissions

• Upgrading equipment – replacing boilers or industrial machinery with modern, low-carbon technologies.
• Decarbonizing the vehicle fleet – investing in electric or hydrogen-powered cars and optimizing logistics routes.
• Switching to renewable energy sources – using locally generated energy, such as photovoltaic panels, making it possible to become independent of emissions generated by burning fossil fuels.

Scope 2: Reduce emissions associated with purchased energy

• Purchasing green energy – entering into renewable energy supply agreements (PPA – Power Purchase Agreement) or buying guarantees of origin for RES energy.
• Increase energy efficiency – implement energy management systems (ISO 50001) to monitor and optimize energy consumption.
• Investment in energy storage technologies – the installation of batteries makes it possible to use renewable energy sources also at times of lower energy availability.

Scope 3: Neutralization of emissions in the value chain

• Supplier engagement – selecting partners with sustainable practices and requiring them to report their carbon footprint.
• Closed-loop product design – creating products that are easy to recycle, which reduces emissions associated with the extraction of raw materials.
• Logistics optimization – reducing emissions through efficient transportation planning and use of low-emission modes of transportation.
• Comprehensive waste management – reducing waste during production and investing in waste treatment technologies.

Zero carbon as the future of business

Data from organizations that monitor climate action, such as the Carbon Disclosure Project (CDP) and the Science Based Targets Initiative (SBTi), indicate that companies are increasingly committed to zero-carbon strategies. More and more companies are taking action to reduce emissions, setting goals in line with science and global standards. Statistics show that both multinational corporations and smaller organizations are implementing climate strategies, aligning with regulatory requirements and stakeholder expectations. Industries such as energy and heavy industry, known for their high emissions, are investing heavily in decarbonization, while service sectors are focusing on optimizing indirect emissions in supply chains. These moves underscore that the pursuit of climate neutrality is becoming an increasingly common element of business strategies, reflecting growing climate awareness and the need to address new market challenges.