Action Guide

Understand the Business Role in Climate Mitigation

Environmental Defense Fund

Net zero requires that a company cut their absolute greenhouse gas emissions across operations and value chains to near-zero by midcentury at the latest, balancing unavoidable emissions with high-integrity carbon removals and transforming their business in the process to align with a just and equitable global net zero future.

Due to the size of their emissions and their economic influence, technological capabilities, supply chain impact and stakeholder reach – companies play an active role in mitigating climate change. By leading the way and taking proactive measures, businesses can contribute significantly to global efforts to address climate change in the following ways.  

  1. Implementing mitigation strategies to reduce greenhouse gas emissions: Businesses are major contributors to greenhouse gas (GHG) emissions through their operations, supply chains, and products. By taking action to reduce their emissions, businesses can have a substantial impact on overall GHG emissions. 
  2. Driving innovation and technology for sustainable solutions: Businesses are often at the forefront of innovation and technological advancements and have the capacity to develop and deploy new technologies, processes, and solutions that can enable a transition to a low-carbon economy. 
  3. Integrating sustainability into supply chain management and promoting responsible sourcing: Businesses can exert influence throughout their supply chains by promoting sustainability practices among suppliers and partners. Encouraging and collaborating with suppliers to reduce emissions and adopt sustainable practices can have a cascading effect on emissions reduction. 
  4. Advocating for strong climate policies: Businesses can use their influence to advocate for net zero-aligned policies and engage with governments in shaping regulations that promote sustainability. Companies can also provide expertise, data, and insights to policymakers, facilitating the development of effective climate policies. 
  5. Educating and engaging consumers to make climate-conscious choices: Businesses shape consumer behavior through their products, services, and marketing. By offering climate-friendly options, raising awareness, and promoting responsible consumption, businesses can drive demand for low-carbon solutions. 
  6. Transparently reporting on emissions, climate risks, and mitigation efforts: Transparent reporting on GHG emissions, climate risks, and mitigation efforts is essential for businesses to be accountable and demonstrate progress. Through sustainability reporting frameworks such as the Task Force on Climate-related Financial Disclosures (TCFD), businesses can communicate their climate mitigation actions to stakeholders, including investors, customers, and the public. 
  7. Meeting investor and stakeholder expectations: Investors and stakeholders increasingly prioritize environmental, social, and governance (ESG) factors, including climate performance. Businesses that demonstrate a commitment to climate mitigation are more likely to attract responsible investors, gain access to capital, and maintain positive relationships.