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Defining your decarbonization pathway

Turn Net Zero aspiration into action with our decarbonization pathway tools.

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Katherine Blue

ESG Advisory Leader, KPMG US

+1 404-222-7606

Organizations are undergoing pressure across the supply chain to decarbonize their operations and physical assets, recognizing that 70% of global greenhouse emissions come from infrastructure. A successful decarbonization strategy should create value for the organization and enable the enterprise strategy. KPMG offers a comprehensive solution to help develop and implement a decarbonization strategy that serves core business needs, achieves climate goals and addresses challenging Scope 3 emissions.

70% of global GHG emissions come from infrastructure.

World Bank

The KPMG approach begins with comprehensive decarbonization strategy and vision setting, with a core focus on asset-level diagnostics and analysis. Several steps are key to setting up your decarbonization strategy for success:

1. Perform a carbon baseline assessment

2. Define a decarbonized future state

3. Conduct decarbonization scenario planning

4. Create a roadmap and implementation plan

5. Operationalize decarbonization

6. Leverage climate risk and resilience analytics

KPMG has developed a suite of tools to help you on the journey to getting decarbonization right.

KPMG decarbonization pathways

Measure where you are and plan for where you want to be

Our decarbonization pathways approach helps organizations measure their carbon footprint, set targets, and analyze future decarbonization scenarios across Scope 1, 2, and 3 emissions. KPMG can help your organization identify goals such as relative reduction, net zero target year, and renewable energy commitments by type. Once these targets have been defined, we can show you how they can be achieved through various decarbonization initiatives and scenarios.

Greenhouse gas (GHG) baseline and inventory example

Scope 1 Emissions			Scope 2 Emissions	Scope 3 Emissions

23% Medium-duty vehicles	5% On-site generation	3% Fugitive emissions	45% Electricity	3% Employee commuting & travel	14% Financed emissions	7% Distribution of goods

Measure your carbon footprint and understand the sources.

Greenhouse gas reduction scenario modeling example

(Will work on the below chart once we receive the data)

Priority Scope 3 emission categories

1. Purchased goods and services

2. Capital goods

3. Fuel and energy related activities

4. Upstream transportation & distribution

5. Waste generated in operation

6. Business travel

7. Employee commuting

8. Upstream leased assets

9. Downstream transportation & distribution

10. Processing of sold products

11. Use of sold products

12. End of life treatment of solid products

13. Downstream leased assets

14. Franchises

15. Investments

Client stories

KPMG has deep knowledge across industries and understands how ESG impacts sector-specific planning and operational decision-making. We are experienced in creating cohesive outputs that clearly articulate how our clients can achieve their climate ambitions.

A major US port

A major US port authority wanted to develop a decarbonization strategy to keep pace with the net zero goals of its large customers and become an industry leader by contributing to UN Sustainable Development Goals. KPMG leveraged its decarbonization pathways capabilities to help it set its decarbonization vision, establish emissions baselines, model scenarios, and develop a roadmap that aligns to its capital program strategy. As a result, the port now has a 2040 net zero target with a concrete implementation and asset replacement plan to help achieve it.

A leading global asset management company

A large global asset management firm hired KPMG to benchmark current actions and climate maturity, understand peer and market trends, and develop the client's corporate climate change ambition and strategy. KPMG provided insights into market, investor and regulatory trends that informed the level of ambition agreed to. As a result, KPMG developed a climate strategy and roadmap that is operational, practical, and will create a more desirable uptake in the business.