Overview

Achieving net zero requires more than setting targets. It requires a coordinated operating model - one that connects governance, emissions accounting, transition planning, technology, supplier engagement, capital allocation, and verified reporting into a single system.

This framework is built on one principle: deep emissions reduction must come before addressing residuals. It draws on the GHG Protocol, ISO greenhouse gas standards, and the SBTi Net-Zero Standard to take organisations from measurement into implementation.

Most emissions sit outside direct operations - in suppliers, materials, logistics, product use, and end-of-life systems. Decarbonisation therefore demands coordinated action across the full value chain, not just within the fence line.

Understand → Prioritise → Transform → Embed → Verify → Improve

This model enables organisations to treat decarbonisation not as a standalone sustainability initiative, but as an enterprise transformation agenda.

Framework Architecture

The five-layer system. Each layer depends on the one above and feeds into the one below. The performance loop at Layer 5 continuously improves all preceding layers.

Layer 1 Net-zero governance, ambition & transition architecture Establish the strategic foundation - who is accountable, what is the ambition, how will it be governed
Ambition & transition plan Governance structure Executive accountability Climate strategy integration Target-setting & disclosure
↓
Layer 2 Value chain emissions mapping & baseline Understand where emissions occur and where the organisation has influence
Scope 1 - Direct
Operations · Fuel combustion · Manufacturing · Industrial processes
Scope 2 - Energy
Electricity · Heat · Steam · Cooling
Scope 3 - Value chain
Suppliers · Materials · Logistics · Product use · End-of-life
↓
Layer 3 Decarbonisation pathways & transformation agenda Reduce first - prioritise deep reductions before addressing residual emissions
Avoid - prevent creation Reduce - improve systems Replace - low-carbon switch Reconfigure - redesign Remove - residual only
Supply chain transformation Operational transformation Product & lifecycle Circularity Logistics decarbonisation
↓
Layer 4 Enablement systems The infrastructure, finance, and partnerships that make transformation possible
Technology & infrastructure Capital allocation & transition finance Data systems Supplier financing Policy & partnerships
↓
Layer 5 Verified net-zero progress & continuous improvement Measure, assure, report, and improve - feeding results back into governance
Measurement & MRV Third-party assurance Claims architecture Regulatory reporting Strategy refresh ↻
Core principle
Decarbonisation is not a carbon reduction project. It is an enterprise transition system - one that must be governed, resourced, and measured like any other strategic transformation.
Operating Model

How the system is run across each layer - who does the work, how decisions are made, what tools are used, and how performance is measured.

Layer Who How What (tools & data) Decisions Performance
1 · Net-zero governance
Strategic foundation Board, CEO, CFO, CSO Annual strategy review; board climate briefings Climate transition plan; TCFD / CSRD framework Board approves ambition; CEO allocates budget Transition plan milestones; governance quality rating
2 · Value chain & emissions baseline
Emissions accounting Sustainability, finance, procurement, external data GHG Protocol methodology; annual inventory cycle Carbon accounting software; ISO 14064 / 14067 CFO approves boundaries; auditors validate inventory Scope 1/2/3 totals (tCO₂e); data coverage rate (%)
3 · Decarbonisation pathways
Transformation agenda Engineering, operations, product design, procurement Marginal abatement cost analysis; technology roadmapping Abatement roadmap; ISO 50001; LCA tools (ISO 14040/44) Capex committee approves investments; ops approves changes Emissions reduced (tCO₂e/yr); abatement cost (€/tCO₂e)
4 · Enablement systems
Infrastructure & finance IT, finance & treasury, legal, policy teams Technology investment planning; green finance structuring ESG data platform; internal carbon price mechanism CFO approves capital; treasury structures instruments Green finance deployed (€); internal carbon price (€/tCO₂e)
5 · Verified net-zero progress
Assurance & reporting External assurer, internal audit, investor relations Annual limited assurance; CDP / CSRD reporting cycle MRV system; CSRD ESRS E1; SBTi progress tracking Board reviews assurance opinion; CSO signs disclosures % emissions reduction vs baseline; SBTi on-track status