Corporate decarbonisation: A strategic imperative for a sustainable future

By Simas Abraskevicius, EUSEW’s digital ambassador

This opinion editorial is produced in co-operation with the European Sustainable Energy Week (EUSEW) 2025. See ec.europa.eu/eusew for open calls.

“Throughout my career in sustainability, I have witnessed how corporate decarbonisation transforms companies into agile, forward-thinking leaders. This journey isn’t just about meeting regulatory requirements—it’s about embracing innovation, energizing teams, and unlocking competitive growth”

What is corporate decarbonisation and why is it important?

Corporate decarbonisation involves reducing greenhouse gas emissions across a company’s entire value chain – from energy use in production and logistics to product design and supply chain management.

This transition is vital for meeting international climate commitments, such as those outlined in the Paris Agreement, where global emissions must fall by approximately 45% from 2010 levels by 2030 to stay on track. Take, for example, the heavy industry sector – which accounts for nearly 20% of global emissions – where companies are expected to reduce emissions by roughly 50% over the next decade. While decarbonisation has already started in sectors like tech and finance, industries such as steel and cement continue to face challenges, including high capital costs, technological constraints, and complex supply chain issues, which highlight the scale and complexity of this transformation

How can companies decarbonise?

There is no one-size-fits-all approach to decarbonisation; companies must tailor strategies to their operational realities. To achieve meaningful progress, organisations are exploring a variety of measures that address their unique challenges while capitalising on available opportunities.

Energy Efficiency Upgrades

In my experience, optimising energy use through systematic upgrades is one of the most effective strategies. Modernising equipment, streamlining operational processes, and deploying innovative energy management systems to monitor and reduce consumption in real time are among the main levers companies rely on. Many organisations have observed efficiency improvements of up to 20-30%, leading not only to lower emissions but also significant cost savings. These initiatives are in line with best practices recommended by global energy agencies and sustainability experts, reinforcing their pivotal role in the transition to a low-carbon economy

Transitioning to Renewable Energy

Shifting towards renewable energy sources is another cornerstone of corporate decarbonisation. Organisations can procure electricity from clean sources via GOs (Guarantees of Origin) mechanism, invest in on-site renewable installations such as solar panels or wind turbines. This transition not only reduces dependency on fossil fuels but also offers a buffer against energy market volatility—often resulting in energy cost reductions of 10-15% over time. Such efforts are critical for reducing the carbon intensity of operations and are widely endorsed by leading sustainability frameworks

Innovative Technologies and Process Redesign

Embracing digitalisation, automation, and emerging technologies is essential for re-engineering production processes to minimise emissions. Companies are integrating advanced data analytics, utilising digital twin technology to simulate and optimise production, and exploring cutting-edge solutions like carbon capture and storage (CCS). These technological advancements enable precise monitoring and control of emissions while enhancing overall operational resilience and efficiency, positioning companies as frontrunners in the sustainable industry revolution.

These strategies lower operational costs over time and bolster industrial competitiveness by enhancing supply chain resilience and positioning companies as leaders in the low-carbon economy Yet, many companies hesitate to fully embrace these measures. Financial constraints, short-term profit pressures, and the significant upfront investment required for new technologies often act as barriers. Additionally, integrating innovative solutions into legacy systems and navigating complex global supply chains can be daunting. Regulatory uncertainties and the absence of uniform policy incentives in some regions further complicate the transition.

The future of decarbonisation: A forward-looking perspective

Decarbonisation is poised to reshape industries in ways reminiscent of the Industrial Revolution. Integrating advanced digital technologies – such as artificial intelligence, blockchain for energy trading, and smart grids – combined with a growing emphasis on renewable energy will drive unprecedented improvements in energy efficiency and industrial productivity.

Looking ahead, a convergence of policy support, innovative financing mechanisms, and public-private partnerships will accelerate the transition to a net-zero economy. The European Green Deal, for instance, outlines ambitious targets to cut emissions by at least 55% by 2030, reinforcing regulatory momentum. Companies that embrace decarbonisation will not only contribute to global sustainability goals but also gain a competitive advantage in a market where both regulatory frameworks and consumer expectations increasingly favour sustainable practices.

With the right mix of technology, strategy, and policy alignment, corporate decarbonisation will evolve from a compliance obligation into a powerful catalyst for economic growth and environmental leadership.

About the author

Simas Abraskevicius is a Co-Founder and Head of Carbon Analytics at Sustainalyse, an ESG data management and GHG calculations platform. He has over a decade of expertise in carbon footprint analysis and life cycle assessment, including decarbonisation target setting for publicly listed EU companies.