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Moving from commitment to action on your net zero journey

Achieving net zero isn’t just a promise – it’s a regulatory obligation. Yet many companies still set climate targets based on incomplete or unreliable data. They risk regulatory penalties, reputational damage, investor distrust, and costly misallocations of resources. The time to act is now.

In Switzerland, over 220 companies have set or are in the process of setting science-based targets[1]. While the Swiss climate law aims for net zero by 2050, simply setting targets is not enough. Companies must develop detailed transition plans within 12 months, as recommended by the Science Based Targets initiative (SBTi), to qualify for government funding and meet regulatory requirements.


A credible pathway to net zero is essential for resilience and competitiveness, reducing reputational risk and ensuring measurable progress. By moving from commitment to action, companies can achieve tangible outcomes and contribute effectively to Switzerland's climate goals.

The benefits of a credible net zero roadmap

Developing a credible net zero roadmap offers multiple advantages:

  • Regulatory compliance: Ensuring compliance with Swiss and EU regulations (e.g., CSRD, TCFD) helps to avoid penalties, increases transparency, and creates trust and reliability.
  • Risk and cost reduction: Mitigating risks from climate and market shifts reduces costs through efficiency and innovation, future-proofing your business against disruptions.
  • Stakeholder expectations and brand value: A credible net zero roadmap meets stakeholder expectations, enhances brand reputation and reduces the risk of greenwashing accusations, in turn strengthening your market position.
  • New revenue streams:
    • Enabling new market opportunities for low-carbon products, such as green steel or recycled plastics, which are in high demand and command premium prices.
    • Gaining access to green financing by demonstrating a credible and actionable transition strategy, attracting investors and improving financial resilience.

By focusing on these benefits, companies can ensure they are not only compliant, but also positioned competitively in a rapidly evolving market. 

Your decarbonisation journey

Developing a net zero roadmap is complex, requiring company-wide engagement – from the Board of Directors and CEO to employees across all functions and geographies. Acting now allows companies to benefit from early value creation opportunities, improving resilience and competitiveness. A structured approach typically involves four phases:

 

 

Getting started on your net zero roadmap

Creating a net zero roadmap is unique to each company, but certain guiding principles can help you confidently take the first steps.

Climate change risks are under increasing scrutiny, with stakeholders expecting companies to demonstrate their pathway to net zero for climate leadership under the Carbon Disclosure Project (CDP). Regulations like CSRD and IFRS mandate disclosure on financial impacts and alignment with the 1.5°C-degree pathway, increasing reputational risk for companies without a credible net zero plan.

Taking proactive steps not only mitigates risks but also enhances resilience and competitiveness. If you need support in defining and implementing your net zero strategy, feel free to reach out to us.

In Switzerland and the European Union (EU), ESG reporting regulations mandate companies to assess and report on their exposure to climate related risks and opportunities. a,b Integrating climate considerations into strategic planning and operations is increasingly crucial. c

Businesses must evaluate both net-zero and non-net-zero pathways to prepare for various potential outcomes. This involves assessing risks and opportunities under different climate change scenarios: continued path towards +4°C warming by the end of the century (higher physical risks) or transition towards a sustainable economy to limit warming to +1.5°C (higher transition risks).

A  climate risk and opportunity assessment typically involves four key steps:

1) Identify investigation boundaries (sites and supply chain extent),
2) Screen hazards for materiality of climate-related risks.,
3) Conduct climate-risk assessment using models from Intergovernmental Panel on Climate Change (IPCC), International Energy Agency (IEA), and Network for Greening the Financial System (NGFS) to evaluate physical and transition risks and opportunities, and
4) Identify and assess climate adaptation and mitigation solutions to improve resilience.

Understanding these risks and opportunities allows companies to develop adaption plans, enhancing their preparedness and resilience against future uncertainties.

a Article 964b of the Swiss Code of Obligations and Swiss Ordinance on Climate Disclosures

b EU Corporate Sustainability Reporting Directive

c Climate Risk Assessments, Deloitte 2024

A Marginal Abatement Cost Curve (MACC) is a powerful tool for businesses in Switzerland to prioritise cost-effective decarbonisation measures. It evaluates the financial and environmental impact of different mitigation options, helping organisations navigate stringent regulations.

Key regulatory frameworks include the Swiss Code of Obligations (Art. 964b), the EU Corporate Sustainability Reporting Directive (ESRS E1-1), and the Climate and Innovation Act, which mandates net zero emissions by 2050.

To comply, businesses must develop a credible net zero roadmap, assessing decarbonisation measures based on cost and contribution.

A MACC plots the cost per tonne of CO₂ reduced against the potential emissions savings, enabling organisations to identify cost-effective, high-impact reduction measures, refine their sustainability strategies, and develop a transition roadmap. Aligning with MACC analysis can improve eligibility for green grants and incentives.

Insights from MACC assessments highlight the importance of proactive measures, technological advancements, and regulatory compliance for cost efficiency and long-term business resilience.

References:

https://www.bfe.admin.ch/bfe/de/home/foerderung/dekarbonisierung/fahrplaene-netto-null.html

Ordinance on Climate disclosures

Illustration: https://www.climateworkscentre.org/resource/how-to-read-a-marginal-abatement-cost-curve

Negative emissions remove CO₂ from the atmosphere through natural or technological means, balancing residual emissions that cannot be eliminated.

Why are negative emissions needed?

Switzerland’s Net Zero Roadmap mandates carbon removal for unavoidable emissions from agriculture, waste, and industry. The Climate and Innovation Act (2023) requires net zero by 2050, and the revised Ordinance on Climate Disclosures ensures company reporting aligns with this roadmap.

SBTi’s position

The Science Based Targets initiative (SBTi) requires companies to prioritise emission reductions before using removals. Under SBTi’s Net Zero Standard, up to 10% of emissions can be offset through negative emissions after achieving a 90% reduction.

Key negative emission technologies

1. Nature-Based Solutions (NBS): 

  • Reforestation: Restoring forests to sequester CO₂
  • Soil carbon sequestration: Improving soil management
  • Blue carbon: Protecting mangroves and seagrasses

2. Engineered solutions

  • Direct Air Capture (DACCS): Extracting CO₂ from the air
  • Bioenergy with Carbon Capture (BECCS): Combining the capture of CO₂ through biomass with energy production
  • Enhanced Weathering: Using minerals to remove CO₂ and permanently store it

3. Hybrid Solutions

  • Biochar: Converting organic material into carbon-rich charcoal
  • Ocean Alkalinity Enhancement: Increasing seawater’s CO₂ uptake
Implications for businesses
  • Integrate carbon removal into net zero plans
  • Follow the SBTi model of 90% reduction + 10% removal model
  • Invest in scalable removal technologies or reforestation for long-term compliance

Negative emissions are essential for achieving net zero in Switzerland and beyond.

Download our PDF for more details about how we can support your organisation on its net zero journey.