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Due to the rising concerns of global warming, corporations face growing pressure and demand from various stakeholders to implement a holistic climate strategy and governance.
To achieve the global climate targets, which means to limit the global temperature increase to below 2°C, and if possible, below 1.5°C, a climate strategy supports corporations in implementing all essential steps on their way to become climate neutral. Being climate neutral means emitting annual zero net anthropogenic (human caused or influenced) CO2 emissions by a certain date. It describes a process where every ton of anthropogenic CO2 which is emitted is compensated with an equivalent amount of CO2 to be removed (e.g. via carbon sequestration) (WRI,2015)).
Now is the time to act, we all must collaborate to improve and develop solutions to tackle the increasing threats of global warming. Governments, businesses, investors, and all other stakeholders must align and set measures to decrease our environmental impacts. This paper provides a review of the current developments regarding climate action among these parties. In order to simplify the implementation of a climate strategy for corporations, the DFGE approach for setting up a holistic corporate climate strategy will be presented. It helps companies to identify the main steps to conceptualize a climate strategy. A final part focuses on the advantages created when setting up a climate strategy.
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