Net Zero Business Models

6PATHWAY ONE: ECO‐EFFICIENCY

“Contributing to climate solutions is a key part of our sustainability strategy.”¹

—Ara Erickson, Vice President of Corporate Sustainability, Weyerhaeuser

Companies that choose Pathway One are defenders of their current business models. They believe that combining their existing business models with eco‐efficiency processes and systems and regulatory compliance will enable them to be successful commercially while meeting their net zero emissions‐reduction targets. Companies in Pathway One engage an eco‐efficiency, risk mitigation, and compliance‐oriented approach to conforming their business models to a net zero emissions economy.

With Pathway One, companies pursue an adaptation and cost containment strategy in which their core business models remain intact. The increased cost of reducing their Scope 1, 2, and 3 emissions and compliance with changing climate regulations is offset by efficiency improvements or passed on to customers. Some companies also mitigate their emissions with carbon credits and offsets and carbon capture.

Fundamentally, companies that choose Pathway One are not trying to transform their business models. Their objective is to find substitutes for carbon inputs and mitigate the impact of carbon price escalation and climate regulations. They view climate change as an exercise in management and mitigation, and their strategic planning focuses on regulatory compliance, cost containment, and carbon risk identification and mitigation. ...