Businesses play a pivotal role in driving the transition to a sustainable, net-zero future. But how can companies ensure their efforts are impactful, credible, and aligned with global climate goals? In a vast landscape of sustainability frameworks and standards, a new science-based guide - the Climate Solutions Framework - is set out to define and scale climate solutions while avoiding greenwashing.

This blog will provide an overview of the Climate Solutions Framework, it’s importance for businesses, how it works, and why it’s different from many of the voluntary and mandatory standards in the market today.

What is the Climate Solutions Framework?

The Climate Solutions Framework, published by the Exponential Roadmap Initiative in July 2024, provides clear criteria for identifying products, services, and companies that contribute meaningfully to reducing greenhouse gas (GHG) emissions. It aims to accelerate the shift away from high-emission activities by offering a structured approach to defining and scaling climate solutions.

At its core, the framework focuses on:

• Replacing high-emission activities with low- or zero-emission alternatives
• Aligning with the 1.5°C ambition, ensuring solutions are compatible with global climate targets
• Providing clarity for financial institutions and corporates, enabling informed decisions and investments

Why is it Important for Businesses?

1. Clarity and Credibility
   The framework sets science-based criteria to distinguish genuine climate solutions from greenwashing. This is essential for businesses to build trust with stakeholders, including customers, investors, and regulators.
2. Accelerating Decarbonization
   In working to identify and scale effective climate solutions, businesses can contribute to the decarbonization of economies - a critical step towards the global goal of halving emissions by 2030 and achieving net zero by 2050.
3. Driving Innovation and Investment
   The framework provides a roadmap for innovation, encouraging businesses to develop and adopt technologies that reduce emissions. It also helps financial institutions direct investments toward impactful solutions.
4. Staying Competitive
   As sustainability becomes a key driver of consumer and investor decisions, businesses that align with the framework can gain a competitive edge in the market.

How Does It Work?

The framework defines a climate solution as a product or service that:

• Meets a societal need
• Contributes to significant GHG reductions
• Has emissions significantly lower than business-as-usual alternatives

To qualify as a climate solutions company, businesses must meet additional criteria, ensuring their operations and offerings align with the framework's principles.

How is it Different from Other Climate and Sustainability Frameworks?

The Climate Solutions Framework is distinct in its focus and application compared to other climate and sustainability standards/frameworks. Here's how it stands out:

1. Purpose and Scope:
   • The framework is designed to define climate solutions and climate solutions companies with clear, science-based criteria. It emphasizes products and services that replace high-emission activities with low- or zero-emission alternatives.
   • Unlike broader ESG frameworks, it focuses specifically on accelerating the transition to a net-zero carbon economy.
2. Criteria for Climate Solutions:
   • A product or service qualifies as a climate solution if it meets societal needs, significantly reduces GHG emissions, and aligns with the global 1.5°C ambition.
   • The framework includes specific criteria and safeguard requirements to ensure solutions are effective and avoid greenwashing.
3. Company-Level Qualification:
   • The framework also provides criteria for identifying climate solutions companies which includes:
     • > 90% of a company’s revenues come from Climate Solutions
     • The company has a public near-term GHG target, a net zero target covering all emissions (Scope 1, 2, and 3), a long-term climate action plan, and discloses progress annually
     • The company is working more broadly to transform its sector
   • This company-level focus is unique compared to frameworks that primarily assess organizational emissions or sustainability practices.
4. Practicality and Scalability:
   • The framework is designed to be simple enough for application at scale, with reasonable resource use, while maintaining precision to drive meaningful climate transformation.
   • It aims to provide clarity for financial institutions and corporates, helping to shift investments away from carbon-intensive products.
5. Alignment with Global Goals:
   • The framework is anchored in the 1.5°C ambition and supports the broader goals of initiatives like the Race to Zero and the Paris Agreement.
   • It complements existing frameworks, addressing gaps in identifying and incentivizing climate solutions at the product, service, and company levels.

A Call to Action

The Climate Solutions Framework represents a call to action for businesses to lead the in the fight against climate change. Companies that choose to adopt this framework can not only build resilience into their operations but also contribute to a sustainable, thriving planet.

Ready to take the next step? Explore the full framework and join the movement toward a net-zero future.