Abstract

The question of how service companies should deal with decarbonization haunts every sustainability class, from undergraduate to executive. International regulations have outlined a pathway, through ‘push-&-pull’ mechanisms (such as the ‘cap-and-trade’ set by European Emission Trading system), that is applicable for manufacturing firms – the ones where Greenhouse Gas (GHG) emissions are clearly traceable, at least in their direct form, to chimney emissions. But what if you don’t have a chimney?

Coopservice is one such case: a cooperative company with over half of its activities involving facility cleaning and ‘soft’ services. Coopservice handles the cleanliness, hygiene and healthiness of workplaces, hospitals and health facilities, schools, and many other meeting places. On the basis of standard financial metrics, the business has grown steadily in recent years (eg, the total production growth ranges between 4 and 8%, year over year and the company is constantly hiring new employees, 3% year over year). The company has already begun its sustainability transition by structuring its sustainability reporting and developing Scope 1 emission (see Appendix 2) registration.

However, a stronger effort to pursue carbon neutrality may represent a competitive advantage that could ensure a stronger position in the market. But how to pursue carbon neutrality? Where to focus first? How should the firm reasonably prioritize possible actions and thereby derive a roadmap? These are the basic questions to answer when delineating a company’s decarbonization strategy. Students are called to provide structured answers about the critical elements that support these decisions, as well as the Key Performance Indicators (KPIs).

Target audience

• Undergraduate, postgraduate and executive education courses.