The 2015 Paris Agreement created a historical mandate to tackle climate change. Signatories to the agreement agreed to a common goal of limiting the overall increase in average temperature to below 2 °C above pre-industrial levels. The wider objective is to limit temperature increases to 1.5 °C above pre-industrial levels.
Businesses and industry have a hugely important role to play in reducing global warming, either on their own initiative or in compliance with official regulations and public expectations. Companies that are embracing the decarbonization process are discovering that as soon as they address the issue of how to decarbonize, they begin to identify opportunities to optimize their operations, and even to achieve energy independence through the development of industrial microgrids powered by renewable energy.
A comprehensive decarbonization process requires careful planning if companies are to continue their normal operations – across their entire value chain – during the transformation process and gain the full backing of employees, partners, and wider stakeholders.
An effective decarbonization strategy is essential, not just to avoid disruption and to mitigate risks, but to obtain the full financial and reputational benefits that decarbonization can bring for businesses. Fortunately, there are already several successful decarbonization examples to follow and build upon.
What is a Decarbonization Strategy?
Defining decarbonization is extremely simple. It is the process of eliminating all
human-made carbon emissions into the atmosphere. Identifying emissions across an entire spectrum of operations, and then deciding how to decarbonize in a cost effective manner is considerably more challenging.
A decarbonization strategy generally begins with a professional value and supply chain audit to identify areas for improvement, and an assessment of whether there are opportunities to gain official assistance or funding in the form of grants, tax breaks, or other incentives.
It’s then a question of developing policies, targets, and metrics (usually through a dedicated team), evaluating technologies, and aligning decarbonization strategy implementation with a company’s strategic direction and vision. Investing in employee education and engagement is also an imperative.
ICL’s Holistic Decarbonization Strategy
ICL has developed a forward thinking corporate culture that is built around the long term transition to sustainability and renewable energy. The company embarked on a comprehensive decarbonization process that is already yielding major benefits. One of ICL’s flagship decarbonization initiatives is the Green Sdom project. The company is successfully transforming nine of its Negev Desert plants – one of the region’s most significant industrial operations – to run on clean, renewable energy.
The Green Sdom project is a bold initiative based around the development of a next generation microgrid powered by beds of photovoltaic panels. Other decarbonization examples include recycling steam and other heat sources across the plants, the expansion of the electric vehicle fleet, and experimentation with green hydrogen as a fuel source.
The implementation of the decarbonization strategy is an ongoing process rather than a limited project and the knowledge gained at Green Sdom is applied to decarbonization and environmental initiatives at other ICL facilities around the world.
ICL has another unique approach to decarbonization. It is working to reduce carbon footprints in agriculture through the development of advanced controlled-release fertilizers. The company is taking these innovations a stage further by adding a ‘carbon number’ to selected fertilizer packaging. The idea is to empower growers by enabling them to select crop nutrients according to their potential environmental impacts.
Another area where ICL’s decarbonization strategy implementation is making a fundamental difference is its investment in energy storage technologies. The transition to electric vehicles and green energy grids will be one of the most important energy trends in 2025, but it is dependent on the availability of effective storage solutions. ICL is leveraging its specialty minerals expertise to manufacture advanced materials for high-capacity batteries on a sustainable basis.
The Benefits of Decarbonization
Successfully implementing a decarbonization strategy unlocks a wide array of short- and long-term advantages for businesses across sectors. These benefits go beyond emissions reduction — they touch every part of the value chain:
- Operational efficiency: The decarbonization process typically begins with an audit that reveals inefficiencies. Improvements in energy efficiency, waste management, and supply chain optimization can drive significant cost reductions.
- Energy independence: Companies investing in industrial microgrids and renewable sources can gain greater control over energy usage — and in some cases, even become net producers of clean power, selling surpluses via smart systems like blockchain technologies.
- Circular economy integration: A strong strategy often leads to the reduction and reuse of waste. Companies adopting circular practices see additional economic returns and a lower environmental impact.
- Reputational advantage: Organizations that proactively decarbonize build greater stakeholder trust, brand loyalty, and credibility in ESG reporting. These companies are better positioned for long-term success in increasingly regulated and sustainability-focused markets.
- Talent acquisition and retention: Environmentally responsible companies often attract top-tier talent. Employees are more engaged when they feel aligned with the company’s purpose and contribution to climate solutions.
From cost savings to employee loyalty and future-proof operations, a robust decarbonization strategy implementation is not only good for the planet — it’s also good business.
A strategic transition to green energy and investment in climate tech innovation can improve resilience and even lead to complete independence from the national grid and associated vulnerability to rises in the cost of energy commodities.
ICL has embraced decarbonization on a strategic level with a commitment to achieve carbon Net Zero by 2050. The company is taking on a leadership role as it pioneers the transition to a clean energy microgrid through the Green Sdom project, creating a replicable circular economy model for other industries.
ICL’s sustained investment in climate tech and green technologies is reinforcing the company’s credentials as an environmentally responsible business and opening the door to future growth.
