What is a transformation concept?
What is a transformation concept and how is it structured? How do you create a transformation concept that is eligible for funding? These questions are answered on this knowledge page.
A transformation concept is a company's plan to reduce greenhouse gas emissions and become climate neutral in the long term.
A transformation concept consists of three different areas. First, the current status must be presented, then reduction targets are defined, from which an action plan is finally drawn up.
In order to be an eligible transformation concept, it must meet certain specifications.
Companies on the path to climate neutrality: classification of the transformation concept
Development of an effective climate strategy in the company
The development of a climate strategy for companies begins with an assessment of their current environmental impact. This includes analyzing CO2 or greenhouse gas emissions, identifying the main sources of these emissions and evaluating existing sustainability practices. A solid climate strategy includes concrete targets for reducing greenhouse gas emissions, plans for implementing greener processes and products, and the commitment of the entire management team.
Develop and implement a transformation concept in the company
A transformation plan is a comprehensive plan that builds on the climate strategy. It sets out detailed steps on how a company can restructure its operations and decarbonize energy flows to become more environmentally friendly. The most common steps and reduction measures include investing in renewable energy, electrifying processes and facilities, and optimizing logistics and production processes.
Why do companies need a transformation concept to achieve climate neutrality?
In a world that is increasingly confronted with the challenges of climate change, it is becoming more and more important for industry and SMEs to understand their carbon footprint and develop effective climate strategies. This is the only way to reduce a company's ecological footprint and promote sustainable growth at the same time.
The transformation - set out in a company's climate strategy - begins with precise emissions data collection, a detailed analysis of the corporate carbon footprint (CCF) and culminates in the creation of a customized transformation concept.
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How is a transformation concept structured?
The actual state is usually represented by a CO2 balance sheet, a corporate carbon footprint, or CCF for short. This must show the company's direct emissions (Scope 1) and indirect energy-related emissions (Scope 2). A particular focus here is on the company's energy and mobility. To this end, the way in which the energy used in the company is generated and made available is recorded in detail. The consumption side is also examined in detail so that it can be used as a basis for considering measures.
The goals envisaged in the transformation concept are divided into two levels. The first level concerns a medium-term target. This states a reduction in emissions of at least 40% in the first 10 years after the current status has been established. The second level concerns the long-term target. Here, the focus is on formulating a GHG neutrality target by 2045.
In addition to the two time periods mentioned, companies are free to formulate further interim targets. Companies also often have their own greenhouse gas reduction targets, and these should be brought into line with the prescribed targets.
The action plan is the most comprehensive part of a transformation concept. It is individually tailored to each company and must lead to the declared goals within the scope of what the company can achieve. The action plan is based on the current situation. Individual measures are considered from the point of view of ecology, economy and feasibility. These individual measures are then used to develop an action plan that ensures both emission avoidance and emission reduction.
This plan of measures is brought into line with the defined targets at the time level.
The individual measures also include the concept development for at least one measure from the fourth module of the federal funding for energy and resource efficiency in industry.
This includes, for example:
- Process & procedure conversion
- Avoidance of energy losses in the production process
- Utilization of process waste heat
It is important to note that, for example,CO2 compensation or a reduction in production do not count as measures that can be counted. However, past measures implemented prior to the presentation of the actual state can be included.
Is a transformation concept being promoted?
If a transformation concept meets all the conditions, it is funded by the German Federal Office of Economics and Export Control (BAFA). Once an application has been submitted, there is one year to develop a transformation concept before it is reviewed and the funding amount is disbursed. Up to 50,000 euros or 40% for companies without SME status, 50% for medium-sized companies and up to 60% for small companies are covered.
For companies that are registered in a network of the initiative "Energy Efficiency and Climate Protection Networks (IEEKN)" and actively participate, the funding amount increases by 10% and the maximum amount to 80,000 euros.
The company's own services, those of affiliated companies or partner companies are not eligible for funding, nor are services for which the company is legally obligated. Consulting services that are already funded by other funding programs are also not eligible for funding.
Everything in brief about the transformation concept
In our ENIT Insights video series, we explain quickly and comprehensibly what a transformation concept must look like and what benefits it offers.
Check it out now!
How does the creation of a transformation concept proceed?
First, the application must be prepared and qualified. Any queries and ambiguities are clarified before the application is approved. This is usually available after about six weeks.
After approval, a transformation concept must be drawn up within one year, consisting of the components already described above.
The final concept is checked and supplemented by other evidence such as receipts. If there are no irregularities here, the funding is paid out.
What do companies get out of a transformation concept?
- Cost savings
Sustainable measures can lead to significant cost savings. By increasing efficiency in resource use, such as energy and water savings, companies can reduce their operating costs. Implementing sustainable practices can also lead to supply chain and process optimization, resulting in cost savings.
- Risk mitigation
Sustainability helps companies reduce their dependence on limited resources and minimize risks associated with price volatility, supply fluctuations, and environmental impacts. By transitioning to renewable energy or diversifying suppliers, companies can strengthen their resilience and better prepare for future challenges.
- Access to markets and customers
A growing number of consumers and markets prefer sustainable products and services. By adopting sustainable practices, companies can access new market segments, increase their competitiveness and improve their market position. Customer loyalty and customer acquisition can be strengthened by demonstrating a responsible approach to environmental and social issues.
- Attractiveness for investors
Sustainability has become an important criterion for many investors. Companies that improve their sustainability performance have a better chance of attracting capital from sustainability-oriented investors. Sustainability reports and transparent environmental, social and governance practices can boost investor confidence and improve the company's rating.
- Legal and regulatory requirements
Many countries have introduced laws and regulations to promote sustainable practices and reduce environmental impacts. Companies that take early action to comply with these requirements can prevent legal and regulatory risks and avoid potential penalties or sanctions.
- Employee motivation and talent acquisition
Sustainability is an important concern for many employees. Companies that are committed to sustainability can increase their employee motivation and attract talented professionals. A strong corporate culture based on values such as sustainability can also increase employee retention.
Do you need a transformation concept?
The experts at ENIT will be happy to advise you without obligation. We are a trustworthy and reliable partner for the application and development of the transformation concept.
An example of sustainable success with a transformation concept
When is a transformation concept successful?
A transformation concept is always successful when the targets set have been achieved. It is therefore important to base the climate strategy on realistic targets, to plan specific measures in line with the business strategy and to review and, if necessary, readjust the achievement of targets. In addition to the usual reduction measures, a successful transformation concept often also includes the introduction of new technologies (e.g. a suitable energy monitoring system such as the ENIT agent), training employees in sustainability and adapting business models to promote sustainable development.
Which companies have already implemented a transformation concept?
A success story from our customer, the SFB Group: since 2016, numerous successes have been achieved with the help of ENIT's energy monitoring system, reducing peak loads and base loads and cutting standby consumption. In 2022, the SFB Group took the next step towards the future and, together with ENIT, drew up a carbon footprint and a transformation concept to make the group of companies climate-neutral by 2045. How? Find out in our customer interview!