Net Zero Roadmap: Industrial Company Climate Transition

Client Background

Vanguard Industrial Solutions is a US-based specialty chemicals and advanced materials manufacturer with $520 million in annual revenue, 2,100 employees across six manufacturing sites in the US, Canada, and Germany. Vanguard serves demanding customers in semiconductor fabrication, aerospace components, and electric vehicle battery materials — sectors where both customer expectations and regulatory pressures around carbon performance are intensifying rapidly.

The company is privately held by a family office with a multi-generational ownership perspective and a genuine commitment to responsible business practices. But good intentions weren't translating into credible climate action.

The Challenge

Vanguard's climate journey began with a letter from their largest customer — a leading EV battery manufacturer — stating that Scope 3 emissions reduction would become a supplier evaluation criterion within 18 months. Simultaneously, the company's German facility faced incoming EU ETS expansion requirements, and institutional investors in a growth capital raise were asking climate questions that leadership couldn't confidently answer.

The core challenges were clear but daunting:

• No comprehensive GHG inventory existed — only fragmented facility-level energy data
• No emissions reduction targets, whether science-based or otherwise
• No understanding of Scope 3 emissions despite 60%+ of footprint likely residing there
• No transition plan or scenario analysis for physical or transition risks
• Energy-intensive processes with limited visibility into decarbonization options
• Internal skepticism about whether net zero was achievable or meaningful

Our Approach

Months 1–4: Carbon Footprint Baseline

We built Vanguard's first comprehensive GHG inventory following the GHG Protocol Corporate Standard across Scopes 1, 2, and 3 covering 15 categories. The total footprint was measured at 287,000 tCO₂e annually with Scope 3 representing 64% of the total.

Months 3–8: Target Setting and Pathway Development

We developed science-based targets aligned with SBTi criteria for 1.5°C — a 42% reduction by 2030 and net zero by 2045 — validated through sector benchmarking and financial modeling to ensure the targets were both ambitious and achievable.

Months 6–14: Abatement Roadmap

We developed a prioritized abatement roadmap across four lever categories:

• Energy efficiency: Facility-level audits identified quick-win opportunities generating immediate emissions reductions and cost savings
• Renewable energy: Power purchase agreement evaluation and on-site solar feasibility for US and German sites
• Process transformation: Longer-term capital investments in low-emission manufacturing technologies
• Value chain engagement: Supplier collaboration program to address Scope 3 emissions at scale

Months 12–18: Governance and Validation

We helped establish board-level climate oversight, an executive climate committee with cross-functional representation, facility-level carbon owners with defined responsibilities, and coordinated SBTi target submission alongside TCFD-aligned disclosure preparation.

The Results

Vanguard achieved outcomes that exceeded initial projections:

SBTi validation: Targets validated at 1.5°C ambition level — 42% absolute reduction by 2030, net zero by 2045.

Measurable reduction: 12% absolute emissions reduction achieved during the 18-month engagement through quick-win efficiency measures and renewable energy procurement.

Commercial impact: Preferred supplier status secured with their key EV battery customer — directly attributable to credible climate performance.

Financial neutrality: Year 1 emissions reduction measures were cost-neutral, with energy savings offsetting implementation costs.

Regulatory readiness: German facility prepared for EU ETS and CBAM compliance requirements.

Organizational transformation: Climate performance embedded as a strategic business priority with governance structures, data systems, and internal capability to sustain progress independently.