Net Zero involves a company balancing its greenhouse gas emissions by reducing and removing an equivalent amount of carbon dioxide from the atmosphere. This is crucial to avoid the negative effects of climate change on businesses, such as supply chain issues, fines, and reputational damage. By committing to Net Zero, businesses can remain competitive, comply with future climate regulations, save energy, and meet the expectations of their stakeholders.

Net Zero: Involves reducing greenhouse gas (GHG) emissions to as close to zero as possible, primarily through direct emission reductions. Any remaining emissions that cannot be eliminated are then balanced by removing an equivalent amount of GHGs from the atmosphere, often through carbon capture or natural processes such as reforestation.

Carbon Neutrality: Refers to balancing out an entity’s GHG emissions by investing in carbon offsets or carbon sinks elsewhere, without necessarily reducing the entity’s emissions. The focus is on compensating for emissions rather than eliminating them.

Organisations can measure their carbon footprint by:

• Identifying emission sources: Identifying and mapping the sources of emissions, for example; direct emissions from owned or controlled operations, indirect emissions from purchased electricity and/or heat, and indirect emissions from the upstream and downstream value chain.
• Quantifying emissions: Using standardised methodologies such as the Greenhouse Gas (GHG) Protocol, organisations can calculate the amount of GHGs emitted in each category.
• Tracking emissions: Implementing a tracking system to monitor and report emissions regularly.

Challenges include:

• Initial costs: Investing in new low-carbon technologies and sustainable infrastructure can be costly.
• Limited availability of renewable energy: In some regions, renewable energy resources may be limited or unreliable.
• Supply chain complexities: Ensuring suppliers and partners are committed to net zero can be challenging.
• Time and resource investment: Different steps in achieving net zero, such as building a complete GHG inventory, can be time and resource intensive.

Opportunities include:

• Cost savings: Energy efficiency and renewable energy can lead to long-term savings by maximising reductions in energy bills and leveraging solar energy for electricity.
• Innovation: Achieving net zero can drive low-carbon innovation at both the technology and process level, potentially creating new business opportunities.
• Enhanced reputation: Demonstrating a commitment to sustainability can improve a company’s brand image and attract investors.
• Increased awareness: Implementing initiatives aimed at achieving net zero will build knowledge and awareness among employees and equip them in risk management.
• Employee engagement: Net zero initiatives can foster a sense of purpose and motivation among employees, leading to increased job satisfaction and retention. Employees may also be more likely to participate in sustainability-related activities, such as volunteering or green initiatives.

A net zero strategy should involve:

• Conducting a carbon assessment via GHG inventorisation
• Setting short-term and long-term emission reduction targets
• Developing a low-carbon roadmap to achieve targets
• Investing in sustainable technology and infrastructure
• Engaging stakeholders to ensure they are informed and included in decision-making

Technology can play a crucial role in achieving net zero by:

• Enabling energy efficiency: Smart grids, building automation systems, LED lighting, energy-efficient equipment, and energy management software can optimise energy consumption.
• Facilitating renewable energy adoption: Efficient and cost-effective solar panels, wind turbines, and energy storage systems provide solutions to replace conventional grid-based electricity.
• Reducing emissions in supply chains: Digital tools can help track and manage emissions across the value chain. For example, Internet of Things (IoT) sensors can track various parameters such as energy consumption, temperature, and transportation routes.
• Data management: Technology also plays an integral part in collecting and tracking data on GHG emissions.

Organisations can engage employees and stakeholders by:

• Communicating the net zero vision
• Providing training and education
• Involving employees in decision-making
• Collaborating with suppliers, customers, and communities to achieve net zero goals

Achieving net zero can offer numerous benefits, including:

• Cost savings: Reduced energy consumption and operational efficiencies can lead to cost savings.
• Increased competitiveness: Net zero can differentiate organisations in the marketplace and attract investors.
• Risk mitigation: Addressing climate change risks can protect a company’s financial stability and long-term viability.
• Innovation and economic growth: Achieving net zero can drive innovation and create new business opportunities.
• Positive social impact: Contributing to a sustainable future can benefit communities and society.
• Enhanced reputation: Demonstrating a commitment to sustainability can improve a company’s brand image and attract customers.

The Science Based Targets Initiative (SBTi) Corporate Net Zero Standard is the world’s only framework for corporate net-zero target setting in line with climate science. It provides guidance and tools for setting net-zero targets. Its key elements are:

• Near-term Science-based target: Setting 5-10 year emission reduction targets in line with 1.5°C.
• Long-term Science-based target: Target to reduce emissions to a residual level in line with 1.5°C by no later than 2050.
• Neutralisation of residual emissions: Counterbalancing residual emissions through permanent removal and storage of carbon.
• Beyond Value Chain Management (BVCM): Mitigation actions or investments outside a company’s value chain, focusing on activities that avoid or remove GHGs.

• The Climate Pledge: A global initiative that mobilises small and medium-sized enterprises (SMEs) to take urgent action on climate change. It encourages SMEs to commit to ambitious climate goals, such as setting science-based targets to reduce GHG emissions and adopting sustainable practices.
• The Race to Zero: A global campaign, supported by the UN, that aims to mobilise non-state actors to achieve net zero by 2050. It includes various pledges and commitments from businesses, cities, and regions.
• Net Zero Alliance: An initiative launched by the UK government encouraging businesses and organisations to commit to net zero emissions by 2050.