What Is Net Zero? And How Do We Get There?

Climate change is the most pressing issue right now. The Governments, city authorities, and businesses are setting “Net Zero” targets on a daily basis. However, it is always easier said than done. Around 40% of the world’s annual GDP now comes from nations and regions that are debating or have set legislative net zero emissions targets by 2050. While the net zero transition poses risks, it also creates significant opportunities for organizations focused on climate change mitigation and adaptation solutions.

Climate change is the pressing issue of our time

What is net zero transition?

The net zero transition is a new way for businesses to work with the environment as well as their customers. It helps reduce the negative effects of climate change on our ecosystem, builds more sustainable communities, and makes it easier for people to live in cities without contributing significantly to harmful greenhouse gasses.

For businesses, it refers to the role in helping to achieve a “net zero” economy, which means that the amount of greenhouse gasses emitted is equal to the amount removed from the atmosphere. This goal is in line with the Paris Agreement on climate change, which aims to limit global warming to well below 2 degrees Celsius above pre-industrial levels and pursue efforts to limit it to 1.5 degrees Celsius.

In order to achieve a net zero economy, businesses need to take steps to reduce their greenhouse gas emissions, as well as to invest in renewable energy and clean technologies. It is also crucial to develop and implement innovative solutions that help reduce emissions across different sectors of the economy.

For example, companies can adopt energy-efficient technologies, shift to renewable energy sources, reduce waste, and promote sustainable practices in their operations and supply chains. Businesses can also invest in and support research and development of new clean technologies and work with policymakers to create a supportive environment for the transition to a low-carbon economy.

It is important for businesses to take a long-term view and to consider not just their immediate bottom line, but also their social and environmental impact. The ultimate goal is to contribute to a sustainable and low-carbon future, while also supporting economic growth and prosperity.

Why is net zero important?

In the net zero transition, businesses aim to create products and services that require no net negative impact on the environment. At its core, this means that a business must be able to produce as much energy as it consumes – not just in terms of energy used during production but also in terms of fossil fuels required to maintain the company’s infrastructure. If a company cannot meet these criteria, it is considered “off the grid” and needs to find ways to reduce its environmental impact. Working towards net zero transition has become a popular way for companies to increase efficiency and minimize carbon footprints.

Working towards net zero transition has become a popular way for companies

• Climate Change: The main reason for pursuing a net zero economy is to address the pressing issue of climate change. Greenhouse gas emissions from human activities, such as the burning of fossil fuels, are causing the Earth’s average temperature to rise, leading to a range of harmful impacts, such as more frequent and intense heat waves, hurricanes, and flooding.

• Sustainability: A net zero economy means that we are no longer adding to the stock of greenhouse gasses in the atmosphere and are instead reducing it to a level that is safe for the planet. This will help ensure the long-term sustainability of our planet for future generations.

• Economic Growth: The transition to a net zero economy will create new economic opportunities and stimulate innovation, particularly in the areas of renewable energy, energy efficiency, and clean technologies. This will drive economic growth and create new jobs.

• Global Leadership: Pursuing a net zero economy will demonstrate global leadership and set an example for other countries to follow. It will also help to build momentum for international cooperation to address the global challenge of climate change.

• Legal and Regulatory Requirements: Many countries have committed to achieving net zero emissions in the coming decades, through legislation and regulations. Achieving net zero will help businesses ensure compliance with these legal and regulatory requirements and avoid potential penalties.

Generally, it is a necessary step to address the urgent issue of climate change and to ensure a sustainable future for our planet and future generations. It is also a significant opportunity for businesses and governments to drive innovation and economic growth, and to demonstrate leadership on a critical global issue.

3 scopes of carbon emission

The 3 scopes of carbon emissions refer to the three categories used to define and quantify greenhouse gas emissions from an organization or company. These scopes are:

• Scope 1: Direct emissions, which are emissions from sources that are owned or controlled by an organization. Examples include emissions from combustion of fossil fuels in boilers, vehicles, and other on-site equipment.

• Scope 2: Indirect emissions, which are emissions from the generation of electricity, heat, or steam purchased and used by an organization. These emissions are caused by the generation of energy used by the organization and are therefore indirect emissions.

• Scope 3: Other indirect emissions, which are emissions from sources not owned or directly controlled by an organization, but are a result of its activities. Examples include emissions from the production and transportation of purchased goods and services, as well as employee commuting and business travel.

Companies can identify emission hotspots in their supply chains and assess suppliers for sustainability, identify energy efficiency and cost reduction opportunities, and actively engage with suppliers and employees to help reduce emissions. They may also seek to influence customer behavior, or prepare for the end of a product’s life, for example, by working with retailers and distributors on buyback programs.

In order to have a comprehensive understanding of an organization’s greenhouse gas emissions, it is important to consider emissions from all three scopes. This enables an organization to identify how to reduce emissions and to set targets for reducing its carbon footprint. By reducing its emissions across all three scopes, an organization can make a significant contribution to the fight against climate change.

3 scopes of of carbon emission

How to become a “net zero” business?

Transitioning to net-zero is undoubtedly a difficult journey, but it has numerous benefits for both organization and the environment. Although your net-zero goal may be far in the future, acting now means your organization can improve efficiencies, cut costs, and drive innovation. Businesses can reach net zero by implementing a range of strategies and practices to reduce their greenhouse gas emissions, such as:

• Energy Efficiency: Improving energy efficiency through measures such as retrofitting buildings, upgrading equipment, and reducing waste.

• Renewable Energy: Switching to renewable energy sources, such as wind and solar power, can help to reduce emissions from the generation of electricity, heat, and steam.

• Supply Chain Management: Addressing emissions from suppliers and the supply chain can also help to reach net zero. This can involve working with suppliers to adopt more sustainable practices, sourcing materials from low-carbon sources, and reducing waste throughout the supply chain.

• Carbon Offsetting: Carbon offsetting involves funding projects that reduce emissions elsewhere to compensate for emissions that cannot be reduced in-house.

• Innovation and Investment: Investing in research and development of new technologies and products that have lower emissions, such as electric vehicles or carbon capture and storage, can help businesses reach net zero.

• Collaboration: Collaborating with other businesses, Governments, and stakeholders to drive the transition to a low-carbon, net zero economy can help businesses to achieve their goals more effectively.

Reaching net zero will likely require a combination of these strategies, as well as a commitment to continuous improvement over time. It is important for businesses to have a comprehensive understanding of their emissions and to regularly monitor and report on their progress. With the right approach, businesses can make a significant contribution to the transition to a low-carbon, net zero economy, while also supporting economic growth and competitiveness.