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It's no secret that as of right now, we find ourselves facing unprecedented environmental challenges. Climate change, biodiversity loss, and resource depletion are just a few of the pressing issues that demand our attention. The consequences of these challenges are far-reaching, affecting ecosystems, economies, and ultimately, our way of life. It has become increasingly clear that urgent action is needed to mitigate the impacts of human activities on the planet.As part of this global fight against climate change, the concept of Net Zero has emerged as a critical goal for governments, organisations, and businesses worldwide. But what does it actually mean?
Defined by the United Nations, Net Zero means cutting greenhouse gas emissions to as close to zero as possible, with any remaining emissions re-absorbed from the atmosphere, by oceans and forests for instance.Put simply, this means Net Zero is when the amount of greenhouse gases released into the atmosphere is equal to the amount that is taken out.
Why is Net Zero so important? The urgency to reach Net Zero stems from the fact that we are working towards a specific end point: limiting global temperature rise to well below 2 degrees Celsius above pre-industrial levels, ideally targeting 1.5 degrees Celsius.The excessive release of greenhouse gases, (primarily from human activities) such as burning fossil fuels, deforestation, and industrial processes, has resulted in the accumulation of these gases in the atmosphere. This, in turn, has led to a phenomenon known as the greenhouse effect – trapping heat and causing the Earth's temperature to rise.To help paint a not-so-pretty picture, the below (Warming Stripes) visualise earths temperate increase since 1850.
Yep you guessed it, each line vertical represents a temperate.
To better understand the concept of Net Zero, it's important to clarify some other key terms that often come up in the discussion. For a full list of terminology in this space, check out the Futureproof Glossary.
Carbon-neutral: Carbon-neutral means achieving a balance between the amount of greenhouse gas emissions produced and the amount of emissions removed from the atmosphere (ie. through offsetting the amount of carbon emissions you create).
Decarbonisation: Decarbonisation is the process of reducing or eliminating greenhouse gas emissions, particularly carbon dioxide (CO2). This involves transitioning from high-carbon or fossil fuel-based sources of energy, to low-carbon or renewable energy sources (e.g. switching from gas to renewable energy).
Neutralisation: Neutralisation, also known as carbon dioxide removal (CDR), involves removing carbon dioxide from the atmosphere and permanently storing it to achieve a reduction in emissions. This can be done through various methods, like direct air capture (DAC) technologies, or bioenergy with carbon capture and storage (BECCS).
Near-term targets: Near-term targets are specific goals set for the next five to ten years to guide the reduction of greenhouse gas emissions. These targets often aim to cut emissions by a certain percentage compared to a baseline year (e.g. to reduce 42% of emissions by 2030). They also serve as a reality check on the progress toward achieving your long-term Net Zero goal.
Long-term or Net Zero targets:Long-term targets, also referred to as Net Zero targets, are goals that aim to achieve a balance between the amount of greenhouse gas emissions produced and the amount removed from the atmosphere by a specified year, typically 2050 (e.g. to reduce 90% of emissions by 2050). These targets require substantial emission reductions through decarbonisation efforts, with any remaining emissions being offset or neutralised Now we have the popular jargon is covered, let’s get back to the story.
In recent years, there has been a remarkable surge in the number of commitments made by governments, organisations, and companies to achieve Net Zero. This momentum reflects the increasing recognition of the importance for the word 'Net Zero'. Let's explore some notable examples of these commitments and the actions being taken by various stakeholders.
The Race to Zero campaign, led by the United Nations Framework Convention on Climate Change (UNFCCC) is a global initiative that brings together companies, cities, investors, and universities that are committed to setting Net Zero targets by 2050.
From this international commitment, Governments are playing there part. The UK has set an ambitious target to achieve Net Zero greenhouse gas emissions by 2050. More than 70 countries have also set Net Zero pledges. The European Union aims to achieve Net Zero by 2050, with some member states setting even more ambitious targets.
As well as Governments, organisations of all sizes and sectors are stepping up to the challenge of Net Zero. From school, universities, trusts to committee. At time of writing, over 3000 organisations have made public commitment to Net Zero.
On top of Organisations, Companies are setting their own Net Zero targets. To date, over 15,000 companies have made public commitments to reduce their greenhouse gas emissions and transition to sustainable practices. For example, Microsoft pledging to become carbon negative by 2030 and remove all the carbon it has emitted since its founding by 2050. To even BP, one of the world's largest oil and gas companies, committing to achieving Net Zero by 2050 or sooner. Yet with all these commitments, it's important to remember they are just that, commitments. Very few are yet to be achieved, with many being made off no real science. That's why, for all commitments, it's essential to they are based on science.
Bodies like The Science Based Targets initiative (SBTi) provide ‘science-based’ frameworks that companies can follow which help to set realistic goals for reduction, rather than an over-ambitious number. Now that we understand the Why, Who and What about Net Zero, let’s dive into the How.
We’ve spoken about the exact steps for managing your carbon in another article, check out it out here.But to revisit, the easiest way to think about Net Zero, is to see it as a journey of 6 steps.
Work out your carbon across each Scope 1-3 (see our articles here on what each scope means). Collect energy usage from landlords and home-working, business travel and commute distances, expenditure from purchases, and any specific emissions created by your business (e.g. marketing campaigns, packaging emissions or digital carbon). All this information gets totalled into your carbon footprint. Look to measure every quarter so you can see seasonable carbon changes.
Scan over your total. What are your top emission contributors? Where are emissions being created unnecessarily? How are we doing against industry averages? What can we feasibly reduce, or cut? All these questions help inform steps 3 and 4.
Unlike a normal reduction target (say 5% a year), here is where you look to commitment to Net Zero. But be clear on a realistic Near Term and Long Term (Net Zero) target for your business. Commit through SBTi or SME Climate Hub.
Your hotspots are identified, your targets are set, and now comes the action! Implement changes that reduce your carbon. Limit business travel, buy from eco-suppliers, switch to green energy, and change to green pensions. These are just a few of the many things you can do. Then fund carbon removal projects, then look at offsetting to cover off any residual emissions. We work with the wonderful team at Patch who help our businesses remove carbon as part of this process.
Part of Net Zero is reporting annually to the public. That means creating a carbon report summarising your company’s total GHG emissions, target and reduction progress. This report can be given to employees, clients, suppliers or any stakeholder who asks for it (and more will).
Just like financial reporting; carbon reporting to Net Zero is an ongoing exercise. Some quarters are high, some low. Keep measuring, reporting and reducing. In the same way we set profit targets, set carbon targets to Net Zero. Incorporate these into your OKRs and BAU.By following these six stages, you can more effectively set and stay on your path toward achieving Net Zero.
The concept of Net Zero holds immense significance for businesses and the global climate. It provides us a clear pathway towards how we universally reach a sustainable future. Lastly, remember Net Zero is a team sport, not an individual one. Each and every business out there needs to play their part.
At Futureproof, we help businesses of all sizes and industries to achieve Net Zero. Our platform and support helps guide businesses through their entire journey to Net Zero. From measurement, analysis, reduction, removal, offsetting to reporting - all with expert support from us by your side.
Get started today by speaking to our team.
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