When it comes to decarbonisation, the ultimate success for most businesses is achieving net zero emissions. This refers to a delicate balance between the amount of greenhouse gases (GHGs) emitted by a company and those removed from the atmosphere or prevented from entering it.

Ready to learn how it can benefit your organisation? Then explore our guide to find out what net zero is all about and the strategies you can use to make it a part of your business model.

The Impact of Net Zero Policies on Companies

Like other environmental initiatives, achieving a state of net zero emissions can yield a surprising number of advantages. Here are a few benefits of introducing net zero policies into your organisation:

1. It’s Becoming Mandatory

Since the adoption of the Paris Agreement, many countries have committed to achieving net zero emissions in the near future. The UK has announced that it would begin making net zero emissions policies mandatory, transforming it into a net zero financial centre. Similarly, countries such as Singapore have committed to achieving net zero emissions by 2050. Other comparable decarbonisation initiatives have been discussed in Hong Kong and Malaysia, while the Philippines has pledged to reduce GHG emissions by 75% by 2030.

2. Lower Transitional and Operating Costs

Because of urgent climate action, many companies will soon have to replace older, less efficient systems with more sustainable alternatives. Organisations can get ahead of this by taking steps toward net zero emissions before demand drives up prices.
In addition, technologies such as solar energy, water- and power-saving systems, and energy-efficient net zero buildings are becoming more cost-effective with the growing demand, and thus easier and more affordable to obtain.

3. Increased Attractiveness for Stakeholders

Today’s investors are increasingly interested in working with companies that adopt practices and solutions to achieve net zero emissions earlier. By focusing on this goal now, you’ll establish a reputation for innovation and forward-thinking.

4. Protection for Supply Chains

Depleting natural resources means many companies will find it difficult to obtain the materials they need to provide goods and services. A flexible, preemptive decarbonisation strategy will allow businesses to remain competitive in changing marketplaces.

5. It Appeals to Younger Talent

Young professionals are typically more progressively minded on environmental matters. Consequently, workplaces that emphasise sustainability are more likely to attract and retain talented personnel who value a commitment to combating climate change and decarbonisation.

Companies Leading the Way in Achieving Net Zero

Recently, hundreds of the world’s largest publicly traded companies have set their sights on net zero emissions, carbon neutrality, or carbon-negative policies. Others have adopted climate neutrality targets or science-based targets, like commercial real estate company JLL, which has set a goal of reducing all emissions by 95% by 2040.

Similar targets are evident in several British firms, ranging from boutique auto manufacturer Morgan Motors to national energy provider SSE. They’ve taken steps such as reducing energy waste in their facilities and adopting an ambitious net zero target date of 2050, respectively.

Other notable companies leading the way include:

  • Coca-Cola HBC has pledged to reach net zero emissions by 2040 across its entire value chain through the adoption of renewable and low-carbon energy sources. They plan to reduce emissions from agricultural ingredients, implement circular economy features, and establish a “green fleet.”
  • Oil and gas producer Sinopec will supplant existing fossil fuels in their operations with natural gas before later transitioning to green hydrogen.
  • Auto manufacturer General Motors is aiming for carbon neutrality by 2040 through increased emphasis on electric vehicle production, renewable energy for daily operations, and reducing supply chain emissions.

How to Implement an Effective Net Zero Strategy in Your Business

1. Estimate Your Carbon Footprint

Before setting net zero or carbon neutrality targets, it’s necessary to first determine what a company’s total emissions are across all scopes. A useful tool for this is a carbon footprint calculator.

2. Identify and Manage Emissions Sources

There are steps companies can take to manage emissions:

  • Switch to sustainable energy sources such as green hydrogen and solar power;
  • Replace petroleum-burning vehicles and equipment with electric alternatives;
  • Invest in net zero buildings and infrastructure; and
  • Reduce material waste and inefficiency in directly-owned facilities.

3. Offset Necessary Emissions

Full decarbonisation is still beyond the means of many companies, particularly those in sectors such as agriculture and oil and gas. However, even these emitters can counteract their impact on the environment by looking for carbon-offsetting opportunities, such as afforestation and green waste management.

4. Engage and Inform Stakeholders and Regulators

Lastly, to generate sufficient support for net zero targets and policies, you should communicate your goals to the relevant stakeholders. You could show compliance with regulations and requirements, or possibly release statements regarding targets and policies to raise awareness. Steps like these keep your stakeholders involved and informed, encouraging their participation.

Convene ESG and Convene 2zero: Crucial Assets in Your Net Zero Toolkit

Committing your company to a net zero emissions policy is one of the best steps you can take toward continued profitability and helping to fight climate change. To help you achieve your goals, make use of Convene 2zero, a carbon calculator built to provide a detailed portrait of emissions across all scopes and sectors.

Then turn to Convene ESG, a comprehensive ESG reporting software platform. Together, these resources give users essential knowledge and emissions management capabilities to meet the sustainability needs of the future.

Visit Convene 2zero and Convene ESG to learn more about how these products can enhance your decarbonisation initiatives.