Getting Started on Your Pathway to Net Zero
The number of companies making ‘net zero’ commitments is increasing. In November 2023, the SBTi (Science Based Targets Initiative) reported that more than 500 companies have set net zero targets through their standard, with over 2,000 more organisations set to do so within the next two years. With increasing corporate engagement, national net zero targets, and changes in stakeholder expectations, it is becoming ever more important to understand what net zero is and how your organisation can start setting and working towards a net zero commitment.
What is Net Zero?
The IPCC defines net zero emissions as “when anthropogenic emissions of greenhouse gases to the atmosphere are balanced by anthropogenic removals over a specified period”. Therefore, when a company sets a net zero target, by 2050 for example, it is committing to reduce its greenhouse gas emissions to as close to zero as possible and remove any remaining emissions from the atmosphere by like-for-like, verified carbon removals.
Importantly, this commitment includes the organisation’s Scope 1 (direct emissions e.g. burning natural gas for heating), Scope 2 (indirect emissions from the use of electricity), and Scope 3 emissions (indirect emissions from across its value chain).
Net Zero vs Carbon Neutral
Companies can also make other commitments such as becoming Carbon Neutral. This commitment entails an organisation reducing its greenhouse gas emissions where possible, and offsetting its emissions through verified carbon offsets.
Unlike net zero, a carbon neutral commitment usually focuses on Scope 1 and 2 emissions, and is used as an interim target on an organisation’s journey to net zero.
Therefore, it’s really important to be clear on the commitment your organisation is making and not to use these terms interchangeably.
Benefits of Net Zero
There are many benefits to setting and working towards a net zero target, including:
- Improving Resource Efficiency & Cutting Costs
In order to achieve a meaningful net zero target, organisations need to reduce the consumption of its emission sources (e.g. electricity, natural gas etc.). Therefore, working towards net zero can help increase resource efficiency, which in turn can drive down costs associated with these resources.
- Increase Resilience & Reduce Risk
Reducing your organisation’s reliance on fossil fuels (in other words decarbonising) can increase your organisation’s resilience against future trends such as the reduced availability of fossil fuels, rising costs, and climate-related disruptions. It can also help you to prepare for legal and other requirements brought about by national and international net zero targets as well as changes in sector best practice and stakeholder expectations.
- Stakeholder Engagement & New Opportunities
Setting and working towards a net zero commitment can demonstrate your organisation’s commitment to understanding and continually improving its environmental sustainability. This can help to improve your organisation’s reputation, engage and retain passionate members of staff (particularly the younger workforce), as well as attract and retain customers and new opportunities.
Engaging Your Organisation to Achieve Net Zero
One of the greatest barriers to net zero is understanding where to start and getting buy-in from across the organisation.
Senior Leadership Team
Transitioning to net zero needs strong leadership to drive change across the whole organisation. At a minimum, the senior leadership team needs to understand what net zero is in order to set clearly defined net zero targets supported by a realistic strategy with tangible targets. The senior leadership team are also crucial for providing necessary resources including time and investment.
Therefore, a good first step on your organisation’s net zero journey is to encourage members of the senior leadership team to undertake net zero training, such as the IEMA Pathways to Net Zero course (provided at a discounted rate for iiE members) which requires no formal entry requirements and is designed for leaders, supervisors and managers. The course provides an overview of net zero, as well as the key skills and tools needed for an organisation to achieve net zero.
Empowering & Engaging Staff
In order to create meaningful and long-lasting change, it’s important to engage all members of staff and bring everyone along on each step of the journey. This includes raising awareness about what net zero is, why it’s important, the organisation’s progress, and (most importantly) how their role contributes to shaping and achieving the organisation’s net zero target. A great resource to help you get started is Engage for Success. In addition to updating staff about progress, encourage regular feedback and the contribution of ideas by staff.
Furthermore, to implement the technical, operational and behaviour changes required to achieve net zero, key business functions (e.g. procurement, finance, etc.) and the people responsible for them need to be identified and empowered through upskilling. In addition to net zero training, it can be helpful to provide these members of the team with environmental management training (such as the IEMA Foundation Certificate in Environmental Management) which provides a framework for implementing the changes needed to achieve net zero, but also for monitoring progress towards it.
Engaging External Stakeholders
Finally, a net zero commitment includes greenhouse gas emissions from across your organisation’s value chain. Therefore, it’s really important to engage external stakeholders such as suppliers, distributors, and customers to help you measure your Scope 3 emissions and implement actions to reduce them.
Annual reports are a great way to share your organisation’s commitment and progress with all stakeholders, and it’s good practice to include a visual representation of your latest carbon footprint, key achievements from the year as well as plans for the next. It’s also important to ensure that you communicate your carbon footprint and journey in a tangible and transparent way. For guidance on avoiding greenwashing, check out our article entitled ‘Greenwashing: what it actually is, why does it matter and how to avoid it’.
If you would like to find out more about the training provided by iiE to support you on your journey, please visit our ‘Training’ page or get in touch at training@iie.uk.com.
For other queries about how iiE can support you on your net zero journey, please contact info@iie.uk.com.
