Sustainability Blog #1 - Achieving Net Zero

Achieving net zero emissions isn’t an easy task.

It requires a comprehensive transition involving coordinated efforts not only within one company but across its ecosystem value chain, involving suppliers, government, local organizations, and other stakeholders.

For a company to achieve net zero emissions, a structured approach is essential, encompassing strategic planning, operational changes, and continuous monitoring. 

Here are the detailed steps a company can take:

1. Commit to Net Zero

- Set Clear Targets: Define specific, time-bound goals for achieving net zero emissions. Align these targets with scientific benchmarks, such as those provided by the Science Based Targets initiative (SBTi).

- Assess business risk, mitigations, and opportunities: Validate how inaction may play towards strategic risk management. Check mitigation points and opportunities coming out of climate change.

- Obtain Executive Buy-In: Ensure commitment from top management to drive the initiative and allocate necessary resources.

2. Measure and Analyze Emissions

- Conduct a Baseline Assessment: Measure current greenhouse gas (GHG) emissions across all operations, including Scope 1 (direct emissions), Scope 2 (indirect emissions from purchased energy), and Scope 3 (all other indirect emissions, such as supply chain and product use).

- Use Standard Frameworks: Adopt recognized frameworks like the GHG Protocol to ensure comprehensive and consistent measurement.

3. Develop Net Zero Strategies and policies

- Identify Emission Sources: Pinpoint major sources of emissions within operations, supply chain, and product lifecycle.

- Carbon Pricing: Introduce mechanisms like carbon taxes or cap-and-trade systems to internalize the cost of carbon emissions.

- **Verify Subsidies and Incentives: Provide financial incentives for renewable energy, energy efficiency, electric vehicles, and other low-carbon technologies.

- Set Interim Milestones: Establish short- and medium-term targets to ensure steady progress toward the long-term net zero goal.

- Create an Action Plan: Develop detailed plans for reducing emissions, including timelines, responsibilities, and required investments.

4. Reduce Emissions with Carbon Projects

- Energy Efficiency: Implement measures to enhance energy efficiency in buildings, processes, and systems. Create Business case for operation modernization that uses more efficient systems.

- Renewable Energy: Transition to renewable energy sources for electricity and heating. Invest in on-site renewable energy generation, such as solar panels, and purchase renewable energy certificates (RECs).

- Sustainable Practices across the value chain: Adopt sustainable practices in procurement, production, and logistics. Encourage suppliers to reduce their emissions and opt for low-carbon materials.

- Electrification and Alternative Fuels: Switch to electric vehicles (EVs) and explore alternative fuels for transportation and industrial processes.

- R&D: Invest in research and development of new technologies that can reduce emissions or capture carbon more effectively.

- Pilot Projects: Launch pilot projects to test and demonstrate the feasibility of innovative solutions to sequester or abate carbon.

5. Offset Remaining Emissions

- Carbon Offsets: Invest in high-quality carbon offset projects to compensate for residual emissions. Focus on projects that offer verified and permanent carbon sequestration, such as reforestation and soil carbon storage.

- Carbon Capture: Explore opportunities for carbon capture and storage (CCS) technologies to remove CO2 directly from industrial processes or the atmosphere.

6. Engage Stakeholders

- Internal Engagement: Involve employees at all levels in the net zero journey. Provide training and incentives for adopting sustainable practices.

- External Communication: Transparently communicate your net zero targets, strategies, and progress to stakeholders, including investors, customers, and suppliers.

- Partnerships: Collaborate with industry groups, NGOs, and government bodies to share knowledge and resources.

7. Monitor and Report Progress

- Track Emissions: Continuously monitor and report emissions using standardized metrics and reporting frameworks, such as CDP (formerly Carbon Disclosure Project) or the Task Force on Climate-related Financial Disclosures (TCFD).

- Regular Audits: Conduct regular audits to ensure the accuracy of emissions data and the effectiveness of emission reduction measures.

- Adjust Strategies: Review and update strategies based on performance data, technological advancements, and changes in regulations or market conditions.

8. Foster a Culture of Sustainability

- Leadership by Example: Encourage leaders to model sustainable behaviors and demonstrate the company’s commitment to net zero.

- Education and Awareness: Provide ongoing education and awareness programs to keep sustainability at the forefront of company culture.

- Recognition and Rewards: Recognize and reward teams and individuals who contribute significantly to the company’s sustainability goals.

9. Scale and Sustain Efforts

- Continuous Improvement: Treat net zero as an ongoing process, continuously seeking ways to improve and innovate.

- Long-Term Vision: Embed sustainability into the company’s long-term vision and business model, ensuring it remains a core priority.

By following these steps, a company can systematically work toward achieving net zero emissions, contributing to global climate goals while potentially gaining competitive advantages through innovation and sustainability leadership.

If you have any questions, please feel free to contact us.

Alberto Ogura - Making sustainability a reality | Purpose-driven Business Strategy | Circular Economy | Ethical Value Chain | Carbon Economy | Reporting

Icten Yazicioglu - Project Manager | Lean - Agile Consultant | Agile Change Management and Communication Expert | Risk Assessment Certified Agile Coach | Scrum @ Scale Certificed @Prosci ADKAR Change Manager