NET ZERO ADVISORY

Net zero is often used to describe a state of human existence where no new greenhouse gases are emitted into the atmosphere. 

To reach a state of net zero at the corporate level, companies must deeply reduce emissions and counterbalance the impact of any emissions that remain. The Science-Based Targets initiative (SBTi) defines corporate net-zero as:

• Reducing scope 1, 2, and 3 emissions to zero or a residual level consistent with reaching global net zero emissions or at a sector level in eligible 1.5°C-aligned pathways.

• Permanently neutralizing any residual emissions at the net zero target year and any GHG emissions released into the atmosphere thereafter.

The goal of net zero is to halt the increase in global warming and mitigate the most severe effects of climate change. The effectiveness of net zero relies on permanence, ensuring that removed greenhouse gases do not re-enter the atmosphere over time. 

The term carbon neutral requires a balance of the carbon emissions produced from operations, equated by purchased offsets.  Carbon neutral certification can be achieved if three conditions are met:

• Measure total carbon emissions
• Set targets for reducing emissions
• Purchase carbon reduction credits to equate the emissions produced from direct operations (Scopes 1 and 2)  

Net zero focuses on decarbonising as much as possible and then employ carbon removal of the residual emissions. To achieve Net-Zero Standard by the Science Based Targets initiative, the following four key requirements must be met:

• Fast and effective emissions reductions, which means 90-95% carbon reduction for most companies
• Setting science-based targets within specific time frames (50% by 2030 and no emissions by 2050)
• Not claim to be net-zero until long-term targets have been achieved
• Invest in additional climate change projects elsewhere 

While "carbon neutral" emphasizes achieving zero net carbon emissions, "net zero" extends beyond carbon and encompasses all greenhouse gases. It strives for zero net emissions of all greenhouse gases, providing a more comprehensive approach to addressing climate change.

Even if every company went carbon neutral, it would not keep global temperatures below 1.5°. In contrast, net zero refers to the activity of your company as an entity. To keep global temperature rises under 1.5°, net zero is where we all need to get to. 

To limit global warming and prevent the most devastating effects of climate change, many countries worldwide have committed to achieving net zero greenhouse gas emissions by 2050. As part of the Paris agreement, this target is aligned with the goal of keeping global warming well below 2°C and preferably at 1.5°C above pre-industrial levels. It is supported by the international scientific consensus that to prevent the worst climate damages, global net human-caused emissions of carbon dioxide (CO2) need to fall by about 45% from 2010 levels by 2030, reaching net zero by 2050. 

Global warming is proportional to cumulative CO2 emissions, which means that the planet will keep heating for as long as global emissions remain more than zero. This implies that climate damages, caused by global heating, will continue escalating for as long as emissions continue. Therefore, achieving net zero by 2050 is critical for mitigating climate change's severe impacts and preserving biodiversity. Many countries, including the UK and EU member states, have set targets to reach net zero emissions by 2050 as part of their climate action plans.

Carbon offsetting is a method used to counterbalance the carbon emissions produced by individuals, organisations, or activities. It involves investing in projects that either prevent the release of carbon or remove it from the atmosphere. By purchasing carbon offsets, we support initiatives such as renewable energy projects, methane capture from landfills, or energy efficiency programs. These projects help reduce emissions or enhance carbon sinks, ultimately leading to a net decrease in greenhouse gas levels.

The concept of carbon offsetting is based on the principle of achieving carbon neutrality or net zero emissions. It acknowledges that it may not be feasible to eliminate emissions, especially in sectors where emissions are challenging to mitigate. Carbon offsets provide a way to compensate for these unavoidable emissions by supporting projects that have a quantifiable and measurable impact on reducing greenhouse gas concentrations.

However, it is important to approach carbon offsetting as a supplementary measure rather than a primary solution to addressing climate change. It should be coupled with efforts to reduce emissions at their source through sustainable practices, energy efficiency, and transitioning to renewable energy sources. By combining emission reduction strategies with carbon offsetting, we can work towards a more sustainable and climate-conscious future.

A science-based target (SBT) is a corporate sustainability, climate, or greenhouse gas emissions reduction goal. To be considered science-based, it needs to be based on scientific evidence, have a set baseline amount and time, as well as a target date. The emissions reduction pathway needs to be clearly defined.

SBT was set up by the Science Based Targets initiative (SBTi) who provide a robust framework for companies to align their emission reduction efforts with the goals of the Paris Agreement and the latest climate science. By adopting science-based targets, companies commit to reducing their emissions at a level that is in line with what is required to limit global warming to well below 2 degrees Celsius.

The significance of the SBTi for net zero efforts is twofold. Firstly, it ensures that emission reduction targets are grounded in scientific research, which enhances their credibility and effectiveness. The adoption of science-based targets provides a clear and quantifiable pathway for companies to contribute to global efforts in mitigating climate change. Secondly, the SBTi helps drive widespread action by creating a common standard for companies to follow. By setting science-based targets, companies send a powerful signal that they are committed to taking meaningful action towards achieving net zero emissions. This not only inspires other companies to follow suit but also demonstrates to investors, stakeholders, and consumers that sustainability is a priority, and that progress is being made towards a low-carbon future.

The Science Based Targets initiative (SBTi) is a collaborative effort between several organisations, including the United Nations Global Compact, the World Resources Institute, the World Wide Fund for Nature, and CDP. It aims to encourage companies to set greenhouse gas reduction targets based on scientific evidence. The initiative provides a robust framework for companies to align their emission reduction efforts with the goals of the Paris Agreement and the latest climate science. By adopting science-based targets, companies commit to reducing their emissions at a level that is in line with what is required to limit global warming to well below 2 degrees Celsius.

The significance of the SBTi for net zero efforts is twofold. Firstly, it ensures that emission reduction targets are grounded in scientific research, which enhances their credibility and effectiveness. The adoption of science-based targets provides a clear and quantifiable pathway for companies to contribute to global efforts in mitigating climate change. Secondly, the SBTi helps drive widespread action by creating a common standard for companies to follow. By setting science-based targets, companies send a powerful signal that they are committed to taking meaningful action towards achieving net zero emissions. This not only inspires other companies to follow suit but also demonstrates to investors, stakeholders, and consumers that sustainability is a priority, and that progress is being made towards a low-carbon future.

Scope 1, 2, and 3 emissions are categories used to classify greenhouse gas emissions based on their source and influence. They are part of the Greenhouse Gas Protocol, a widely recognised accounting framework for measuring and managing greenhouse gas emissions. 

Scope 1 emissions are direct emissions that occur from sources owned or controlled by the reporting company. They include emissions from combustion of fossil fuels in company-owned vehicles, on-site power generation, and industrial processes. 

Scope 2 emissions are produced during the generation of electricity, heating, cooling and steam purchased by the reporting organisation. Although the emissions occur at the source of energy production, they are considered indirect because they are a consequence of the energy used.

Scope 3 emissions are indirect emissions that occur throughout the organisation's value chain, including both upstream and downstream activities. Scope 3 emissions encompass a wide range of activities such as business travel, employee commuting, raw material extraction, product manufacturing, distribution, use of sold products, and waste disposal. They are often the most significant and challenging emissions to measure and manage because they extend beyond the immediate control of the business.

By categorising emissions into the three scopes, organisations can gain a comprehensive understanding of their carbon footprint and identify opportunities to reduce emissions across their operations and value chain. 

To limit global warming and prevent the most devastating effects of climate change, countries worldwide have committed to achieving net zero greenhouse gas emissions by 2050. As part of the Paris Agreement, this target is aligned with the goal of keeping global warming well below 2C and preferably at 1.5C above pre-industrial levels. It is supported by the international scientific consensus that in order to prevent the worst climate damages, global net human-caused emissions of carbon dioxide (CO2) need to fall by about 45% from 2010 levels by 2030, reaching net zero by 2050. Global warming is proportional to cumulative CO2 emissions, which means that the planet will keep heating for as long as global emissions remain more than zero. This implies that climate damage, caused by global heating, will continue escalating for as long as emissions continue. Therefore, achieving net zero by 2050 is critical for mitigating climate change's severe impacts and preserving biodiversity. Many countries, including the UK and EU member states, have set targets to reach net zero emissions by 2050 as part of their climate action plans.