What is Net Zero

Net zero represents a crucial state where the total greenhouse gases emitted into the atmosphere are entirely offset by an equivalent removal of greenhouse gases. In simpler terms, achieving net zero means that a business, or any entity, doesn't contribute additional greenhouse gases to the atmosphere – emissions are balanced by proportional removal efforts.

The global imperative for Net Zero by 2050

The urgency to address climate change underscores the need to achieve global net zero by 2050. This monumental task requires collaborative efforts, starting with individual countries and, crucially, the companies operating within them. For a business to embark on the journey towards net zero, the initial step involves substantial emissions reduction. This includes both the company's operational emissions and, notably, its scope 3 emissions emanating from its value chain. While traditionally a manual and time-intensive process, advancements, such as those facilitated by Climabrite, aim to accelerate the reduction process through automation.

Balancing reduction and compensation for residual emissions

Despite a business's best reduction efforts, there often remain residual emissions that cannot be eliminated. These "residual emissions" necessitate the second step towards achieving net zero – purchasing high-quality carbon removal to offset these remaining emissions. Strikingly, there are no shortcuts in this journey. Simply compensating the entire carbon footprint with removal, without simultaneous reduction measures, proves impractical and economically unfeasible. There's a crucial risk in relying solely on removal without reduction, given the ongoing development of removal technologies and uncertainties about their effectiveness.

Origins and popularisation of the Net Zero concept

The notion of net zero emerged when scientists recognised the necessity of achieving a global balance in greenhouse gas emissions to combat global warming. This concept gained prominence through the Paris Agreement, emphasising the need for a balance between anthropogenic emissions and removals by the second half of this century.

Distinguishing "Net Zero" from "Carbon Neutral"

While often used interchangeably, the terms "net zero" and "carbon neutral" carry subtle distinctions. In practice, "carbon neutral" has become associated with low-quality carbon offsets, raising concerns about greenwashing. Scrutiny from consumers and regulators emphasises the importance of accurate sustainability claims and adherence to net zero-aligned principles.

Navigating regulatory and reputational risks

The closer scrutiny surrounding business climate claims necessitates precision in sustainability statements. Businesses, such as Nestlé, are moving away from mere offsetting, opting for a focus on emissions reduction in pursuit of a 2050 net-zero target. To avoid regulatory and reputational risks linked with misleading sustainability claims, businesses must adopt accurate and comprehensive carbon management.

A window of opportunity

While the latest IPCC report signals a deviation from the path to global net zero by 2050, there remains a window of opportunity for swift and decisive action. Advocating for net zero within businesses, especially large corporations facing potential mandates, becomes a pivotal strategy in contributing to this global imperative.