ESG Metric: GHG Scope 1 emissions
Ease of implementation: hard
Suitable for: All industries
Suggested functional lead: Sustainability team
Summary
Net Zero strategies require effective steps to ensure the short- and long-term targets are met and optimum carbon reduction is achieved. Start with ensuring you have accurate data on your current carbon footprint. Identify the hotspots of carbon emissions and prioritise targets accordingly. Once the main areas to tackle have been identified, set out clear and transparent targets and a plan how to reach them. It is important to collaborate internally and externally to reach your targets in the most efficient manner. Share your targets and collaboration internally to share success stories and hold department accountable. Lastly, publish your progress on achieving net zero annually to ensure transparency and allow others to adopt your best practices.
Background Information
Current commitment to reduce GHG emissions puts the planet on track for 2.7oC warming, which is significantly higher than the 1.5oC target set out in the Paris Agreement. This projection of warming includes 70% of the world economies and their carbon neutral or net zero objectives. It is thus crucial that all businesses set out a net zero strategy to contribute to decreasing the projected warming by 2050.
Following COP26, the Science-based Targets initiative (SBTi) launched new net-zero emissions standards to comply with the Paris Agreement. It sets out standards for deep decarbonization of 90-95% emissions by 2050 for businesses. The standards include near and long-term targets for the whole value chain. You are required to set near-term targets for the next 5-10 years to roughly half emissions by 2030. The long-term targets should aim for 90-95% emission reduction by 2050, however does vary from sector to sector. The remaining 5-10% of emissions should be removed from the atmosphere and sequester in carbon sinks. In addition, businesses are encouraged to invest in offsetting projects, however, not the solely be used to account for their carbon emissions.
Implementation Steps
Calculate current carbon footprint
Identify where you GHG emissions are coming from. You can split them into categories based on Scope 1, 2 and 3 emissions. Robust systems must be set in place to collect the data, monitor it and report findings. If it is not, your credibility of achieving new targets and emission reduction will suffer. Read m
Build commitment from upper management
Support is required from the top level as they can drive the most change. Ensure upper management is committed to achieving net zero and reducing your business carbon footprint. Include the net zero plan in the management, directors and board meeting agendas.
Identify carbon hotspots
To start working towards your net zero targets, identify the carbon hotspots of your business. Prioritise accordingly, setting shot term targets to pave the way for the long-term targets. This will ensure your strategy is broken up into subcategories and short-term targets. It will make the best use of your business’ time and resources.
Develop a clear plan internally
Create concrete plans to lead the path towards your net zero strategy. Measure current performance, build in KPIs and set tangible targets and timescales for each department. This will aid in reporting as well as meeting the targets set in the Net Zero Strategy.
Identify collaboration opportunities
Connect with suppliers, similar business and other networks with similar net zero strategies. Learn and share best practices from each other.
Share net zero ambitions
Share the targets and pathway to achieving net zero internally and externally. Outline any new KPIs and practices that need adopting. This ensures everyone is working towards a shared goal with a clear method of how to achieve it. Involve employees through training and suggestion schemes as well as incentivizing good work through awards and shoutouts.
Report progress annually
The transparency of measuring and tracking your progress to net zero allows you to share your successes and downfalls with stakeholders, customers and employees. Sharing progress is crucial to hold everyone accountable and paint a clear picture of the progress you are making, potentially setting you apart from competitors.