What Is Net Zero?

Net zero refers to achieving a balance between the greenhouse gases (GHGs) emitted into the atmosphere and those removed from it. This means that for every unit of carbon dioxide (CO2) or other GHGs emitted, an equivalent amount must be offset or removed. Net zero is an ambitious target intended to stabilise global greenhouse gas emissions and limit global warming to 1.5ºC above pre-industrial levels, as outlined in the Paris Agreement.

Why Set a Net Zero Target?

Setting a Net Zero target is not just about meeting regulatory requirements or aligning with international agreements like the 2008 Climate Change Act or the UN Climate Change Conference (COP). Businesses that commit to net zero gain competitive advantages, including enhanced reputation, cost savings from energy efficiencies, and resilience to future regulatory and market shifts. It also positions organisations as leaders in tackling climate change, encouraging sectors, industries, and organisations to follow suit.

Carbon Neutral vs. Net Zero: What’s the Difference?

While often used interchangeably, carbon neutral and net zero have distinct meanings. Carbon neutral focuses on offsetting the emissions produced, typically through purchasing carbon credits. Net zero, on the other hand, aims to reduce emissions as much as possible before offsetting any residual emissions. This distinction highlights net zero as a more rigorous and impactful strategy, ensuring reductions in emissions produced through industry, transport, and agriculture.

How Did the Net Zero Target Come About?

The concept of net zero gained prominence through global efforts to combat climate change, notably the Paris Agreement in 2015. The UK’s Climate Change Committee (CCC) played a crucial role in setting the country’s net zero ambitions, recommending a legally binding target to reducing the UK's greenhouse gas emissions by 80% by 2050 compare to 1990 levels. These targets aim to reduce global emissions, and mitigate the trapped heat that has contributed to global warming.

How Do Net Zero Targets Differ from Science-Based Targets?

Net zero targets focus on achieving a balance of emissions and offsets, whereas science-based targets align reductions with what science indicates is necessary to limit global warming to 1.5ºC. Both approaches are complementary but differ in scope and methodology. Science-based targets provide a foundation for businesses to develop realistic zero carbon plans.

Who Should Be Delivering a Net Zero Target?

Achieving a net zero emissions economy requires a collaborative effort. Businesses produce carbon emissions, and therefore should be involved in the key strategies of offsetting those emissions. Business owners, energy managers, supply chain partners, and employees all play critical roles. Engaging key stakeholders early ensures buy-in and helps identify practical steps, such as switching to electricity from renewable sources, adopting electric vehicles, and making supply chains greener. Encouraging sectors, industries, and organisations to join the transition fosters a collective movement towards a net zero emissions economy.

Conclusion

Achieving net zero carbon emissions is no longer an option; it’s a necessity for stabilising global greenhouse gas emissions and limiting global warming. Whether you’re a small business owner or part of a larger organisation, setting clear goals, engaging stakeholders, and leveraging renewable energy sources are essential steps. Together, we can contribute to a zero-carbon future that benefits businesses, communities, and the planet.

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FAQS

What Is a Net Zero Business?

A net zero business is one that actively reduces its carbon emissions to the lowest possible level and offsets any remaining emissions to achieve net zero emissions. This approach ensures that the greenhouse gases carbon dioxide (CO2) and others emitted by the business are balanced by measures that remove or offset the same amount from the atmosphere. Net zero means businesses take responsibility for emissions produced through industry, transport, and their supply chains. By adopting renewable energy sources, switching to electric vehicles, and encouraging sectors, industries, and organisations to collaborate, businesses can contribute to stabilising global emissions and limiting global warming.

How Do You Become a Net Zero Business?

To reach net zero, businesses and business owners should follow a structured path:

Measure Emissions: Begin by calculating your net greenhouse gas emissions, including those produced through your industry, transport, and supply chain.

Set Targets: Align with the Paris Agreement's 1.5ºC global warming target by establishing zero and milestones towards halving emissions.

Reduce Emissions: Implement measures like switching to electricity from renewable sources and replacing diesel-powered transport with electric vehicles.

Offset Residual Emissions: Participate in verified programmes such as afforestation or renewable energy projects.

Engage Stakeholders: Collaborate with employees, partners, and suppliers to make your supply chain greener.

Monitor Progress: Regularly review progress and adjust strategies to ensure you achieve your net zero target.

Small businesses can use resources like the UK Business Climate Hub for an introduction to setting realistic targets and creating a detailed plan to transform your business to net zero.

What UK Companies Are Net Zero?

Many UK companies are leading the charge toward net zero ambitions. Examples include:

BT Group: BT has achieved carbon neutrality in its operations and aims to reach net or zero carbon emissions across its supply chain by 2040.

Unilever: This global company has committed to achieving net zero emissions from its products by 2039.

Tesco: Tesco aims to reach net zero in its operations by 2035 and across its value chain by 2050.

Octopus Energy: As a renewable energy provider, Octopus Energy helps customers and businesses reduce their carbon emissions through sustainable energy solutions.

These companies exemplify how businesses across various industries are aligning with the UK’s net greenhouse gas emissions targets under the Climate Change Act and supporting global efforts to combat climate change.

What Is an Example of a Net Zero Initiative?

A great example of a net zero initiative is a company switching to renewable energy and electric vehicles while offsetting residual emissions through afforestation. For instance, a logistics company may reduce emissions by replacing diesel-powered vehicles with electric alternatives, install solar panels to power its facilities, and invest in reforestation projects to offset emissions produced through industry and transport. Such measures address trapped heat that has contributed to global warming and highlight how businesses can take practical steps to align with global and UK-specific net zero targets. The hope is that by combining efforts, businesses and business owners can halve greenhouse gas emissions and contribute together for our planet.