How to get to net zero

To reach net zero, companies must focus on two key requirements: the reduction and removal of emissions. Several prominent net zero standards, including the SBTi Net Zero Standard, ISO Net Zero Guide, and Race to Zero Net Zero Guidelines, provide varying levels of depth and detail to help companies achieve this goal.

However, these rules can sometimes be overly complicated and not specifically targeted towards asset-light companies, such as those in the tech and professional services industries.

To address this challenge, expert guidance can help businesses make sense of the rules, create robust net zero plans that meet any of the standards, and ensure these plans are actionable and practical.

Companies with net zero commitments represent sales of nearly $14 trillion, which is 33% of total sales across the top 2,000 public companies and roughly the size of China‘s GDP.

The most ambitious companies have set early net zero targets, starting from 2030, positioning themselves as climate leaders.

As most corporate carbon footprints stem from supply chains, achieving these targets also necessitates significant emission reductions from suppliers, creating a network effect.

Another path to leadership is the early adoption of carbon removal strategies. By investing in innovative carbon removal technologies and projects, companies can demonstrate their commitment to mitigating climate change while also fostering the development of solutions that can benefit other businesses in the long run.

One weakness of current net zero standards is the sequential structure of ‘measure, reduce, remove’ with regard to emissions.

Early actions taken before measurement may not count towards reduction targets, and if everyone waited to implement removal strategies until reductions were complete, there would be insufficient removal capacity to meet the demands.

Instead, companies should measure, reduce, and remove emissions in parallel, accelerating the pace of climate action.

True corporate climate leaders should strive to go beyond what net zero standards prescribe, motivated by doing the right thing for the planet rather than simply complying with regulations.

By setting ambitious reduction and removal targets, adopting innovative solutions, and engaging suppliers in the fight against climate change, companies can make a meaningful and lasting impact on our global climate.