A Step-by-Step Guide for Companies to Achieve Net-Zero Emissions
In 2021, the Science Based Targets initiative (SBTi) introduced the world’s first-ever Net-Zero Standard, a crucial step toward helping businesses align their operations with global climate goals. The goal is to limit global warming to 1.5°C by 2050, as outlined in the Paris Agreement. This standard provides companies with a science-based framework for reducing their carbon emissions and balancing any remaining emissions to achieve net-zero status.
A smaller carbon footprint means a brighter future for all living things.
But what does it mean for companies to truly achieve net-zero emissions, and how can they start the journey?
What is the SBTi’s Net-Zero Standard?
The Net-Zero Standard by SBTi is designed to provide companies with clear, science-based targets for reducing and neutralizing their carbon emissions. Achieving net-zero emissions requires not only reducing emissions within a company’s direct control but also addressing emissions throughout its value chain and beyond.
To reach net-zero, a company’s greenhouse gas (GHG) emissions must be balanced by an equivalent amount of CO2 removals. The path toward this goal involves three main components: emissions reductions, beyond value chain mitigation, and the neutralization of residual emissions.
Key Elements of the Net-Zero Standard
01. Reducing Emissions within the Value Chain
The first step toward net-zero is reducing emissions from activities directly controlled by the company, also known as “abatement.” These reductions are essential to meet global climate targets and are divided into two phases:
- Near-Term Targets (5-10 years): Companies must reduce emissions in alignment with the Paris Agreement, aiming to limit global warming to 1.5°C. Immediate actions should focus on significant emissions cuts by 2030.
- Long-Term Targets (by 2050): By 2050, companies must work toward eliminating as many emissions as possible, reducing them to a residual level.
To achieve this, companies should:
- Implement decarbonization strategies across their operations.
- Invest in technology solutions, such as sustainable energy and low-carbon transportation.
- Transition to renewable energy sources and ensure transparent accounting of emissions from energy consumption.
- Regularly disclose their emissions reductions and the results of implemented measures across their value chain.
- Address all relevant emission sources and improve transparency, particularly around Scope 3 emissions (those outside the company’s direct control, such as those from suppliers and customers).
02. Going Beyond the Value Chain: Mitigation Strategies
Once companies have tackled emissions within their value chain, they can expand their efforts to mitigate emissions beyond their direct operations. This could involve:
- Investing in projects that prevent deforestation, promote renewable energy, or improve energy efficiency.
- Engaging in carbon offsetting through high-quality credits, including forestry and land-use projects (e.g., REDD+), conservation efforts, and renewable energy initiatives.
This step helps businesses reduce their overall carbon footprint and contribute to global efforts to prevent climate change.
03. Neutralizing Residual Emissions
Once a company has reduced emissions to the greatest extent possible, the remaining emissions can be neutralized through carbon removal technologies. These include:
- Nature-based solutions such as reforestation, soil carbon sequestration, and wetland restoration.
- Technological solutions like direct air capture and storage, which physically remove carbon dioxide from the atmosphere.
Neutralization ensures that any residual emissions are permanently removed from the environment, completing the net-zero journey.
Additional Steps for Climate Action
Beyond emissions reductions, businesses can take additional steps to minimize their environmental impact. This includes:
- Supporting the development of new technologies focused on carbon capture and storage.
- Purchasing carbon credits that contribute to global emission reduction goals.
- Promoting transparency in sustainability efforts to engage employees, customers, and investors in meaningful action.
Reaching net-zero emissions is an ongoing process that requires continuous improvement and commitment. While it may be challenging, it is essential for businesses to take concrete steps now to contribute to the global effort to combat climate change.
By setting ambitious goals and adhering to the Net-Zero Standard, companies can not only reduce their carbon footprint but also demonstrate leadership in sustainability, creating value for their stakeholders and ensuring long-term success.
For personalized advice on reducing your carbon emissions and adopting sustainable practices, don’t hesitate to reach out to us at info@andoka.com. We’re here to help you achieve your carbon neutrality goals! 🌱
