The UK government has committed to reaching net zero carbon emissions by 2050. Companies of all sizes are being encouraged to do the same, to play their part in mitigating the worst risks of climate change. But what is net zero, and how does it apply to your business?

The Science Based Target Initiative (SBTi) Net-Zero Standard defines corporate net-zero as:

• Reducing scope 1, 2, and 3 emissions to zero or to a residual level that is consistent with reaching net-zero emissions at the global or sector level in eligible 1.5°C-aligned pathways

• Neutralizing any residual emissions at the net-zero target year and any GHG emissions released into the atmosphere thereafter

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There are also simplified versions for SMEs, that follow a similar premise.

1. Measure

Establish an accurate and robust baseline carbon footprint, including emissions from your own operations, and those of your value chain.  

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2. Set a target

Most companies should look to set near term targets to reduce emissions (typically 5-10 years from when target is set), with a long term view to target net zero.

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3. Plan

Now that you know where your company is and where it needs to be, you should take steps to identify how you can reduce emissions in line with your target pathway.

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4. Implement

Start implementing the reduction measures outlined in your action plan

5. Report 

Track progress against your plan and report emissions annually to ensure you keep moving towards your target

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