What is Net Zero?

The significance of net zero in combating climate change is crucial. But what does it involve? And why is it vital for the future of our planet?

Net zero is a critical target for businesses and organizations aiming to reduce carbon emissions and mitigate climate change. Achieving net zero involves setting targets, implementing strategies, and adopting sustainable practices

Defining Net Zero

At its core, net zero refers to achieving a delicate balance between the greenhouse gases (GHGs) emitted into the atmosphere and those removed from it. This equilibrium is paramount for mitigating climate change and limiting global warming to well below 2 degrees Celsius above pre-industrial levels.

The Net Zero Equation:

  • Reducing Emissions: The first step in achieving net zero involves minimizing emissions from various sources, including energy production, transportation, industry, and agriculture. This requires transitioning to renewable energy sources, improving energy efficiency, and implementing sustainable practices across sectors.
  • Carbon Removal Technologies: Additionally, offsetting any remaining emissions is essential. This is accomplished through carbon removal technologies such as afforestation, reforestation, soil carbon sequestration, and carbon capture and storage (CCS).

Importance of Net Zero

Achieving net zero emissions is paramount for safeguarding our planet’s future and ensuring the well-being of current and future generations. The urgency of this endeavor cannot be overstated, as the consequences of inaction are severe and far-reaching.

The Implications of Not Achieving Net Zero:

  • Climate Stability: Failing to achieve net zero emissions would exacerbate climate change, leading to more frequent and severe heatwaves, droughts, storms, and sea-level rise. This, in turn, would have devastating consequences for ecosystems, biodiversity, and human societies worldwide.
  • Environmental Degradation: The unchecked rise in global temperatures would accelerate environmental degradation, including the loss of vital ecosystems such as coral reefs, rainforests, and polar ice caps. This loss of biodiversity would have cascading effects on ecosystem services and human well-being.
  • Social and Economic Disruption: Climate change-induced disruptions, such as extreme weather events, food and water scarcity, and displacement of populations, would exacerbate social inequalities and geopolitical tensions. Additionally, the economic costs of climate-related disasters would strain economies and undermine global prosperity.

A Six-Stage Path to Achieving Net-Zero

As we delve into the practical application of net-zero principles, it’s essential to recognize that the journey towards sustainability is neither linear nor instantaneous. Instead, it’s a cyclical process that requires dedication, commitment, and continuous improvement.

  1. Commitment: Acknowledge your business’s role in addressing climate change and commit to long-term sustainability. Recognize that transitioning to net-zero emissions requires systemic changes across the entire value chain. Engage internal stakeholders and garner their support for the journey ahead.
  2. Calculation: Understand your current emissions footprint by conducting comprehensive calculations. Identify emission hotspots within your value chain and pinpoint opportunities for reduction. Regularly measure and monitor your progress against set targets to track performance and refine strategies.
  3. Strategy and Target Setting: Analyze your emissions data to develop a tailored transition strategy. Set ambitious yet achievable targets aligned with the level of decarbonization required. Integrate science-based targets to guide your efforts, ensuring accountability and measurable progress. Customize strategies to suit the unique characteristics of your business.
  4. Reduce and Engage: Implement your transition plan by initiating concrete steps towards emissions reduction. Collaborate with suppliers and partners to address emissions across the value chain. Prioritize economically sustainable practices that align with your business environment. Facilitate sustainable procurement and reduce indirect emissions through strategic engagement.
  5. Removal: After significant emission reductions, focus on removing unavoidable emissions through carbon removal credits. Ensure compliance with standards such as the SBTI Net-Zero Standard, limiting the use of removal credits to a maximum of 10% of overall emissions. Emphasize the distinction between carbon removal and avoidance credits, maintaining net-zero as the ultimate goal.
  6. Certification: Assess the impact of your emission reduction efforts and recalibrate strategies accordingly. Revisit the calculation stage to quantify progress and identify areas for further improvement. Iterate through the cycle until you achieve the required level of emissions reductions and qualify for net-zero certification under recognized standards such as SBTi.

In addition to these stages, it’s crucial for businesses to prioritize people and planet alongside profit. With features designed to facilitate carbon accounting, strategy development, and emissions reduction, businesses of all sizes can embark on their sustainability journey with confidence.

Overcoming Challenges and Seizing Opportunities

While the transition to net zero presents significant challenges, it also offers numerous opportunities for innovation, growth, and resilience.


  • Complexity: Implementing net-zero strategies involves navigating complex systems, technologies, and stakeholder dynamics. Businesses must overcome technical, financial, and organizational barriers to achieve meaningful emissions reductions.
  • Cost: Transitioning to net zero requires upfront investments in renewable energy, energy efficiency measures, and sustainable practices. While these investments yield long-term benefits, they may pose financial challenges for businesses, especially small and medium-sized enterprises (SMEs).
  • Supply Chain Complexity: Addressing emissions across the value chain requires collaboration and cooperation with suppliers, partners, and stakeholders. Ensuring transparency, traceability, and accountability throughout the supply chain can be challenging.
  • Policy and Regulatory Uncertainty: Businesses operate within a rapidly evolving policy and regulatory landscape. Uncertainty regarding carbon pricing, emission regulations, and market mechanisms can complicate long-term planning and decision-making.


  • Innovation and Technological Advancement: The transition to net zero drives innovation in clean energy technologies, carbon capture, and sustainable practices. Businesses that embrace innovation can gain a competitive edge, enhance efficiency, and reduce operational costs.
  • Brand Reputation and Consumer Preference: Consumers are increasingly demanding environmentally responsible products and services. Businesses that demonstrate a commitment to sustainability can enhance their brand reputation, attract customers, and build long-term loyalty.
  • Risk Mitigation: Transitioning to net zero reduces reliance on fossil fuels, mitigating risks associated with energy price volatility, supply chain disruptions, and regulatory changes. Diversifying energy sources and adopting resilient business practices enhance business continuity and resilience.
  • Access to Capital and Investment: Investors are increasingly prioritizing environmentally and socially responsible businesses. Companies that demonstrate a commitment to net zero can access capital, attract investment, and unlock new opportunities for growth and expansion.