Business Road Map to Net-Zero

Evidence shows that the Earth’s life support system is at risk if the global average surface temperature continues to rise. We need to stabilise at a maximum of 1.5°C above pre-industrial levels. To achieve this, global carbon emissions must stop increasing and we must halve emissions every decade to approach net-zero by 2050.

What is Net Zero?

Net-zero means net carbon emissions will be zero. If gross CO2 is still emitted globally in 2050, a minimum of the same quantity must be removed. Definitions of carbon neutrality, climate neutrality and net-zero are frequently confused. Carbon neutrality considers only CO2; net-zero emissions considers all greenhouse gases; climate neutrality considers the entire climate system.

What does best practice look like?

1. Sign up to Business Ambition for 1.5°C. 2. Set science-based targets. 3. Halve Scopes 1 and 2 gross GHG emissions every 10 years (the ‘Carbon Law’). 4. Create industry-wide climate cooperatives. Businesses can declare net-zero when either total gross GHG emissions are nil, or residual emissions have been removed through physical sequestration that is demonstrably audited.

Where does carbon offsetting fit in?

Be wary of net-zero targets reliant on carbon credits that use ex-post removals which may not be additional, don’t remove the total residual amount by the declaration date, avoid rather than sequester carbon, or are purchased from Global South projects. 73% of carbon offset projects don’t remove the quantity they claim. However, companies can and should invest in sustainable development projects as part of their qualitative contribution.

A 17-point roadmap to net-zero

Switch to 100% renewable electricity. Conduct fleet and energy audits. Replace fossil fuel heating with heat pumps. Create company travel policy minimising air and road travel. Require suppliers to measure and reduce emissions. Increase recycling. Reduce food waste. Create industry-wide climate cooperatives. Monitor and report annual emissions and commit to reductions in line with the Paris Accord.