Everyone and their dog has net zero ambitions, so what does net zero mean? You might assume that it means bringing something to a balanced state – and you will be spot on. This something is greenhouse gases (GHGs). Put simply, net zero is a state where the GHGs going into the atmosphere are in a net balance with the GHGs removed from the atmosphere.

What are these proverbial greenhouse gases, might be your next question? Let’s unravel.

As a starter, you need to know that GHGs on their own are not the bad guys. It is the dose that makes the poison.

GHGs are gases in our atmosphere that trap heat from the sun (in the same way glass walls and windows of a greenhouse trap heat). This is a natural process that keeps our planet warm enough for life to exist, as without them – the Earth temperature would be much lower.

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And what are the most common GHGs?

1. Carbon dioxide (CO2): This is the most common greenhouse gas emitted by human activities, like burning fossil fuels (coal, oil, gas), deforestation, and certain industrial processes.
2. Methane (CH4): Methane comes from sources like agriculture (livestock), natural gas production, and landfills.
3. Nitrous oxide (N2O): NO2 is released from agriculture, certain industrial activities, and burning fossil fuels.
4. Water vapour: Although not directly controlled by human activities, it is the most abundant greenhouse gas in the atmosphere.

Knowing this, you might better understand the importance controlling GHGs emissions and working towards net zero. While the greenhouse effect is natural and necessary for life on Earth to exist, human activities have significantly tilted the GHGs balance.

Currently, the concentration of these gases in the atmosphere is growing, which will cause more heat to be trapped and this is resulting in the global warming and climate change we are now experiencing.

Bringing you to the present day, we dive a bit deeper and explore the consequences of emitting exponential amounts of GHGs in more detail. This should also enhance your understanding of the legal landscape around you.

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The consequence of too much GHGs in the atmosphere

1. Global warming – caused by trapped heat; this is also why temperatures are rising. The problem here is that global warming disrupts weather patterns, melts ice caps and glaciers, which raises the sea levels.
2. Climate change – The rising temperatures reflect negatively on ecosystems, agriculture and human communities. This leads to more extreme weather events like hurricanes, wildfires, droughts, and floods, causing climate migration and various other economic challenges.
3. Ocean acidification – This happens when some GHGs, like CO2, dissolve in the ocean, causing the ocean to become more acidic. Consequentially, this harms marine life like corals and shellfish.

This is why it is so important to slow down and mitigate the impact of climate change, and push towards a net zero economy. We are aiming to reduce net zero emissions not only to protect our planet today, but to also protect the future generations.

On a micro level, this will protect your business by allowing you to design risk mitigation strategies and increase business resilience.

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What is the difference between ‘carbon neutral’ and ‘net zero’?

The terms “carbon neutral” and “net zero” both relate to reducing greenhouse gas emissions, carbon neutrality focuses solely on CO2, while net zero targets all greenhouse gases, aiming for a broader environmental impact. These states are also distinct in what goes on to achieve them.

Carbon neutrality often means reducing some emissions and then compensating for the remaining emissions through carbon capture or offset activities like reforestation. With net zero, there is a greater focus on reduction or not emitting gases from the get-go.

In business terms, it could be argued that net zero is about transitioning to a more sustainable business model, while being carbon neutral is one strategy towards achieving this.

When companies claim on their packaging they are carbon neutral, it means they did a combination of things to reduce and offset all of the carbon emitted during their product manufacturing and lifecycle.

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What does net zero mean in business terms?

Net zero goes further than carbon neutrality. It means balancing the amount of all greenhouse gases emitted with the amount removed from the atmosphere, including gases like methane and nitrous oxide.

To reach net zero, a company must:

1. Significantly reduce its GHG emissions (ideally to near zero).
2. Offset or remove any remaining emissions using methods like afforestation or direct air capture.

The key difference between carbon neutrality and net zero is in scope and reduction level. Carbon neutrality focuses on balancing carbon emissions. Net zero includes all GHGs and requires reducing emissions to a minimum and offsetting the rest.

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How can a business achieve net zero?

Achieving net zero means aligning organisational strategies with specific emissions reduction targets set by governments and outlined in international agreements. Initiatives like the global Science-based targets initiative (SBTi) provide a clear blueprint for organisations on how to bring their net-zero plans in line with the science. This is non-negotiable and a crucial first step to ensure a shared understanding of what net zero means.

Misconceptions can lead to ineffective or even counterproductive approaches, for example relying solely on offsetting or green marketing tactics.

By getting their targets scientifically validated, businesses can drive meaningful change and contribute to collective efforts to combat climate change, not to mention boost their brand perception.

According to SBTi’s official dashboard, only around 920 companies globally have had their targets approved, highlighting just how much we have yet to achieve.

Understanding what net zero means for your business and aligning strategies with collective objectives can help avoid misunderstandings. Abiding by international agreements is preferable, especially as some governments cannot be relied on to drive this change in an urgent manner.

The political environment will always be a factor and experts warn that any delays on net zero targets will have severe negative impacts on the climate.

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Business strategies and targets for new zero

Since the Paris Agreement was signed in 2015, we’ve seen a flurry of companies and CEOs making net zero pledges. As great as this is to see, when making these bold claims companies often don’t have a concrete step-by-step plan to back them up.

In our experience, the first task of any consultant or sustainability manager who works in-house is to understand what net zero the company leaders are talking about.

Is it being aligned with the SBTi? Is it all about offsetting? What does net zero mean at the executive level in the company and where did it come from? Your ability to deliver strategies as a sustainability lead starts with a clear understanding of business objectives. It also means you can propose better strategies and advice.

The Royal Mint – Britain’s official coin maker – has set a clear roadmap towards achieving net zero GHG emissions by 2050. Their goal is comprehensive as it encompasses not only reducing direct emissions (Scope 1 and 2) but also addressing indirect emissions across its supply chain (Scope 3). But more importantly, their targets are based on scientific principles and SBTi-approved, contributing meaningfully to global climate goals.

Distinguishing between claims and actions is key. In the industry, commitments to net zero can sometimes be misunderstood or oversimplified. For example, a company might purchase a carbon neutral certification without actually having addresses or reduced emissions in any significant way.

Sustainability managers must look beyond surface-level commitments to understand the underlying motivations and targets.

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The business case for net zero

As people already on their journey will attest, sustainability (when done right) results in improved business efficiency.

One piece of advice for businesses looking to engage external sustainability support would be to make sure the deliverables they’ve described in a statement of work are realistic, achievable, and based on real business data. And the extent to which they are will often depend on things like organisational structure, culture, and communication – and the people behind these roles.

As a first-port-of-call, a health check of your business might be appropriate to gauge your ability to deliver net-zero. We do this initial assessment as part of our discovery package.

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Progress on national net zero targets – UK

The big question – are we on track? Well, not really.

Although the UK has a strategy for decarbonising all sectors of the UK economy to meet its net zero target by 2050, the future currently doesn’t look too bright. Progress reports show that the UK is behind on its net zero goals for 2030.

While there may be a lack of progress, there’s no lack of plans and targets. Take for example this plan for a green industrial revolution. A few of the focus points on this 10-point plan are ‘jet zero’ and green ships, accelerating the shift to zero emissions vehicles, green public transport, greener buildings, and green finance and innovation.

Clearly ambitious – though if you ask anybody in the aviation or ship-building industry that’s currently in the trenches, they will all tell you that a transformation of this scale is notoriously more difficult to accomplish than what a 10-point plan may lead you to believe.

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All this said, there is no time to waste. This CCC report underscores the urgent need for robust policies and strategies across all sectors to accelerate emissions reductions and put the UK back on track to meet its net zero commitments.

Mapping out a clear plan is step one, but what good is a plan with little idea how to support it through implementation? The delivery capability of both business and government will define what we can achieve in the next decade – and hopefully, things will look much better when we next take stock of the progress we’ve made.