Net Zero: Essential Information for Businesses

 We are well-known as Net Zero in Agile Advisors; it is a component of a longer-term move toward decarbonized economies in response to a climate emergency. Many people are interested in establishing Net Zero targets as COP26 approaches. Initiatives like Race to Zero are designed to mobilize companies, cities, regions, and investors to set Net Zero targets ahead of COP26 to accelerate the decarbonization of the economy. Because each scheme has different requirements, it is crucial to look over the technical details before deciding which initiative to join to ensure that scheme participation and a company's own Net Zero pledges and strategy lineup. Even if specific industries still need innovation to meet science-based targets that follow a 1.5°C trajectory, this shouldn't stop businesses from acting now to reduce greenhouse gas emissions and from actively exploring substantial changes to their business models.

 

As far as we are aware Net Zero Consultancy in Agile Advisors, A corporation should set a target date for Net Zero emissions, and the SBTi draft criteria stipulate that the Net Zero target year should be at least 2050. A few businesses want to establish a Net Zero goal year before 2050. While more ambition is welcomed, companies should also consider whether it is feasible to accelerate value chain emissions reductions over 1.5-degree pathways and whether the necessary carbon removal will have financial repercussions. An internationally recognized standard, PAS 2060, defines carbon neutrality and lays forth procedures for measuring, reducing, and offsetting greenhouse gas emissions. The SBTi draft definition of Net Zero and carbon neutrality differ in several important ways: The reported emission reductions needed differ. While the degree of ambition of a carbon management strategy for carbon neutrality is not specified, net-zero targets must align with a 1.5°C science-based target.

To support you as Agile Advisors with Net Zero Carbon, Different approaches are taken to residual emissions: carbon offsets are allowed for carbon neutrality, whereas specific greenhouse gas reductions are needed for Net Zero aims.  Carbon offsets vary from one another. Oxford University released The Oxford Principles for Net Zero Aligned Carbon Offsetting, a taxonomy that divides offsets into three categories: avoided, reduced, and offsets for greenhouse gas removal. Projects like switching from kerosene cooktops to solar stoves can provide avoided emissions offsets by preventing emissions that would have resulted from the original cooktops. Projects that prevent emissions from being released into the atmosphere, such as carbon capture and storage on industrial processes and averted deforestation, can serve as offsets for emissions. Projects that physically remove emissions from the atmosphere, such as direct air carbon capture and storage and afforestation, can provide offsets for greenhouse gas emissions.

As one of the leading Net Zero Consultant, there is also a difference between short-term (afforestation) and long-term (direct air carbon capture and storage) carbon storage. There are several choices regarding the best course of action shortly. According to the Oxford Principles offsetting paper, corporations can adopt a progressive approach to offsetting. They can begin by offsetting in the current year with easily accessible offsets (like avoided emissions) and gradually increase the percentage of offsets related to greenhouse gas removal up to 100% in the target year. Although it advises businesses to employ additional offsets shortly to supplement the greenhouse gas removals, the SBTi has concentrated its requirements on final and interim targets linked to the amount of greenhouse gas removal accomplished.

 

 

In our role as Net Zero, in their approach to Net Zero, companies should prioritize decarbonization of Scope 1, 2, and 3 emissions aligned to 1.5°C pathways over and beyond offsetting. Under science-based targets, which specify a trajectory for Scope 1, 2, and 3 emissions, a corporation cannot employ offsets to reduce emissions. With a science-based target matched to 1.5°C, net zero aims should include the extra component of using greenhouse gas removals to offset leftover emissions. Through greenhouse gas removals, remaining emissions are removed from the atmosphere and stored for all time. Notably, the greenhouse gas removal market is still in its infancy, and businesses are advised to make upfront expenditures to get removal offsets in time for the Net Zero goal year and expand the market's capacity.