What Does “Net-Zero” Mean?
As business operations settle into the new, post-pandemic normal, global climate action has again emerged as one of the most pressing issues in business. Countries worldwide are seeking ways to limit global warming trends to below 2°C, with the ultimate goal of reaching net-zero global emissions by the year 2050.
Businesses have followed this trend, with many signing Amazon’s Climate Pledge in 2019 and more joining in 2021. Whether or not a business becomes a Climate Pledge signatory, the pressure to achieve net-zero emissions actually represents an opportunity for businesses to shift to more environmentally and financially sustainable models.
Why Is Attaining Net-Zero Emissions Important for Business?
Legally speaking, in the United States, the Security and Exchange Commission’s proposal to enhance and standardize climate-related disclosures directly affects registrants in most industries. As a result, businesses are searching for ways to attain net-zero carbon emissions even more quickly than the Paris Agreement deadline to mitigate climate-related investor risk and boost investor confidence.
Of course, the ultimate aims of net-zero emissions also include consumer perceptions and trust in a business’s environmental practices. A company that considers preserving the environment a fundamental component of its overall business model stands out among competitors as forward-thinking and proactive.
What Is the Difference Between Net-Zero and Carbon-Neutral?
The objectives of net-zero emissions and carbon neutrality are the same, but the approaches have different emphases. Carbon neutrality includes all forms of carbon reduction, from carbon offsetting to emissions reduction.
The United Nation’s definition of net-zero highlights reducing greenhouse gas emissions to near-zero as the primary aim. Any remaining emissions should be re-absorbed by forests and oceans. Organizations use targeted carbon offsetting as a secondary strategy to come closer to true net-zero.
How Can Businesses Achieve Net-Zero Carbon Emissions?
By all estimates, the initial costs for the shift toward net-zero in the private sector are immense. The market research also demonstrates the incredible possibilities that such a change would entail, such as a global economy transformed by reduced energy costs, opportunities for industry expansion and innovation and enhanced health outcomes for workers.
Your business can engage in the transition by taking these and other steps to minimize your company’s carbon footprint and achieve net-zero carbon emissions. In so doing, you’re bolstering the long-term viability of your business by adapting to change and supporting your employees.
Adjust Facility Energy Consumption
Businesses and individual homeowners in many U.S. states can invest in renewable energy through the local power company’s carbon offset programs. These programs represent a simple way for companies to transition to low-carbon energy, especially if the premises are not suitable for solar installation or do not have direct access to renewable energy sources.
Enrollment in these programs means that companies measure the carbon dioxide equivalent gases such as CO₂ and methane and purchase carbon credits to compensate for the metric tons of CO₂e emitted. Other carbon-offset strategies include:
- Capturing greenhouse gases through technological means
- Planting trees or participating in reforestation projects
- Insulating buildings more thoroughly
- Eco-managing HVAC use
- Updating company fleets to all-electric vehicles
- Investing in EnergyStar rated computers
If, however, companies can completely transition to renewable energy, net-zero becomes a more tangible goal. Businesses that can shift to renewable energy sources should further capitalize on their reduced carbon footprint by implementing innovative energy consumption practices such as smart thermostats and EnergyStar equipment where possible.
Allow Employees a Mix of Hybrid and Remote Work
Even before the COVID-19 pandemic forced all non-essential workers to find ways to work from home, research demonstrated the significant impacts of reduced commuting. Aside from the benefits to employee morale and loyalty, offering the options of hybrid or fully-remote work schedules allows businesses to further reduce carbon emissions in the broader sense.
With flexible remote options available for employees, buildings use less energy overall since offices require less climate control, and fewer lights and computers are in operation. Although teleworking may not be suitable for all industries, workforces that combine in-person, hybrid and remote-work employees can simultaneously save on facility costs and come closer to net-zero.
Foster a Culture of Alternative Transportation
Company culture plays an important role in encouraging individual decision-making in terms of eco-friendly transit. While mandating employee commuting methods isn’t feasible, businesses can foster a culture of enthusiasm for sustainable methods of travel, such as biking, riding the bus and carpooling. Providing facilities for changing clothes or incentives for using mass transit can contribute to employee participation in your company’s net-zero aims.
As for business-related trips, train travel takes center stage as a sustainable transport choice. China and the U.S. have made decisive plans to expand their rail networks, and India has taken steps toward fully-electric rail systems. India has also set an aggressive goal of net-zero emissions by the year 2030.
Invest in Sustainable Travel Tools and Procedures
An exciting development in the transportation industry is the promised adoption by United Airlines of electric planes. By 2026, United will field 100 newly purchased 19-seat zero-emission electric planes for short domestic hops in the continental U.S.
However, choosing eco-friendly transportation is only part of the travel equation. Careful planning of destinations and accommodations also constitutes crucial elements of a company’s steps toward net-zero goals.
Travel managers and employees can leverage the power of technological tools, such as Rocketrip’s travel management platform, to make decisions limiting your company’s carbon footprint while allowing important travel to take place. Employees can earn benefits, and your business can continue to thrive in a net-zero setting.
What Does Net-Zero Mean for My Business?
Environmentally-friendly policies benefit everyone, and your company can derive the financial and social benefits of a sustainable business model by exploring various approaches to net-zero goals. Despite the potential front-loaded expenses, the long-term benefits to your business, and the world, are profound.
Your business can find ways toward carbon neutrality and net-zero carbon emissions by setting challenging but attainable targets for energy use, employee commuting and travel procedures. At Rocketrip, we support your company’s sustainability goals with tools for making travel plans to help you decrease your company’s carbon footprint.
