What are the top reasons for companies to publish Net Zero commitments?
There are several reasons why companies may choose to publish Net Zero commitments. These reasons can include:
- Reputation and brand image: By committing to achieving Net Zero emissions, a company can demonstrate its commitment to sustainability and environmental responsibility. This can help to improve the company’s reputation and enhance its brand image in the eyes of consumers, investors, and other stakeholders.
- Compliance with regulations: Many countries and regions have established laws and regulations that require companies to reduce their greenhouse gas emissions. By committing to Net Zero, a company can ensure that it is in compliance with these regulations and avoid potential fines or penalties.
- Financial benefits: Reducing greenhouse gas emissions can lead to a range of financial benefits for a company. For example, reducing energy consumption can lower a company’s energy bills, and investing in renewable energy sources can provide long-term cost savings. Additionally, companies that achieve Net Zero may be eligible for tax breaks or other financial incentives.
- Attracting and retaining employees: Employees are increasingly looking for employers that prioritize sustainability and environmental responsibility. By committing to Net Zero, a company can demonstrate its commitment to these values and may be able to attract and retain top talent.
- Leading by example: By committing to Net Zero, a company can demonstrate leadership and inspire other companies and organizations to follow suit. This can help to drive broader action on climate change and accelerate the transition to a low-carbon economy.
Which of the emissions lowering strategies are considered more beneficial?
In the context of Net zero commitments, both reducing emissions and removing carbon dioxide from the atmosphere are considered beneficial. Net zero refers to achieving a balance between the amount of greenhouse gases released into the atmosphere and the amount that is removed. In order to achieve this balance, a combination of strategies may be needed, including reducing emissions, increasing energy efficiency, and implementing carbon removal technologies.
Best practice varies slightly among the various guidelines and standards dealing with net zero, but in general, the first step being, knowing the emissions you produce (measure), then reducing the environmental impacts that you can internally (reduce), and for an additional impact, companies can neutralize the remaining emissions using carbon credits (offset).
Always when performing emissions offsetting actions and making claims, care should be taken to ensure that the claims are real and not overblown. Advice from a specialist in ESG and offsetting should be conducted.
