Skip to main contentBy Colin Hindmarsh, Managing Director
When it comes to Net Zero, we’re all in it together
The key headline from COP27 was the creation of a pooled fund for countries most affected by the impact of climate change – described by many as the most important breakthrough since the Paris Agreement.
While the details of how the fund will operate are still to be confirmed, this global commitment to financial support underlines the shared nature of the climate crisis.
At every level, we are all in this together.
That’s something for organisations to keep front of mind when developing their strategy for achieving ambitious net zero targets. It is not a destination they can reach on their own. Indeed, this is a shared problem that can only be addressed by working together – for example, with group companies pooling data and resources, entire supply chains examining the knock-on impact of their individual processes and operations, and sectors coming together to share best practice and innovative ideas.
Why accurate data is key
In practice, the first step for your business is to ensure you have a clear understanding of your baseline emissions – without this data you won’t know the scale of the task or have the visibility to measure progress.
To do this, you must address the three emissions ‘Scopes’ as outlined in the Greenhouse gas (GHG) Protocol. Scopes 1 and 2 cover direct and power-related emissions and are easier to quantify. Scope 3 is more complex because it covers emissions that occur throughout the value chain. At Envantage, our experts can help by conducting a Scope 3 emissions screening analysis so you can have a full understanding of the true carbon impact of your operation.
A new measure of value
We understand that in the midst of the current economic climate there is mounting pressure on businesses from multiple directions. Against this backdrop, working towards ambitious net zero targets might be perceived as simply adding to the strain. However, a sound strategic approach to net zero is the key to unlocking both efficiencies and investment. But making any meaningful progress does require a joined-up approach that looks beyond your own business.
The Carbon Disclosure Project (CDP) estimates that a company’s supply chain produces 11 times more emissions than the company on its own, and it can be as high as 25 times more emissions in sectors such as retail.
At its October meeting, the International Sustainability Standards Board – established a year ago following calls for better quality reporting on climate and other environmental, social and governance (ESG) matters – voted unanimously to require company disclosures on Scope 1, Scope 2 and Scope 3 greenhouse gas emissions.
This is not a surprising development, but it is significant because it shows the future direction of travel and underlines the commercial ramifications of failing to get serious about net zero. Without reliable and clear information about your organisation’s emissions throughout the value chain and your plans for reducing them, potential investors might simply walk away.
To find out how Envantage, can help with your net zero planning, get in touch today.
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