Is achieving net zero your ultimate goal? When it comes to sustainability, many companies have chosen to aim for carbon neutrality, also known as “net zero“. In the context of a climate emergency and an ever-evolving regulatory landscape, this objective has become a strategic imperative for organizations of all sizes. In this article, we will guide you through the implementation of best practices to achieve net zero and integrate them into your organization’s operational levels.

1. Understanding the net zero emissions target
2. 5 steps to achieve net zero
3. Complying with legal obligations

Before delving into operational practices, it’s important to precisely understand what the concept of net zero encompasses.

The term “net zero” refers to a state where the greenhouse gas (GHG) emissions produced by an organization or a country are balanced by the equivalent removal of these emissions from the atmosphere. In other words, “net zero” means that the GHG emissions generated by human activities are offset by actions that remove or capture an equal amount of these emissions, resulting in a carbon-neutral balance.

The first step toward carbon neutrality is to understand where your company stands in terms of greenhouse gas emissions. This involves evaluating your carbon footprint to measure both direct and indirect emissions associated with your organization’s operational activities.

The carbon footprint assessment is a comprehensive project aimed at evaluating and reducing greenhouse gas emissions, carried out in five key steps:

1. Raising awareness about the greenhouse effect, its causes, and its impact on the environment and human health.
2. Defining the scope of the study.
3. Collecting and analyzing data.
4. Developing an action plan to reduce greenhouse gas emissions.
5. Implementing the action plan.

The calculation of the carbon footprint takes into account both the organizational and operational boundaries of your company, including Scopes 1, 2, and 3:

• Scope 1 includes all direct greenhouse gas emissions from the company, such as heating facilities and emissions from company-owned vehicles.
• Scope 2 encompasses indirect emissions related to energy consumption (electricity, steam, heat, cooling, compressed air, etc.) during the production of goods or services.
• Scope 3 covers all other indirect emissions, including the procurement of goods and services, the use of sold products, upstream and downstream transportation of goods and raw materials, and more.

This energy audit is an essential tool for identifying your main sources of GHG emissions and determining opportunities for reduction.

Integrating renewable energy is a crucial component of any net zero strategy. Here are some concrete examples of how this can be implemented:

• Rooftop solar panel installations: Companies can install solar panels on the rooftops of their buildings to generate renewable electricity.
• Solar parks: Some companies invest in solar parks located near their facilities to cover a significant portion of their energy needs.
• On-site wind turbines: Businesses with large spaces, such as industrial parks, can install wind turbines to generate energy.
• Geothermal heating and cooling: Utilizing underground heat to sustainably heat and cool buildings.
• Cogeneration: Systems that combine the production of heat and electricity from biomass.

If direct on-site renewable energy generation is not feasible, other options are available through the purchase of renewable energy from external sources, achievable in two main ways:

• Purchasing Energy Attribute Certificates (EACs): An EAC represents 1 MWh of energy produced by a renewable energy facility and injected into the power grid. The acquisition of an EAC generated by any renewable energy installation grants the organization the right to claim the environmental benefits associated with that energy production. These certificates come in different forms depending on the region: Guarantees of Origin (GOs) in Europe, Renewable Energy Certificates (RECs) in the United States, and the International REC Standard (I-RECs) in other parts of the world.
• Signing Power Purchase Agreements (PPAs): This refers to a long-term electricity purchase contract that the organization signs directly with an energy producer. Both parties agree on the purchase and production of a certain amount of energy at a fixed price per MWh from the beginning to the end of the contract.

Energy efficiency is based on the principle that energy not consumed is energy not produced, which means it doesn’t emit any greenhouse gases (GHGs)! With this in mind, the goal is to regulate the energy consumption of your company.

Here are some actionable steps you can take to limit and optimize your organization’s energy consumption:

• Conduct regular energy audits: Identify energy-intensive areas within your company and uncover opportunities to reduce energy consumption.
• Optimize processes: Adjust production processes and daily operations to minimize energy use.
• Install green roofs and walls: These installations help regulate building temperatures, reduce energy consumption, and provide natural insulation.
• Invest in energy-efficient equipment: Use high-efficiency office and industrial equipment powered by renewable energy sources.

The result is twofold: not only will your company have a reduced impact on the climate, but you’ll also notice a significant decrease in your energy bills.

Once actions are implemented, it’s important to establish systems for tracking emissions and energy consumption to accurately calculate your carbon footprint.

Here are some key performance indicators (KPIs) to monitor:

• Total CO2e emissions: Measurement of all carbon dioxide equivalent emissions from the organization.
• Direct emissions (Scope 1): Emissions from sources directly controlled by the company.
• Indirect emissions (Scope 2): Emissions from the energy purchased and consumed by the organization.
• Other indirect emissions (Scope 3): Emissions from the company’s value chain, including business travel, goods transportation, and product use.
• Carbon intensity per unit of production: The amount of CO2e emissions per unit of product manufactured or sold.
• Carbon intensity per revenue unit: The amount of CO2e emissions per unit of revenue generated.
• Percentage of renewable energy: The proportion of energy consumed that comes from renewable sources.
• Amount of renewable energy produced on-site: Measurement of renewable energy production (e.g., solar, wind) within the organization’s facilities.
• Energy consumption reduction: The percentage reduction in total energy consumption compared to a reference year.
• Energy efficiency improvements: Investments and outcomes of initiatives aimed at improving energy efficiency.

These KPIs will help you assess the effectiveness of your sustainability initiatives and guide further efforts toward achieving your net zero goals.

The transition to net zero requires the commitment of all levels within the organization. It is crucial to train and raise awareness among internal teams, engage partners, and communicate transparently with clients and investors.

This collective effort is essential to ensure that everyone understands the objectives and actions that need to be implemented.

Have you chosen to aim for carbon neutrality? If so, you may be subject to the European CSRD directive, making it essential to document and communicate your sustainability progress.

The Corporate Sustainability Reporting Directive (CSRD) requires companies to produce non-financial reporting that reflects their ESG (Environmental, Social, and Governance) data. This report, which details the company’s environmental impact and the efforts made to improve it, is necessary to enhance compliance, transparency, and credibility with stakeholders.

And what about across the Atlantic? While the United States does not yet have a unified federal framework for ESG reporting similar to the CSRD, various regulatory bodies and initiatives, such as the Securities and Exchange Commission (SEC) and the Sustainability Accounting Standards Board (SASB), guide companies in disclosing their ESG practices and metrics.

Achieving the goal of carbon neutrality, or net zero, has become a strategic imperative for businesses of all sizes. In the face of global environmental challenges and constantly evolving regulations, it is crucial to implement effective practices to reduce greenhouse gas emissions and integrate renewable energy solutions into organization’s operational levels.

Now is the time to take action and turn this goal into a reality. If you are looking to integrate renewable energy into your company’s operations, Nvalue positions itself as a key partner to support you in this transition toward a more sustainable future.