More companies are making commitments to net zero carbon emissions goals every year. Each company faces its own unique challenges in finding the best way to reduce carbon emissions. This article will examine how companies in different sectors are affected by net zero and how they can achieve their emissions reduction goals.
Companies Challenged by Net Zero?
At this point, a fifth of companies worldwide have committed to net zero emissions objectives. This is an impressive contribution to global net zero emissions goals, but we still have a long way to go as an international community to slow global warming and its effects on human health and safety.
Not all businesses have the same journey toward achieving net zero goals, however, as each industry has a different starting point in terms of the emissions levels their business activities create and therefore need to offset.
Companies With High Emissions Levels
The industries that, by their nature, contribute the most carbon to the atmosphere include transportation, energy, and production industries.
Transportation businesses will continue to be high emitters as long as they use mainly fossil fuels. Truly reaching net zero emissions for these industries depends largely on renewable energy research, development, and implementation.
Until affordable transportation options that use renewable energy are widely available and accessible, these businesses will need to rely heavily on offsetting their existing emissions to make a difference.
Similar to transportation, energy production companies may require radical changes to bring them to net zero. As an example, it is practically impossible for the coal industry to continue while simultaneously striving toward net zero emissions. These companies may need to shift to alternative energy sources that do not contribute as heavily as coal to global warming.
For companies in this sector, looking toward net zero emissions could involve very drastic changes and even branching into new specializations as societies turn more toward renewable energy resources.
Production industries have more options when it comes to continuing their business while still looking toward net zero emissions. Altering their production methods to those that use green energy and recycled materials in their processes is a significant step toward achieving net zero goals.
What Are The Possible Solutions?
While achieving net zero emissions will necessarily look different for each specific company and industry in question, all companies are able to invest monetarily in offsetting their emissions, which is a great place to start. Taking further steps toward achieving net zero, however, can be more complex for many companies.
For the high-emissions industries we’ve discussed, achieving net zero goals will require foresight, planning, and gradual investment in and implementation of developing technologies.
For industries like transportation and energy production, many companies will want to consider what portion of offsetting costs should fall on the business versus what portion should fall on their consumers. This is still up for debate, and decisions regarding how this plays out will be unique to individual industries and companies.
Because of the difficulty and heavy expense involved in achieving net zero, many companies with high emissions levels will not pursue net zero goals unless forced to through governmental regulations or extreme social pressure from consumers.
Low Emissions Industries
For other industries, achieving net zero is not as complicated. Some companies’ operations may only create carbon emissions from the energy needed to power the lights and computers in their office buildings. Since they already produce fewer carbon emissions in comparison to other industries, achieving net zero emissions is more straightforward.
Many of these companies, however, will be quick to claim net zero emissions based only on the carbon emissions resulting directly from their business operations. The best practice for these companies would be to extend their emissions reduction plans to include indirect emissions, which come from suppliers, shipping, and users of their products. Ultimately, these companies have not fully achieved net zero emissions until they can address and factor in offsets for their indirect emissions as well.
Everyone Needs To Do Their Part
All companies are affected by net zero in their own unique ways. Different industries will need to use different methods to achieve net zero according to their emissions production levels and the technologies available to help reduce emissions from their business operations. Additionally, each business will need to consider both direct and indirect carbon emissions to fully reach a net zero goal.
Until emissions reduction strategies can be implemented in all industry sectors, any business can still reduce its overall carbon footprint by offsetting current emissions.
If you are looking for ways to make your business operations more environmentally friendly, Carbon Credit Capital is here to help.
Contact us today for expert advice on ways that you can offset your carbon emissions and strive to create greener systems within your business.