Simplify Sustainability: Achieve Net Zero with Confidence

Taking climate action is no longer optional—it’s a must for businesses worldwide. As the urgency grows, implementing low-carbon initiatives effectively becomes vital. This guide breaks down key strategies and terms to help your organization get closer to its environmental goals. 

The Paris Agreement has made decarbonization a global priority. Its goal of limiting warming to 1.5°C by 2050 has pushed organizations to realign investments with environmental solutions. For example, over 5,000 companies globally have joined the Science Based Targets initiative (SBTi) to align their emissions reductions with the objectives of the Paris Agreement. 

Corporate sustainability initiatives are essential to driving this transition. To stay competitive, attract investors, and make meaningful impact, they need clear strategies for reducing greenhouse gas (GHG) emissions and adopting renewable energy. 

Before setting ambitious climate targets, it’s important to understand the foundational concepts driving the sustainability movement. Here, we define common terms to help you navigate the path toward net-zero emissions. 

Sustainability means using resources responsibly to leave the planet better for future generations. For organizations, this involves practices that support environmental, economic, and social well-being. The United Nations’ 17 Sustainable Development Goals (SDGs) provide a framework for embedding sustainability into your strategies. 

One of the most impactful actions you can take is transitioning to 100% renewable energy. Renewable sources—such as wind, solar, and hydropower—accounted for over 40% of global electricity generation in 2023, with wind and solar contributing nearly 14%. To align with decreasing reliance on fossil fuels, renewable energy must be the cornerstone of your sustainability efforts. 

Strengthen your renewable energy commitments by purchasing Energy Attribute Certificates (EACs), like Renewable Energy Certificates (RECs) or Guarantees of Origin (GOs), which verify your claims and demonstrate accountability. 

Net zero refers to achieving a balance between the GHG emitted into the atmosphere and those removed from it. This state is reached when the amount of carbon dioxide and other GHG added to the atmosphere is equal to the amount removed, resulting in no net increase in emissions. 

Key points about net zero: 

1. Emissions reduction: 

   1. The primary focus is on reducing emissions from sources like energy production, transportation, and industrial processes. 

   2. Transitioning to renewable energy sources, improving energy efficiency, and adopting low-carbon practices are common strategies. 

2. Carbon removal: 

   1. Any remaining emissions that cannot be eliminated must be offset by removing an equivalent amount of greenhouse gases from the atmosphere. 

   2. This can be done through natural methods like reforestation or technological solutions like carbon capture and storage. 

3. Scope of emissions: 

   1. Scope 1: Direct emissions from an organization’s operations. 

   2. Scope 2: Indirect emissions from purchased energy. 

   3. Scope 3: Emissions from the value chain, including suppliers, customers, and logistics. 

4. Implementation: 

   1. Achieving net zero involves reducing emissions, utilizing high-quality carbon credits, and investing in sustainable technologies. It signifies not just a goal but a framework for creating a resilient future. 

To get started on a decarbonization roadmap, companies should break down GHG emissions reduction, avoidance, and removal goals into chunks. Five- and ten-year goals will be easier to manage than fifty-year plans, and if there are roadblocks, course correction will be simpler. With each goal met, companies will pick up momentum in pursuit of their most ambitious targets. 

At ACT, we simplify your journey to net zero with end-to-end market-based solutions tailored to your needs. From customized, climate action pathways to innovative resources, like seamless renewable energy procurement, we can empower your organization to reach low-carbon objectives efficiently and transparently.