Since the 19th century, the utilization of fossil fuels such as coal, crude oil, and natural gas has been the primary cause of global climate change, which is highly attributable to human activities. Climate change causes the altering of Earth’s ecosystems, such as ocean warming and rising sea levels. We have to handle this catastrophe appropriately for a sustainable future by taking immediate measures to reduce greenhouse gas emissions and preparing for the effects of the increase in global temperatures.
The accord states that by the beginning of the twenty-first century, the world must accomplish net-zero commitments using the best available technology. A nation can achieve net-zero status when it reduces greenhouse gases (GHG) emissions by removing and absorbing Carbon dioxide, Nitrous oxide, Methane, and other Fluorinated gases from the environment. The effectiveness of the implemented emission control measures can be evaluated and tracked using CG Global Management’s AI-driven ESG Benchmarking Tool.
In the 21st century, many nations are now committed to reducing global emissions so that the temperature increase is below 2°C over pre-industrial norms while working to keep warming to 1.5°C under the 2015 Paris Agreement. One hundred ninety-three countries and the European Union have approved or joined this Agreement as of September 2022 to achieve Net zero emissions.
How To Reach Net Zero In Organizations?
By implementing sustainable practices, businesses should consider emission reductions to net zero GHG emissions. The compliance status can be set on track with the cloud-based software offered by CG Global Management, such as its Corporate Sustainability Software or Emissions Management Reporting Software. A variety of corporate activities and cost-effective solutions fall under this category of “net zero engagements,” including:
- Business goods and services – Sourcing raw material made from sustainable products.
- Facilities and procedures – Environment-friendly insulation of workplaces and promoting public transportation among employees.
- Transportation and distribution – Using recycled or biodegradable materials for packaging or electric cars for deliveries.
The best part is adopting net zero may have various advantages for organizations.
How Organizations Get Benefitted By Reaching Net Zero Emissions?
- Boosting Reputation – According to research by the Carbon Trust and Green Enterprises, customers increasingly expect businesses to behave in their best interests regarding moral judgments. Implementing carbon-neutral techniques could increase your company’s reputation and attract more customers. The ESG benchmarking tool from CG Global Management uses the AI-first approach and data-driven solutions to drive the growth of your organization.
- Increasing Brand Awareness –
Governments across the globe find themselves under growing pressure to include the handling of climate risk in their planning as the variation in climate continues to have a wide range of socio-economic repercussions.
So, considering the environmental concerns, organizations can analyze and explain how their activities help local communities reduce carbon emissions, thus publishing their full socio-economic effect on sustainability to gain more external attention.
- Cost Cutting – Simply tracking the energy consumption in your company could result in lowering energy use, thus reducing bills. You can switch to renewable energy sources by installing solar panels or other renewable energy sources that lower your company’s utility costs and could help convert to greener pricing.
- Attracting Investment – Investors might be drawn to companies that depend less on fossil fuels since supply issues will not impact their activities. Being a net zero company may appeal to shareholders and investors searching for businesses with a long-term strategic approach.
- Shielding Operations – If you strive towards Net Zero, your business may be more robust to societal upheavals of the market. For instance, utilizing electric vehicles could shield your company from rising gasoline prices and disturbances in the fuel supply. Therefore, implementing alternative energy sources like solar or wind could protect your company from unanticipated rises in energy costs.
- Magnified Property Value – The U.S. Green Building Council estimates that implementing a net zero plan can boost the long-term value of your property by up to 30%. The net zero ranking of a building is a great sign of energy efficiency. Thus, the net zero rating might be crucial for real estate investors when purchasing a property. So, ensure your business property has a net zero ranking, which might fetch greater resale value in the long term.
- Competitive Advantage – Understanding your carbon footprint and lowering it could give your company a competitive edge over rivals. According to the British Chambers of Commerce survey, only 11% of respondents track their company’s carbon impact. Customers are getting more concerned with the company’s sustainability qualities, such as the product packaging to the carbon footprint of food. They may trust you and will use your service or product again if you communicate more openly with them.
Carbon neutrality is an important part of the environmental component of Environmental, Social, and Governance (ESG). It comprises a carbon accounting information system that assists in assessing, evaluating, reducing, reporting, and certifying the records. This will give all the information needed for your stakeholders to help you in your efforts towards net-zero targets.
CG Global Management connects your ESG & Sustainability goals to Supplier Diversity & Local Content Compliance needs. Our unique AI-powered data-driven tools like the Corporate Sustainability Software, ESG Benchmarking Tool, and Scope 3 Emissions Management Reporting Software are here to solve your net zero challenges Please get in touch with our expert team to learn how our tools can help you track and manage your Net Zero journey.