What do we mean by emission reduction?
Emissions reduction involves implementing strategies to lower the amount of greenhouse gases released into the atmosphere. This includes improving energy efficiency, switching to renewable energy sources, optimising industrial processes, enhancing waste management, and engaging stakeholders across the supply chain.
Most business activities result in greenhouse gases and so the starting point is that business results in GHG emissions. Once an organisation has measured their starting point or “Baseline” they can implement changes to their operation so that emissions generated year-on-year decrease over time.
Why is reducing Emissions important?
There are many strategic reasons why a company would measure and reduce it’s emissions. Primarily these focus around the commercial benefit of demonstrating reductions to stakeholders such as boards, customers and the general public.
Lower emissions intensity products can often result in higher sales as demand increase and the potential for a price premium. On the opposite side if a business is unable to demonstrate a reduction in their emissions over time they risk being locked out of supply chains and the potential for lower demand.
Our Blog Post here has a great guide on creating an emission reduction strategy once an initial baseline has been completed.
What is Net Zero?
Net zero, as defined by the Science Based Targets initiative (SBTi), is a state where a balance is achieved between the greenhouse gases emitted into the atmosphere and those removed or offset. According to the SBTi's Net-Zero Standard, companies must reduce their greenhouse gas emissions by at least 90% by 2050, with the remaining emissions to be neutralised through permanent carbon removal and storage methods.
Meeting Net Zero by 2050 globally would help the world to meet the commitments made under the Paris Agreement and limit the impacts of global warming to 2 degrees Celsius and hopefully 1.5.
See more on our Blog here on what is Net Zero and SBTi.