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.

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.

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.

Scope 1 emissions largely result from the combustion of fuel within the business’ operations. Reducing emissions from these sources is generally focused on energy efficiency, fuel switching and process operation.

More detail around reducing Scope 1 emissions can be found here

Scope 2 emissions largely result from greenhouse gases released in the electricity purchased. Reducing emissions from these sources is generally focused on energy efficiency, onsite generation and the purchase of renewable electricity.

More detail around reducing Scope 2 emissions can be found here

Scope 3 emissions largely result from greenhouse gases released from a business’ value chain including the goods and services purchased by the business . Reducing scope 3 emissions requires data quality improvements so the actual impact of reduction can be measured. From there initiatives such as collaborating with suppliers, waste management and changes to the businesses approaches to activities such as transport, commuting and business travel can help drive lower emissions over time.

More detail around reducing Scope 3 emissions can be found here