How Not To Commit To ‘Net Zero’: 5 Common Carbon Strategy Mistakes
Net zero, it seems, is the new plastic-free – a target for carbon neutrality is the must-have centrepiece for your brand’s sustainability communications strategy. A weary tweet from the Telegraph’s Sam Brodbeck last month spoke volumes: “Can any firms confirm they’re NOT going carbon neutral? Would be a lot quicker.”
The trend shows no sign of slowing. The NewClimate Institute recently reported a threefold increase in the number of businesses setting net zero goals, from 500 at the end of 2019 to 1,565 in October 2020. Meanwhile, estimates suggest that the carbon offset market could hit $1.4 trillion annually in 20 years, a roughly five-thousand fold increase from $247.9 million in 2020. It was this sort of forecast that prompted Mark Carney to launch the Taskforce on Scaling Voluntary Carbon Markets.
We urgently need businesses to radically reduce their carbon emissions in order to achieve decarbonisation by 2050 and limit the worst threats of the climate crisis. But as organisations queue up to add their net zero strategies to the pile, a number of common pitfalls are emerging. These mistakes threaten not only the integrity of their communications, but the future of our planet. Here are five mistakes to avoid:
Mistake #1: Ignore your ‘Scope 3’ emissions
Brands need to stop cherry-picking which emissions they want to account for. By excluding Scope 3 emissions from net zero plans, many are turning an opportunity for real impact into a compliance activity.
Mistake #2: Set a 2050 target, then continue business as usual
Brands must publish a clear decarbonisation pathway and be actively accountable to it.
Mistake #3: Confuse stakeholders with language
Last year, a BEIS survey found that 64% of the UK public are unaware of net zero as a concept, and just 3% of the UK public feel they know “a lot” about it. Reading this, I was hardly surprised. We are bombarded daily with a whole gamut of terms: Carbon Neutral, Net Zero, Carbon Zero, Climate Positive and many more.
Mistake #4: Keep your strategy secret
It’s crucial that brands are open about how they’ll meet net zero. Remember: you can’t call yourself a ‘climate leader’ if no-one can follow your example.
Mistake #5: Treat offsetting as a get out of jail free card
Offsetting should be the final part of a carbon management plan. For anyone reading this who’s tempted to see offsetting as a license for business-as-usual, it’s worth considering the impact of over-reliance on offsetting.
Net zero: a huge opportunity for business
In the face of the grave socio-economic dangers of the climate crisis, it seems redundant to set out a ‘business case’ for genuine action around net zero.
But for those that see carbon management strategies as a cost rather than an investment, research from the Global Commission on the Economy and Climate points to big benefits to the bottom line. Their report suggests that bold climate action could deliver at least $26 trillion in economic benefits through 2030, while generating more than 65 million jobs.
Whatever your driver, the need for urgent action is clear. Net zero offers businesses a huge opportunity to build back better. With clear, actionable milestones and an honest, science-based approach, I’m hopeful that brands can avoid greenwashing and bring about needed change.
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Merian Ventures portfolio company Provenance is associated with the above feature. Merian Ventures is a venture firm founded by Alexsis de Raadt St. James that invests in women-founded and co-founded tech innovation in the US and UK.