As we approach Net Zero Week 2023, the spotlight is once again on the critical role that businesses and countries play in combating climate change. This annual event, now in its sixth year, aims to raise awareness and accelerate action towards achieving net zero carbon emissions.
The importance of understanding the language of sustainability cannot be overstated.
A recent survey by the Carbon Trust revealed that 76% of companies have sustainability embedded in their business strategy, highlighting the growing recognition of the role businesses play in achieving global sustainability goals.
However, the journey to net zero is filled with complex jargon that can often be confusing, even for those deeply involved in sustainability initiatives.
Understanding Net Zero
Net Zero refers to the balance between the amount of greenhouse gas produced and the amount removed from the atmosphere.
A net zero target aims to completely balance the amount of emitted greenhouse gases with the amount that is removed. Achieving net zero is not about ceasing all emissions but is about creating an equilibrium between emissions produced and emissions taken out of the atmosphere.
The concept of carbon neutrality is often used interchangeably with net zero, but it’s slightly different.
Carbon neutrality refers to the process of offsetting the amount of carbon dioxide emissions with an equivalent amount of carbon offsets. This means that for every tonne of CO2 a company or country emits, it must remove or offset a tonne elsewhere.
The importance of Net Zero targets for businesses and countries is increasingly being recognised. According to a report by the United Nations, 124 countries, representing 51% of global greenhouse gas emissions, had net zero targets in place by the end of 2022.
For businesses, setting a net zero target is not only about environmental responsibility but also about future-proofing operations and ensuring long-term viability in a world that is rapidly moving towards a low-carbon economy.
In the next sections of this guide, we will delve deeper into the key terms and concepts that underpin the global push towards a sustainable future. Read on as we unravel the net zero jargon and provide a clear and concise understanding of the language of sustainability.
Key Terms in the Net Zero Landscape
Carbon Footprint: The carbon footprint of an entity, be it an individual, a business, or a country, refers to the total amount of greenhouse gases that are emitted due to their activities. These emissions are usually measured in units of carbon dioxide equivalents (CO2e) to account for the different global warming potentials of various greenhouse gases. Understanding and reducing one’s carbon footprint is crucial to achieving Net Zero, as it directly contributes to the amount of greenhouse gases in the atmosphere.
Greenhouse Gas (GHG) Emissions: Greenhouse gases are gases in the Earth’s atmosphere that trap heat, contributing to the greenhouse effect and global warming. The primary GHGs are carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), and fluorinated gases. The release of these gases into the atmosphere by human activities, such as burning fossil fuels for electricity, heat, and transportation, is a major driver of climate change.
Carbon Offsetting: Carbon offsetting is a way for companies to invest in environmental projects around the world to balance out their own carbon footprints. These projects could include reforestation, renewable energy, or community-based projects in developing countries. The idea is that, while the company continues to emit GHGs, it is also helping to remove or reduce GHGs elsewhere.
Carbon Credits: A carbon credit is a permit that allows the holder to emit a certain amount of carbon dioxide or other greenhouse gases. One credit permits the emission of a mass equal to one tonne of carbon dioxide. The idea behind carbon credits is to limit the total amount of emissions while providing a financial incentive for companies to reduce their emissions.
Scope 1, 2, and 3 Emissions: These are categories of greenhouse gas emissions used in carbon accounting. Scope 1 emissions are direct emissions from owned or controlled sources. Scope 2 emissions are indirect emissions from the generation of purchased energy. Scope 3 emissions are all indirect emissions (not included in scope 2) that occur in the value chain of the reporting company, including both upstream and downstream emissions.
Energy Efficiency: Energy efficiency refers to using less energy to perform the same task – that is, eliminating energy waste. Energy efficiency brings a variety of benefits: reducing greenhouse gas emissions, reducing demand for energy imports, and lowering our costs on a personal and economy-wide level.
Renewable Energy: Renewable energy, often referred to as clean energy, comes from natural sources or processes that are constantly replenished. For example, sunlight or wind keep shining and blowing, even if their availability depends on time and weather. While renewable energy is often thought of as a new technology, harnessing nature’s power has long been used for heating, transportation, lighting, and more.
Sustainability: Sustainability is the practice of using resources in a way that preserves the environment for future generations. In the context of Net Zero and climate change, sustainability involves reducing greenhouse gas emissions, transitioning to renewable energy, and implementing practices that are environmentally, socially, and economically beneficial.
Emerging Terms in the Net Zero Space
Climate Positive: Climate positive, also known as carbon positive, goes a step beyond achieving net zero emissions. While net zero involves balancing the amount of emitted greenhouse gases with the amount removed from the atmosphere, being climate positive means that an entity, such as a business or country, is removing more carbon from the atmosphere than it is emitting. This can be achieved through a combination of reducing emissions and implementing carbon capture and storage technologies.
Decarbonisation: Decarbonisation refers to the process of reducing the amount of greenhouse gases, particularly carbon dioxide, that are emitted by specific activities, especially the use of fossil fuels. This is a crucial part of achieving net zero, as it involves transitioning to cleaner forms of energy and implementing practices that reduce emissions.
Circular Economy: A circular economy is an economic system aimed at eliminating waste and the continual use of resources. It involves rethinking and redesigning products and services to prevent waste, as well as regenerating natural systems. In the context of sustainability and achieving net zero, a circular economy can help reduce emissions and resource use.
ESG (Environmental, Social, Governance): ESG stands for Environmental, Social, and Governance, three central factors in measuring the sustainability and societal impact of an investment in a company or business. These criteria help to better determine the future financial performance of companies (return and risk). Environmental criteria consider how a company performs as a steward of nature. Social criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. Governance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights.
The Journey to Net Zero
As we navigate the path towards a more sustainable future, understanding the language of net zero becomes increasingly important. These terms and concepts form the foundation of the discussions and decisions that will shape our world in the years to come.
For businesses, in particular, a clear understanding of these terms is crucial in formulating effective strategies to reduce emissions and contribute to the global goal of achieving net zero.
The journey towards net zero is not a solitary one. It requires the collective effort of all sectors of society, from individuals to businesses to governments. We encourage businesses to take proactive steps towards reducing their carbon footprint.
At ClearVUE.Business, we are committed to supporting businesses in their net zero journey. Our team of experts is ready to provide guidance and solutions tailored to your business’ unique needs and goals. If you have any questions or would like to learn more about how we can help your business achieve net zero, please don’t hesitate to reach out to us.