{"id":2391,"date":"2022-01-10T11:39:05","date_gmt":"2022-01-10T09:39:05","guid":{"rendered":"https:\/\/climatetrade.com\/?p=2391"},"modified":"2023-08-08T11:29:16","modified_gmt":"2023-08-08T09:29:16","slug":"net-zero-from-aspiration-to-auditable-strategy","status":"publish","type":"post","link":"https:\/\/climatetrade.com\/net-zero-from-aspiration-to-auditable-strategy\/","title":{"rendered":"Net zero: From aspiration to auditable strategy"},"content":{"rendered":"

New standards and public procurement requirements forcing companies to turn their net zero targets into ambitious, yet achievable decarbonisation plans.<\/p>\n

Today, more than 74 countries, representing over 80% of the world\u2019s GDP and almost 70% of global CO2 emissions, have announced net zero carbon commitments. Moreover, more than 3,000 companies have set their own targets as part of the United Nations\u2019 Race to Zero campaign, in recognition of the fact that the rules of corporate competition are changing, and that the level of global collaboration between companies and governments needs to increase.<\/span><\/p>\n

Most of the commitments share a 2050 deadline. This may seem very far away, but 30 years isn\u2019t much when it comes to decarbonizing a company\u2019s entire operations<\/a>, and regulators know that. For this reason, governments are starting to align their own net zero targets with their purchasing strategy.<\/span><\/p>\n

A major public tender milestone in the United Kingdom<\/b><\/h2>\n

In September 2021, the UK added environmental criteria to its public tender selection process for contracts of more than 5 million pounds. The measure applies to all departments in the central government, as well as executive agencies and public organizations.<\/span><\/p>\n

Among the selection requirements is the delivery of a carbon reduction plan, which must include a detailed breakdown of where the bidding company\u2019s CO2 emissions come from, and what environmental and carbon reduction measures it plans to implement.<\/span><\/p>\n

Several large corporations are already reporting their Scope 1 (direct) and Scope 2 (own indirect) emissions as part of their energy and carbon reports, particularly since 2018. But the new rules go beyond that, requiring not only a commitment to achieve net zero by 2050, but also the reporting of parts of Scope 2 (value chain) emissions. These must be calculated according to the GHG Protocol recommendations, and include business trips, employee commute, transportation, distribution and waste, for the first time. Scope 3 emissions are a significant proportion of an organization\u2019s carbon footprint, yet they are often the hardest to calculate and reduce.<\/span><\/p>\n

For the UK government, understanding, reporting on and reducing these three scopes of CO2 emissions will play a major role in the decarbonization of the government\u2019s supply chain, and of the overall country\u2019s economy.<\/span><\/p>\n

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