7 Benefits of Developing a Net Zero Carbon Strategy for your Business

The pressure is on for businesses to join the fight against climate change. With new government regulations & commitments being introduced, it’s become more important than ever for businesses to define – and implement – their own Net Zero roadmap.

What is Net Zero?

Net-zero emissions is a state where a business balances the greenhouse gas emissions it produces with measures that reduce and remove emissions.

Here are seven reasons why your business needs to define and implement an environmental Net Zero strategy now.

It’s become a legal requirement

At COP26, the Chancellor stated that the UK will move towards making it mandatory for companies to publish a clear plan on how they will decarbonise and transition to Net Zero. From 2023, companies will be expected to disclose their plans in the transition to Net Zero. It’s important to prepare your business now so it will have everything in place when legal requirements come in.  

Government Purchasing and Larger companies demand it

If you’re an SME supplying to larger companies or government, you might soon find they’re asking for your Net Zero strategy. Larger public companies are under higher pressure to reduce their carbon emissions and that means they will start vetting companies that they work with to make sure they are also committed to Net Zero.

Impact on Supply Chains

Sourcing of raw materials is a key element in achieving Net Zero targets. As Green technologies and products become mainstream, the availability of certain minerals, and recycled materials will become more competitive. A robust decarbonisation strategy will allow your organization to have the necessary processes in place to be more competitive.

Save money

Examining how your business uses energy and making a swap to more energy efficient processes and greener technologies can help your business save on energy costs in the long-term.

This doesn’t necessarily mean your business needs to heavily invest in solar panels and wind farms right away. It can start off with a Lean business strategy to reduce waste and use energy more efficiently.  

Attract investment

Investors are looking to companies with established long-term strategies for the transition to Net Zero. Companies which have invested in green technologies will also be more attractive to investors as they are less reliant on fossil fuels which can be subject to supply chain disruptions and price hikes.

Protect your business’ reputation

Adopting a Net Zero strategy will show customers that your business is ethically and environmentally responsible. Recent studies have revealed that customers are more attracted to businesses with sustainable and environmentally friendly practices. By making a clear commitment to reducing your carbon emissions, you may widen your consumer base.

Gain a competitive edge

Many businesses will see Net Zero as a challenge to their established way of doing things. Adopting a Net Zero strategy now will allow you to gain a competitive advantage in terms of both business processes and brand image.

If you need help defining and implementing your decarbonisation strategy and starting your Net Zero journey, the Centre for Competitiveness can assist.  

Our industry experts can evaluate your business and help you define and implement a long-term plan to reduce your carbon emissions. There is no silver bullet, but there are solutions.

For more information email compete@cforc.org or call: 028 9073 7950 or our Dublin number: +353 8 7224 2575