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The importance of your supply chain You may think Net Zero is not important or relevant to you, but your clients who are on the path to ‘going green’ may not feel the same way. In fact, they could start putting pressure on your business sooner than you think. For a company, optimising your supply chain for Net Zero can increase efficiency, decrease costs and enhance customer service. It builds your reputation among customers and employees who have rising expectations for sustainable business. It also wins funding support from investors who increasingly demand strong environmental, social and corporate governance. What is Net Zero? Net Zero refers to the balance between the volume of greenhouse gas produced and the amount removed from the atmosphere. This balance – Net Zero – will happen when the carbon added to the atmosphere is no more than the amount removed. Net Zero is the best way to tackle climate change by reducing global warming. Achieving a Net Zero, or close to Net Zero, target is necessary to arrest global warming at 1.5 Celsius. The UK set a target to achieve Net Zero by 2050, which is looking increasingly over-ambitious unless businesses act immediately. What are scopes 1, 2 and 3 of carbon emissions? The Greenhouse Gas Protocol is the world’s most widely used greenhouse gas accounting standard, with three scopes.
Net Zero is the best way to tackle climate change by reducing global warming
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Diamond Magazine
Scope 1 covers direct emissions and Scopes 2 and 3 are indirect emissions. Achieving carbon neutral status only covers Scopes 1 and 2. Scope 1 Scope 1 emissions are direct emissions deriving from company-controlled resources. Emissions are as a direct result of activities such as heating an office, a manufacturing process, or running vehicles. Scope 1 includes all fuels that produce greenhouse gas emissions. Scope 2 Scope 2 emissions are the indirect emissions created in the production of the energy used by your business, which could be from renewable or fossil fuel-based sources, or a mixture. Scope 2 emissions can be zero if supplied 100% from renewables. Scope 3 Scope 3 emissions are generally the largest part of an organisation’s carbon footprint as they cover a much wider remit within a supply chain, where your business does not own
