Roadmap towards a Net Zero company: How to begin your decarbonization journey?
Rapid progress in science both benefits people's daily lives and encourages wasteful consumption of the planet's finite energy supplies. By 2040, it's possible that global energy demand would have increased by 28%, according to some estimates. Most of the world's energy needs are now met through the burning of fossil fuels like coal, oil, and natural gas and if the current rate of consumption continues, these resources may be exhausted in the not-too-distant future. In addition, the rising levels of the greenhouse gas CO2 are a direct result of the excessive burning of fossil fuels, which is the primary driver of global warming. As a result of global warming, the average global temperature has risen by 1°C in recent years, posing serious risks to our planet.
Following the COP26 summit in Glasgow, where nations, towns, and corporations increased the bar in their decarbonization promises, the shift to net-zero is now in high gear. The transition to a carbon-free society will have an impact on every industry, no matter how large or little, thanks to the bold commitments made by political and commercial leaders. Although there has been a major increase in the use of renewables and nuclear in 2021 with them contributing more than coal in the electricity generation, there has still been a lot of CO2 generated post pandemic.
The good news is that we have both the technology and the means to achieve net zero. In fact, renewable energy is frequently much less expensive than fossil fuels, which gives industries even more justification to quicken their transition to carbon neutrality.
A simple glance at a variety of industries reveals how decarbonization is essential to their survival in a changing environment. For instance, customer pressure from students, donors, and board of trustees is increasing on public and private educational institutions to fulfil their climate pledges. Decarbonization is essential for firms to manage risk as shareholder pressure to meet climate goals is increasing and new regulations from regulatory bodies also loom. The sustainability profile of commercial real estate enterprises, meanwhile, limits their access to funding. Without a net-zero target, REITs will not acquire the funding they need to gather new assets.
Naturally, the transition to net-zero will take time. Institutions, businesses, and municipalities won't be carbon-free for many years. It is crucial that they get moving right away because of this.
Developing an action plan
Making the decision of how to start your net-zero path can be intimidating. Assessing your company's existing condition and readiness to start decarbonizing is a smart place to start. This should involve looking at your organization's pledges, strategies, and actions as well as your current carbon footprint.
The next step is to assess the advantages and disadvantages of both taking action and doing nothing. You may design an effective carbon reduction glidepath that is in line with your organizational goals and stakeholder expectations by completing a materiality assessment, which will enable you to identify and decide the issues influencing your business and stakeholders.
Decarbonization is a journey, and it's important to adopt a holistic perspective when recognizing the various success factors, such as energy efficiency, on-site energy production, the switch to electrification, and clean energy procurement. Any planning for implementation must take into account how a company oversees, budgets for, and values projects and activities to lower carbon emissions.
It's crucial to establish a solid data foundation early on in the process so that you can use it to quantify the effects of your initiatives and then adjust your KPIs and action plans in response to performance.
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The process of reducing emissions can be made simpler by using options like Energy-as-a-Service (EaaS) solutions, even though the transition to net-zero may initially appear like an impossible endeavour. Budgeting is made simple by pre-defined service fees since they make energy an operating expense that is more closely tied to output. Hence, after you've created an action plan, funding solutions like EaaS make it feasible to begin your green journey right away without the need for any capital investments.
Trusted turnkey solutions
All facets of our economy must work together to address the global crisis, which is both a challenge and an opportunity. At TerraSustain, industry leaders are taking a more aggressive approach, often looking at 2030 to decarbonize their own operations, while numerous organizations have announced 2050 net-zero carbon goals. With commitments in place, it is essential to create effective plans to meet these goals and to get started immediately. We provide our clients with key knowledge, cutting-edge solutions, and strategic roadmaps to succeed in a constantly changing world.
We can help you understand and manage climate-related risks and opportunities and report in alignment with TCFD. We work with international organizations, multilateral development banks, non- profit organizations, and governments to develop innovative solutions to both mitigate risk and achieve sustainability goals.
We advise, recommend, and endorse clients in developing a strategy that aligns with crucial UN Sustainable Development Goals, global index values, and reporting initiatives using multiple disciplines expert knowledge, and a comprehensive approach. To help companies achieve their goals, we work with them to determine current emissions, set clear reduction goals, and highlight a roadmap to achieve net zero. TerraSustain sets carbon reduction targets aligned with the requirements of the Science Based Targets initiative and help your company transition to a low carbon economy.
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