Since the 19th century, utilizing fossil fuels such as coal, oil, and gas has been the primary cause of climate change, largely attributable to human activity. Oceans are warming, and sea levels are rising. For a sustainable future, we must immediately take measures for emissions reductions and prepare for the effects of the increase in temperature globally if we are to handle this catastrophe appropriately. The effectiveness of the implemented emission control measures can be evaluated and tracked using LOCOMeX’s AI-driven ESG Benchmarking Tool. A nation can reach net-zero status when it reduces emissions by removing and absorbing greenhouse gases (GHG) such as Carbon dioxide, Nitrous oxide, Methane, and other Fluorinated gases from the environment. Many nations are committed to reducing global emissions to the point that the increase in temperature in the 21st century is kept below 2°C over pre-industrial norms while working to keep warming to 1.5°C under the 2015 Paris Agreement. 193 countries and the European Union have approved or joined the Agreement as of September 2022 to achieve Net zero emissions. The accord states that the world must accomplish net-zero commitments by the beginning of the twenty-first century, using the best available technology.
How To Reach Net Zero In Organizations?
Businesses might consider emission reductions by implementing sustainable practices to net zero GHG emissions. The compliance status can be set on track with the cloud-based software offered by LOCOMeX, such as its Corporate Sustainability Software or Emissions Management Reporting Software. A variety of corporate activities and cost-effective solutions fall under the category of “net zero engagements,” including:
- Business goods and services – Using materials made from sustainable products.
- Facilities and procedures – Efficiently insulating workplaces and encouraging staff to use public transportation.
- Transportation and distribution – Using biodegradable or recycled materials for packaging or electric cars for deliveries.
The best part is that adopting net zero may have a variety of advantages for organizations.
How Organizations Get Benefitted By Reaching Net Zero Emissions?
- Boosting Reputation – Implementing carbon-neutral techniques could scale up your company’s reputation. Customers increasingly expect businesses to behave in their best interests regarding moral judgments, according to research by the Carbon Trust, and green enterprises draw in more customers. The ESG benchmarking tool from LOCOMeX uses the AI-first approach and uses data-driven solutions to drive the growth of your organization.
- Increasing Brand Awareness – Organizations can analyze and publish their entire socioeconomic effect on sustainability to gain more external attention. Going beyond environmental concerns, they could also explain how their activities in reducing carbon emissions help local communities. Governments across the globe may find themselves under growing pressure to include the handling of climate risk in their planning as the variation in climate continues to have a wide range of socioeconomic repercussions.
- Cost Cutting – Switching to renewable energy sources could lower your company’s utility costs. Installing solar panels or other renewable energy sources can do this, as can just converting to a greener pricing. Simply looking at how energy is consumed in your company could result in lower energy consumption and bills.
- Attracting Investment – For shareholders and investors searching for businesses with a long-term strategic approach, being a net zero company may be appealing. Investors might be drawn to companies that depend less on fossil fuels since supply issues will not impact their activities.
- Shielding Operations – Your business may be more robust to market or societal upheavals if you strive towards net zero. Utilizing electric vehicles, for instance, could shield your company from rising gasoline prices and disturbances in the fuel supply. Similar to this, implementing alternative energy sources like solar or wind could protect your company from unanticipated rises in energy costs.
- Magnified Property Value – Your property’s long-term value may rise with a net zero strategy. The U.S. Green Building Council estimates that implementing a net zero plan can boost the value of your property by up to 30%. For real estate investors, the net zero rating might be crucial when purchasing. A building’s net zero ranking is a great sign of energy efficiency. Make sure a business property has a net zero ranking if you consider purchasing it. The property will fetch greater resale value if it has a net zero ranking.
- Competitive Advantage – Only 11% of respondents, according to the British Chambers of Commerce survey, track their company’s carbon impact. According to the report, understanding your carbon footprint and lowering it could give your company a competitive edge over rivals. Customers are becoming more concerned with a company’s sustainability qualities, from the product packaging to the carbon footprint of food. Customers may trust you more if you maintain open communication with them, increasing the likelihood that they will use your service or product again.
Given that the environmental component of Environmental, Social, and Governance (ESG) includes a significant component of carbon neutrality, having a fully packed carbon accounting information system that goes beyond a record-keeping system to assess, evaluate, reduce, report, and certify will aid you in your net zero path and give you the information you need for stakeholders. LOCOMeX connects your ESG & Sustainability goals to Supplier Diversity & Local Content Compliance needs. Our unique AI-powered data-driven tools like the Corporate Sustainability Software, ESG Benchmarking Tool Scope 3 Emissions Management Reporting Software are here to ease your scope on net zero. Please speak with our expert team and learn how our tools can help you track and manage your Net Zero journey.