The 10 Most Empowering Women in Business, 2021

Leader’s Viewpoint
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‘ et Zero’ is officially here. Over half of global GDP
Nis now generated in countries that have net-zero
mandates and almost half of all assets under
management - US$50tn - is held by investors that have
pledged to drive decarbonisation. Household-name brands
have suddenly scrambled to announce net-zero targets. The
change is also seen across SMEs with venture capital
investment in climate tech growing 4200% between 2013 to
2018 to reach $16.3bn.
Are investors, governments, and businesses acting out of
the goodness of their hearts? Unlikely.
Climate change and net zero targets are transforming the
business landscape in terms of both risk management and
opportunity. Consumer behaviour has experienced a seismic
shift and governments are bringing in tight restrictions on
pollution at unprecedented pace. It is no longer a question
of if, but when. We have already seen sweeping measures
for the car industry with 25 major countries already banning
the sale of petrol and diesel vehicles - with some bans
enforced as soon as 2025 - which industry is next?
In all this there is one inescapable fact that most business
people miss - Net Zero makes sound business sense. I am
going to show you why making your business Net Zero is a
good investment now and how you can capitalise on the
climate opportunity.
Let’s start with the basics:
What does ‘Net Zero’ mean?
Net Zero refers to the balance between the amount of
greenhouse gas emissions (pollution) produced and the
amount removed from the atmosphere.
You can think of it like a seesaw - on one side you have
how much pollution is produced, on the other you have how
much pollution is removed. Net Zero is when the seesaw is
balanced - you remove at least as much pollution as you
produce.
Generally, there are two ways of achieving Net Zero -
reducing the amount of pollution you emit in the first place,
and removing pollution from the atmosphere via carbon
offsetting.
What is carbon offsetting?
Carbon offsetting is a climate solution activity that reduces
or removes pollution to compensate for emissions made
elsewhere. Common forms include tree planting and
renewable energy projects.
For example; Metaphor Ltd is responsible for 670 tonnes of
CO2 per year. Metaphor Ltd could plant 339,000 trees per
year to remove their 670 tonnes. Alternatively, they could
fund scientific climate projects, such as renewable energy
wind farms, that help reduce global emissions by 670
tonnes. In either case, 670 tonnes of CO2 are reduced
and/or removed from the atmosphere. Those tree planting
activities or renewable energy wind farms are carbon
offsetting.
Carbon offsetting is usually the cheapest and simplest
method for achieving your business’s Net Zero target.
Where does my business pollution come from?
For the vast majority of businesses your business pollution
comes from what is called ‘Scope 3’ emissions. Scope 3 are
indirect emissions from activities outside an organisation’s
own operations. These types of emissions often account for
the most significant proportion of a company’s carbon
footprint – sometimes up to 90%.
Examples of Scope 3 include business travel, employee
commuting practices, the use of sold products, and
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July 2021 | 27