What It Takes to Be a Net-Zero Business
Achieving net-zero status requires that a company actively measure and monitor its direct and indirect emissions and regularly review its practices and policies. Below we’ll discuss a variety of strategies that will help you achieve net-zero.
Understand Your Direct and Indirect Emissions
In order to reduce your total emissions, you must know where exactly they are rooted within your value chain and business activities. There are two sources of emissions for companies: direct and indirect.
The Greenhouse Gas (GHG) Protocol, the global leader in measuring, managing and reporting emissions, defines direct emissions as “emissions from sources that are owned or controlled by the reporting entity.” Direct emissions are often referred to as “point source” emissions because they come from a specific source or location. Some examples of direct emissions are: factory fumes from manufacturing goods, fuel emissions from company vehicles, emissions from onsite landfills.
Indirect emissions, on the other hand, are “emissions that are a consequence of the activities of the reporting entity, but occur at sources owned or controlled by another entity.” Some examples of indirect emissions include: purchased electricity, purchased heating and cooling, employee travel and commute, vendor-produced emissions, etc.
The GHG Protocol developed three carbon emission scopes to help organizations map out their direct and indirect emissions. While carbon reporting is mandatory for many high producing companies, more and more companies are choosing to disclose their emissions data in order to increase their transparency.
For more information around Scope 1, 2, and 3 emissions, read the following articles:
