With the UK Net Zero Awareness Week in full motion, individuals, organisations, government bodies, and communities come together to engage in various activities and initiatives to raise awareness and encourage action towards achieving Net Zero emissions.
Although many use this opportunity to showcase their efforts and commitments towards reducing greenhouse gas emissions and transitioning to a low-carbon economy, others are yet to catch up with global sustainability compliances.
As the deadline for the Paris Agreement looms closer, a pressing question arises: How do organisations begin their Net Zero journey?
Net Zero is widely recognised as one of the most effective strategies for combating climate change. It involves the complete elimination or offsetting of greenhouse gas (GHG) emissions resulting from human activities. This can be achieved by reducing emissions through energy efficiency measures and adopting methods to absorb carbon dioxide (CO2) from the atmosphere. In essence, Net Zero refers to the ambitious goal of minimising GHG emissions as close to zero as feasibly possible.
To align with the objective of limiting global warming to 1.5C per the Paris Agreement, nations are actively working towards a 45% reduction in their emissions by 2030 and aim to achieve Net Zero by 20501. This commitment is shared by several countries, including Canada, France, South Korea, and the UK2.
UK Net Zero Awareness Week
On 27th June 2019, the UK became one of the first major economies to pass laws in favour of Net Zero. The legislation committed the UK nations to reduce all GHG emissions to Net Zero by 2050. To maintain the momentum, the country introduced Net Zero Awareness Week, observed annually, to raise national awareness about the urgency of achieving Net Zero emissions.
The purpose of the event is not only to inspire businesses to act toward a sustainable and prosperous future but also to provide a platform for showcasing innovative solutions and technologies that contribute to the UK’s decarbonisation efforts.
UK Net Zero Initiatives
In April 2019, the UK implemented the Streamlined Energy and Carbon Reporting (SECR), a mandatory sustainability reporting framework for large organisations3. SECR focuses on promoting transparency regarding a company's energy and carbon usage while encouraging cost savings and emission reductions.
To further reinforce its objectives, in the fall of 2020, the UK government introduced the Ten Point Plan with the aim of achieving a Net Zero society. The plan encompasses various strategies, including the expansion of offshore wind power, transitioning to zero-emission vehicles, boosting biodiversity, investing in green technology, and improving the energy efficiency of buildings4.
Net Zero is not just a need – it’s a necessity!
According to McKinsey, 79% of Fortune 500 companies reporting to the Carbon Disclosure Project (CDP) achieved higher investment returns compared to their overall portfolio. Despite multiple data estimates indicating clear benefits for businesses complying with global sustainability reporting frameworks, many organisations fail to keep up.
The main challenge lies in the fact that most of them require guidance on where to start and how to continue their journey towards Net Zero after setting their targets, which is especially true for small and medium-sized enterprises (SMEs).
While individual SMEs may have a smaller carbon footprint than larger corporations, the collective impact of numerous organisations transitioning to Net Zero is significant.
A survey conducted by Lloyds Banking Group revealed that 30% of SMEs encountered obstacles when measuring their environmental impact and performance5.
Several factors, such as the complexity of transformation, high costs, limited resources, and a lack of awareness among experts, are other concerns that hinder businesses from becoming Net Zero emitters.
This is precisely where our SmartSense DiscoveryTM platform comes in.
Exclusive to the UK, our newly launched digital solution, SmartSense Discovery™, is designed to assist organisations in taking their initial strides towards achieving Net Zero. Utilising cutting-edge machine-learning algorithms, SmartSense Discovery™ provides real-time tracking of carbon footprint, energy usage, intensity, and associated costs across the entire infrastructure. The platform centralises data from multiple locations into a single user-friendly dashboard, enabling organisations to closely monitor energy consumption and detect any irregularities.
In addition to providing valuable insights, SmartSense Discovery™ is a cost-effective tool that proves essential for mandatory reporting, ensuring compliance with regulations such as the SECR framework.
By leveraging this solution, organisations can not only enhance their sustainability efforts but also meet their regulatory obligations efficiently.
In today's business landscape, it is crucial for organisations to embrace innovative technology to aid their decarbonisation efforts. Failing to do so puts them at risk of losing their competitive edge as the world undergoes a rapid transition towards a greener and low-carbon economy.
By proactively integrating sustainable practices and technologies, organisations can stay ahead of the curve, secure a leading position in the global market, and actively contribute to a sustainable future.
Not only does this bring significant benefits to their bottom line, but it also aligns with the ever-increasing global demand for environmentally responsible practices.
Bibliography
1 Editorial Staff, 2021. For a liveable climate: Net-zero commitments must be backed by credible action. [online] United Nations. https://www.un.org/en/climatechange/net-zero-coalition
2 Editorial Staff, 2023.Net Zero Scorecard. [online] Energy and Climate Intelligence Unit. https://eciu.net/netzerotracker
3 Editorial Staff 20219. SECR explained: Streamlined Energy & Carbon Reporting framework for UK businesses. [online] Carbon Trust. https://www.carbontrust.com/news-and-insights/insights/secr-explained-streamlined-energy-carbon-reporting-framework-for-uk-business
4 Editorial Staff, 2023. Net Zero Week. [online] https://netzeroweek.com/#/why_is_net_zero_week_important
5 Editorial Staff, 2021. The top three challenges businesses face to get to Net Zero. [online]. Lloyds Banking Group. https://www.lloydsbankinggroup.com/insights/the-top-three-challenges-businesses-face-to-get-to-net-zero.html
