In the UK, achieving Net Zero by 2050 is a legally binding target. Therefore, companies who fail to align with this target risk regulatory penalties, disengagement from stakeholders and competitive disadvantage.
According to the UN, greenhouse gas concentrations are at their highest levels in two million years – and are continuing to rise. As a result, the earth is roughly 1.1 degrees warmer than it was in the 1800s, and the last decade has been the warmest on record.
As per the UK Parliament Website, the UK has also committed to a 68% reduction in emissions by 2030. Additionally, the UK has set interim ‘carbon budgets’ which cap the emissions within certain carbon budgetary periods.
“The Net Zero Standard gives companies a clear blueprint on how to bring their Net Zero plans in line with the science, which is non-negotiable in this decisive decade for climate action. Because we are running out of time.”
Johan Rockström, Director of the Potsdam Institute for Climate Impact Research (PIK) and Professor in Earth System Science at the University of Potsdam
Net Zero Policy Developments
In 2024, The Labour government announced various new bills relevant to Net Zero. These included:
- Great British Energy Bill (sets up a publicly owned clean power company which accelerates investment in renewable energy).
- Crown Estate Bill (removes restrictions and allows for easier investment into public infrastructure).
- Sustainable Aviation Fuel (Revenue Support Mechanism) Bill (supports the production of this fuel).
Additionally, the Labour government announced that they would invest in other policies which affect climate change mitigation and adaptation. These policies also refer to home insulation, nature, biodiversity, land management and the water sector.
However, the committee’s 2024 progress report has noted that the new government “will have to act fast to hit the country’s commitments”. It set out ten priority actions for the remainder of the year:
- Make electricity cheaper.
- Reverse recent policy rollbacks.
- Remove planning barriers for heat pumps, electric vehicle charge points and onshore wind.
- Introduce a comprehensive programme for decarbonisation of public sector buildings.
- Effectively design and implement the upcoming renewable energy CfD auctions.
- Accelerate electrification of industrial heat.
- Ramp up tree planting and peatland restoration.
- Finalise business models for large-scale deployment of engineered removals.
- Publish a strategy to support skills.
- Strengthen NAP3.
By implementing these priority actions for the year, the government, alongside investors, businesses and consumers can drive a rapid shift towards the 2050 Net Zero goal.
What Does Net Zero Mean?
Net Zero refers to a state in which a company has reduced their carbon emissions to the absolute minimum and offset or removed whatever emissions still remain.
If you are on a Net Zero journey, you must set clear and ambitious targets. This is a requirement of Procurement Policy Note 06/21 (PPN 06/21) and also gives you and your company something to aim towards. These targets allow you to judge whether the plans you have made to reduce your carbon emissions are working and whether the overall reductions are meaningful.
What Is Net Zero Certification?
Net Zero certification verifies a company’s efforts to achieving Net Zero greenhouse gas emissions by reductions and offsetting measures.
At the end of your Net Zero journey, you should end up with all of the MARTOC components. You should have worked out your carbon emissions, set your aims and targets, created reduction projects, set up tracking systems and worked out your offset or removal of carbon emissions.
Some examples of Net Zero Certification could include: ‘Compared to our carbon emissions in financial year ending 2023, we will…’ OR ‘Achieve Net Zero by 2025, or reduce our scope 1 and 2 emissions to zero by 2026.’
Certification is the last stage of commitment. At this point, you should check everything in your plan aligns with the checklist for the Net Zero standards.
What Is Included In The Checklist?
Are all of your MARTOC methods included?
Quick Recap:
M: Measurement of your carbon footprint.
A: Your Aim to reduce your emissions by X% in a certain time period.
R: Reductions. This includes your carbon reduction plans.
T: Track your progress over recent years and provide commentary on your data.
O: Offsets and removals, including what you are doing to remove the emissions that you are generating.
C: Certify and Commit. Include accreditation from a third party and commitment from a senior director in your company.
2. Is the accuracy acceptable? For certification, you cannot use estimates.
3. Correct time period – does your carbon reduction plan match up to the financial year and data.
4. Are your calculations correct?
5. Are your targets ambitious enough? For example, to achieve Net Zero by 2050.
6. Are your carbon reduction projects credible? Do you have a good number of targets and will they deliver results?
7. Are you tracking correctly year on year?
8. Have you implemented any offsets or removals, including what you are doing to remove the emissions that you are generating?
9. Is your plan signed off by a senior director?
10. Is your certification published on your website?
Once you have the certification, you can send it out to your clients, suppliers, investors, and staff.
Benefits Of Net-Zero Certification
Net Zero Certification is an excellent way to accelerate climate change progress and increase environmental reputation. Some more specific benefits include:
- Better business reputation
- Reduced costs
- Attracting business investment
- Security and resilience
- Economic growth and increased job opportunities in emerging industries such as nature based projects. For example, renewable energy and environmental projects generates new employment opportunities and boosts local economies.
- Competitive edge
- Protecting the environment for a greener, healthier future
To Summarise…
Businesses which fail to align with the Net Zero target risk regulatory penalties and competitive disadvantage. Unfortunately, non-compliance with these regulations can result in a lack of engagement from stakeholders and investors.
Net Zero certification is a great way for businesses to demonstrate their commitment to the environment, increase their reputation and attract investment. In order for the UK to achieve Net Zero by 2050, it is vital that companies invest in Net Zero certification in order to contribute to a greener environment.
Carbon accounting platforms such as Enistic can help with detailed Net Zero planning and gain unlimited support from one of our expert consultants. If you are interested in partnering with us or have any further enquiries regarding Net Zero certification, don’t hesitate to get in touch with us.
