Net Zero Business Guide

A net zero strategy gives senior managers and stakeholders (internal and external) a clear business rationale for investing in net zero technologies, management systems and practices. An effective strategy should also identify and address the climate change business risks and opportunities for a holistic approach to net zero planning. 

Key actions: 

1. Identify and assess climate-related risks and opportunities
2. Consider business model implications of a net zero commitment  
3. Develop a high-level net zero policy 
4. Define how to engage with other Environmental, Social, and Governance (ESG) initiatives and activities.  
5. Periodically review and update the net zero strategy   

Having clear governance structures support an organisation’s transition to net zero by ensuring executives and stakeholders (internal and external) are kept informed, accountable and responsible for achieving net zero goals. 

Key actions: 

1. Assess the organisation's governance structure in relation to net zero 
2. Ensure executive leadership accountability for overseeing and reporting on net zero initiatives 
3. Allocate and communicate accountability and responsibility for net zero at all levels of the organisation 
4. Periodically review and update governance practices  

People who are part of an organisation make decisions that contribute to the organisation’s net zero goals. So, it is important there are measures in place to scale people's capability, skills and shared knowledge of business net zero goals.   

Key actions: 

1. Assess the organisation’s net zero capability needs and identify gaps  
2. Upskill staff and increase capability to support the net zero goal 
3. Align staff remuneration and incentives with the organisation’s net zero goals 
4. Communicate the organisation’s net zero goal, build culture and awareness  
5. Periodically review and update staff upskilling, communication and incentive programs 

Data is essential to: 

• measuring and managing emissions 
• setting a net zero target 
• enabling businesses to identify emissions reduction opportunities 
• tracking progress 
• communicating performance.  

Identifying the necessary data and data collection systems should be done well in advance of implementation to allow time needed for establishing baselines and ensure data is being collected as soon as emissions reduction actions begin. 

Key actions: 

1. Scope and plan the organisation’s emissions inventory 
2. Identify and calculate the organisation’s greenhouse gas emissions 
3. Customise the organisation’s approach to identifying, assessing and accounting for scope 3 emissions  
4. Establish the organisation’s emissions data management processes and metrics 
5. Verify your greenhouse gas emissions inventory 
6. Periodically track and report progress towards net zero  

Net zero targets provide an agreed-upon and measurable goal for an organisation to strive for and articulate its intention to its stakeholders. Although the final goal is net zero emissions, it is essential for organisations to establish clear timelines and near-term milestones for achieving the final goal. 

Key actions: 

1. Consider the organisation’s approach to setting net zero targets 
2. Set near-term and long-term emissions reduction targets 
3. Periodically review and update the organisation’s emissions reduction targets  
4. Consider disclosing the organisation’s commitment and progress towards achieving the emissions reduction targets  

A net zero action plan provides an organisation with a structured approach to achieving net zero. The action plan should include a list of practical actions the organisation will undertake to reduce its scope 1, 2, and 3 emissions. An action plan demonstrates the credibility and achievability of the organisation’s net zero targets. 

Key actions: 

1. Develop a long-term action plan to achieve net zero 
2. Develop mid-term and short-term action plans  
3. Periodically review and update the net zero action plans

Organisations need sufficient capital to fund initiatives that progress their net zero targets. Understanding the financial implications, opportunities and available funding options is crucial for maximising the outcomes. 

Key actions: 

1. Consider the financial impacts of the organisation’s net zero goal 
2. Identify financing options 
3. Budget for net zero financial planning 
4. Periodically review and update your financial plans 

Stakeholder engagement builds relationships between the business and its partners to deliver emissions reductions. This is important for reducing scope 3 emissions that fall beyond an organisation's operational boundaries. It requires collaboration across a broad group of stakeholders, including suppliers and customers, wider industry, government and civil society. 

Key actions: 

1. Engage with the organisation’s value chain  
2. Engage with the wider industry 
3. Engage with government and civil society 
4. Periodically review and update your stakeholder engagement activities 

Reporting is essential to track and communicate performance for transparency and accountability. Reporting can be voluntary or mandatory. 

Key actions: 

1. Assess if the organisation would be subject to mandatory reporting and disclosure 
2. Assess if the organisation will report and disclose voluntarily 
3. Assess disclosing commitment and progress towards achieving the emissions reduction targets