The term ‘net zero’ has been bandied around by business leaders and policy makers the world over of late – but what exactly does it mean? The term refers to the balance between the amount of greenhouse gases we are adding to the atmosphere, and the amount we’re actively removing. When we are no longer producing more than we are taking away, we will have achieved net-zero emissions. 

There is a global push to drive emissions down and almost every government in the world has signed up to the Paris Agreement, which aims to stop global temperatures rising by 1.5°C. Individuals and businesses are being encouraged to play their part, and new technologies are constantly being developed to help make the transition to net-zero a little easier. 

But why is there such a global rush to want to achieve net-zero emissions, and why should businesses care? Here are three reasons why businesses should want to make the pledge. 

PR 

It may sound crude, but there is little doubt that businesses who are seen to be doing more to reduce emissions will promote a stronger brand image. Demonstrating that you care about issues affecting the wider community will enhance consumer trust, and could help you to develop a more loyal customer base. In fact, one study found that 92% of people would trust a company more if they were seen to be taking social or environmental responsibility. 

This can also help you to become more competitive with rival companies, who perhaps you can’t compete with financially. Striving to become net-zero, and subsequently maintaining this status, is one of the best ways to demonstrate your company’s commitment to addressing societal issues. 

Legislation compliance and future-proofing

As politicians across the globe ramp up their efforts to reach net zero by 2050, regulations around how businesses interact with the environment are being enforced. As a business owner, putting eco-conscious processes in place will help you to comply with current laws, as well as any future legislation changes. Failing to do so could leave you with hefty fines, as well as damage to your reputation.

For example in the UK, sales of new petrol and diesel cars will be banned by 2030, meaning electric cars will have to feature more commonly on our roads. Whilst they still produce small levels of CO2, electric vehicles on average emit three times less carbon whilst on the road than combustion engines. You can easily reduce the direct emissions of your business by replacing petrol or diesel company cars with electric vehicles.

Attract more talent 

There has been lots of research published around whether sustainability policies can help to make your company more attractive to potential employees. One recent study found that millennials were most likely to show concern around their employer’s eco-credentials, and were willing to pay the price for a cleaner future. The research revealed that people from this generation were willing to take an £11,400 pay cut in order to work for a ‘greener’ organisation. 

This goes to show how younger people in particular are placing more importance on sustainability when it comes to making their career choices. Pushing towards net-zero will make your company more attractive to this demographic, thus making you more competitive in the job market and giving you greater access to a wider pool of talent. 

Meta: Governments around the world are striving to reach net-zero emissions by 2030 - but why should business owners also be striving to reach this target?