But what exactly does it mean to be net zero?
To achieve net zero means a business must reduce its greenhouse gas emissions to the lowest possible level, with any remaining emissions compensated for using carbon offsetting. To be able to claim your company has reached net zero, you have to measure the emissions caused by your company – otherwise known as your carbon footprint. For financial institutions and businesses listed on the London Stock Exchange, this announcement means they must begin reporting on their emissions and developing net zero plans as soon as possible, if they haven’t already begun to do so.
And how could this move impact your business?
The announcement has implications for smaller businesses throughout the UK. This is because a huge factor in the carbon footprint of these publicly-listed businesses is the emissions caused by their supply chain – which is often made up of small British businesses. These larger companies are likely to turn to such SMEs to demand that they lower their greenhouse gas emissions in order for the larger business to reach net zero.
This means that, at some point, smaller businesses are also going to have to create their own net zero strategies and reporting protocols. Therefore, although it seems that the Chancellor’s announcement only mentioned certain organisations, it will have ongoing and far-reaching impacts on all businesses.
Even if you are a small business that isn’t part of a larger company’s supply chain, measuring your emissions and creating a net zero strategy is still an important part of planning for the future. As the UK continues to develop its net zero strategy, the extent to which companies of all sizes will be expected to report on their carbon emissions and have a coherent net zero strategy, will only increase.
SWLEP support
Measuring your carbon footprint and developing a net zero strategy is a daunting task for many SMEs. SWLEP is here to help, however, and can explain exactly what you need to measure, the data you need to collect and signpost useful tools and services to help you better understand your carbon footprint.
Once you have an understanding of your carbon footprint, we can also help your business develop a net zero strategy that works for you. This will enable you to help your customers achieve their own net zero goals and provide you with the data to boost your ‘green credentials’ and promote your overall Corporate Social Responsibility.
If your business is looking for support in measuring your carbon footprint or building a roadmap to reach net zero, SWLEP can support you.
SWLEP’s Growth Hub offers fully funded 1-on-1 sessions to build your green strategy. We are also running a workshop on 24th November which will cover measuring your carbon footprint, building a carbon reduction strategy and other areas such as green finance options and engaging your staff with sustainability plans. To sign up for this workshop, click here.
For information on any of these areas, please get in touch with High Williams, our Business Navigator for the Green Agenda [email protected] or call 01249 477287.