Working towards net zero can help a business reduce its greenhouse gas emissions while identifying opportunities to improve energy and resource efficiency.
Many carbon reduction measures involve using less energy or fuel. Where these measures reduce consumption without adversely affecting operations, they can also lower operating costs and reduce exposure to changes in energy and fuel prices.
A net-zero strategy can also help a business prepare for changing expectations from customers, supply chains, investors and regulators. Larger organisations may require information about supplier emissions because purchased goods and services can form part of their own Scope 3 greenhouse gas footprint.
Measuring emissions also gives a business a clearer understanding of where its environmental impacts arise and allows progress to be monitored over time.
The commercial benefits will vary between organisations and should not be assumed. However, UK research published by the British Business Bank found that SMEs identify potential benefits from progressing towards net zero including cost savings, reputational advantages, attracting or retaining customers and efficiency improvements.
Ultimately, the principal purpose of net zero is to reduce greenhouse gas emissions and limit the contribution those emissions make to climate change.
