There is a clear understanding within the scientific community that the world needs to reach net-zero global CO2 emissions by 2050 in order to limit global warming to 1.5°C to reduce the destructive impacts of climate change. The number of companies committing to reach net-zero emissions has increased rapidly in recent years, creating a need for a common understanding on what net-zero commitments entail, and presenting substantial challenges for development of financial, technology, and market strategies to achieve aggressive emission reductions. Net zero or carbon neutral claims can vary significantly from one company to the next depending upon the emissions included, the timeframe and how the emission reductions are achieved. Some companies claim net zero for their operations only (Scope 1 and Scope 2) while others include a portion or all of their value chain emissions (Scope 3). How a company achieves net zero emissions is also important. Does the net zero claim rely on energy reductions, renewable energy purchases, offset projects, carbon sequestration or some combination thereof? At Jacobs, we have set our own net zero goals, in addition to providing consulting to our clients on how they can achieve net zero. We have joined the growing number of companies who have signed the United Nations (UN) ‘Business Ambition for 1.5°C’ – an urgent request for action from the global coalition of UN agencies, business and industry leaders, calling on businesses to set ambitious science-based emissions reduction targets aligned with limiting global temperature rise to 1.5°C above pre-industrial levels. By signing this pledge companies commit to either 1) set science-based emissions reduction targets across all relevant scopes, in line with 1.5°C emissions scenarios, or 2) set a long-term target to reach net-zero value chain emissions by no later than 2050, alongside science-based targets across all relevant scopes and in line with the criteria and recommendations of the Science Based Targets initiative. This paper will explore the latest guidance and best practice regarding what net zero means and provide a few case studies including our own journey on how companies are working toward achieving such aggressive goals.
