If you’re reading this chances are you understand the importance of transitioning to net zero for the environment. But what if we told you that transitioning is the very best thing you can do for your business too?
While it may seem a daunting task, the best time to start is now.
In this article, we’ll look at reasons why transitioning to net zero is best for your business and the different opportunities around it.
As you may or may not know, a company’s emissions are measured using the Scope 1, 2 and 3 frameworks. Scope 1 emissions are direct emissions from owned sources such as company facilities or vehicles, Scope 2 are indirect emissions from purchased energy and Scope 3 are indirect emissions from your value chain including supply chain activities, transportation and distribution, end-of-life treatment of sold products, raw materials, business travel and investments.
In simpler terms Scope 1 are the emissions you create, Scope 2 are the emissions you consume and Scope 3 is everything else.
Corporations are increasingly taking carbon into their decision making and with Scope 3 making up the vast majority of emissions for most companies business owners will prioritise working with suppliers who are working to reduce their own emissions.
The key here is to understand that your Scope 1 and 2 emissions are someone else’s Scope 3 emissions and by working with companies who are also on the net zero journeys we can work to reduce our emissions more efficiently.
Opportunity for Business
Governments and industries are increasingly introducing regulatory policies and there are many business opportunities that can arise from this.
For example, next year Scotland will be rolling out a deposit return scheme and so there’s an opportunity for small businesses to install deposit machines to increase footfall and business.
For example, the sale of new petrol and diesel cars will be banned from 2030 and so there is an opportunity to install EV charging points for your staff and customers to use.
Being more Ambitious
The journey to net zero isn’t just about changing the way we do things but actually developing more profitable processes.
For example, Glasgow-based Revive Eco buys waste coffee grinds from businesses, strains the oil and sells it to manufacturing companies. This is an opportunity for making profit from an otherwise waste product.
Although this is just one example, the opportunities are endless. Have a think about how you can make every part of your business profitable. This will make you more ambitious and help your business to stay ahead of its competitors.
Consumers increasingly want to know the environmental policies of companies they buy from.
A study by Futerra has found that being honest, even about problems, increases trust showing that transparency is key.
Therefore, when you communicate your net zero transition you will gain better brand awareness and trust with your customers.
Tenders and Procurement
Carbon impact assessments are becoming a part of government and private sector procurement contracts. Banks and other investors are also following a similar line by increasingly investing in businesses that help them to reach their own CSR and impact targets.
As each sector transitions to net zero businesses and institutions will want to work with and favour other bodies that are making their own progress. Thus, to increase your chances of business growth it is best to get ahead of the curve and transition to net zero as soon as possible.
It is no doubt that carbon taxes will become more popular in the future.
They’re coming and getting ready now saves you legal headaches later on. We’ve seen moves in this direction with the Sustainability Disclosure Requirements recently announced for large companies, and eventually this will impact on small businesses.
Net zero is the future and so it’s wise for you to invest in the transition now so that you get ahead of your competitors and markets remain open to you.