Step by Step Guide to Net Zero

Achieving net-zero carbon emissions is one of the most pressing challenges of our time. With climate change threatening ecosystems, economies, and communities worldwide, transitioning to net-zero has become critical for preserving our planet for future generations. But as important as it is, we know that many companies are confused about best practise, or even where to start! That's why we've created a 10-step guide to help you reach net-zero.

• Step 1: Set Your Boundaries
• Step 2: Identify your scope 1, 2 and 3 emissions
• Step 3: Collect data on scope 1, 2 and 3
• Step 4: Calculate your carbon footprint
• Step 5: Net zero methodology
• Step 6: Set targets
• Step 7: Develop your decarbonisation plan
• Step 8: Publish your plan and implement it!
• Step 9: Review your progress against your targets 
• Step 10: Achieve your net zero target!

 

Step 1: Set Your Boundaries

There are two options for this but once set it must remain consistent. 

1. Financial control – a company must cover 100% of the emissions for operations under its financial control
2. Operational control – a company must cover 100% of the emission for operations under its operational control

 

Step 2: Identify Your Scope 1, 2 and 3 Emissions

SOURCE: Greenhouse Gas Protcol, 2013 Technical Guidance for Calculating Scope 3 Emissions, page 6. 

Scope 1 (direct): this includes gas burnt for heating or process use on site emitting Co2e, any company cars or company trucks, leakage of refrigerants...

Scope 2 (indirect): emissions from your electrcity use or other utilities such as imported heat or steam.

Scope 3 (indirect): these are from your supply chain. 

You need to consider scope 3 emission both upstream and downstream.

 

Here are some amazing resources that can help: 

    

1 & 2 Available from: Greenhouse Gas Protocol. 3 Available from: BSI.

 

If using Science Based Targets Initiatives (SBTi) - see later then scope 3 must be included if it is 40% of the total emissions. 95% of scope 1 and 2 emissions must be included.

 

Step 3: Collect Data On Scope 1, 2 and 3

Collect data for all scopes (such as kwh of electricty used or a quanity of an item used). The more specific your data is, the more accurate your results. If quantity data is not available, 'money spent on an activity' can be used. 

It is easiest to start with scope 1 and 2 before looking at scope 3. Your procurement team or accounts departments should be able to help access the information needed.

It's important to consider which year you are calculating and whether this is a true reflection of your company’s impact.

 

Step 4: Calculate Your Carbon Footprint

Use the BPF Carbon Footprint Calculator (or a similar resource) to calculate your company’s carbon footprint. 

• Why bother producing a carbon footprint? A carbon footprint measure is often seen as the first stage in reducing a company’s carbon impact under the measure, reduce, offset framework. Energy and carbon reporting is likely becoming a requirement for your company (to align with the UK Government’s commitment to reduce carbon emissions by 100% (relative to 1990 levels) by 2050) and so this is a great place to start.
   
• How long does the process of finding out my company’s footprint take? Data gathering can be time consuming initially, but after the first year assessment once the process is understood and regular records are kept this can become easy to maintain. Our tool allows for monthly, quarterly, or annual data submissions to allow for a variety of data submissions (e.g. monthly energy invoices to quarterly business mileage expense claims).
   
• How will my company benefit from using this tool? “You can’t improve what you don’t measure”. Our carbon footprint tool allows you to start measuring the amount of carbon dioxide emissions associated with your activities, and can set a point from which improvements can be made.

 

Your footprint uses the emissions factors from the UK government, which has a comprehensive spreadsheet – this provides specific emission factors as well as more broad ones where less detail is known.

Source: Greenhouse gas reporting: Conversion factors 2022

For electricity there is a location-based and market-based approach. Market-based allows a company to take into account if they are buying renewable energy.

There are other sources for emission factors available.

 

You will now have the carbon footprint for your company which provides your baseline for starting on your net zero journey.

 

Step 5: Net Zero Methodology

You may want to use a net zero methodology. The main one used is Science-Based Targets Initiative (SBTi) Net Zero Standard - but there are others available. SBTI is a partnership between: CDP, the United Nations Global Compact, World Resource Institute (WRI), and the World Wildlife Fund (WWF).

This will provide a trajectory for your emission of the reductions needed in scope 1 and 2 to keep below 1.5ºC increase compared to pre-industrial temperature (as per the Paris Agreement), and scope 3 increase below 2ºC. It also has specific requirements for target setting.

There are certain criteria which need to be met for science-based targets:

1. Cover all GHGs
2. Target of 5 – 15 years
3. Temperatures kept below 2’C
4. Include scope 3 if >40% of total emissions. 2/3 of scope 3 emissions must be within the boundary
5. Carbon footprint need to be shared each year

Note, there are fees if you are formally signing up to SBTi (there is a different route for SMEs). However, all the resources can be freely downloaded and used.

Find resources to help you here: Resources - Science Based Targets

The corporate net zero tool (available in the resources above) will tell you what you need to reduce your emissions to.

 

Step 6: Set Targets

Firstly, you will need your overall target for when you want to achieve net zero.

You will then also need short, medium, and long term targets (SBTi has near-term and long term targets only). Note that some will rely on external factors such as grid decarbonisation.

The short term will need to be detailed with costings etc. You need to front load as much as possible so you make as many reductions as you can as quickly as you can.

Long term targets might rely on technologies still under development, so will be less detailed. The long term targets need to cover 90-95% reduction in all emission. Carbon removals can be used for remaining 5-10%. This could be through carbon removal offsets but it does need to remove carbon and be removal which would not have happened without this funding (there is guidance on emission reduction offset available).

 

Step 7: Develop Your Decarbonisation Plan

Now you will need to consider what interventions you can make to reduce your carbon.

The BPF has some great resources to help with this (some available to all, and some only for BPF Members).

Accessible To All:

              

 

Accessible to BPF Members only - click below to recieve a copy: (not a member? click here to learn more about BPF Membership)

 

 

After you've considered what interventions you can make to reduce your carbon, you need to graph what impact each of your changes will have.

There are different approaches to this as shown in examples below - you can show a single line with drops for each intervention or include each one and show the combined effect they have:

 

SOURCE: HM Government 2021 Net Zero Strategy: Build Back Greener

Make your plan easy to follow and engaging for your customers. Include any progress already made on your net zero journey.

 

Step 8: Publish Your Plan and Implement It!

Now it is time to publish all your hard work! It's vital ensure your customers can see your commitements to Net Zero. 

The resources in step 7 can help - or for non-plastic-specific technology, the Energy Technology list may help which is supported by the Department for Energy Security & Net Zero. 

 

Step 9: Review Your Progress Against Your Targets 

You may need to revise your targets or set further targets. 

 

Step 10: Achieve Your Net Zero Target!!

 

You can find other useful resources on the BPF's Net Zero Hub or Sustainability Home Page.

 

Authors: Helen Jordan & Lara Steinhobel