As climate change becomes a more and more consistent feature on the news, the phrase 'Net Zero' comes up increasingly often. In 2019, the UK Government committed to achieving this target by 2050. But what exactly does this phrase mean when it comes to business.
In short, Net Zero means there is a balance between the carbon going in and out of the atmosphere. Many companies have set this standard as a way of measuring their commitment to climate goals. The detrimental impact of greenhouse gases on the environment means it is advisable for organisations to limit their emissions.
What Does Net Zero mean?
Net Zero doesn't mean an organisation is not releasing any carbon into the atmosphere. It only means that the carbon they emit is balanced by the carbon they take out of the atmosphere.
As a result, Net Zero strategies can involve measures to reduce the carbon in the atmosphere such as planting trees. Overall, it simply means achieving a balance in greenhouse gas emissions.
Why Is Net Zero Important For Businesses?
This year, for the second year in a row, The World Economic Forum ranked environmental degradation as the main risk to the world economy. Global warming and climate change will have an impact across every industry. Reducing the amount of damage done to the environment is not only an ethical issue, but a practical one.
Extreme changes to the planet will make sustainable governance increasingly challenging and expensive. For example, weather events destroy infrastructure and markets - resulting in a long-term cost for organisations who are not prepared. The consequences of fossil fuels can damage supply chains and procurement which will make business increasingly difficult.
Businesses have to take the lead in minimising the impact of greenhouse gases on the planet by reducing emissions. The impact on the economy in 2040 depends on what preventative measures are taken in 2021.
Committing to achieving Net Zero is one of the most significant steps an organisation can take to protect themselves and their shareholders in the future.
How Can Convene Help You On The Path To Net Zero?
A Board Portal like Convene can help you reduce your carbon footprint and reach your Net Zero targets by allowing you to meet remotely. We are a paperless solution, which means you don’t have to print off numerous Board packs.
Alongside this, we've been working on our own ESG reporting tool so you can monitor your journey. Our aim is to alleviate some of the challenges of data gathering, performance tracking, and reporting - so organisations can move towards Net Zero.
We are currently working with a number of existing Convene housing customers as part of our early adopters programme. Through their valuable feedback, we will together continue to develop and fine-tune our platform, delivering a robust end-to-end ESG experience.
If you'd like to learn more about how our Board Portal or ESG reporting software can make your governance more sustainable, contact us today to book a free trial.