Why is Net Zero dominating the conversation?

The urgency to limit global warming to 1.5°C above pre-industrial levels is driving the momentum behind net zero. We’re already about 1.1°C above the baseline from the late 1800s, and emissions continue to rise, fueling climate disasters worldwide.

The Paris Agreement, signed at COP21 in 2015, set global targets to cut emissions by 43% by 2030 and reach net zero by 2050. Achieving these goals requires an overhaul of the way organisations operate, which is why governments and businesses are committing to net zero targets within this timeframe.

The stakes couldn’t be higher. Without rapid action, we face a future of extreme weather events, skyrocketing costs (think uninsurable homes and businesses), and supply chain disruptions that make essential goods harder to access. Remember the 2022 lettuce shortage in Australia, where extreme weather events led to skyrocketing prices—some fast-food chains even had to replace lettuce with cabbage in their burgers? That was just a glimpse of how climate-related disruptions impact everyday life. Achieving net zero is not just a goal—it’s a necessity.

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What does Net Zero actually mean?

Net zero is the balance between greenhouse gases emitted and those removed from the atmosphere. Achieving this means eliminating our reliance on fossil fuels, switching to renewables, and ensuring the companies we buy from are also making the transition.

Many businesses have set net zero targets for 2030 or 2050, but not all commitments are credible. A legitimate net zero target requires a concrete plan, not just good PR. The Science Based Targets initiative (SBTi) is one of the most recognised verification systems that ensures companies’ targets align with real climate science.

Bottom line? Net zero isn’t just a checkbox—it’s a fundamental shift in how we operate, and everyone has a role to play.

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How does a company set a credible net zero target?

A science-based net zero target means committing to cutting greenhouse gas emissions in line with the Paris Agreement. The process starts with carbon accounting—understanding emissions and establishing a baseline.

From there, companies develop a roadmap for reducing emissions in absolute terms, not just offsetting them with carbon credits. Avoidance credits don’t count—real reductions and carbon removals do.

For credibility, the target must be validated by SBTi, ensuring alignment with global climate goals. Companies must also regularly report on their progress and adjust strategies as needed.

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Who’s already on board?

As of January 2024, over 140 countries—including major emitters like China, the USA, and the EU—have set net zero targets, covering 88% of global emissions. More than 10,000 businesses, including 7,000 SMEs, are working with SBTi to cut emissions in half by 2030.

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Should your organisation set a net zero target?

For large companies, a credible target is essential. Warning signs that it’s not?

• You don’t know your Scope 1, 2, and 3 emissions.
• You haven’t engaged suppliers for primary emissions data.
• You lack a budget or plan for reducing emissions.
• Your suppliers have no clear net zero transition strategy.

For small and medium businesses, the starting point is carbon accounting. Your friendly carbon accountant (hint hint!) can help establish a baseline across Scope 1, 2, and 3 emissions. Engaging your suppliers in this process creates a ripple effect, making it easier for everyone to track and reduce emissions effectively.

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Are we on track?

Brace yourself—the first-ever Global Stocktake report found that while progress has been made, it’s nowhere near fast enough. Government policies and corporate action are lagging, and Scope 3 emissions remain a major challenge. Many businesses still rely on estimates instead of real supplier data, making it difficult to track meaningful reductions.

The transformation required is massive—described by the UN as ‘one of the greatest challenges humankind has faced.’

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Is Net Zero still achievable?

Yes, but the window is closing. COP28 reinforced the urgency—accelerated action is the only way forward. Real carbon accounting is critical to measuring progress and driving accountability.

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What can businesses do?

Net zero requires a full-scale transformation, but every organisation has a role to play. Here’s what businesses—big and small—can do:

1. Start carbon accounting – Understand your emissions and track reductions properly.
2. Engage your supply chain – Encourage suppliers to begin carbon accounting and support them in the process.
3. Identify high-impact actions – Prioritise the biggest emissions reductions and develop financial strategies to implement them.
4. Execute and track progress – Follow through on reduction plans and ensure measurable progress.
5. Communicate your efforts – Let stakeholders know you’re committed to real, audit-ready carbon accounting.

Many companies have historically relied on industry averages and carbon offsets to estimate emissions, but that’s no longer enough. The demand for transparent, verifiable carbon data is growing—and businesses that embrace it will be ahead of the curve.

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Need help navigating net zero?

At Climate Logic, we specialise in helping businesses with carbon accounting, target setting, and reporting. Whether you’re just getting started or refining your existing strategy, we can provide the expertise and tools you need to take meaningful action. Get in touch with us today to discuss how we can support your net zero journey.