How to Become Net Zero ?

As organizations increasingly commit to Net Zero, the key question is not whether to act, but how to achieve it in a credible, science-aligned manner. Becoming Net Zero requires deep decarbonization, structured governance, and measurable actions across operations and the value chain.

This article provides a practical, step-by-step guide for organizations to transition from commitment to tangible climate action.

1. Understand Your Baseline

The first step in any Net Zero journey is a comprehensive measurement of emissions:

• Scope 1: Direct emissions from owned or controlled sources (e.g., fuel combustion, company vehicles).

• Scope 2: Indirect emissions from purchased electricity, heat, or steam.

• Scope 3: Value chain emissions, including suppliers, logistics, and product use.

Action points:

• Conduct a detailed GHG inventory following GHG Protocol standards.

• Ensure accuracy, year-on-year consistency, and supplier engagement.

• Identify high-emission hotspots to prioritize interventions.

2. Set Science-Aligned Targets

Once the baseline is established, organisations must define clear, measurable targets:

• Near-term targets: 5–10 year reduction goals for Scope 1, 2, and material Scope 3 categories.

• Long-term Net Zero target: Typically 90–95% emissions reduction by the target year.

• Residual emissions: Only the unavoidable fraction should be neutralized through high-quality removals.

While several frameworks exist, the Science Based Targets initiative (SBTi) provides globally recognized guidance on defining credible Net Zero targets.

3. Develop a Decarbonization Strategy

A robust Net Zero strategy focuses on reducing emissions at the source, rather than relying solely on offsets. Typical actions include:

• Energy efficiency: Optimize operations, buildings, and equipment.

• Renewable energy adoption: On-site generation or power purchase agreements (PPAs).

• Electrification: Transition from fossil fuels to low-carbon electricity.

• Low-carbon fuels: Hydrogen, biofuels, or other cleaner alternatives.

• Circularity & sustainable procurement: Reduce upstream emissions through supplier engagement and product lifecycle management.

• Nature-based solutions: Afforestation, soil carbon, and ecosystem restoration (as supportive measures).

4. Implement Governance and MRV

A credible Net Zero plan requires accountability and transparency:

• Board-level oversight: Assign responsibility for climate strategy and progress.

• Monitoring, reporting, and verification (MRV): Annual GHG reporting, progress dashboards, and internal audits.

• Digital tools: Platforms like SAP Sustainability Control Tower, Enablon, or Intelex enhance data reliability.

• Internal carbon pricing: Optional for mature organizations to guide investment decisions.

5. Neutralize Residual Emissions

After implementing reductions, a small portion of unavoidable emissions can be neutralized using high-quality removals:

• Bioenergy with carbon capture and storage (BECCS)

• Direct air capture with storage (DACCS)

• Afforestation and reforestation

• Soil carbon sequestration

Note: Avoidance offsets (e.g., renewable energy certificates) do not qualify for Net Zero claims.

6. Integrate into Financial and Operational Goals

Leading organizations link Net Zero targets to business and financial mechanisms:

• Sustainability-Linked Loans (SLLs): Tie interest rates to climate performance.

• Capital expenditure decisions: Priorities low-carbon technology investments.

• Supply chain engagement: Incentivize suppliers to reduce emissions.

This integration ensures that Net Zero becomes a core business strategy, not just a sustainability initiative.

7. Conclusion

Becoming Net Zero is a structured, science-driven journey: measure, reduce, govern, and neutralize. Organizations that follow these steps position themselves for regulatory compliance, investor confidence, operational efficiency, and market leadership.

A credible Net Zero pathway is transparent, measurable, and integrated across the organization, setting the foundation for long-term climate resilience.

For support in creating a Net Zero roadmap or aligning your organization with globally recognized frameworks, contact us at contact@esgweise.com.