How to Develop an Effective Net Zero Plan

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The world of climate science is ever-changing. Sometimes it seems that every day there is a new report or personal testimony communicating to the world that human-induced climate change is escalating and emphasizes that climate change impacts are happening in real-time. Climate change is a daunting multi-dimensional issue that requires interdisciplinary solutions. Scientists have been warning us for decades, but we have now arrived at a tipping point, where any further inaction will only lead to negative externalities for the planet, people, and business.

Assessing Greenhouse Gas (GHG) emissions and participating in different reporting standards has provided a necessary baseline for sustainability, but if we fail to look beyond, then the greatest opportunities for transformation will pass us by. These tasks exist to get us thinking toward sustainable strategies, structures, and synergies within existing and future sustainability programs. However, true sustainable progress will rely upon the confluence of ambition and tangible action.

In an effort to address the leading cause of climate change, companies and communities across the globe are committing to Net Zero goals in their annual sustainability messaging to stakeholders. While there may be several different terms used to name this concept (Net Zero, climate neutrality, carbon neutral, etc.) the concept itself remains mostly consistent. Net Zero goals work to “balance the amount of greenhouse gas produced and the amount removed from the atmosphere.” Furthermore, those seeking to go beyond neutrality and pursue regenerative business models are setting “carbon negative” goals. These reduction goals have the potential to shift the tide and transform our society. However, lofty goals mean little without action and measurable progress to back it up.

An Action Plan for Achieving Net Zero

Several companies are taking on these ambitious Net Zero goals but rarely does the goal include a roadmap for implementation. A specific plan for achieving Net Zero should be the most critical element of these ambitious goals. So, the biggest and most daunting question remains, HOW do you move beyond the goals and look at the logistics of tangible actions and programming? How do you achieve your Net Zero goal, one step at a time? A Net Zero Roadmap can answer all these questions and provide the necessary support to achieve the goals within the specified timeline.

The following recommendations for a Net Zero Roadmap will help identify the elements for success and can provide guidance on where to start in your roadmap creation.

Six Steps to Building Your Net Zero Roadmap

Climate Action Planning

There are two main strategies to help with this portion of roadmap creation: Benchmarking and Climate Action Planning.

Figuring out the specific initiatives or programs that will be used to pursue your Net Zero goal is one of the most difficult aspects of creating your roadmap. This is the space that fosters the most creativity, but also requires diving deep into the processes and structures that are fundamental to your business or community. Additionally, every Net Zero Roadmap will look different because each organization has different methods for implementing change.

Benchmarking

Benchmarking is a great way to assess what peers and/or competitors have found to be successful in their own roadmap implementation. Evaluate the best practices and then assess the viability of that program within your own organization. There are endless amounts of innovative solutions being pursued, so don’t be afraid to learn from others.

Climate Action Planning

The second strategy is creating a Climate Action Plan. Many scientists have noted that we already have all of the solutions that we need to solve this crisis, it is just simply about applying them correctly and in a timely manner. With that being said, Climate Action Planning allows an organization to look at a wide array of well-known programs and initiatives and assess the degree that each one could decrease their GHG emissions.

For example, if it has been determined that the impact of transportation within your organization needs to be reduced by 1,000 tons of CO2, this analysis would look at a variety of different projects and show how much each program/initiative could contribute to the overall reduction goal. Play around with different solution mixes and see what grouping of programs makes the most sense for your organization. Ultimately, when developing your roadmap, it is important to evaluate all of the options for reduction that are available so that you can determine the best course of action that fits your needs and can be sustained throughout your roadmap timeline.

Establish a Timeline

Just like any successful project, a timeline will be one of the most crucial tools in staying on track and allocating financial and human resources.

When thinking about a Net Zero Roadmap, the ideal schedule would be the finalized tool that brings together all of the elements of your roadmap. The approved budget will help inform what projects can be afforded throughout the different phases of implementation. The timeline should consider the financial feasibility as well as the available resources during each year to help determine the order in which the programs can be pursued. Additionally, the ideal mix of programs that were identified during the Climate Solutions Scenario Analysis and GHG inventory should be carefully applied to provide an optimal path forward.

All of the work you have done to assess your baseline, resources, and develop strategies for reduction will result in a fully developed timeline as the primary tool for implementation. This timeline also indicates natural milestones and spaces for reflection that are going to be helpful for assessing your progress throughout this multi-year goal. Without this, the Net Zero Roadmap lacks the strategy, intentionality, and enforcement measures it needs to be successful.

Another way to think about your timeline is through the creation of a Gantt chart system of organization. Ideally, each initiative or program can be laid out according to the duration of the project, alignment with synergies, and optimized timing. Ultimately, this should be the all-encompassing tool that is used to communicate your roadmap and influence internal implementation workload. While timelines are often simplified externally, I challenge you to embrace transparency and collaboration by engaging your stakeholders on details of your roadmap to whatever degree is possible.

Economic Feasibility

Economics plays an important role in the implementation of sustainability into our society.

More and more people are realizing that if we want to catalyze a sustainable transition to address climate change, the financial sector must be involved. This is seen especially with Net Zero goals within companies and communities. The transition to Net Zero will take money and resources, so organizations need to prepare for this and plan with economic considerations. Net Zero can be achieved without risking the soundness of the organization pursuing this goal.

The best place to start is by evaluating your roadmap for economic feasibility. Each program or initiative can be evaluated for cost per ton of CO2E reduction. Additionally, having an internal price on carbon as a financial measure can assist in the calculation of the overall cost of your roadmap. With this information, a budget can be created to show the cost and the return on investment that will go into each phase of your Net Zero Roadmap.

The next most important step is to involve your senior-level management throughout your roadmap creation process. These individuals should have played an integral part in your well-developed plan and budget. The level of support received from executives and/or community leaders will likely determine the success of your Net Zero plan. It is ideal for the organization to be on the same page for an approved budget and timeline for your Net Zero Roadmap so that when implementation commences, every resource is already agreed upon and can move forward as planned. Keep in mind that it is important to plan for flexibility as well. By integrating your Net Zero Roadmap with your organization’s overall strategy, a Climate Related Scenario Analysis can then be used to test your roadmap’s resilience under various plausible futures.

Create an ESG Management System

The creation and implementation of an effective ESG management system involves the PDCA process: Plan, Do, Check, Act.

We must consider the institutional sustainability of the programs and initiatives that are being established in your Net Zero Roadmap. Each program will need to be supported by an effective management and reporting structure for continuity and continual improvement. The PCDA approach is a clear step-by-step method that helps to test the best solutions, assess the results, and allow quick implementation.

ESG Management System

The management system that supports and champions the Net Zero Roadmap will require a certain level of intentionality. Every company is different so every management system will be unique. However, a successful system would include several qualified employees to take lead of the program to ensure that all of the elements are running smoothly. Most will have a team of subject matter experts or business unit leaders to help support implementation within their division of the company. Regardless of the system that works best for each organization, the important takeaway is that Net Zero plans and implementation takes time and energy. If a company wishes to be successful in reaching its goal, then it will require a strong team and resources to see it across the finish line.

Implementation Controls

Controls are the processes and procedures that can regulate and ensure the implementation of business operations. This common business practice can be applied to sustainability and Net Zero implementation as well. Organizations should consider the necessary trainings, policies, team leaders, internal and external audits, stakeholders, and reporting systems the Net Zero program will need to be successful in action.

Sustainability Reporting

Ultimately, the best accountability tool and driver of progress will be your reporting system. This digs deeper than the current cycle of annual sustainability reports which serves as an update to stakeholders on your sustainability journey. To fulfill those required updates and assess the progress of your Net Zero goal, the reporting system needs to be streamlined and efficient. The internal reporting system needs to consider data gathering for ongoing GHG emissions and reductions, as well as monitoring the identified Key Performance Indicators (KPIs) of the Net Zero Roadmap. These KPIs can be determined once the roadmap has been finalized and should consider the major areas for improvement and opportunities for change that are foundational to the success of your Net Zero goal.

Stakeholder Engagement

Engaging stakeholders on your Sustainability/Net Zero journey is one of the greatest opportunities that exists in this sphere.

All successful initiatives require dedicated personnel to see them through and provide support in the long term. Specifically with employees, socializing your roadmap and engaging employees in purpose-driven employment can provide the necessary support that the roadmap will need as well as increase employee retention and satisfaction. While a Net Zero goal and roadmap is focused on environmental impact, we cannot forget the interconnectivity of social and environmental issues. Involving stakeholders in this process allows for conversations about broader ESG goals that impact your employees directly. When developing the Net Zero Roadmap, think about how your greatest asset, your people, can actively contribute to the solutions you seek.

Transparency

Transparency is going to be a key indicator of success both for your organization and climate change action at large.

With the urgency of the climate crisis, collaboration is a critical aspect of the global transformation. Many groups have no idea where to start or encounter discouraging roadblocks that could be addressed through collaboration and transparency of the implementation strategies system-wide. Making your Net Zero Roadmap visible to all stakeholders not only contributes to the climate change community that we need to build but also supports an environment of social accountability and corporate citizenship. As a society, we could save precious time by not needing to evaluate cryptic messaging if all organizations could be transparent about their roadmaps starting now.

Net Zero goals are becoming more and more popular, aligning with the growing urgency of the climate crisis and the need to mitigate and adapt before the point of no return. We simply cannot afford to continue lacking substantive action that creates real, tangible change. Net Zero goals cannot be the next trend that provides false optimism but need to be the guiding force for change by creating extensive and thoughtful roadmaps that will achieve a true Net Zero goal. It will take energy, time, and resources but in return will provide stability, risk mitigation, and optimization for those who are willing to embrace a Net Zero goal and roadmap. No matter if you are a public or private business, community leader, or concerned individual, this global crisis requires us to consider the “how” behind our climate goals and actively work towards solution implementation at every level of society.

KERAMIDA’s sustainability experts can guide you through the strategic roadmap implementation and sustainability management. KERAMIDA’s experts can provide greenhouse gas emissions calculations and assurance services. We can also support your CDP disclosures and GRI, SASB, and TCFD reporting. Contact us or call (800) 508-8034 to speak with one of our experts today.

Blog Author

Emilee Brown
Sustainability Analyst
KERAMIDA Inc.

Contact Emilee at ebrown@keramida.com.