An increasing number of businesses are looking to reduce their emissions and become sustainable to align with the government’s net-zero strategy. Setting targets is crucial for companies with complexity across sectors, technologies and business structures. However, this is often the easy part, according to the latest insight paper from Cornwall Insight and UK law firm Shoosmiths - Unlocking net zero strategies for businesses.
The report explores the potential routes to decarbonisation that businesses have at their disposal to meet their targets and help countries meet their net zero targets.
A coordinated whole system approach is key to reaching net zero. Governments should provide a stable and specific regulatory environment, providing the private sector with the certainty needed to make long-term investment decisions.
However, all businesses have essential responsibilities. Large corporates can lead by example, showing concrete decarbonisation paths to their suppliers to drive change. An open dialogue is fundamental so that companies can properly support each other in their net zero journeys. James Wood-Robertson, Partner and Head of the Energy and Infrastructure Practice at Shoosmiths, said:
“While the rising consumer demand for cleaner and more eco-friendly products and services is a factor, it is the rapidly growing number of public bodies and companies setting out their own net zero commitments – and consequently looking to reduce their greenhouse gas emissions through their supply chains – that will truly accelerate change. If companies don’t get on board with reducing emissions, they are likely to find their customers are soon demanding that they do so.”
Kate Hill, Lead Research Analyst at Cornwall Insight, said:
“However, every business will need to conduct an honest appraisal of where it is on its net zero journey, explore the multiple available solutions and then make appropriate decisions.
“Overall, there is an urgent need for collaboration among businesses, as net zero cannot be achieved in isolation. The involvement of stakeholders by actively engaging with investors,
customers, and suppliers, is essential.”