So what is ‘Net Zero’?

Around Zero
3 min readOct 26, 2021

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How we at Around Zero define ‘Net Zero’

In response to the environmental crisis we face, the UK government has set a legally binding target to reduce emissions to Net Zero by 2050. This ‘Net Zero’ goal was legislated in 2019 following advice from the Climate Change Committee under the UK Climate Change Act.

So what is ‘Net Zero’?

Scientifically, Net Zero means balancing the amount of greenhouse gases produced by human activity with an equal amount removed from the atmosphere.

Another term appears here — ‘Greenhouse Gases’

Gases that trap heat in the atmosphere are called greenhouse gases. These include Carbon Dioxide, Methane, Nitrous Oxide, and Fluorinated Gases — produced by human activities.

How we at Around Zero define ‘Net Zero Scopes’

Net Zero means including Scopes 1, 2 & 3

Scope 1, 2 and 3 classify a company’s greenhouse gas emissions either created in its operations or its wider value chain. It typically includes the company’s operations and its processes or activities by which a company adds value to an item, including production, marketing, and the provision of after-sales service.

Now let’s move one step further and understand what do these three categories include:

Scope 1 — Direct Emissions

It covers direct emissions from a company’s owned or controlled sources. This one covers the Greenhouse Gas (GHG) emissions that a company makes as a direct result of its activities. For example, while running its boilers for heating, use of vehicles, leakage of GHGs from refrigerators, factory fumes etc.

Scope 2 — Indirect Electricity Emissions

It covers indirect emissions from the generation of purchased electricity, steam, heating and cooling consumed by the reporting company. The significant chunk here is the electricity or energy the company buys for heating and cooling its buildings.

Scope 3 — Indirect Value Chain Emissions

This includes all emissions the company is indirectly responsible for up and down its value chain. These are usually the most significant share of the carbon footprint, covering emissions associated with business travel, procurement, waste and water. Emissions-wise, Scope 3 is always the big one and the most tricky one to manage.

This direct and indirect carbon emission produced within Scope 1, 2 & 3 can be balanced either by reducing, offsetting or capturing carbon.

Now, what is ‘Net Zero Target’?

Rigorous net zero targets carry a promise of decisive climate action that is aligned with the Paris Agreement and limiting warming to 1.5°C. It is essentially a company’s commitment to achieving net zero emissions by a year identified by it based on carbon assessments and future projections.

Let’s get to the point now! How do we reach Net Zero?

Committing to reaching net zero will involve tackling your Scope 3 emissions. And that is the tricky part! Companies have much less control over how Scope 3 emissions are addressed by their associated suppliers/vendors and consumers. For example, an organisation that manufactures products will often have significant carbon emissions from the extraction, manufacture, processing of the raw materials, to the point it is delivered and used by the consumers.

Businesses are easily able to address Scope 1 & 2, as they are mostly within their control. Transitioning to renewable energy and electric vehicles is the best way to achieve net zero for Scope 1 & 2. However, the maximum impact falls within Scope 3, and that is where we come into the picture.

At Around Zero, we help you address the complexities of your environmental impact within your business’s value chain through circular economy strategies. We would love to hear your views. Write to us at hello@around-zero.com

This blog was co-authored by Ana Guerrero and Vinishree, both are the co-founders of Around Zero.

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Around Zero
Around Zero

Written by Around Zero

Environment centred design firm helping businesses in their Net Zero journey using design methodology & circular economy strategy for a climate positive future

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