500 companies have pledged to become net zero. What does that mean?
Any operating asset requires energy leading to greenhouse gas emissions. Most of the times the reference is to carbon dioxide from fossil fuel consumption.
Net zero business implies for every kilogram green house gas emitted in the value chain one kg will be taken away.
Breaking down the emissions
Scope 1 covers direct emissions. This would apply to boilers, furnaces, ovens owned by business.
Scope 2 covers indirect emissions from the generation of purchased electricity and other utilities.
Scope 3 includes all other indirect emissions that occur in a company’s value chain. Products, employees, customers, business partners.
Scope 3 is outside control of business. It can best be influenced by adapting sustainable practices.
