Net zero

Since the publication of the special report by the Intergovernmental Panel on Climate Change (IPCC), limiting global warming to 1.5 degrees celsius and achieving "net zero" has become the ultimate goal for a greener future. We need substantial transformation within the next decade to prevent irreversible damage from climate change.

The vision of net zero

A world in which greenhouse gas emissions have been reduced to a minimum - and remaining emissions removed from the atmosphere.

The world's leading climate scientists at the Intergovernmental Panel on Climate Change (IPCC) define net zero as a state where there are no incremental additions of greenhouse gases into the atmosphere. This means that all avoidable emissions have been reduced and residual emissions have also been removed from the atmosphere.

To achieve this, an organisation must:

• Reduce: plan a trajectory to reduce emissions across the entire value chain. Set a net zero target year based on science¹, with interim milestones on how to get there, all consistent with a 1.5ºC mitigation pathway.
• Fund global climate action: financing projects to further avoid and remove emissions outside of a corporate value chain.
• Neutralise: once emissions have reduced to close to zero levels, eradicate unavoidable residual emissions with carbon removals to achieve net zero.

Specifically, companies should set near-term science-based reduction targets (SBTs) aligned with a 1.5°C warming scenario. Most of these reductions are accessible and achievable today.

Along the journey to decarbonising up to 90% of their emissions by 2050, companies should use all of the solutions available today – and develop the necessary technological solutions to reach that last 10% of required emission reductions.

South Pole's recommendations align with the guiding principles for science-based net zero targets published by the Science-based Targets initiative (SBTi). You can find more detail here.

Reducing emissions in line with science

Ambitious efforts to reduce emissions across a company's value chain represent the backbone of a credible net zero journey. Companies must aim to reduce emissions within their value chains at a pace and scale consistent with mitigation pathways that limit global warming to 1.5°C - as laid out by the IPCC.

Funding climate action and neutralisation measures can supplement and enhance net zero strategies but are not considered a substitute for science-based emission reduction pathways.

Reductions can be achieved by improving energy and resource efficiency, switching to renewable energy, designing targeted supply chain interventions, and by developing new innovations in product or service delivery models.

Funding climate action through the purchase of carbon credits, for example, also enables companies to contribute to climate change mitigation beyond their value chains, while actively supporting other important goals, such as climate change adaptation, climate finance and the SDGs.

Climate finance flows to developing countries play a key role in reversing a future rise in emissions linked to growing populations and economic development, while unlocking multiple sustainable development benefits.

No one-size fits all: net zero is a process

A net zero strategy should not be viewed as an additional requirement but rather as a process – one that is unique to each company. Working towards net zero should help companies unify ongoing efforts under a single initiative and reevaluate the ambition of existing targets.

Getting to zero: what's in it for you?

The first movers to pursue corporate net zero targets will be the leaders and advocates for changing the way we do better business.

The business benefits of pursuing a net zero strategy are many:

• Guided by science, companies can align with the global climate policy agenda.
• Companies can use net zero as a pathway to safeguard your reputation, accelerate innovation and competitive advantage.
• Forward-looking companies know that delaying action on emission reductions will be costly, as the cost of tackling climate change increases with every year of delay.

How can South Pole help?

South Pole believes that a net zero target is a part of every organisation's Climate Journey. Our experts have tools and techniques to help you formulate your net zero strategy, set science-based targets and develop and implement ambitious reduction strategies, wherever you are on your Climate Journey.

¹ The Science-based Targets Initiative defines the net zero state has been achieved when emissions have reduced by an average of 90% to the base year, with residual emissions being neutralised through removals credits.