Crossing the Line to Net Zero

The emergence of a Net Zero mindset

Today, the COVID-19 pandemic has propelled Net Zero and climate action to the top of the corporate agenda, as companies and countries recognize their vulnerability to global events and make efforts to build resilience across value chains. Net Zero is synonymous with real and ambitious action on climate change – the ultimate goal for a greener future.

However, a South Pole report based on a survey of over 120 sustainability leaders from key sectors - including industry, consumer goods and services, property and construction, and finance - finds that only about half of companies and organizations who have set Net Zero targets, have also set concrete milestones to get there. Are leaders talking the talk, but not walking the walk? Is this setting them up for accusations of greenwashing?

This South Pole report looks at the gap between ambition - in the form of Net Zero and Science-based targets - and concrete climate action.

More work needs to be done to bridge Net Zero ambition with action

Despite the emerging 'Net Zero-ready' mindset, our research also indicates that there is still work to be done to bridge the disconnect between organisations' ambition and their climate action: half of the executives polled in our survey work for organisations that have set Net Zero targets, but about half (48%) of those organisations have not set tangible milestones to reach their targets. This is possibly setting them up for accusations or greenwashing.

Organisations big and small now need clear and credible plans to reduce and compensate for emissions in the near term, plus a view to realise cost-effective carbon removal opportunities over the long term, through practices such as nature-based and technological solutions. Decarbonisation represents a key opportunity to insulate organisations from the risk of future external shocks, including climate change, while earning brand leadership positions in the nascent Net Zero space

Crucially, C-level executives (including CEOs and CFOs) are trusted by most CSR and environment professionals to have the knowledge and expertise to lead the race to Net Zero. Given that the risks and opportunities associated with climate change are so integral to the success of an organization, it is encouraging that the awareness of these issues seems to have spread beyond just the CSR staff.

Survey of sustainability leaders finds that climate ambition is growing - but there is a disconnect between ambition and action on Net Zero.

The journey ahead

Despite the challenges of COVID-19, the momentum of most organisations on climate action seems unhindered, signalling that sustainability is being viewed as a proxy for efficiency and profitability in the coming global depression.

The first movers to pursue corporate Net Zero targets will be the leaders and advocates for changing the way we do better business. The triple bottom line benefit of pursuing a Net Zero journey with robust milestones is clear – from aligning with the global climate policy agenda, managing risk, or driving reputation and competitive advantage.

As corporate boards take stock and revamp their strategies, now is the time to align COVID-19 recovery plans with pathways to Net Zero.

#OurClimateJourney is yours too

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 set science-based targets and develop and implement ambitious reduction strategies.