Resource
21 Sep 2023
Net Zero is not new, it’s been around for decades although in many different formats; albeit now we have a dedicated name, government direction, and a date or focus to achieve Net Zero. But what does this mean for the typical business that may want to take part but lack resources or the budget to engage in everyday decision-making.
Large organisations are already benefiting due to environmental obligations such as SECR and ESOS and are quickly adapting and taking steps towards a greener future although SME organisations are not so pressured. Is this about to change?
Taking that step into the unknown or not sure where to start is often the first hurdle we encounter alongside finance which I believe is still the greatest barrier to all organisations taking that first step. To lessen the impact there are key area’s that I would suggest are taken before taking your business on that journey.
Operational Net Zero which includes mainly Scopes 1 & 2 and a little scope 3, can be more straight forward as these are in your control, although when we start to think about scope 3, the 15 categories, upstream and downstream emissions then this is where the expert can truly make a difference. You may have already experienced partners and suppliers requesting your company’s emission data or explaining that to continue to work with a particular company you must adhere to their Net Zero structure or create your own. This can be particularly challenging in a time-sensitive aspect and mixed with not having data readily available, the expert partner can take this headache away and bring together your emissions allowing you to focus on your business, products, and delivery. Choose your partner based on experience in the sector you supply, making sure they put the engineering and science behind your Net Zero plan.
Often you would be directed by your expert partner on how you can press forward with Net Zero although having a general understanding of what you want to achieve in advance will be advantageous. You may not actually be ready for Net Zero and an energy efficiency project may be more suited, reducing costs without a full commitment or date publicly set for all to see. Setting a date that is unrealistic can lead to additional unwanted pressures. Reducing emissions is a pivotal part of Net Zero, so aligning your expectations to Net Zero is as good a place to start. For larger organisations where data is readily available, reporting delivered through SECR and ESOS and then transitioning to Net Zero won’t be as daunting but setting your expectations will still form a large part of the process.
In summary, what I am trying to expand upon here is to take your time, understand your expectations, stakeholder expectations, and how they will be perceived by your target audience, and align these with your expert partners recommendations.
Many organisations were quick to set a date to become Net Zero. Was this peer pressure, wanting to be the first organisation to set their date or will this place unwanted stress on colleagues to achieve unrealistic milestones.
There is no right or wrong answer to setting a date as there are reasons why early dates were set. A focus, challenge, or deadline often pushes us to get aligned and mobilise faster. In my opinion, setting a date can only be truly realistic with engineering and science at the heart of your strategy. Set a date based upon facts, how you will achieve Net Zero, the steps, resources required, and timescales which will sit nicely with your definition of your expectations and guidance with your expert partner in place as mentioned in the previous sections.
Don’t be afraid to set the date if this is backed up with a clear plan in place. Share your date and strategy with others. Net Zero is about collaboration and sharing your story as to how you set a date may inspire others to start.
In addition to defining your expectation and appointing your expert partner, data will be the most critical element within your net zero strategy. If the data is inaccurate the final output will be inaccurate.
The data required will be dependent on whether you are looking to progress with operational Net Zero, so scopes 1 &2 or you include scope 3. This will be confirmed within your defining phase.
Data may be required across multiple divisions with resource required from facilities, finance, and sustainability teams should you have them. When we start to focus on the purchase of goods and services then this will likely come from finance, setting survey dates, checking compliance from facilities, and general guidance and support from sustainability.
Data is likely to come from a variety of sources and in many formats. Start to think about how and who you can request from and provide deadlines as to when you need this. Make sure the data is from reliable sources and if estimations are required then ask your expert partner to provide this for you.
Bringing together a team at the very beginning can be extremely beneficial, especially those that will be helping you to bring together the data, setting objectives and milestones, and those who can make key decisions on the progress of the strategy.
This could be a working group for the day-to-day decision and request and a steering group each month or quarter to present progress, updates and what the next steps will be.
Net Zero will likely be new to many colleagues so having a working group will help to spread the word, engage others, and share your commitment to a greener future.
Once the data is completed, surveying would be the next step although don’t let the data collection hold you back from getting your sites surveyed as this can be done at the same time.
Understanding your buildings, the challenges you may encounter, those quick wins and longer terms projects are all part of the Net Zero process.
Are you a site that has a mix of A listed buildings in a national trust location, roofs that are not suitable for solar panels or an abundance of land but not sure how to the get the best from it then the survey will determine where these projects sit, which would be priority and those which may have to wait until the load drops to see how much renewables may be required for example.
Surveying will bring out the possible, help to create milestones and give you confidence on how to remove those emissions from the atmosphere. Spend time well within the survey stage and this will deliver a better, smoother transition to achieving your goals.
We often encounter various hurdles as we embark upon a sustainable future. The want is there but not necessarily the finances or resource within to achieve what you set out to do. You may be a rural business with limited infrastructure to allow for renewable technologies or have good links to public transport meaning that Solar and more sustainable modes of travel are not quite going to work. You may be operating within a grade A listed building which can provide additional challenges or maybe don’t have the board support to move forward.
If I were to choose one barrier that will impact most and hold the biggest challenge it would have to be how we are going to finance change. Change will require organisations to consider a range of funding mechanisms such as PPA’s and leased models, grants, zero interest loans, and if you can fund it yourselves then this will of course provide the best return. Spending time to plan the financial impact will allow you to grow more sustainably and as budget permits. Starting small may be the answer, proving the benefits to help your organisation make larger more impactful decisions building confidence, and strengthening your model towards a net zero future.
There is a place for offsetting and many businesses may be forced to go down this path where energy efficiencies or renewables are limited via a landlord lease agreement or where space is at a premium.
Offsetting however would be much lower down the Net Zero process where you would be more proactive to look at a heat decarbonisation strategy or energy efficiency strategy which would almost certainly come before offsets. Are your billing supplies green, water conservation targets met, smart IT, LED lighting, BeMS optimised, draughts repaired, heat loss prevented, behavioral change managed etc.
It may be that all of the above has been done and you have exhausted every avenue, then maybe it’s time to talk offsets.
Net Zero can be complex without taking steps to simplify the process. At Zenergi we have broken down Net Zero into 3 categories; Measure, Prepare, and Deliver.
Measure is the data collection phase, prepare is surveying, understanding your challenges and engaging stakeholder support, and deliver is the fun part, which is to take the data, the surveying and making this come to life.
If we simplify Net Zero by taking some of the steps, we have discussed here then the process becomes more manageable, the daunting first step is an enjoyable experience, and sharing your successes and challenges will help you and others to celebrate the progress made.
Sustainability should be at the heart of every business decision you make as this can be impactful to, for example, your people, your customers, and the environment. Let’s not forget that we are in a climate and economic emergency, and emphasise emergency when thinking about how your employees travel to and from work, whether your environmental strategy is reciprocated by your supply chain, and how your organisation has defined and set a target to achieve net zero.
If the winning of tenders and future business important; then a pathway to a sustainable future will be underway and those who are yet to experience competition with a sustainable twist will soon be challenging themselves to collate and manage their estate more thoughtful of the outcomes.
Being sustainable is more than just a tick-box exercise, sustainability is about making a choice, challenging mindsets, and mobilising your organisation towards a more inclusive structure.
