Net Zero Initiative: a single repository for a collective contribution to Net Zero

The challenges of carbon neutrality: rigor, transparency, ambition

 

In the context of the fight against climate change, many companies lack precision and consistency in their actions in favor of carbon neutrality.

Several issues were raised at the start of the project:

➡️ Lack of scientific rigor

Many initiatives lack precise criteria regarding the types of emissions to be taken into account, the reductions required before carbon offsetting can be considered, or more generally the strategy put in place. Corporate communication is far from meeting real scientific requirements, opening the door to greenwashing.

 

➡️ Lack of transparency

The market for carbon offsetting and carbon footprints still lacks a framework, allowing some companies to proclaim themselves "carbon neutral" without any real legitimacy. This makes it difficult to compare companies and identify those that are genuinely committed.

 

➡️ Insufficient ambition

The reduction actions chosen by some companies lack ambition. The CSRD should provide a more demanding framework in the future, but has yet to have an impact on the voluntary carbon offset market. The latter does little to encourage companies to invest in more costly but necessary emissions reductions. Offsetting then becomes an easy way to circumvent real and significant reduction efforts.

1st observation: concepts poorly used by companies

 

Carbon-neutral terms are too often misused, leading to ineffective approaches and even greenwashing.

❗Errors:

🔴 Individual Carbon Neutrality: A False Belief
Expressions like "carbon-neutral company" or "climate positive" are often misused. In reality, the scientific literature is very clear on the definition: net zero carbon can only be defined on a planetary scale. A single company cannot achieve carbon neutrality, but it can make an active contribution.

 

🔴 Compensation Versus Reduction
A common confusion lies in the idea that offsetting is enough to achieve carbon neutrality. NZI points out that it is essential to reduce emissions directly before considering offsetting, which should only apply to unavoidable residual emissions.

 

🔴 Taking indirect emissions into account (Scope 3)
Many companies limit their action to direct emissions (Scope 1 and 2), ignoring their indirect carbon impact linked to the value chain (Scope 3).NZI stresses the importance of including these emissions for a comprehensive approach to carbon neutrality.

NZI's response: A common methodological framework

 

In response to the drift and shortcomings of current approaches to carbon neutrality, the NZI proposes a structured methodology that goes beyond mere promises of emissions reductions. By defining precise, measurable standards, it helps organizations adopt transparent practices aligned with scientific requirements.

The NZI methodology is based on three pillars:

📉 LDirect and Indirect Emissions

Companies must reduce their greenhouse gas (GHG) emissions in their direct activities (Scope 1 and 2) and throughout their value chain. 

 

♻️ Accelerating Economy-Wide Reductions
Beyond their own emissions, companies are encouraged to support decarbonization projects in other sectors, thereby contributing to a broader reduction in GHGs.

 

♾️ Contributing to Global Neutrality
Finally, NZI offers to offset residual emissions through carbon capture and storage initiatives, such as reforestation and soil sequestration.

 

Summarized in this dashboard

This dashboard is complemented by a selection of relevant indicators to measure a company's ability to contribute to carbon neutrality:

The 10 fundamental principles for committed companies

 

The NZI is based on 10 summarized guiding principles that guide organizations towards true carbon neutrality:

 

1️⃣ A question of planetary balance:
It's a question of balancing GHG emissions from human activities on the one hand, and the absorption capacity of carbon sinks on the other.

2️⃣ Contribute to collective neutrality:
Net zero carbon is part of a global effort, not an individual one.

3️⃣ 3 action levers for a company:
Reduce the GHG emissions of its value chain, help its ecosystem to reduce their GHG emissions, and develop carbon sinks on a global scale. These levers must be measured, objectified, monitored and reported separately.

4️⃣ Reduce before compensating:
Prioritize direct reduction before compensation.

5️⃣ Measurement and transparency:
Set up precise indicators.

6️⃣ Consistency with climate science:
For a credibleclimate strategy, reduction targets must be compatible with carbon budgets of 1.5°C or below 2°C. These targets must be specified for medium- and long-term horizons.

7️⃣ Concrete, rapid results:
A climate strategy is only valuable if it leads to real reductions in the company's GHG emissions, in line with the trajectory set.

8️⃣ Include your ecosystem:
Support initiatives that decarbonize other sectors. Companies are encouraged to contribute to decarbonization beyond their own carbon footprint.

9️⃣ Contribute to carbon capture projects:
Finance or develop solutions to remove CO2 from the atmosphere.

🔟 Rigorous and irreproachable communication:
Companies are invited to communicate transparently and sincerely on their climate strategy, emphasizing their concrete results, and using indicators and language that help promote a rigorous approach to the climate issue.

The Net Zero Initiative (NZI) provides companies with a rigorous framework for taking effective action in the face of the climate emergency. By prioritizing emissions reduction, integrating transparency and adopting a collective vision, the NZI transforms carbon neutrality into an achievable and credible goal.

By fully committing to this approach, companies not only reduce their impact, but also become key players in global change, reinforcing their credibility and resilience in a world in transition.