12 January 2023

Narrowing in on net zero

Louisa O'Connell

Head of Net Zero Research

Stuart Leaver

Research Associate

13 min

Underpinning ambitious net zero strategies are the three pillars of accounting, engagement and governance. Many companies designing a strategy will employ the Carbon Management Hierarchy (CMH), a mitigation strategy prioritising direct elimination, avoidance or reduction of emissions before additional offsetting. 

Engagement with the Voluntary Carbon Market (VCM) needs to become a critical part of a corporate net zero strategy. Growing awareness of the VCM’s potential requires companies to consider how carbon credits can be best placed in an overall strategy. This is especially important for hard to abate emission categories due to their complexity to decarbonise.

Supported by the three pillars, a company could develop an expanded CMH model, which embeds carbon credits, to accelerate both corporate and global decarbonisation.

Click here to download the full report

Key Takeaways:

1. Corporate emissions account for approximately 40% of the global total. Despite ongoing efforts to align to 1.5°C pathways, corporate net zero strategies are falling short of achieving this.

2. Accounting, engagement and governance are three core pillars that underpin the effectiveness of net zero strategies and an expanded Carbon Management Hierarchy (CMH) model.

3. Strategically offsetting emissions as part of a net zero strategy allows companies to set ambitious climate objectives, engage with hard to abate emissions, and contribute to global decarbonisation.

To sign up to updates from BeZero Carbon, including ratings, events and insights, click here.

Read more from BeZero Carbon:

20 January 2023
Shipping & the VCM: Charting a course for Paris Report
Read More
1 December 2022
Blending in: the future of shipping Report
Read More
10 January 2023
Five themes for carbon and environmental markets in 2023
Read More