Less Net More Zero?

The journey to net-zero is complex for any small business trying to reduce their carbon footprint. Back in 2021, we set a net-zero goal for 2025 with the very best intentions but had no idea about the challenges that were about to emerge, and so we’re changing direction, with a ‘less net more zero’ approach.

We started with offsetting

In 2020, before we officially began our purpose transformation, I decided to start offsetting carbon for AG and made a commitment to plant 25,000 trees by 2025, proudly creating our first ‘AG Forest’. Supporting tree planting projects is the most common type of ‘carbon offset’ – because they help to remove carbon from the atmosphere, by compensating for the carbon you have emitted. Tree planting also plays a role in supporting and restoring biodiversity. As they grow, trees absorb carbon dioxide, and so we assumed that by planting our forest, we would remove the carbon our business was responsible for, and that our ‘net’ contribution to climate breakdown would be zero. This felt like a brilliant solution, and one that would help us to achieve our offsetting ambition.

We calculated our footprint and offset more carbon

The following year, we used an online service to calculate our first carbon footprint - an estimation of total carbon emissions from running our offices, travelling and everything else we do as a business. If we invested enough carbon offsets to exceed our footprint, we would certify as a ‘climate neutral’ business. So, we funded more tree planting, investing in another type of carbon offsetting this time – carbon avoidance. I learnt that these projects help avoid carbon emissions - things like:

• Wind turbine and solar panel projects that help to prevent the need for fossil fuel energy generation

• Stopping methane (another contributor to climate change) escaping from landfill sites

• Initiatives to stop trees being cut down

• Purchasing efficient cooking stoves for use in parts of Africa to reduce the amount of fuel used for cooking

It felt like our ‘climate neutral’ business was making a tangible difference by funding these projects, and we were on track to be net zero by 2025. However, since committing to our net-zero goal and becoming ‘climate neutral’, two major challenges have emerged:

1. Increasing and very public scrutiny of the concept and practice of ‘carbon offsetting’

   The Guardian reported that the majority of offset projects that have sold the most carbon credits are ‘likely junk’ and the UK’s Committee on Climate Change questioned the fundamental concept of carbon offsetting. They suggested that it could ‘slow progress towards net-zero, by taking the focus away from direct business emissions reductions. This was perfectly illustrated by the hosting of a ‘Carbon Neutral World Cup’ in vast, purpose-built, air-conditioned stadiums in the deserts of Qatar.

2. Our biggest client requested that we commit to a ‘science-based net-zero’ target through the Science Based Targets Initiative (SBTi)

We then learned about SBTi

It’s easy to assume that the terms ‘carbon neutral’ and ‘net-zero’ essentially meant the same thing – a cancelling out of the business carbon footprint through the purchase of carbon offsets. Under the SBTi’s definition however, net-zero is something quite different. Its key components include:

1. Short-term, deep emissions reductions. In simple terms, this means halving our carbon footprint by 2030

2. Long-term targets to cut all possible emissions before 2050. Most companies must reduce emissions by more than 90%

3. Neutralise residual emissions. After a company has achieved its long-term target and cut emissions by >90%, it must use permanent carbon removal and storage to counterbalance the final <10% of residual emissions that cannot be eliminated.

There are no quick fixes with science-based net-zero targets. A company is only considered to have reached net-zero when it has cut its emissions by at least 90% and neutralised any residual emissions. This meant that under SBTi we wouldn’t be able to become net-zero by 2025 and would need to extend our target goal.

To achieve an SBTi validated target, we completed a detailed carbon footprint in line with the global standard methodology known as the Greenhouse Gas Protocol. Thankfully, Tim Maiden from Green Small Business supported us with this, which made things much easier to navigate. Measuring our scopes 1,2 &3 would have been a real struggle without his expertise!

We then completed a targets submission to the SBTI under their specific pathway for small businesses. Our short-term targets were predetermined – a 42% cut by 2030. Our long-term target of net zero was then set for 2045, in line with the target set by our client. We’re pleased (and relieved) that the SBTi have now verified both targets.

So where does this leave us?

We are setting and benchmarking goals to look at how a service-based business like ours can reduce our footprint further each year. We have already moved to a greener and more ethical bank, ended our company car contract, and in September 2022, we moved to a fully hybrid working model with most of our work being carried out remotely. We’ve made huge progress in our emissions from business travel. Most of our emissions stem from the other goods and services we purchase, and we have limited options here, so measuring the carbon benefits of any buying changes we might make is even more challenging.

We will continue to support high-quality projects that remove carbon from the atmosphere, but we’ll no longer think of them as ‘offsets’ and have given up our ‘climate neutral’ badge as a result. Our focus now, is to continue reducing the carbon emissions from our business in-line with our original 2025 ambition - and help our clients, colleagues, suppliers, and those in our wider network to do the same - but with an understanding that the SBTi won’t recognise our reductions under their measurement framework until 2045.

And finally… I’d like to say ‘thank you’ to Tim at Green Small Business for helping us navigate our wiggly road to net-zero with better clarity and understanding. He has been a huge help in capturing our progress, so that we can share our experience to help other small businesses. If you need some trusted expert support to become ‘less net more zero’, talk to Tim!