INDUSTRY COMMENT Net Zero goals: ambitious or unachievable?
As the threat of a climate catastrophe casts an ugly shadow across the world, the reality of what it will take to reach Net Zero weighs heavy. According to a recent study of Net Zero efforts in the public and private sector, there are ‘major credibility gaps’ in sustainability initiatives. Adam Savitz, sustainability director EMEALA at Johnson Controls has more
A
study of 2,000 sustainability leaders revealed the average target date set for organisations to implement or mature their sustainability programmes
is 2024. As the clock ticks ever louder, this gives businesses just two years to get the wheels of a robust strategy in motion to stand a chance of scaling up efforts meaningfully. As pressure mounts on the business world to play an active role in climate leadership, there are growing concerns that despite pledges and best intentions, many are flying blind without a real actionable roadmap to success in play. Even the UK government recently admitted that the Net Zero climate strategy ‘doesn’t add up’. However, the issues do not only lie in whether it is possible to transition at the speed and scale required. A lack of strategic alignment within businesses and the usage of automation to track data is preventing some companies from measuring results and monitoring progress. It’s clear businesses need to look to already proven technologies in order to reach Net Zero goals in an accelerated manner.
The challenging economy is forcing businesses to act quickly, which will inevitably impact how businesses approach sustainability. Businesses must decide whether to cut costs now or invest in the
future.The ongoing energy crisis is also hindering the transition to Net Zero for some businesses across the UK as prices surge. However, if businesses start making progress with energy efficiency solutions, costs can be lowered in the long run. Adding to the issue at hand, a shortage of expertise and challenges around scaling up create more hurdles for organisations striving to meet their sustainability objectives.
Decarbonisation and digitalisation go hand in hand
Sustainability initiatives generally focus on challenges such as decarbonisation, moving to a circular economy, and increased health and safety performance. Alternatively, most digitalisation programs have enhanced
operational predictivity, productivity boosts, and lower costs as their main goals. However, businesses have to start with solving these two issues holistically. By comparing the similarities of sustainability and digitalisation, it is clear where they overlap – efficiency. The first step for a large company aiming to decarbonise its operations is to reduce demand – energy efficiency measures and optimisation. From there, businesses could lower consumption which is increasingly important in today’s environment and it could play a decisive factor in enhancing brand loyalty and customer retention as the world looks to businesses for climate leadership. Sustainability is no longer an opt-in for the world’s companies; it needs to be part of their DNA. And right now, the major theme of sustainability is decarbonisation, plus improving nature/biodiversity and reducing inequality. The 2010s were the warmest decade yet recorded, with 2016, the year in which the Paris
Agreement was signed, ranking as the hottest 12-month period ever. Companies could improve the health of the planet and meet their business goals by acting quickly in their journey towards sustainability. The ESG (Environmental, Social, and Governance) premium means that their willingness to invest more for the sustainable option will make them more attractive to investors. Although businesses do benefit from this, the real winner is the planet – taking meaningful action on sustainability today can assist in preventing climatic destruction tomorrow.
A brand-building case for sustainability
Embracing sustainability creates opportunities for businesses far beyond efficiency and compliance. Organisations that implement and succeed in their sustainability targets will reap the rewards of stakeholder, investor, employee, and customer trust while gaining a competitive advantage. Our recent research with Forrester found that whilst addressing regulatory requirements and reducing cost through efficiencies were important investment drivers, the top driver to prioritising sustainability performance is attracting those customers who make decisions based on sustainable corporate values (70%). It is clear that companies who can deliver on their sustainability targets will set themselves apart from the rest and win against those not succeeding in the market.
Companies need to have a plan. They must look at implementing technology to achieve Net Zero. Because no two buildings are alike, no two Net Zero roadmaps should be either. It is critical to have a plan in the race to decarbonisation. However, failing to achieve publicly stated
targets may leave organisations in a worse spot than before. Customers, investors, employees, partners, and shareholders have increased expectations for companies to match words with action. And once trust is broken, it’s very hard to rebuild. It’s why companies cannot fall short of their goals and must clearly demonstrate any progress they’ve made. Not only for their own success, but to limit global warming and mitigate the effects of climate change for the future. The only way to press forward is to make realistic and achievable goals and then set out a clear strategy to ensure success and act on it by investing in efficiency, optimisation, and onsite and offsite renewables. After all, actions speak louder than words.
16 BUILDING SERVICES & ENVIRONMENTAL ENGINEER DECEMBER 2022 Read the latest at:
www.bsee.co.uk
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36
