The path to climate neutrality for companies: Here's how!

|  March 1, 2023

🕓 Reading time 8 minutes

Table of contents

1. What does climate neutrality mean?

2. Advantages of climate neutrality

3. Steps on the path to climate neutrality

4. Conclusion

1. What does climate neutrality mean?

Climate neutrality This means that companies do not release net emissions of greenhouse gases into the atmosphere. This means they must completely avoid or offset these emissions by investing in measures and projects that reduce or remove greenhouse gas emissions from the atmosphere.

Why are greenhouse gases so relevant? We explain the background in the following video:

2. Advantages of climate neutrality

Climate neutrality has many advantages for companies, in addition to CO2 reduction and the associated Climate protection.

Cost savings

Cost savings can be cited as a significant advantage for climate-neutral companies, as energy efficiency improvements and the use of renewable energies can lead to cost savings in the long term.

Risk minimization

Climate-neutral business practices can also help minimize risks. Companies that reduce their greenhouse gases and improve their energy efficiency are better prepared to cope with rising energy costs, regulatory requirements, and potential negative impacts due to climate change.

Competitive advantage

Climate neutrality can also provide a competitive advantage. Companies that choose Climate neutrality can stand out from the competition and attract customers who are interested in sustainability and environmental protection.

Increase brand value

A climate-neutral company can achieve greater brand value. Customers and investors are increasingly paying attention to corporate sustainability and are willing to pay more for climate-neutral products and services. A climate-neutral company strategy can improve a company's image and increase sales.

Report to customers and prospects

Climate neutrality can also serve as a communication tool. Companies can communicate about their climate-neutral actions and successes along the way and position themselves as responsible actors. Customers and prospects become more closely tied to a climate-neutral company and can build long-term customer relationships.

3. Steps on the path to climate neutrality

The implementation of Climate neutrality is a step-by-step process and requires careful planning and implementation. Companies must first measure and monitor their CO2 emissions to develop their climate-neutral strategy.

CO2 accounting

The first step to becoming climate neutral is to record your CO2 emissions in the so-called Corporate Carbon Footprint according to a recognized standard. Such a standard is defined, for example, by the Greenhouse Gas Protocol. Starting in 2024, the European Sustainability Directive (CSRD) will also require companies with certain size criteria to take this step.

For accounting purposes, all greenhouse gas emissions generated by the company's business activities must be recorded. The accounting includes emissions from direct sources such as company vehicles and energy-producing facilities, as well as from indirect sources such as purchased energy or purchased goods and services.

Reduction of emissions

After accounting for emissions, the company should define goals, strategies, and projects to reduce its CO2 emissions. There should be clear action plans and timeframes for implementing the strategies.

These measures can include, for example, energy efficiency measures, the switch to renewable energies, the optimization of transport routes and business trips, or the switch to environmentally friendly materials. By reducing emissions, companies can minimize their impact on the environment while simultaneously saving costs.

Compensation and certification

Since economic activity always involves a certain amount of emissions, offsetting is a step on the path to becoming a climate-neutral company. Even with comprehensive reduction measures, emissions remain that cannot be avoided. To be considered climate-neutral, these must be offset through certified projects. For this purpose, there is the option of CO2 offsetting. By investing in climate protection projects, the same amount of greenhouse gas emissions is saved as the company itself caused. However, care should be taken to ensure that the projects Climate protection are sustainable and transparent and make a real contribution to Climate protection Policymakers have established a number of standards to ensure the quality of compensation.

To your own Climate neutrality To communicate externally and gain the trust of customers, partners and investors, companies can have their Climate neutrality For this step, the compliance of the emissions data and offsetting measures with the relevant standard is reviewed and confirmed by an external party.

communication

It is important to communicate efforts toward becoming a climate-neutral company transparently and credibly. Companies should inform their customers and stakeholders about their emissions, targets, and progress, always based on key performance indicators.

Conclusion

Climate neutrality is an important process for companies to fulfill their responsibility towards the environment, society, and politics. By determining your own carbon footprint, you take the first step toward this goal.

So you want to start now and need a certified carbon footprint?

In this case, our TÜV-certified software+service solution for collecting your Corporate Carbon Footprints (CO2 footprint) interesting for you!

Green Vision Solutions will accompany you every step of the way to Climate neutrality – from accounting to reduction, compensation and certification to communication.

The TÜV-certified CO2 survey at Green Vision Solutions

✅ runs on a certified, user-friendly online platform,

✅ provides you with a report and a clear dashboard for communication

✅ and also offers you continuous contact with your personal contact person with an individual kick-off and continuous technical support.

Arrange a non-binding online meeting with one of our specialized employees who will introduce you to our process and software: