Building blocks for net zero transformation

Alignment of company ambition to achieving global net zero by no later than 2050, underpinned by science-based targets approach to limit warming to 1.5C of warming. Define what good practice on ambition looks like. 

Checklist of key actions:

• Set a net zero vision that follows a science-based approach
• Understand total emissions impact across value chain
• Prioritize actions to deliver your net zero commitment
• Develop a credible carbon offset approach (including measures to avoid, reduce and remove emissions)

Read more about the steps to achieve a robust emissions reduction ambition.

Oversight and accountability for net zero driven through the entire organization, including at the highest levels of the company and Enterprise Risk Management.

Checklist of key actions:

• Those at highest level of organization assume responsibility for delivering net zero transformation
• Establish net zero and climate change as standing agenda items at executive level
• Assign management oversight of net zero transformation
• Evaluate net zero incentives structure

Net zero is embedded into company strategy,including growth strategy and functional strategies to maximize value and build resilience in a changing climate.

Checklist of key actions:

• Understand how net zero is changing market dynamics and value
• Assess capabilities required to succeed under net zero future
• Identify options to deliver net zero strategy
• Develop business case to deliver net zero strategy
• Align operating model blueprint to deliver net zero strategy

Also read more about what steps you can take towards a circular business model.

Company is structured to achieve net zero with the operating model designed to deliver net zero targets. A holistic change management program is designed and executed where required.

Checklist of key actions:

• Establish clear structure of responsibilities and accountabilities to deliver net zero
• Harness culture and people
• Establish policies, processes and a measurement framework to deliver net zero transformation
• Engage customers
• Leverage technology and digitisation program

Net zero integrated across the whole supply chain to build a well connected, smart, efficient and low carbon supply chain ecosystem. Includes adapting supply chain strategy, aligning with existing transformation efforts, and supporting the supply chain to decarbonize. 

Checklist of key actions: 

• Leverage existing supply chain transformation efforts to deliver emissions reductions
• Assess emissions and climate impacts across whole supply chain
• Incentivize suppliers to reduce emissions
• Build supplier capacity to deliver net zero
• Build a connected and smart supply chain ecosystem amongst suppliers

Read more on how you can ensure your net zero ambition extends to the entire value chain.

Company invests in R&D and builds innovation into ways of working to harness emerging technologies and develop new solutions to deliver net zero at pace. Net zero is embedded into innovation/R&D strategy, into product and service development, and corporate ventures.

Checklist of key actions:

• Ensure net zero is embedded in corporate R&D and innovation
• Provide finance to develop innovative net zero solutions
• Innovate to develop products and services that deliver net zero
• Leverage Corporate Innovation to unlock internal barriers to net zero transformation
• Build innovation ecosystem through partnerships

Substantial commitment and willingness to finance net zero transformation through existing and new finance functions and modalities.

Checklist of key actions:

• Develop investment strategy
• Embed into corporate finance decision making
• Identify and prioritize sources of financing
• Deliver investment

Read more about what requirements financial institutions will impose on you with regard to sustainability. Or find out more what impact fiscal measures like carbon tax and subsidies, such as SDE++, have.

Provides transparent and balanced information on progress against net zero ambition, including business transformation.

Checklist of key actions:

• Communicate your net zero strategy
• Disclose progress against your net zero strategy
• Disclose with clarity and transparency

Read more about what the implications of the European rules are, regarding EU Taxonomy, the Non-Financial Reporting Directive (NFRD) and the Transitional Common Auction Platform (TCAP).

Engages and influences stakeholders across ecosystems to enable change at pace and scale.

Checklist of key actions:

• Develop engagement strategy
• Inspire and lead by example
• Influence value chain
• Promote policies and behaviors that enable and accelerate progress

Read more about how to ensure your organisational culture contributes to your sustainability strategy. And how the Environmental Footprints Insights solution can support the process.