Talking Heads

TALKING HEADS Dan Crowe

Dan Crowe is optimisation manager at Inspired Energy

Cut the jargon around net zero

The amount of ‘carbon jargon’ has exploded in recent years. Without clarity of definition Dan Crowe is concerned businesses will become mired in confusion B usinesses have been crying out for clarity around net zero since it was set into law. Despite setting out plans for a ‘green industrial revolution’, and the recent publication of the Energy White ‘Two thirds of business energy professionals were confused Getting a firm grip on emissions data is vital to create targets, identify priority areas and establish a baseline. The Greenhouse Gas Protocol Scopes 1, 2 & 3 are internationally recognised and provide businesses with the information they need Paper, no all-encompassing net zero road by the amount to understand both the emissions they map has been published by the government, creating a sense of frustration for many of jargon’ create directly and indirectly, and the extent of control they have over them. This is organisations. In the meantime, the market needed before any meaningful target can be is abuzz with a whole new vernacular. From established. net zero to carbon neutral, the amount of Crowe: 'combined with a lack of Our research found almost two thirds ‘carbon jargon’ has exploded over the last guidance on the topic, it adds up to a of businesses were concerned their year. Combined with a lack of guidance on confusing landscape for businesses' emissions reduction targets could be seen the topic, it adds up to a confusing landscape as ‘greenwashing’ - fuelled in part, no for businesses. doubt, by the lack of definition around net

Our recent research into attitudes to net zero and the myriad of measurements and zero found two thirds of business energy benchmarks being interpreted across the professionals were confused by the amount market. Science Based Targets (SBTs) stand of carbon jargon and, despite the fact 88 per up to scrutiny, requiring businesses to set cent of organisations are working towards goals that clarify how much and by when carbon reduction strategies, only half said they plan to reduce emissions. they ‘fully understand’ the term net zero. We eagerly await the SBT Initiative’s

This confusion is exacerbated by the lack forthcoming guidance on Net Zero Science of a single reference point for businesses: Based Targets; which will hopefully provide a left with room for interpretation, some globally recognised standard for committing organisations are focusing on emissions to and confidently demonstrating Net Zero elimination whereas others are investing emissions. heavily in carbon offsetting. Businesses businesses will need to transform every element of their energy, Our own Carbon Action Programme are taking vastly different approaches to heating, building and transport to achieve net zero. creates a structured framework through planning and measuring their progress on It’s clear that businesses want to plan and adapt their operations which to create and deliver net zero for all decarbonisation, fuelled in part by their to create long-term plans, but they need clarity and consistency to types of organisations. desire to act swiftly to satisfy customers, enable this to happen. Cutting through the carbon jargon is shareholders and stakeholders despite a One of the contributors to Inspired Energy’s Cutting the Carbon vital if organisations are to overcome the lack of clear government rules or widely Jargon report, Dr Grant Wilson from the University of Birmingham’s barriers to progress with net zero plans. adopted independent guidance. In fact, 86 Energy Institute, explained that “given the role that businesses Whilst we wait for robust and widelyper cent believe it is in danger of becoming must play...and the timelines involved to ensure sufficient time accepted standards on Net Zero, businesses a meaningless term unless a consistent to prepare, plan and invest in decarbonisation, clarity is essential can still move forward with expert guidance approach is adopted. to avoid additional confusion or delay and promote a consistent and following recognised carbon reduction

Growing pressure from shareholders, approach across organisations. The sooner this is set out, the frameworks that stand up to scrutiny. stakeholders and clients is driving sooner organisations can begin or continue their efforts towards Much more detail is needed - and decarbonisation up the board agenda, decarbonisation with the knowledge that they are basing this on a set expected - to interpret net zero and what and 60 per cent of businesses supported of consistent definitions.” must be done to achieve it. However, the the idea of ‘green strings’ attached to any A major concern of confusion hindering progress is that it risks direction of travel is set: finding ways to government support to help organisations leaving some organisations behind: while some firms are forging move forward with confidence is vital for recover from the economic impact of the ahead with their own strategies and setting goals, other businesses all businesses to unlock the financial and Covid-19 pandemic. Sustainability has could find themselves with a steeper or costlier journey to emissions environmental benefits that a net zero never been more important. While detail reduction because of the delay that this lack of clarity has caused. strategy can deliver.  is yet to materialise, government itself Net zero requires a long-term strategy: despite the need for clear • More information about Cutting the has acknowledged the need to ‘build back and consistent guidance, businesses can still begin to create plans to Carbon Jargon and a copy of the report greener’ by investing in, and incentivising, significantly reduce their emissions and work towards achieving net is available at www.inspiredenergy. the low-carbon technology that many zero in the medium to long term. co.uk/carbonjargon