Definition
A state where a company, country, or organization reduces greenhouse gas (GHG) emissions as much as possible and balances any remaining emissions by removing an equivalent amount from the atmosphere. Net Zero is a core goal under the Paris Agreement.
Why It Matters
- Reduces business risk and enhances investment appeal, as companies with Net Zero commitments are better positioned for regulations, market shifts, and investor expectations.
- Aligns corporate strategies with climate targets, ensuring compliance with global climate policies.
- Drives innovation and industry transformation, as businesses transition to clean energy, low-carbon supply chains, and new technologies.
How Businesses Achieve Net Zero
- Measure Emissions: Assess Scope 1, 2, and 3 emissions to understand where reductions are needed.
- Develop a Plan: Identify ways to improve energy efficiency, transition to renewables, and replace high-carbon activities.
- Implement Reductions: Shift to clean energy, optimize operations, and decarbonize supply chains.
- Offset Remaining Emissions: Invest in carbon removal projects or verified offsets for any emissions that can’t be eliminated.
Example: PTT Group, Thailand
- Net Zero Target: PTT Group aims to achieve net zero greenhouse gas emissions by 2050, which is ahead of Thailand's national goal of reaching net zero by 2065 as agreed upon at COP26.
- Carbon Neutrality by 2040: The company has set a goal to reach carbon neutrality by 2040 and plans to reduce its greenhouse gas emissions by 15% by 2030, compared to 2020 levels.
- Strategic Framework: PTT has established a framework called the 3P Action Plan, which focuses on:
- Pursuit of Lower Emissions: Using renewable energy and hydrogen energy, implementation of energy-saving and conservation projects, and carbon offsetting through carbon credits.
- Portfolio Transformation: Increasing investments in clean energy and new business ventures beyond traditional hydrocarbons.
- Partnership with Nature and Society: Enhancing natural carbon sinks through reforestation and other initiatives.
Read more: PTT’s Climate Action
Further Reading
