Demystifying Net Zero for Small Businesses

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With COP26 finished a couple weeks ago, Climate Action North has outlined some of the reasons small businesses should take action today.

 

The UK Government is committed to reducing the UK’s greenhouse gas emissions by at least 100 percent by 2050, compared to 1990 levels.

This target is known as net zero and moving to a net zero carbon economy is now set in UK law. Most big firms will be forced to show how they intend to hit these targets, under proposed Treasury regulations.

While the focus is on larger companies, it is important that micro and small businesses play their part. Small businesses account for 99.9 percent of the UK business population so their collective tangible climate actions to chart the path to net zero emissions by 2050 are critical.

Taking action to become net zero will bring many benefits to your small business including improving resilience and competitiveness, while reducing costs and even encouraging investment and attracting new customers.

However, small businesses often have less resources and limited access to capital and investment so the route to net zero can seem overwhelming. And, unsurprisingly, many businesses are confused about what net zero actually is and the actions they need to take to achieve it. Here we demystify net zero and look at:

  • What is net zero?
  • Why should I set a net zero target?
  • How can my small business move to net zero?

 

What is net zero?

Net zero is when you put no more carbon into the atmosphere than you take out of it. It is not the same as carbon neutral. These terms are often used interchangeably but they are different and it’s important to be able to distinguish between them.

In a nutshell, net zero carbon means making changes to reduce carbon emissions to the lowest amount; offsetting is used as a last resort. Carbon neutral is the policy of not increasing carbon emissions and achieving carbon reduction through offsets. Read this comprehensive breakdown of the differences between net zero and carbon neutral.

 

Why should I set a net zero target?

The main reason is the climate emergency.

The Intergovernmental Panel on Climate Change (IPCC) issued a ‘code red for humanity’ warning that global warming of just 2°C above pre-industrial levels would have drastic consequences. The slim chance we have left to avert heating above 1.5C must be immediately grasped and everything we do each day must work towards cutting emissions and building resilience.

While tackling the climate crisis is a big critical issue, there are many reasons why moving towards net zero matters to your small business. 

The legislation affecting larger businesses will result in pressure on smaller suppliers to be more sustainable.

Prices for energy obtained from fossil fuels will only rise and, together with carbon taxes, will eat into your bottom line; using resources more efficiently now will help minimise costs or penalties later. 

Public concern about the climate crisis is growing and consumers are increasingly demanding more environmentally sustainable products and services. A 2021 Deloitte survey reports that 32 percent of consumers are highly engaged with adopting a more sustainable lifestyle while 28 percent have stopped buying certain products due to environmental concerns.

Becoming net zero will also help with recruitment; research by Total Jobs revealed that over a quarter of workers would take a pay cut to work for a company working towards protecting the environment and are willing to accept a salary reduction of over £8,000 per annum to take on an environmentally friendly role.

In summary, net zero is good for the planet and for your business.

 

How can my small business move to net zero?

Whether you’re a corporate multinational or a micro business, the first stage of your net zero journey should be to calculate your current emissions.

Measuring your carbon footprint will help you understand how much carbon your business produces and the areas you need to focus on to move towards net zero. It will also help you set your targets and timescales.

The Climate Action North business toolkit will help you to scrutinise your resilience against climate risks and identify areas of action. It covers risks such as severe weather events, skills shortages, and supply chain issues associated with the climate crisis. It signposts to further support, information, and training available within the Climate Action North associate network and you will get a bespoke report highlighting practical action and solutions. You can use this report to put in place a practical action plan to reach net zero.

The actions in your net zero plan will address various areas of your business including: your processes, supply chain, packaging and materials, and people, as well as reducing your energy consumption, waste production and disposal, fuel, transport, water use, and, of course, carbon emissions.

The combination of actions in your plan will be as unique as your business and should fully support your net zero goals.

Don’t forget to be open about your net zero journey, share your progress publicly, and celebrate when you hit targets. Write about it frequently on your website and share updates with customers and employees to hold yourself to account; and it’s also great PR.

Finally, leave offsetting until last. Offsetting, when done in the right way, is a valid way to balance out unavoidable emissions but don’t use it as a substitute for cutting your company’s emissions as much as possible.

Net zero is a huge challenge but embarking on your journey with the right mindset will make success likely.

 

Follow Climate Action North projects and get in touch to support our work and get involved. Our actions now will make a difference to tomorrow.

The time for talking is over, today we need to act – join us!

 

Photo by Appolinary Kalashnikova on Unsplash

A straightforward solution in a world which is anything but

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If the last couple of years has taught us anything, it’s that businesses need to expect the unexpected. 

A period of massive political and economic change has meant trading has been extremely difficult, in particular for small- and medium-sized firms, who will have seen their cash flow significantly hit.

Some certainty in uncertain times

Recent times have been anything but straightforward for businesses and many are looking for ways to take control of their finances. The good news is that getting a smart meter for your business is a small change that could make a big difference.

A smart meter allows businesses to wave goodbye to estimated billing by securely and automatically sending meter readings to your energy supplier.  That means that you receive accurate bills, rather than estimated bills, allowing you the certainly of paying for exactly what you are using.

Plus you can also wave goodbye to time spent submitting regular meter readings, allowing you to focus on bigger things.

Doing your bit for the environment

As Glasgow hosts COP26 this year it’s a good reminder of everyone’s responsibility to become more conscious of their environmental impact.  Regardless of whether your business has three employees, or three thousand, we all should be aware of how much energy we’re using, and a smart meter is a step in the right direction.  From the moment your smart meter is installed, you’re helping create a smart energy system which could ultimately help reduce all our carbon emissions.

A smart meter is a positive step in taking control of business outgoings and if your firm has 10 employees or less your business could be eligible.

To find out more please click here https://bit.ly/3nBStrW. You can also contact your energy supplier or broker.  It could be one of the best calls you make this week.

Opportunities in the renewables sector

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Following on from COP26 this webinar will be looking at the North East’s renewables sector and opportunities for businesses both in the region and abroad.

Len Taylor, Northern Powerhouse Sector Specialist: in Offshore Wind and Renewables Energy at the Department for International Trade will gave an update on the sector in the North East and opportunities for businesses in meeting the sector needs within the region. Len then discussed exporting and global opportunities, and the emerging future direction.

Tom Nightingale, North East Stakeholder Manager at Equinor gave an update on their supply chain in the North East and opportunities available to local businesses

COP 26- youth and public engagement

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Since Greta Thunberg began #FridaysForFuture there has been a groundswell of young activists pushing governments around the world to take action on the climate crisis. There can be no doubt that this pressure has had a significant impact on public consciousness and compelled governments to make real changes towards a more sustainable future. 

Youth and public engagement were key topics at the UN’s COP26 conference in Glasgow last week. Children and young people will face the greatest effects of the climate crisis, which makes it important for them to play an important role in shaping decision making. At the conference, young people were able to speak directly with officials who are working to decide on collective international action on the climate crisis. This sort of close engagement between decision-makers and future generations will become increasingly important in the coming years. 

Education will also be crucial for ensuring that young people are aware of the effects of the climate crisis and what can be done to address it. The Government has recently launched its vision to put climate change at the heart of education. As part of this, changes to the curriculum will be made to include climate education in science in primary school and every subject in secondary school. In addition, the government plans to power schools with green energy pods that will eventually replace boilers, as well as launch a Duke of Edinburgh-style climate action scheme that would reward young people who work to improve local biodiversity and sustainability. Despite the fact that the final strategy isn’t due until April 2022, these are tangible first steps to embed sustainability into the curriculum and provide future generations with the knowledge to address the climate crisis. There are certainly more steps that can be taken to make education more sustainable, such as decarbonising buildings, but the initiative clearly represents a promising start to putting climate change at the forefront of education.  

In addition to enabling young people to make positive decisions in their personal lives, embedding this knowledge from a young age will also allow them to make sense of the broader future economy where the low-carbon sector will play a major role. During last week’s COP26 conference, the UK government and 15 other countries signed an international declaration outlining their support for a just transition, which offers all people decent work in emerging low-carbon sectors, including marginalised groups. The route to providing this is ensuring that these efforts are undergirded by widescale education and retraining schemes for communities and regions that are likely to be impacted by climate change and the transition away from a carbon-intensive economy. This is vital in local communities and regions too. With low-carbon sectors like offshore wind and electric vehicle production becoming increasingly important to our region’s economy, ensuring that young people understand where they can establish careers in clean growth is key. 

Reflections on COP26

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Having attended the COP26 conference Ben Kilbey from Britishvolt reflects on the impact of the conference

The much hyped and eagerly anticipated climate change meeting of minds, COP26, has been a real eye opener. Let’s face it, it had to be. Mother Nature is struggling, and the extreme weather patterns are really starting to effect humanity. We all need to stand up and play our part in finding solutions and changing our ways.

Hosted this year in the Scottish city of Glasgow, what was patently clear from the event is that climate change is well and truly on the radar, and that we cannot any longer ignore the sad situation.

This won’t happen overnight, but we have our own lifetimes, no matter what age we are, to make a difference. Inaction is a weapon of mass destruction. We all need to stand up and count ourselves and others. Humanity is truly staring down the barrel of an extinction moment. I am happy to rebel. We are not dinosaurs, we are nimble, intelligent, thoughtful animals. We must harness our own positivity to create change that enables a clear glidepath to net zero and a sustainable future for all.

Batteries will be at the very core of that survival and successful energy transition. Sustainable, low carbon, responsibly manufactured batter cells, the ones Britishvolt will be producing at our first full-scale Gigaplant in Northumberland.

What was clear as day, to me and everyone else at COP26, is that the science proving the impacts and implications of climate change are precise and exact. We’re at a juncture that could easily be do or die for humanity, this isn’t a drill. The scientists have been warning and warning us, and now we have to make the right and responsible choices to have a proactive impact on our home, our planet.

It was delightful to see Glasgow schools taking the initiative to bring their students to the Glasgow Science Centre to engage in the immersive learning process to explore climate issues and the impact of humans on the planet.

It’s truly great to see how the next generation of “green pioneers” interact with the exhibits and to observe their excitement and engagement towards such an important topic.

Environmental, Social and Governance will likely be on the school curriculum by the time my three wonderful daughters are in secondary school. 

Environmental, Social and Governance is not just a tick in a box or another empty acronym; it is a personal passion, belief, and theology. In Britishvolt’s view, anything less is simply not ESG. Reducing environmental impact, cherishing colleagues, and the highest standards of governance should be embedded in the culture of all companies. People and passion inspire ESG, and the people at Britishvolt look like they have enough desire to truly empower people in the all-important race to zero. 

To finish on a remark made to me by Graeme Cooper, Head of Future Markets at National Grid: Ben, “if I had to use one word to describe COP26 it would be ‘infectious’. The shared enthusiasm to drive greater commitments and take those into real action is quite simply ‘infectious’…”

 The time is now, team. This is not a rehearsal. This is not a drill.

And please, don’t forget, as the wonderful Robert Llewellyn says:  STOP BURNING STUFF!

Photo by Nicholas Doherty on Unsplash

COP26 – adaption, loss and damage

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It’s Week Two of COP26, and with serving world leaders having long departed, it’s down to ministers and former leaders to make the running alongside the attendees.

Today has been Adaptation, Loss and Damage Day at COP26 and discussions are turning to how communities can be protected against issues like drought, flood, wildfires and storms which are becoming more frequent and more extreme as a result of climate change.

The Government’s news story relating to today’s agenda lists drought in Madagascar, flooding in Germany and wildfires in the US among the disasters where climate change was a contributing factor.

Building resilience against and adapting to these threats is crucial, as even if climate targets are met the impact will still be felt, especially in developing countries.

Germany – along with neighbouring Belgium and the Netherlands – were able to divert significant funding towards immediate disaster response as flooding killed over 200 people across the three countries, and has moved to put billions towards infrastructure rebuilding and greater resilience in the future.

Many developing nations lack the resources to either respond when an emergency occurs or to head off a problem by adapting beforehand.

For this reason, adapting is one of the four stated goals of COP26 in Glasgow, with a further three actions around planning and finance, protecting and restoring habitats and sharing best practice on adaptation itself.

The UK has promised an additional £290m, predominantly aimed at countries across Asia and the Pacific to support them to take action, and Berwick MP and International Trade Secretary Anne-Marie Trevelyan was due to meet with world ministers today to discuss resilience plans.

Adaptation was also one of the issues the UK has prioritised in the run up to COP26, calling this conference “a moment to build a movement”.

At the start of the year, the UK founded the Adaptation Action Coalition along with Egypt, Bangladesh, Malawi, the Netherlands and Saint Lucia. They’ve been joined by a further 38 countries, including the US, Canada, Australia and Germany with the aim to progress specific workstreams on health, infrastructure and water this year.

As far as today goes, the specific focus on Adaptation, Loss and Damage has been somewhat overshadowed by the arrival of former US President Barack Obama who still carries that rock star clout, and with it the media attention.

While President Obama’s every word will be scrutinised, with headlines likely to stick to his views on lack of US climate progress under President Trump, today’s discussions are one of those rare occasions where success and failure can genuinely be measured in pounds, dollars and euros.

But news is suggesting there is push back on compensation for those poorer nations already impacted by climate change, and there has been no headline grabbing announcement of ‘climate finance’ for those nations to draw from to fund adaptation – a $100bn target originally set for this year has been pushed back to 2023.

Barring any last minute leaps forward, many developing nations look set to walk away disappointed.

President Obama remarked this afternoon that if you want to paddle a canoe “you better all be rowing in the same direction and at the same time, every oar has to move in unison” – at the moment COP26 still feels like a canoe missing a few oars.

Arlen Pettitt, Chamber Knowledge Development Manager

Photo by YODA Adaman on Unsplash

We need to see Government invest in green skills

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Marianne O Sullivan, Chamber policy adviser, latest column for The Journal.

The Budget had some welcome announcements for North East although we’re still waiting for the Government to publish its plans on key areas like levelling up.

Part of the good news for the region was the investment confirmed to improve local rail links in Teesside including redevelopment schemes for Darlington and Middlesbrough stations.

There was also a reduction in business rates for those in the hospitality, arts and culture sectors who have been negatively impacted by Covid restrictions.

We welcome the investment in skills including the newly announced Multiply scheme, which will equip adults with basic numeracy skills. The £560 million investment in the Multiply scheme will benefit our region in particular due to the region’s lower-than-average numeracy levels.  

However, the wait goes on for the Levelling up White Paper and the Government’s integrated rail plan to set out a longer-term strategy for region. Investment in major projects such as Northern Powerhouse Rail and a clear definition and metrics for the Government’s levelling up agenda will be crucial to success.

Despite COP26 being held in Glasgow the Budget didn’t have many major announcements around climate change. Some funding was announced to grow the heat pump market along with business rates relief for businesses to decarbonise non-domestic buildings and an increase in public research and development investment.

We need to see Government invest in green skills to ensure people in the region are able to take advantage of opportunities in jobs in key sectors such as retrofitting, renewable energy and battery technology. We also need to ensure that opportunities are accessible to a large proportion of those at risk of unemployment. This is particularly important for the North East, due to a significant proportion of our workforce holding lower level qualifications.

COP26 presents an opportunity for firms to re-examine their sustainability strategies and their wider supply chains. This could the North East to lead the way in a green recovery making businesses more competitive and attractive to customers with climate change an increasing priority for consumers and the Government. 

The Chamber will be sharing best practise with members as well as campaigning for investment to build on the North East’s green infrastructure to meet our net zero targets, as well as creating new jobs and allowing the region to contribute to the UK’s economic recovery.  

COP26 Business Briefing

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This webinar with the Department for Business Energy and Industrial Strategy (BEIS) will highlight what COP26 means for businesses in the North.

With the focus on a green recovery from Covid and COP26 taking place this year in Glasgow Anna Rieser and Sam Lux from BEIS outlined what COP26 is, the main objectives of the conference and what impact this will have on businesses and the UK’s economy.