How can businesses achieve net-zero holistically?

With the emergence of ESG, companies must start developing a holistic approach to net-zero goals.

The world has recently seen drastic shifts in the economic landscape mainly driven by global health problems and climate change, putting the spotlight on the importance of ESG. This is even emphasized by companies seeing an increase in sales by making their ESG efforts known. 

ESG’s rising impact on companies has changed both businesses’ perspectives on sustainability. It has grown to be an essential consideration in their strategies, not just for ESG itself, but also in terms of meeting consumer demands and attracting investors, according to studies by Inrate, a Switzerland-based independent ESG specialist.

For companies who want to keep up with the emergence of ESG, one of the trends to look out for is developing a holistic approach to net-zero goals.

To do this, renewable energy must be prioritized as much as possible. Utilizing solar, wind, and geothermal energy through infrastructures is crucial in gearing away from fossil fuels. This switch to clean energy is crucial to achieve net-zero emissions.

Also, it has long been proven that putting money into ESG is investing. So, companies can already make the bold move of investing in carbon removal technologies like direct air capture or carbon sequestration. 

Companies can’t do it alone. Policy-making bodies should also implement pricing mechanisms like cap-and-trade programs and carbon taxes to put more pressure on businesses to move towards greener technology that will reduce emissions.

In addition to these mechanisms, policies should also encourage the circular economy and revamping of goods to reduce having to use materials that produce negative environmental effects. Meanwhile, companies should be more critical in reducing waste through recycling and reusing as much materials as possible.

Environmental, social, and governance challenges vary over time, which is why ESG trends are also never permanent. The constant among all these, on the other hand, is the proven importance of ESG and achieving net zero when curating business strategies and plans. This will not only appeal to consumers who value sustainability, but also help improve the overall state of business globally.