From pledges to action: Activating your net zero roadmap

Most global GDP is covered by some form of net zero pledge – so what practical measures can companies take to convert these pledges into action?

The breach of the 1.5-degree limit over the past 12 months serves to amplify the urgency of addressing climate change.

It is no longer a theoretical concern but a tangible emergency, one which demands decisive action to mitigate the consequences we are already beginning to see. Governments, regional authorities and organisations are responding by committing to reduce emissions and achieve net zero greenhouse gas (GHG) emissions over the coming decades.

Implementing net zero as a core principle offers numerous benefits for organisations: the chance to align their operations with global sustainability goals, contribute to the fight against climate change, and have a positive impact on the environment.

This transformation is, however, about more than just making commitments – it is about taking actions and implementing sustainable practices throughout the organisation.

Pledges parallel shifts in industry and new regulation

In recent years, the number of companies making net zero pledges has risen significantly, with 92% of global GDP now covered by some form of net zero target. Since June 2022, the number of corporate net zero targets has increased by more than 40%, and half of the world’s 2,000 largest companies have committed to net zero.

However, the credibility of some of these targets has been questioned. For example, only 4% of companies with a net zero pledge have a complete and transparent achievement plan. The Net Zero Tracker analysis highlighted the urgent need for improvement in the integrity of company mitigation targets, to align with the temperature targets set in the Paris Agreement.

The construction and infrastructure sector, which has massive environmental impacts, is also experiencing a major shift. Infrastructure accounts for 79% of all GHG emissions, and the infrastructure that will be in place to realise many of the UN Sustainable Development Goals and organisational net zero targets either already exists or are currently being planned.

It is widely recognised that the circular economy has a key role to play in decarbonisation. The UK Climate Change Committee’s Net Zero – technical report for example highlights the role of the circular economy in reducing carbon emissions. The Skidmore Independent Review of Net Zero recommends kickstarting the transition to a circular economy through a task force on circular business models, and acknowledges benefits from a circular economy, including driving down costs, creating new jobs, and reducing exposure to rising commodity prices.

The third major shift is the increasing requirement for measuring, managing and reporting impacts beyond carbon, such as circularity of resource use and biodiversity. Stakeholder expectations are evolving, and legislation such as the EU’s Corporate Sustainability Reporting Directive and Deforestation Regulation require companies to disclose their social and environmental risks and the impacts of their activities on people and the environment. It is no longer sufficient to focus solely on carbon emissions.

As a consultancy, Arcadis works with clients to help identify and quantify these aspects of corporate activity and infrastructure projects, generating data to inform decision-making and the development and implementation of appropriate policies, processes and strategies.

Convention centre offers case study of practical action

Organisations must commit to taking practical action towards the transition to net zero. For example, Arcadis recently collaborated with the RAI Convention Centre in Amsterdam to develop a comprehensive design for a net zero complex.

The centre, which hosts 500 events annually, needed to address its substantial carbon footprint. The solution, embedded in the Masterplan RAI 2030, integrates sustainability into the facility’s development, aiming for carbon-neutrality and a self-sufficient energy system.

This involves transforming logistics, infrastructure and energy usage, creating a multifunctional neighbourhood, and integrating more closely with Amsterdam’s urban fabric. The outcome is an evolved, sustainable RAI that goes beyond being a conventional conference centre to become a vibrant, community-centric hub.

Implementation demands holistic and reflective approach

Taking a holistic approach is crucial in the net zero transition. Organisations must not only formulate net zero strategies but also implement them effectively.

Arcadis provides a model for the transition that involves measuring an organisation’s or project’s carbon footprint, establishing high-level decarbonisation ambitions and plans, conducting energy audits and feasibility studies, implementing decarbonisation projects, and fully integrating sustainability into operations (Figure 1). By consistently measuring progress, re-evaluating strategies and embracing new technologies, organisations can continuously improve their net zero efforts.

Real-estate developer HB Reavis for instance has demonstrated its commitment to climate action with a 2050 net zero target. With the support of Arcadis’ comprehensive net zero strategy, it calculated its GHG emissions, crafted a decarbonisation plan, and conducted a materiality assessment (scoring or assessment based on the ESG issues most material to their circumstances) for alignment with Global Reporting Initiative and GRESB. This collaboration has led to the implementation of a robust net zero programme that will reduce HB Reavis’ carbon footprint and position it as a leading sustainable developer in the industry.

Long-term investment needed for inevitable transition

It can’t be emphasised enough that achieving net zero is a long-term investment, with significant long-term benefits. Although this endeavour requires significant resources, the importance and inevitability of the transition is evident, presenting it as a valuable investment in a sustainable future.

To achieve net zero, organisations must integrate it into all aspects and all levels of their business. This begins with fostering awareness, education and commitment at the level of the individual employee, creating a foundation for a corporation-wide cultural shift towards sustainable practices.

Digital approach integrates net zero into organisational routine

A digital approach and expertise in decision-making are essential to make net zero considerations a routine part of organisational processes.

Real-time insights that can be acted on enable confidence and speed in decision-making, facilitating risk management and supporting the transition to net zero. By placing relevant data at the fingertips of every stakeholder in an organisation, organisations can make carbon-aware decisions second nature.

Arcadis has an in-house digital tool called the ‘Net Zero Catalyst’, which we use to translate climate goals into a decarbonisation road map and has a dashboard that can be used to engage internal stakeholders.

The tool helps companies to understand their unique climate mitigation risks and opportunities, creating a strategy that is the right fit for their businesses. Having early support from finance, operations, engineering, procurement and other key teams will increase your chances of long-term success.

Decisive action now can contribute to sustainable future

At Arcadis, we understand that every sustainability journey is different, and that a successful strategy should be tailored to each organisation’s unique risks and opportunities. By adopting net zero as a core principle, organisations can align with global sustainability goals and have a positive impact on the environment.

While the net zero movement is rapidly gathering pace as corporate pledges proliferate, it is also becoming crucial to measure and manage impacts beyond carbon. Practical measures, a holistic approach, access to technical specialists, and a long-term investment mindset are necessary for success.

Achieving net zero is essential for a sustainable future and organisations must take decisive action today, with education and engagement at the heart of their efforts.