What is Net Zero? A Guide for Businesses

Net Zero. It’s a term that has been discussed a lot recently across the energy sector and the wider media, but what does this actually mean for your business?

In simple terms, it’s all about balancing the greenhouse gases your business produces with those you remove from the atmosphere. Sounds simple right? In reality it’s a bit more complex, but it doesn’t mean you can’t achieve this.

In this blog, we’ll cut through all the complex jargon, tackle some common myths and look at the challenges businesses face on their journey to net zero. Plus, we’ll be sharing how you can take some practical steps towards making your business more sustainable.

What Does Net Zero Mean?

As previously mentioned, in simple terms, ‘Net Zero’ refers to the balancing of greenhouse gas emissions and those removed from the atmosphere. To achieve net zero the amount of greenhouse gases a business emits is equal to the amount it removes, effectively neutralising its contribution to global warming and, in turn, climate change.

But how does this actually relate to your business?

Pretty much every business activity will have an impact, from the energy used to power your facilities, travel, logistics, and even parts of your supply chain. A small change to any of the above can have a significant impact on your greenhouse gas emissions. We’ll discuss some strategies on how to reduce these later in this blog.

For businesses trying to achieve net zero, it usually starts with understanding your carbon footprint, which is the total amount of greenhouse emissions your business produces. The actual release of these harmful gases, primarily carbon dioxide, is referred to as carbon emissions.

However, eliminating all carbon emissions isn’t currently viable, especially for certain industries like aviation, which is why these companies often investigate carbon offsetting. Carbon offsetting is when a business invests in projects such as infrastructure for renewable energy generation, tree planting or restoration of peatlands. These projects aim to capture as much CO2 as your business emits, therefore making your business net zero.

Now you might be thinking, well that’s great but does my business really need to do anything?

The answer is yes, working towards net-zero is no longer a ‘nice to have’. The global Paris Agreement, signed in 2015, set the aim of limiting warming to well below 2 degrees. The UK Government has also committed to reaching net zero by 2050, with legally binding targets along the way including: a 68% reduction by 2030 and an 81% reduction by 2035.  

Understanding these basics is the first step for any business thinking about net zero and sets the foundation for a path toward sustainability.

Why Net Zero Matters

So, you might be sat there wondering why your business should care about net zero? Well, it’s more than just the ‘right thing’ to do for the environment, although this is obviously important. There are some real, practical reasons why net zero is becoming a key priority for businesses such as:

Stakeholder Expectations: Stakeholders for a business, primarily customers and investors but on occasions even part of the supply chain, are beginning to favour companies that are taking climate change seriously. We’re not talking about recycling where possible or cycle to work schemes, we’re looking at serious projects such as changing suppliers to ones that are more sustainable, using renewable energy or improving business premises. Making these changes and being able to evidence that your business is working towards net zero can lead to a boost in your brand’s reputation, strengthen loyalty and even open new doors to funding opportunities. Businesses who are ignoring net zero risk losing market share as it becomes more prevalent in the business world.

Regulatory Pressure: As previously mentioned, the UK government has set clear targets to achieve net zero and businesses who don’t act risk penalties, increased compliance costs or falling behind competitors who are already adapting.

Potential Cost Savings And Improved Operational Efficiency: Although many net zero projects will require capital upfront, over the long term, you could end up saving money. Firstly, by adapting early you are likely to avoid any governmental penalties and taxes, but it doesn’t stop there. Having energy-efficient operations, smarter logistics and reduced wastage all contribute to a leaner more resilient business model, therefore saving you money in the long term.

In short, net zero matters because it’s not just good for the planet, it’s a strategic business move. The businesses that choose to start planning and adapting now are likely to see the most benefits, with those who delay finding themselves playing catch-up in the future.

Challenges Businesses Face

Now you know what net zero is and why it matters to businesses like yours, but it’s not always smooth sailing when trying to implement. Many businesses hit the same obstacles when it comes to net zero, including:

Mindset And Culture: When people think of net zero challenges they immediately go to costs and technology. Whilst these are valid and important, one of the hardest obstacles to overcome is people. Getting teams on board, aligning your company culture with sustainability goals and encouraging behavioural changes will not only need investment but will take time and effort before it becomes the ‘norm’.  

Costs And Investment: Switching to renewable energy, improving business premises or adopting greener technologies can require substantial upfront investment. While the long-term benefits and cost savings of these improvements are real, the initial outlay can feel like a significant barrier, especially for smaller businesses.

Supply Chain Complexities: For many businesses, even if your own operations are low carbon, your suppliers and partners may not be, therefore affecting your path to net zero. You obviously can’t force your partners or suppliers to change their practices, but through collaboration you may be able to find a compromise. However, if this is not achievable finding an alternative supplier may be your only choice. Whichever avenue you decide upon will not be a quick fix and can take time before implementation can begin.    

Technological Limitations: When looking at carbon emissions and the technology available, it can be daunting with all the options available. Whilst there are lots of options, they won’t all be applicable to your business and for certain sectors, such as the aviation industry, emissions are harder to cut. Although you could turn to supporting carbon offset projects in these instances, this often feels like a short-term patch rather than a long-term solution. Staying on top of these emerging technologies and deciding which would be beneficial for your business can be challenging. The best course of action is to take your time and evaluate your options before taking action.

Despite these challenges, the key is to start, it doesn’t matter if this is small change, every change matters and will make a difference. Tackling net zero is a journey, and understanding the hurdles before starting helps businesses plan smarter and implement strategies quicker.

Myths vs Reality

With all the news and media attention around net zero, it was always bound to attract plenty of misconceptions. So, we thought it would only be right for us to clear up a few of the most common ones:

“Net Zero means zero emissions”

Probably the most common misconception we’ve heard is that net zero means zero emissions. This is an easy mistake to make, but net zero is about balancing emissions, not complete removal, as this is not achievable for many business activities, such as manufacturing or logistics.

“Net Zero is only for large businesses”

While the larger businesses often make the headlines with their net zero efforts, small and medium-sized businesses (SMEs) still play a crucial role in the UK achieving its net zero targets. SMEs account for 99.9% of businesses in the UK (2024), meaning as a collective, they can have a big impact on reaching net zero. Starting with small simple projects such as switching to renewable energy or upgrade equipment to more energy efficient models can make a big difference.

“It’s too expensive to go Net Zero”

Whilst this may be true for some solutions, it should not be a barrier to your business working towards net zero. Although all net zero initiatives will require some upfront costs, some higher than others, over the long term most steps to net zero will save you money in the long term. Lower energy costs, lower energy usage, less waste and smarter operations will quickly add up. In addition to this, by not acting you could be affected by rising energy prices, penalties or losing customers which are all costs that could be avoided.

“Carbon offsets are just greenwashing.”

This is the most difficult myth to tackle as historically carbon offsets have bad reputation due to previous use. If a business just invests in carbon offsetting projects without making a genuine effort to reduce emissions elsewhere within the business, we totally agree it’s a shortcut and would be classed as ‘greenwashing’. However, when used correctly, for example, using carbon offsetting for parts of your business where cutting emissions will take longer or prove more difficult to achieve, it can be a valuable part of your net zero journey.  

We hope by busting these myths, businesses like yours can approach net zero with a clear understanding and hopefully with less hesitation.

How Businesses Can Achieve Net Zero

Here at Dyce Energy, we believe that taking steps towards net zero doesn’t have to be complicated. We’ve broken down the approach we would take below:

1. Measure Emissions: Our first step would be to understand your carbon footprint. You can’t manage what you don’t measure. Getting data on all your business activities that cause emissions, from the energy you use in the office or sites to company vehicles and even your supply chain
2. Set Reduction Targets: Now you have your data, it’s time to set targets. We’re not talking a 100% reduction; we’re talking about ambitious but realistic and achievable targets. These will give your business a road map to follow and will keep all stakeholders accountable.
3. Switch To Renewable Energy: Moving to renewable or cleaner energy sources is one of the quickest, easiest and effective ways to cut your carbon emissions. At Dyce, this is where we can directly support businesses like yours with our 100% renewable electricity and carbon-neutral gas products.
4. Offset Your Remaining Emissions: You won’t be able to remove emissions overnight, some areas will take longer and, in some industries, it’s just not achievable at this time. That’s where investing in a high-quality carbon offsetting project, like tree planting or renewable energy generators, will come in to help balance the impact of your remaining emissions.
5. Monitor And Report Progress: Net zero is not just a one-time thing, it needs regular monitoring, reporting and improvement. From this, you can then adjust your strategy to keep your business moving forward.

Dyce Energy’s Role in Supporting Net Zero

Here at Dyce Energy, we know that businesses face a lot of challenges on their journey to net zero, from rising energy costs to navigating complicated energy choices, that’s why our focus is on making things more accessible and simpler for businesses like yours.

Here’s how we can support businesses:

Renewable Options: We offer 100% renewable electricity and carbon neutral gas products, helping businesses cut their carbon footprint with ease.

Tailored Solutions: We know, when it comes to energy, that every business is different. Which is why we provide bespoke pricing and advice that reflects your actual needs rather than a one-size-fits-all approach.

Energy Experts: Our teams work closely with businesses every day and are on hand to support you with any questions and advice you may need around energy and net zero.

Future-Ready Partnerships: With reforms like the UK’s net zero targets and industry changes like MHHS, half hourly data and smart meters, we help businesses stay ahead of the curve.

For us, we want you to think of us as more than just an energy supplier, we are an invested partner in your sustainability journey.

Take Action

Reaching net zero isn’t some distant goal, it’s something businesses can start working towards today.  Every step, no matter how small, makes a difference. Whether it’s switching to a renewable energy tariff, reviewing your carbon footprint or setting reduction targets, the key is to get started.

At Dyce Energy, we’re here to make that journey easier. From providing renewable tariffs to offering expert guidance, we’ll help you cut through the noise and focus on what really matters.

Ready to take the first step? Get in touch with our team today and see how Dyce Energy can support your business on the road to Net Zero.