Net zero

Net zero is a long-term destination, not something a business can claim today by buying offsets. The UK has a legal target to reach net zero across the economy by 2050, set by the Climate Change Act 2008 as amended in 2019, and many buyers and funders now ask suppliers to commit to the same date or earlier.

What it means for a small business

For a company, a credible net zero commitment has three parts:

1. A baseline. Your current carbon footprint, so you know where you are starting from.
2. Deep reductions. Cutting emissions across your scopes through things like efficiency, renewable electricity, electric vehicles and less flying.
3. Removals for the residual only. Balancing the small amount left at the end with permanent carbon removals, not with avoidance offsets.

The Science Based Targets initiative sets the most widely recognised corporate standard. Small businesses do not need formal validation to make a commitment, but borrowing its logic (reduce first, remove last) keeps your claim honest.

For public sector bids, PPN 006 requires a commitment to net zero by 2050 at the latest. Grant funders often ask how a project contributes to your net zero journey.

An example

A 25-person engineering firm commits to net zero by 2045. Its plan: switch to a renewable tariff this year, replace two diesel vans with electric ones by 2028, install a heat pump when the boiler is due for replacement, and set a policy of rail over domestic flights. It reports progress against its baseline every year.

Saying “we are net zero” today, on the strength of offsets alone, would risk being seen as greenwashing.

How ESG Now handles it

The ESG Now report gives you the baseline a net zero commitment needs, and asks about any carbon targets and priorities you already have. Your action plan then lists practical reductions in order. Read our net zero commitment statement example, or start your free report.