Carbon Neutral Target in Businesses

In recent years, the business world has been on the verge of global transformations with various topics. Businesses, regardless of their scale or sector, realize that they have a responsibility towards the society and the world of which they are a part. Companies owe a lot to the world, considering that approximately 80-90 per cent of carbon emissions are caused by the use of fossil fuels.

With the rise of self-criticism and awareness on the subject, businesses are applying the concept of sustainability to their operational processes and almost all of their planning by combining it with insight developed based on data interpretation. Businesses, which cause the climate crisis the most, need to increase their actions to become carbon neutral in reducing greenhouse gas emissions. We have compiled information on the importance of the subject for you.

The term “Carbon Neutral”, which is on the agenda of businesses, is explained as “the amount of carbon dioxide (CO2) emitted into the atmosphere and the amount of carbon sequestered by the sink areas balancing each other”. In simpler terms, for an enterprise to be carbon neutral means that the carbon emission, which causes the greenhouse gas the most, becomes neutral and causes the climate crisis at the minimum level. Thus, it is aimed to contribute to the goal of keeping global warming at the vital limit of 1.5 degrees.

As expert statements are presented that the world will get warmer during the climate crisis, the concept of “growth” has been replaced by the concept of “downsizing for green-friendly transformation”. The IPCC (The Intergovernmental Panel on Climate Change) and all the relevant statements of all organizations supporting the fight against the climate crisis emphasized the necessity of downsizing. On the other hand, in the press release shared by UNDP in September this year, attention was drawn to the fact that the Human Development Report has gone backwards in human development for the first time in two consecutive years. As the negative developments in critical vital issues such as climate crisis, potential for epidemics, regression in human development and drought exceed the critical danger level in a chain, global organizations have more responsibility.

Since the 2018 IPCC report’s clear warnings, emissions have continued to rise in every sector. Emissions from energy production from fossil fuels and industry temporarily decreased during the pandemic, but this good news did not last long and by the end of 2020, this figure had risen to record levels. In summary, the romance of inadequate actions such as attracting attention only with a social responsibility campaign is a thing of the past.  The gravity of the issue has now evolved into a necessity, even an ethical imperative, to adopt a way of understanding. Therefore, the goal of becoming “carbon neutral” has become not only the corporate goal of some global organizations, but also the obligation of companies of all sizes and countries/regions.

Last year, an organization called Watershed emphasized the necessity of being carbon neutral by pointing to businesses with the sentence “businesses are critical actors in the zero-carbon race”. The organization is committed to providing data on “carbon footprint measurement” of suppliers. After presenting the raw data on the products used and services provided by the customer to its customers operating in the field of food production, it shows the sources of each kilogram of carbon and provides consultancy on reducing it. This service, which is provided within days, also includes data-based forecasts. Thus, it claims to advise on making current and future carbon emissions carbon neutral. Imperfect Foods, which is advised by the organization, claims that it can see which parts of its supply chain emit greenhouse gases through Watershed to reduce its emissions and states that it has renewed its operations based on this information.

Companies that turn to green technologies continue to reposition their campaigns, operational processes, and even corporate definitions according to climate sensitivity and environmental sustainability action plans. While investors prefer companies that produce, support and use green technologies, visionary companies adapt green technologies to their business models. While experts do not make promising statements about how adequate the studies and efforts made will be, issues regarding the transparency of data such as the inclusion of carbon emission information on the labels of products reaching the consumer continue to be discussed. Such sanctions should become mandatory for all suppliers and retailers to reduce the ecological footprint. For minimum damage, it is of great importance for all businesses to adopt carbon neutrality as a holistic understanding.