Strategy Guide22 min read

How to Build a Credible Net Zero Strategy

Setting a net zero target is easy. Achieving it credibly is hard. This guide shows you how to build a science-based decarbonization roadmap that delivers real results.

What Does Net Zero Actually Mean?

Net zero means reducing greenhouse gas emissions as close to zero as possible, with any remaining emissions re-absorbed from the atmosphere through natural or technological solutions.

90-95%
Emissions reduction
5-10%
Neutralization (removals)
=
0
Net emissions

Science Based Targets initiative (SBTi)

SBTi is the gold standard for corporate climate targets. Their Net-Zero Standard requires:

Near-term targets (5-10 years)

Reduce Scope 1 & 2 by at least 4.2% annually (1.5°C pathway). Include Scope 3 if >40% of total.

Long-term targets (by 2050)

Reduce Scope 1, 2, and 3 by at least 90% from base year.

Beyond value chain mitigation

Neutralize residual emissions through permanent carbon removals.

7-Step Net Zero Roadmap

1

Baseline Your Emissions

Measure Scope 1, 2, and all material Scope 3 categories. This is your starting point.

2

Set Science-Based Targets

Commit to SBTi or equivalent. Align with 1.5°C pathway. Set near-term and long-term targets.

3

Map Decarbonization Levers

Identify reduction opportunities: energy efficiency, renewables, electrification, supplier engagement.

4

Build a Transition Plan

Create year-by-year milestones with specific actions, investments, and responsible parties.

5

Engage Your Value Chain

Work with suppliers and customers. Scope 3 is often 70-90% of total emissions.

6

Track and Report Progress

Monitor KPIs quarterly. Report annually through CDP, TCFD, and regulatory frameworks.

7

Neutralize Residual Emissions

Only after maximizing reductions. Invest in high-quality carbon removal projects.

Avoid Greenwashing

  • • Don't claim "carbon neutral" through offsets alone
  • • Don't ignore Scope 3 (it's usually the majority)
  • • Don't set targets without a credible transition plan
  • • Don't cherry-pick base years or boundaries
  • • Do get third-party validation (SBTi, CDP, assurance)

Build Your Net Zero Roadmap

ESG PULSE helps you set targets, track progress, and generate SBTi-ready reports.