The Pursuit of Net Zero: How Businesses Can Find Both Economic and Environmental Benefits in Emissions Reductions

There are both economic and environmental benefits in emissions reductions

If you’ve kept an ear open to the climate conversation over the past few years, you’ve likely heard the term “Net Zero.” Net Zero refers to the state in which the greenhouse gas (GHG) emissions of a system are completely avoided or balanced by direct emissions removal or offsetting with credits. For businesses, this system includes all of your internal operations, as well as tangential operations like your purchased electricity and supply chain. In order to be a competitive and responsible business, full-scope emissions reductions must be undertaken to reach Net Zero.

Reducing the carbon impact of your business operations is a complicated and ambitious task, but it is truly necessary in today’s climate and economy. Not only is it the environmentally sound approach to business, it is the smarter, more secure investment in the future of your business. In fact, 73% of companies worldwide have found that sustainable investments improve their ability to meet ESG accountability metrics. As governments around the country continue to strengthen ESG reporting regulations, it will only become more financially beneficial that businesses improve energy efficiency, incorporate renewable energy, and invest in eco-conscious funds and resources to meet risk and compliance requirements. Businesses can also save an average of 89% on their electricity bills by incorporating solar energy systems into their building’s energy supply. By reducing their emissions to achieve Net Zero, businesses can see both economic and environmental benefits.

The roadmap to Net Zero: different scopes for different folks

Achieving Net Zero requires that a business rethink its operations, supply chain, and value chain. That may seem like a heavy ask, but businesses that proactively address their environmental impact can gain a competitive edge by enhancing brand reputation, attracting eco-conscious customers, and even tapping into new market opportunities. Plus, taking early action can help businesses stay ahead of evolving regulations, avoid potential penalties, and adapt to changing consumer preferences.

In the same way our climate is a complex ecosystem composed of many individual systems operating in parallel, so is a business’s operations. From supply chain, to energy purchasing, to building energy efficiency and employee habits, each component plays its own crucial role in the success of the business. However, each individual system also carries its own carbon footprint.

The global standard for measuring a business's emissions includes three different types of emissions, called “scopes.” From daily operations, to product suppliers, to products and services offered, businesses can adopt a full-scope perspective to work towards Net Zero:

Scope 1: Enhance energy efficiency

Scope 1 emissions account for directly owned or controlled sources, like emissions associated with onsite facilities or owned vehicles. Improving your building’s energy efficiency is the most cost-effective way to reduce your business’s Scope 1 emissions footprint. By undertaking energy efficiency initiatives like installing combined heat and power (CHP), or by upgrading to energy efficient lighting, a building can reduce its energy consumption and utility bills. CHP systems operate at about 75% efficiency, which is much higher than the national average of 50% efficiency of separately operating heat and power systems. The first step towards energy efficiency is a comprehensive energy audit, which a trusted partner can provide to identify the business’s unique opportunities for improvement.

Scope 2: Install solar and storage

Onsite renewable energy resources can help a business minimize its Scope 2 emissions, which are associated with the purchase of energy, by reducing the amount of electricity drawn from the grid. The moment a solar system is operational, businesses benefit from no-cost daytime electricity.

By pairing a solar system with battery storage, businesses benefit from the reliability of a battery charged by their solar system, which they can pull from when their solar systems aren’t producing enough electricity to keep their business operations up and running. This way, businesses can minimize their utility bills and avoid the operational costs and risks that come with power outages. Demand charges, which are based on a business’s peak energy consumption, often comprise more than 70% of a business’s electricity bill, so energy storage can be an incredible tool for both savings and emissions reductions. A qualified and experienced team can maximize the savings a business can see from incentives and rebates, like the IRA. Promise Energy knows the ins and outs of the IRA, and can squeeze every dollar out of incentives available in this historic bill.

Scope 3: Implement an electric fleet

Scope 3 emissions include those related to employee transportation and product shipment. Implementing an electric fleet is a powerful strategy for reducing your business’s Scope 3 (and Scope 1 when related to company fleet vehicles) emissions. Not only is investing in an electric fleet the environmentally conscious thing to do, it can also save businesses money, since it is more affordable in every state to own an electric vehicle than it is to own an internal combustion engine vehicle. Fleet electrification is a strategy that many logistics companies are now implementing, especially following recent vehicle emissions regulations and impending gas car bans. Working with a group of energy experts can alleviate some of the headache that comes with the upfront cost of switching to EVs.

A challenge worth the work

Achieving Net Zero is a challenge that requires a business to rethink its operations and boldly change its practices to be more climate-friendly. By pursuing Net Zero, a business can reduce costs, strengthen its energy resilience, and cut its carbon footprint.

The path to Net Zero may present challenges, but with proper planning, strategic investments, and a commitment to continuous improvement, businesses can benefit and become leaders in the transition to a decarbonized economy.

Our holistic approach

Promise Energy understands that every business operation has unique needs, especially when it comes to achieving Net Zero. From installing solar to charging your electric fleet, energy consumption and efficiency play a driving role in meeting your bottom line. Promise’s holistic approach to energy is what differentiates us from the crowd, and you can count on our energy experts to custom-design a system to meet the unique energy needs of your business.

Ready to see how striving for Net Zero can truly benefit your business and position you as a decarbonization leader? Get started by contacting Promise Energy at info@promiseenergy.com for a complimentary energy analysis.

At Promise Energy, we don’t believe that one size fits all. We pride ourselves in designing and installing customized energy solutions that provide the greatest long-term value and energy control for our customers.