The general consensus in the scientific and climate advocacy communities is that the world needs to reach net-zero emissions by 2050 to keep global warming under 1.5 °C per the Paris Agreement. But are we on the trajectory to achieve that? Not quite …

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The recent United Nations (UN) warnings have made it abundantly clear that governments, corporations, businesses, and citizens must ramp up efforts to reduce carbon emissions. While many corporations have successfully implemented strategies to reduce emissions, there’s definitely a need for more stringent action.  2024 will require even more significant initiatives and increased accountability to move the world closer to the net-zero goal. 

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In this article, we’ll discuss some practical strategies for reducing greenhouse gas emissions, some of which have already been undertaken by various industries, companies, and governments. But first, let’s talk about what’s been happening and what’s about to come in 2024 in terms of initiatives and regulations. 

Green initiatives, strict regulations and the continued use of permits

Here are just three main strategies going into effect now and in 2024:

Tech goes big with green initiatives 

Reducing emissions is not an option but a necessity. However, there’s one more strategy to tackle emissions, which is carbon removal. Tech companies have been betting big on carbon removal projects for the last couple of years, funding startups that help capture and store atmospheric carbon dioxide. 

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In 2022, several tech companies, including Alphabet, Meta, and Stripe, pledged to purchase $925 million of carbon dioxide from carbon collection startups to boost their research and operations. Carbon removal will continue to be a vital strategy for companies to achieve net-zero status in 2024. Using recycled materials for production is another viable strategy, with Apple leading the charge with its new iPhone line. The iPhone 15 series phones are the company’s first lineup with components made from recycled metals. 

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More green initiatives are expected from tech companies in 2024 as the industry makes up for years of negligence and lack of effort to curb emissions. But while many companies have made bold moves and funded multi-million dollar projects, the overall progress has been mixed, as one analysis revealed. 

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Tougher regulations go into effect

Regulations targeting emissions made by companies have been getting more stringent over the years. And in 2024, new stricter regulations are poised to go into effect. The most prominent is the European Union’s corporate sustainability reporting directive (CSRD), slated to go into effect beginning in 2024. 

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CSRD is one of the most comprehensive corporate emissions reporting regulations that targets large corporations operating in EU member states, including subsidiaries of companies based outside the EU. Notably, CSRD mandates reporting of value chain emissions (Scope 3), which have been mainly underreported over the years. 

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Similarly, the Task Force on Climate-related Financial Disclosures (TFCD) framework will impact financial institutions like banks and insurance providers. Under this framework, financial institutions will need to disclose climate-related impacts. It will even affect the clients of these institutions, targeting a wider range of companies and high-net-worth individuals. These new regulations will push companies to improve their reporting and take steps to reduce their emissions. 

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Besides regulations, new laws prohibiting companies from duping consumers with greenwashing are to be adopted. The EU has passed a law banning companies from using claims like ‘carbon-neutral’ that are often false and mislead consumers. Such laws will make it necessary for companies to back any climate claims on their products with cold, hard evidence. 

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Decrease in CO₂ permits

Carbon credits or carbon permits have matured into a sophisticated market. The carbon cap and trade system will continue to serve as a strategy to reduce emissions for many companies (although it shouldn’t be the only measure).  EU’s carbon market, the world’s biggest, will see its cap decline and fewer carbon permits added compared to the prior year. To ensure the underlying purpose of the cap and trade system is achieved, the cap is reduced yearly. 

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In 2024, 1,386 billion CO₂ permits will be added compared to last year’s 1,486 billion. This is a step in the right direction, as reforms were needed to ensure the fair use of the carbon offset trading system.  A carbon border tariff is also in the works in the EU that will introduce a carbon tariff on imports for the first time globally. However, this legislation will not go into effect until 2026. 

Net-zero strategies you can implement in 2024

Unfortunately, many businesses adopt climate strategies just for compliance and fail to go beyond necessary targets when they can. It’s a complicated space, but long-term thinking is key. If you dedicate resources to your net-zero strategy now, ensuring that you have all your ducks in a row, that you are aware of what you should and could be reporting on and how to do it, then when future legislation hits, you’ll already be fully compliant and ready. 

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Key to this are well-thought-out strategies that create a very real impact to achieve net-zero emissions in the long run. Here are some strategies you can adopt in 2024 to get you and your company well on the way to net zero.

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Making net zero central in business strategy

A net-zero strategy shouldn’t be an afterthought. To make it a priority, it’s essential to treat it as a business strategy. Make your emissions targets central to the success of your business. In other words, treat climate targets as business goals.  This way, every plan, project, and process will be analysed for its environmental impact and how it impacts the company’s net-zero objective.

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Not only can this act as a strong, competitive differentiator for your business, but it will also prepare you for future reporting mandates that are more than likely to come in the coming years. It’s a change and comes with challenges, but getting started now means avoiding the inevitable chaos later on when it becomes mandatory. 

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Accurate carbon accounting

There’s a first step in everything, and the first step for a  sound net-zero strategy is valid data. Without accurate carbon accounting and reporting, you can’t create solid baselines or benchmarks, and without these, you can’t set realistic targets that bring about accountable change and help you decarbonise. And without baselines and targets, you’re effectively flying blind. 

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Thankfully, the methodologies and technology for carbon accounting have improved significantly over the years, and to control emissions to reach a net-zero status, adopting modern methods for carbon accounting is essential. Invest in reliable tools (such as comundo) that provide accurate insights from data from your organisation and its suppliers, and use the latest (and local) emission factors in any calculations. Empowered with such insights, you can start to identify areas of your business that generate the most emissions and plan accordingly. 

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Realignment with updated SBTs

Due to a lack of accurate carbon accounting, companies in different sectors have been setting lacklustre targets. Not only does this have a negative impact on their overall ESG and business performance, but it also has repercussions on similar companies’ impact, and the accumulated impact of any sustainability efforts in any industry. 

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This is where the Science-Based Targets Initiative (SBTi) comes in. This initiative, “Defines and promotes best practice in emissions reductions and net-zero targets in line with climate science,” and will prove instrumental in helping set targets that create actual impact.  The updated guidelines from SBTi should be used for any initiative going forward. The organisation has created detailed target-setting guidelines for various industries, including apparel, aviation, buildings, and financial institutions, and comes with support from in-house technical experts. 

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Improving carbon accounting and using the data to set the right targets is crucial as we move into 2024, and for companies with near-term targets for 2025, 2024 will be a make-or-break year.

Choosing climate-conscious suppliers and vendors

Carbon accounting for value chain emissions has historically been a big challenge. That’s because suppliers underreport or report inaccurate emissions data. One way to tackle this issue is to choose suppliers based on their climate efforts. For example, any new vendor must be subjected to strict selection criteria, such as transparent ESG reporting, climate initiatives, and compliance with global and local carbon regulations, before being awarded any kind of contract. 

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To help cement your sustainability efforts into overall business strategy, the selection criteria could be shared into a well-defined policy for vendor and supplier selection. First, this step will help the company reach its net-zero goal in the long run by reducing value chain emissions. Secondly, it will push other companies to do more to reduce their emissions, even if they’re not from countries with strict GHG limitations.

Shift towards eco-friendly homes and properties

The pressure to make sustainable houses and buildings is mounting as the construction and real estate industry comes under the microscope for its emissions. After all, the building sector is responsible for 40% of emissions. 

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In addition to decarbonising existing buildings and addressing their embodied emissions, the sector must take a more sustainable route with new homes and building construction. The so-called ‘net-zero’ buildings in 2024 will ensure zero carbon emissions are added to the environment. Some proposed strategies to make new buildings net-zero include on-site clean energy generation (for example, solar or wind energy), green roofs and vertical gardens, and waste reduction systems. 

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The construction of such buildings also helps the financial institutions that back their construction meet their targets and comply with regulations. Therefore, the green buildings strategy has multi-faceted benefits, simultaneously reducing the carbon footprint of different industries.

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If you’re in an existing building, there are still many ways you can reduce your carbon footprint. Here are just a handful:

• Reduce water consumption by promoting the use of hand sanitiser and installing low-flow plumbing fixtures
• Upgrade standard light bulbs to energy-saving LED bulbs and, if budget allows, install sensors to switch off lights when there is no movement after a set period
• Promote/incentivise sound recycling habits
• Ensure appliances have a good energy rating (many older appliances feast on electricity)
• Implement the four-day working week, like we’ve done at comundo! One less day to travel to work on our petrol horses – and one less day of office energy spent

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Time is running out

Whether you’re in the tech sector or own a portfolio of real estate investments, there are plenty of solid strategies to implement and put your company on the path to net zero, if not for the climate itself, then for the undeniable business sense it makes.  2024 will bring new regulations, technologies, and initiatives worldwide, which is good news. comundo is here to assist building owners of any kind in using the latest technologies to keep their carbon footprint as low as possible, and help them adhere to the new regulations. 

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However, it’s essential to be reminded of the gravity of our situation. Going forward, actionable, measurable, and evidence-based strategies will be needed to keep global temperatures from rising beyond the 1.5 °C threshold, and making our planet inhospitable for future generations (aka our kids).