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How should business approach carbon neutrality? - Which emissions should be considered? - EY - Global

How should business approach carbon neutrality?

Which emissions should be considered?

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“Carbon neutrality is still an emerging area,” - Euan Murray, independent sustainability advisor

Once firms have a clear understanding of their footprint, the next major consideration is deciding exactly which aspects of the business should aim to go neutral.

This is not a trivial decision — and there is no globally accepted guidance as to what is best practice.

While all agree that direct emissions must be included, treatment of emissions of key suppliers, employees traveling to work, or customers using the products themselves is less clear. All of these considerations form part of the assessment that firms will need to make.

In making this decision, some firms will choose to focus on their existing operations, or their physical buildings, or across specific product lines, as just some of their options.

It is crucial for firms to be transparent about their target; it needs to be definable and credible to key stakeholders. Gaining independent assurance of that target is another important aspect of bolstering this credibility.



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