Net Zero Business Models

2AN OVERVIEW OF GREENHOUSE GAS EMISSIONS

“Collect as much primary transactional information as possible.”

—Christopher Librie, Director, ESG, Applied Materials

The global economy has an enormous GHG emissions challenge. Collectively, we emit about 50 billion metric tons of CO₂ and other greenhouse gasses into the atmosphere every year.¹ To limit global warming to an average of 1.5°C, scientists estimate we have a budget of approximately 500 billion tons of CO₂e we can emit before global warming exceeds this threshold.² This means to get to a net zero economy by 2050, we need to cut carbon dioxide emissions by at least 50% by 2030 from 2018 levels and eliminate and offset the remainder by 2050. We also need to eliminate as many methane emissions as possible by 2030 in alignment with the COP26 pledge of a 30% reduction from 2020 levels by 2030.

Getting to net zero by 2050 will be a challenge, especially when the world's known crude oil reserves, not including known reserves of natural gas and coal, will produce an estimated 750 billion metric tons of CO₂e.³ There is dynamic tension between the need to achieve a net zero emissions economy and the desire of petrostates, oil and gas companies, and coal producers to monetize their fossil fuel reserves that presages a titanic conflict.

WHAT ARE SCOPE 1, 2, AND 3 EMISSIONS?

To determine a company's contribution to our GHG emissions problem, it needs to inventory its Scope 1, 2, and 3 GHG emissions, as such emissions are defined ...