Net Zero: The New Business Imperative and the Roadblocks to Overcome

Written by: Energy Guardians

Last Updated: May 11, 2025.

As the climate crisis deepens, the call for systemic change grows louder. For businesses, adapting is no longer optional, it is essential. Achieving net zero is rapidly becoming a core organizing principle for modern enterprises. Put simply, net zero refers to balancing the greenhouse gases emitted by a business with the amount removed from the environment. But getting there demands more than intent; it requires rapid, deep cuts in emissions and a transformation of business models.

At COP26 in Glasgow, nations, financial institutions, and businesses converged around the ambition to limit global warming to 1.5°C. But as companies move from pledges to action, they encounter real-world challenges on the path to net zero. Here is a closer look at the key hurdles and why addressing them now can unlock powerful opportunities.

1. The Data Dilemma: Measuring Emissions Accurately

Data is the foundation of any net zero strategy. Yet many businesses struggle to gather the emissions data they need. Companies leasing office spaces may lack the authority to install meters for precise energy monitoring. This makes collaboration with landlords essential for meaningful energy management.

Transport emissions pose another data challenge. Collecting comprehensive transport data requires cooperation across departments, from fleet management to finance, making it a complex task.

For large organizations with multiple sites and data points, consistent emissions tracking can feel overwhelming. Fortunately, innovative tools now exist to streamline environmental data acquisition, collation, and visualization, helping companies turn data headaches into actionable insights.

2. Investment Hurdles: Building Clean Supply Chains

Transitioning to clean, zero-emission supply chains requires synchronized efforts:

• Customers demanding greener services

• Shipping firms investing in sustainable vessels

• Fuel producers scaling up zero-emission options

• Financial institutions backing these shifts with capital

While these investments can seem daunting, they are also laden with opportunity. As noted by Green Alliance, early movers not only protect the planet but gain economically. Cutting energy waste, leveraging cheap renewables, and creating next-generation green products offer businesses significant cost savings and market advantages. The transition to net zero is not just about compliance—it is about transformation and leadership.

3. The Carbon Offsetting Trap: Quality Over Quantity

Many companies turn to carbon offsetting to meet their targets. However, an over-reliance on offsets—especially poorly defined or low-quality ones—poses risks. According to Net Zero Tracker, two-thirds of businesses have not clearly outlined how they plan to use carbon credits, raising concerns about credibility and effectiveness.

Poorly implemented offsets can harm ecosystems. Monoculture tree plantations, for example, may cause soil erosion and threaten biodiversity. What is more, carbon credit prices are expected to skyrocket—potentially increasing 50-fold by 2050 if quality standards do not improve.

The lesson? Companies must prioritize cutting their own emissions first and view offsets as a last resort, not a primary strategy.

4. The Scope 3 Challenge: Tackling Indirect Emissions

Scope 3 emissions are often the most significant yet overlooked part of a company's carbon footprint. These emissions occur within a company's value chain, extending far beyond its direct operations and accounting for indirect activities such as business travel, the production of purchased goods and services, and emissions from suppliers. Despite their substantial impact on overall emissions, many companies fail to address Scope 3 in their sustainability strategies.

This challenge is particularly pressing as the global business community moves toward net zero. Companies need to take proactive steps to address these emissions and integrate them into their climate action plans.

Key Steps to Close the Scope 3 Gap:

1. Map Emission Hotspots: Businesses can begin by identifying the areas within their supply chain that generate the highest levels of emissions. This process helps pinpoint the most critical areas to target for reduction and improvement.

2. Assess Energy Risks Among Suppliers: By understanding the energy consumption practices and carbon footprints of suppliers, businesses can make more informed decisions when choosing partners. Reducing emissions across the supply chain requires a collaborative effort to implement energy-efficient solutions and sustainable practices.

3. Identify Sustainability Leaders Among Vendors: Companies can encourage sustainability by prioritizing vendors that lead the way in environmental responsibility. By partnering with suppliers who already have robust sustainability practices in place, businesses can reduce their overall carbon footprint.

4. Find Cost-Saving Energy Efficiencies in Procurement: Businesses can focus on identifying energy efficiency opportunities within their procurement processes. By selecting energy-efficient materials and technologies, companies can lower costs while reducing emissions.

   
   
   
   

Conclusion: Net Zero Is the Future; But It Requires Bold, Systemic Change

The road to net zero is complex, but the rewards are clear. Beyond climate responsibility, businesses that embrace this transition will unlock efficiencies, cut costs, and future-proof their operations. But success requires confronting data challenges, investing strategically, avoiding over-reliance on offsets, and tackling Scope 3 emissions head-on.

At Energy Guardians Limited, we specialize in helping organizations overcome these exact challenges. Whether it is emissions monitoring, supply chain engagement, or net zero strategy development, our consultancy is here to guide your journey to genuine climate leadership.

Ready to future-proof your business and make net zero a reality?

Contact Energy Guardians Limited today and let us build a greener, more resilient future together.