Net Zero Initiative: 10 principles for an ambitious corporate climate strategy

The 10 principles

01 - Net zero refers primarily to the global ambition to balance GHG emissions and carbon sinks.

The main objective of climate action is to limit warming to the temperature target set out in the Paris Agreement, by urgently mobilising the means to collectively achieve zero net global GHG emissions in the second half of the century.

02 - For a company, having a net zero strategy means wanting to make the necessary transformations to achieve global carbon neutrality by 2050.

A corporate climate strategy should aim to make the company's activities compatible with a net-zero emissions world in 2050, and should contribute at the right level to achieving this net-zero global goal, on different lines of action.

03 - To structure their climate action, companies must distinguish between three different types of action, which are not fungible: reduction, avoidance and sequestration.

A company has three levers around which to structure its climate strategy: reducing emissions from its value chain, helping others to reduce their emissions, and developing carbon sinks. These levers must be measured, objectified, monitored and reported separately.

04 - The reduction of emissions by companies must be the priority subject of their climate action.

For most of their activities, reducing direct and indirect emissions at the right level and at the right speed must be the top priority of a company's climate strategy.

05 - Companies must necessarily measure and communicate all the emissions in their value chain.

The measurement of the company's GHG footprint should be carried out at least on all direct emissions and on significant indirect emissions.

06 - Emission reduction targets must be consistent with climate science.

It is essential that companies set targets for reducing their carbon footprint as a matter of priority. For a credible climate strategy, these objectives must be compatible with the 1.5°C or well-below 2°C carbon budgets. These objectives must be specified for medium and long-term horizons.

07 - Beyond mere commitments, it is urgent that companies obtain concrete and rapid results on the reduction of their emissions.

A climate strategy is only valuable if it leads to real reductions in the company's level of GHG emissions, in line with the set trajectory. To achieve this, it is imperative to define a business transformation plan, which must be monitored and driven in a dynamic way. Companies must provide themselves with the means to achieve their ambitions.

08 - Businesses should contribute as much as possible to the decarbonisation of their ecosystem by generating avoided emissions.

In addition to reducing their emissions, companies are encouraged to contribute to decarbonisation beyond their carbon footprint, both by developing their range of 1.5°C-compatible low-carbon products and services that avoid emissions at their customers' sites, and by financing additional emissions reductions outside their value chain.

09 - Companies must develop carbon sinks to the right level.

In addition to reducing their own emissions and contributing to the decarbonisation of third parties (emission avoidance), companies are encouraged to contribute at the right level to the sustainable sequestration of CO2 in carbon sinks, with priority given to action within their value chain.

10 - If companies wish to communicate their climate strategy, they must do so in a rigorous and impeccable manner.

Companies are invited to communicate transparently and sincerely on their climate strategy, focusing on their concrete results, and using indicators and language that help promote a rigorous approach to the climate issue.