As the first month of 2024 draws to a close, companies worldwide are setting their sights on a successful and transformative year ahead. As many countries and businesses inch closer to realizing their net-zero commitments, the race intensifies. From continuing strategizing to implementing initiatives, the next 11 months hold a lot of opportunity – particularly in the pursuit of advancing towards net-zero goals.
In the realm of real estate, with increasing pressure on decarbonization and compliance, being able to not only progress in this space but accurately track and monitor the impact of your initiatives is crucial. Navigating the landscape, understanding the strategies of industry peers, and charting a course to achieve ambitious objectives by the close of 2024 is more imperative this year than ever before.
The Push Towards Net Zero
2023 ended with much anticipation for the future on a global scale. Although the agreement out of COP28 wasn’t as determined as many would like it, the groundwork for a transition includes increased financing as well as commitments to global emissions reductions.
Countries often fail to fulfill global commitments, as seen in the Paris Agreement. COP28 however, did finally signal “the “beginning of the end” of the fossil fuel era.” What does this mean for companies though?
If countries are serious about this push, we will likely see more persistent regulations and measures to enable the world to meet net zero targets.
The Corporate Response
Much like in 2023, it is expected in 2024 that financial institutions will be the main driver for success in the way of emissions reductions. Many individual firms as well as global alliances, such as The Institutional Investors Group on Climate Change, have launched initiatives to aid investees in successfully decarbonizing.
As well, global sustainability regulations have gained momentum, compelling companies to track and disclose emissions. 2024 will be a tell-tale year for the fight against climate change, even with anti-ESG rhetorics still present.
Strategies to Succeed
While all signs lead to a continuous push for decarbonization through 2024, what matters is what companies do about it. Without action, we will face increasing threats in the way of climate change for decades to come.
Your strategy is where it starts. Make a firm plan on where you want to be by the end of 2024 and how you are going to get there. It is important if you have set a net zero target to ensure that your 2024 goals will put you in a position to be able to achieve that. If they don’t, reevaluate.
When strategizing, here are some important actions from the ERM 2024 Annual Trends Report to keep in mind:
- Direct decarbonization should be your priority followed by those in your value chain before reducing via carbon markets or carbon removal.
- If participating in voluntary carbon markets is part of your strategy, evaluate whether they represent verified emissions reductions. There is a lot of controversy in this space.
- Assess stakeholders to understand the pressures you may face as well as the incentives available to you. For incentives around energy efficiency – check out our recent blog.
Targets Aren’t Far Away
The truth is, as we continue into 2024 net zero targets are closer than ever. Still, the CDP’s 2022 report found that the strategy to achieve net zero was one of the worst-performing elements of climate transition plans. As well, 91% of investors stated that concerns have been raised internally around the feasibility and implications of net zero pledges.
The road to net zero will not be easy. Still, it is necessary to stay committed and set a realistic strategy with achievable goals and targets to get there. To do this, you must understand your total emissions currently to set your sights on lowering them. To do this, ensure you have an accurate inventory of all emissions scopes.
While this can be challenging, embrace technology to aid you. Reach out to ScriptString to harness AI power for a comprehensive view of your current status and help reduce your environmental impact today.
