The absolute necessity of reaching net-zero
Sep 17, 2024
Reaching net-zero isn't only crucial to limit global warming—it’s a smart business move that cuts costs and opens doors to new opportunities in the growing green economy.
Every industry is working to mitigate the effects of climate change, with many companies committing to the Business Ambition for 1.5˚C goal, as called for in the Paris Agreement, which targets a net-zero greenhouse gas (GHG) value chain by 2050.
We spoke with Tuuli Kaskinen, CEO at Climate Leadership Coalition (CLC), about why it’s crucial for manufacturers to reach net-zero, and what opportunities the green transition brings. As the largest non-profit climate business network in Europe, CLC believes that the transition to a sustainable world can be economically beneficial, viable and financeable.
What it means to reach net-zero
Net-zero means balancing the total GHGs a company emits with the amount it removes from the atmosphere, achieving a net climate impact of zero.
For companies, the journey to net-zero starts with a detailed plan to reduce emissions as much as possible—not just within your own operations, but across your entire value chain, covering Scope 1, 2, and 3 emissions. Transitioning to net-zero typically involves a combination of operational changes and investing in projects that remove or prevent GHGs.
Corporations play a crucial role in this process, working alongside global decision-makers to drive progress, address climate challenges, and scale the solutions globally.”
Tuuli Kaskinen explains: “Net-zero is only the beginning. In the long run, we need to go beyond just reducing emissions to removing more carbon from the atmosphere than what we emit. Corporations play a crucial role in this process, working alongside global decision-makers to drive progress, address climate challenges, and scale the solutions globally.”
The economic benefits of net-zero emissions
To achieve the 1.5˚C goal, industries must grow while cutting emissions, making it essential for manufacturers to approach net-zero with a business mindset.
The green economy has outpaced the broader market over the past decade, and with global climate-aligned investments expected to reach $100 trillion to $150 trillion by 2050, manufacturers have a major opportunity.
Responsible for one-fifth of global carbon emissions, manufacturers are uniquely positioned to drive positive change and tap into new green business opportunities. By evolving at every level, you can transform operations, improve products, and drive sustainable long-term growth.
To maximize economic benefits from the net-zero transition:
- Understand your market: Where are the opportunities, and who is most willing to pay for your solutions?
- Stay ahead of technological advancements. Be ready to integrate technologies like green steel into your processes as they become more widely available.
- Focus on high-impact areas: Prioritize efforts that will yield the greatest emission reductions and scale your initiatives from there.
Kaskinen shares: “Large companies have a responsibility to support change within their value chains, ensuring that the sustainable choices they offer are not only the best for the environment but also feasible for their customers and scaling globally.”
Large companies have a responsibility to support change within their value chains, ensuring that the sustainable choices they offer are not only the best for the environment but also feasible for their customers.”
Achieving net-zero can also enhance your company’s reputation, helping you build trust with stakeholders and meet the growing demand from consumers, investors, and regulators for sustainable business practices.
Collaboration and automation are crucial in the green transition
Companies can’t achieve net-zero on their own. “The transition to net-zero is about creating a system where the market, consumers, businesses, and policymakers all work to make sustainable choices.”
The CLC talks about the importance of the "carbon handprint” — a positive climate impact indicator that demonstrates how a product or service reduces the carbon footprint of others. For example, Nordic companies can support global partners in reducing their emissions by providing machinery and technology that other companies use.
“We’re seeing the emergence of new types of collaborations across the value chain—not just to decarbonize existing processes but to create entirely new partnerships that can thrive in the green transition.”
For instance, Valmet’s Beyond Circularity program, partly funded by Business Finland, brings organizations together to innovate, renew, and accelerate the green transition. And global collaboration is key to boost green hydrogen development.
Reaching net-zero will also require significant technical advancements. The future of energy, driven by renewable sources like sun and wind, demands a more dynamic and responsive approach. Automation will play a key role in optimizing these systems, ensuring that we use carbon-free energy efficiently and store it for future needs.
The way forward for sustainable business transformation
When you align your business strategy with environmental responsibility, everyone benefits.
As the next EU Commission takes shape, the focus on climate and nature may shift slightly, but their importance will only grow over time. Existing green industrial plans are expected to gain momentum, further impacting how businesses operate.
Embracing the transition to net-zero ensures a sustainable future for both the planet and your business.
Automation can influence the sustainability of production in several ways. Harri Mustonen, Director, DCS Product Management at Valmet, explains:
“One key approach is reducing the waste of resources such as raw materials, chemicals, water, and energy. Process disturbances, like sheet breaks, disrupt production and result in wasted time, energy, and materials. However, by using controls to stabilize operations, we can reduce these disruptions and improve process manageability. Additionally, if the quality of the products fails to meet the requirements, they are rejected, and valuable resources used in the production are wasted. Automated quality controls ensure that the products meet the requirements, minimizing waste.
Another approach is that automation can help achieve production and quality targets with minimal consumption of energy and raw materials. This can be done through advanced optimization applications to optimize the process operating point.”