Planning for and reaching net zero: A practical guide for businesses
Net zero is no longer a distant aspiration. For businesses of all sizes, it’s fast becoming a necessary part of operating responsibly and staying competitive. But what does it actually take to plan for and reach net zero? And how can businesses begin making meaningful progress, without getting lost in the jargon or overwhelmed by complexity?
At iiE, we believe that every business – no matter its size or sector – can take practical steps toward reducing its carbon emissions and contributing to a greener future. In this article, we explore the key principles and actions that can guide your journey to net zero, based on expert insights and proven strategies.
What net zero really means
Net zero refers to achieving a balance between the greenhouse gases an organisation emits and the emissions it removes from the atmosphere. In the UK, reaching net zero by 2050 is a legally binding target under the Climate Change Act 2008. That means the clock is ticking, not just for government, but for every business connected to a wider supply chain.
This shift goes beyond individual action. Today, net zero is about the whole value chain. It’s no longer enough to reduce your direct emissions (Scope 1) and those from energy use (Scope 2). Your value chain emissions (Scope 3) often represent the majority of your impact and need to be accounted for.
This holistic approach can feel daunting at first. But with the right tools, training and support, it’s entirely achievable.
Measuring your carbon footprint
The first step toward net zero is understanding your starting point. This means creating a carbon footprint that includes all material emissions across Scopes 1, 2 and 3.
Many businesses start with Scopes 1 and 2, using available data on fuel and electricity use. But Scope 3, which includes everything from purchased goods to employee commuting, can be harder to pin down. That’s where the principles of transparency, relevance and completeness come in. Estimations are acceptable at the start, what matters is that you’re building a clearer picture over time.
Practical tools like the Smart Carbon reporting platform (available at a preferential rate to iiE members) allow businesses and their suppliers to input data easily, helping to build more accurate and comprehensive footprints.
Turning data into action: Creating your net zero plan
Once you understand where your emissions come from, the next step is to plan how to reduce them. A robust net zero plan should cover:
- Clear emissions baselines
- Five-year milestones toward reduction
- Opportunities to eliminate or reduce carbon-intensive activities
- Substitution with low-carbon alternatives
- Offsetting only as a last resort
It’s important to align your plan with the UK’s broader decarbonisation timeline. For example, as the grid becomes greener and electric vehicles become more accessible, these shifts should be reflected in your own roadmap.
Think of your plan as both proactive and adaptive. Technologies will evolve. So will your data. The best net zero plans are structured, but flexible enough to grow as your business gains confidence.
Reporting with confidence
Accurate carbon reporting isn’t just a compliance exercise; it’s a powerful tool for building trust and credibility. Stakeholders, clients, and customers want to know that your organisation is taking climate action seriously. Transparent reporting helps you demonstrate your progress and hold yourself accountable.
Under frameworks like SECR (Streamlined Energy and Carbon Reporting) and the NHS’s Carbon Reduction Plan requirements, large businesses are already expected to disclose emissions and outline reduction actions. Increasingly, SMEs are being asked to do the same, especially if they work with public sector clients or supply larger firms.
iiE supports members in developing strong reporting systems, providing guidance that demystifies the process and keeps your efforts aligned with best practice.
Engaging the supply chain
For most businesses, supply chain emissions make up the biggest slice of their footprint. But engaging suppliers, especially small ones, can be tricky.
The key? Communication. Set clear expectations early, share your roadmap, and explain why this matters. When suppliers understand that sustainability is a shared responsibility, not just a box-ticking exercise, they’re more likely to come on board.
Platforms like Smart Carbon make it easier to collect data from suppliers of all sizes. And by working with your sector peers, you can send a united message that encourages collective action.
From ambition to action
Achieving net zero isn’t about perfection – it’s about momentum. Start with what you can measure. Take action where you can make an impact. Communicate your goals, engage your people, and keep refining your approach.
At iiE, we’re here to support every step of that journey. Whether you’re building your first carbon footprint or looking to scale up your impact, our accreditation scheme, tools, and expert network, are designed to help you turn ambition into action.
Join the iiE community to gain access to practical tools, expert guidance, and peer support.