In the last 12 months, the amount of talk around net zero and Environmental, Social and Corporate Governance (usually referred to as ‘ESG’) has been increasing. So what does it all mean – and what you need to know about them for your business? 

What does Net Zero mean?

Net zero refers to the state at which global warming stops: when greenhouse gas emissions going into the atmosphere (eg. burning fossil fuels) are balanced by those that go out of the atmosphere (eg. through plants absorbing CO2). For as long as global emissions stay higher than zero, the planet will keep heating.

Why is everyone talking about emissions targets?

In 2021, the IPCC* released a report that described current global emissions as a code red for humanity. The report inspired action from governments and corporations around the world. Many of Australia’s key trading partners and strategic allies have now set net zero emissions targets.

Australia has announced that it aims to reach net zero emissions by 2050, and New Zealand has made a net zero emissions target by 2050 into law.

COP26 in Glasgow has brought the planet’s environmental crisis to the top of our news feeds yet again. But as global leaders and big business thrash out their obligations on the world stage, what about small to medium enterprises (SMEs)?

SMEs account for 99.8% of the Australian business landscape. And since business and industry consumes 70% of Australia’s electricity, more organisations are waking up to their role in reducing energy usage and emissions.

But do they really understand ‘net zero’ and how to achieve it?

As Smart Ease Channel Partners, you can help

As installers and suppliers of energy-efficiency equipment, your role in educating the market – without the greenwash – on the best steps to take to help meet environmental targets is becoming more important than ever.

The volume of green ‘noise’ in the SME sector is increasing. Many of your customers will lack the structure and/or resources required to fully explore their energy options. So while most organisations will have good intentions, they may be unclear on the most effective course of action for them.

Carbon offsets and GreenPower alternatives should be a last resort

Many SMEs have jumped to solutions like carbon offsets and GreenPower. However, while these are easy to access, they are best for addressing emissions that can’t be reduced or avoided.

As far as having real and meaningful impact across their buildings and sites (whether owned or leased), organisations should consider a three-step process.

Step 1: Energy-efficiency measures like installing efficient lighting adopting smarter and more efficient equipment, and improving business processes.

Step 2: Using as much renewable energy as possible at their operating sites to avoid using electricity from the grid (which is predominantly powered by fossil fuels).

Step 3: Using carbon credits or GreenPower that is generated from existing renewable infrastructure to offset the remaining emissions.

Prioritising new vs old

As the world needs to decarbonise, rapidly deploying renewable-energy infrastructure should be prioritised, rather than buying offsets from existing infrastructure.

These new installations can can be deployed without organisations having to fund a cent. With a Smart Ease payment plan or PPA, these installations can be rolled out with $0 upfront.

Talk to a Smart Ease Account Manager about how we can assist your customers on their Net Zero journey by providing payment options for solar and energy-efficiency infrastructure projects.

Contact our team on 1300 795 695 or enquiries@smartease.com.au