Planning your path to net zero

Posted on
July 8, 2022
by
5
Minute Read

Companies are committing to net-zero strategies

The 2021 United Nations Climate Change Conference, more commonly referred to as COP26, has resulted in enhanced commitments towards mitigating climate change. The result of COP26 was the Glasgow Climate Pact, in which the number of countries pledged to reach net-zero emissions passed 140.

The societal and governmental pressure for organisations to act and lead is increasing. In October 2021, the UK Government announced the Build Back Greener strategy setting out policies and proposals for decarbonising all sectors of the UK economy. Many large UK firms must show by 2023 how they plan to reach their net zero goals. Read more here: Net Zero Strategy: Build Back Greener - GOV.UK (www.gov.uk)

Reporting and forecasting capabilities are crucial for establishing a net-zero transition plan

The UK government has established guidelines and a factsheet that define what is required. It should set out
a) high-level targets the organisation is using to mitigate climate risk, including greenhouse gas reduction targets (e.g. a net zero commitment),
b) interim milestones, and
c) actionable steps the organisation plans to take to hit those targets.

Read more here: Fact Sheet: Net Zero-aligned Financial Centre - GOV.UK (www.gov.uk). The factsheet articulates 7 next steps for organisations as considerations whilst developing their net zero transition plans:

  1. Identify your carbon emissions and how they can be reduced to zero
  2. Align your business strategy with your net zero ambition
  3. Build a business case for your net zero ambition
  4. Get buy-in from your key stakeholders
  5. Access the finance required to fund your net zero transformation
  6. Establish the systems of governance measurements and controls that will be needed to build trust in your net zero plan
  7. Publish the plan

How Anaplan can help accelerate net zero transformation

Example dashboard of Fidenda environmental planning and reporting app

Gain capability, visibility and trust when executing your net zero strategy by leveraging Anaplan to integrate environmental reporting and forecasting into your core FP&A process.

  • Reporting your environmental impact, compliant with UK regulatory guidelines - driven by key information drawn from your existing operational and FP&A reporting
  • Performance tracking to monitor the impact of carbon reduction initiatives and how you are tracking against centrally defined targets
  • Scenario modelling capabilities to help you figure out how you bridge the gap between your current trajectory and what needs to be done
  • Out-of-the-box dashboards and reporting library to provide insights for both your internal and external stakeholders

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