Back in September 2020, China’s President, Xi Jinping announced that his country would step up its efforts to peak carbon dioxide emissions by 2030 and fulfil its pledge to achieve carbon neutrality before 2060. "You can count on China to keep its promise,” he proclaimed.

If efforts are fruitful, the country could on its own lower global warming projections by around 0.2 to 0.3°C, which would be the biggest reduction set by a single policy change.

 By late December, At the UN Climate Action Summit President Xi announced updated climate targets for 2030, including increased wind and solar energy generating capacity, and a higher share of non-fossil fuels in China’s energy mix.

This is only one, albeit meaningful example of the net zero conundrum we are currently facing. In 2019 net zero pledges covered 16 percent of the global economy, and today they cover 68 per cent. This boom is a manifestation of rising awareness, but also of the relative ease in which countries and companies commit to a more sustainable future. It is not very hard to say you will reach neutrality by 2060, but without extremely specific goals, targets and policies, these remain nothing more but words.

A definition under construction

In recent years, ‘net zero’ has become one of the most overused phrases in the world. It refers to achieving an overall balance between greenhouse gas (GHG) emissions produced and GHG gas emissions taken out of the atmosphere through planting new forests, or utilising drawdown technologies like direct air capture. In contrast to a gross-zero target, which would reduce emissions from all sources uniformly to zero, net-zero is more realistic because it allows for some residual emissions. As the term proliferated in the media, as well as in political, corporate and academic discussions, the definition became broader, and is currently used to describe a more comprehensive commitment to decarbonization and climate action, with extremely vague definitions.

In 2017, Sweden became the first country to enshrine ‘net zero’ in a law, pledging to a 2045 target. Today, more than 120 nations, 100 regional governments, 800 cities and 1500 companies have pledged to reach net zero around mid-century. And now, gearing up to the 2021 UN climate summit, the spotlight is shining on what governments are pledging or intending to pledge in their Nationally Determined Contributions (NDCs), as most of them currently have NDCs that do not match up in mid-century ambition.

 Corporate pledges are also under the spotlight, with increasingly-aware global investors, NGOs and consumers looking for credible details that can show whether a company is serious about delivering its net zero target.  A few weeks ago, The US Securities and Exchange Commission (SEC)set a new normal, when it directed conocophillips and occidental, two of America’s biggest oil companies to hold shareholder votes on new emissions targets. These kinds of orders were regularly overthrown during the Trump administration, but now, with Biden as President, the SEC is already adopting greener regulations, and it stood its grounds even after both companies tried to argue against the decision. This marks a new era, where companies will be obliged to uphold their pledges, and show significant evidence to support their sustainable actions.

Greenwashing is a global concern

But what if a company is far off from meeting any sustainability goals? In the mid-1980s, American oil company Chevron came out with the "People Do” campaign, a series of ads that aimed to convince the public of the company’s pro-environmental actions. The ads pictured employees protecting sea turtles, bears, butterflies, and other animals.

But environmentalists were far from convinced, and Chevron was the first company to be accused of green washing, a term indicating a company is making false sustainability claims to cover destructive environmental records. And that was only the beginning. In 2020, Italian oil company, Eni, was the first in the country to be prosecuted for green washing, after claiming that its palm oil-based diesel was ‘green’ in an ad. Eni was fined US$5.94 million. Tide, an American brand of laundry detergent manufactured and marketed by Procter & Gamble, has literally green washed its consumers with a description on the back of one of its detergents reading: "A powerful, plant-based clean you can feel good about.” It was discovered that that detergent is only 75% plant-based, and the other 25 percent consisted of non-plant-based ingredients, including some derived from petroleum. And there are countless other examples.

Back in the 80’s it was much easier for companies like Chevron to proclaim false sustainable operations, when consumers get their news from regulated television, radio and print. But now, earth-conscious activists make it their life goal to expose these falsehoods, and they have social media as backup. 

Sustainably looking ahead

Some meaningful criteria to actual change should begin with a pledge, and continue with specific plans that provide short and medium term actions to be taken in order to reach the long term goals. After the initial plans, immediate actions must be taken to meet set goals, and finally, companies (as well as countries) should commit to regular reports, where they publicly publish their progress. Initiatives such as Amazon’s Climate Pledge, a commitment to be net-zero carbon by 2040, pose a start for corporate responsibility, as companies joining agree to measure and report greenhouse gas emissions on a regular basis, implement decarbonisation strategies in line with the Paris Agreement through real business changes and innovations, and neutralise any remaining emissions with additional, quantifiable, real, permanent, and socially-beneficial offsets.

Being environmentally responsible should be an actual intention, rather than a way to please regulators, investors, and consumers. As personal business entities we should lead this change, and strive for real impact through green, clean operations.

 The writer is an entrepreneur and investor, leading sustainability-driven companies in Africa and the Middle East