Navigating the path to corporate integrity and net-zero commitment

With heightened challenges being faced by the 11,000 organizations that have pledged to the UN Race to Zero initiative, the issue of corporate integrity and the urgency of fulfilling commitments to achieve a net-zero future by 2050 has become critical. With the global population currently falling short of our targets, the need for tangible actions over symbolic gestures has never been higher.

Carbon offsetting and trading, though acknowledged as valid tools in the toolkit for achieving net zero, can be compared to moving pieces on a chessboard: there’s concern whether such practices truly contribute to a substantial reduction in carbon footprints or merely create the illusion of progress. In other words, while the planting of trees is laudable, this should not replace the commitment to make material changes to corporate behaviors that can be readily adopted to tangibly reduce emissions.

A key challenge being faced by the industry is the prevailing perception regarding the limited influence that industries believe they can have on their upstream and downstream emissions; we’re increasingly seeing the need for major players to leverage their influence by encouraging supply chain and customer adherence to net-zero commitments. To do this, we need to collectively shift our focus from financial efficiency toward supply chains that are founded on sustainability, collaboration, trust, and transparency. When the full system is focused on integrity, the interdependency loses its fragility and gains a newfound robustness.

This will also address the known challenges in capturing robust data related to Scope 3 emissions, particularly in hard-to-abate industries. With global regulators pushing for more transparency into Scope 3 emissions, a strategy is needed in order to progress. Industry influence and collaboration is a very good place to start.

To shift toward the role of innovation and technology in achieving our targets, creative solutions are essential to flatten the trajectory of emissions, with technology providers playing a crucial role in pushing for advancements.  Hatch is proud to be playing a key role in the development of these innovative technologies including the development of new mineral and metal processing techniques that substantially reduce carbon footprint, the development of new energy sources, and battery technologies that further reduce the global demand for fossil fuels.

There’s a pressing need for industries to bridge the gap between commitment and action in the race toward net zero. To do this, we recognize the need to uphold ambitious targets, invest in innovation, and navigate the complexities of supply chains and economic pressures. As the world grapples with the consequences of climate change, the call for genuine commitment and tangible progress resonates louder than ever.

Together with Hatch, our clients and stakeholders are part of the solution. Our commitment to innovation, with significant investments being made to stay on the cutting edge, Hatch’s corporate integrity centers on a commitment beyond mere operational performance, moving into a realm where organizations operate with integrity even in the absence of regulatory pressure. With impending economic uncertainties widely acknowledged, the importance of maintaining environmental, social, and governance performance despite potential challenges remains at the top of our priorities.

We would like to hear about your challenges in achieving a net-zero future by 2050. We are at COP28 and we’re eager to share our experience, expertise, and lessons learned in the climate change arena.