What is Net Zero? Why is it relevant in the industry? Why should companies care about it ?

Net-Zero Net-zero is a climate outcome where any greenhouse emissions through man-made sources are countered by removing such gases in equal amount. The net effect is that the global temperature remains unchanged. There are two ways to achieve this drastically reduce emissions and simultaneously use methods to neutralize or remove greenhouse gases. Why's it relevant in the industry? Foremost is to avoid an impending climate catastrophe. Consider carbon budget-the maximum limit of emissions that the Earth can handle before heating up. If we continue to release emissions. on a net basis, that budget is breached and temperature continues to rise. For example, a water tank that is filled three-fourths. And a stream is connected to the tank that constantly keeps filling it. The idea of net zero is that we reduce the flow of the stream so that the water doesn't start to overflow Policymakers across the globe have a consensus that setting net zero goals is a plausible way to contain further damage and hopefully, reverse some of it. Under the landmark 2016 Paris climate agreement, countries including India Net Carbon - Zero Goal One step toward Sustainable development Developed nations such as the UK, France and Denmark, with higher emissions, have already codified in law their commitment to net-zero by 2050, according to the Energy and Climate Intelligence Unit. The European Union, South Korea and Canada have also proposed similar legislation The US, Japan and Germany are considering making it a law. India, a developing nation with relatively lower per capita emissions, doesn't have a net zero target. But authorities are said to be considering pledging to net-zero by 2050. Why Should Companies Care? Bulk of the emission comes from industries-particularly in the energy, metals and transportation sectors. Any climate action will have to start by reducing or offsetting emissions that come from the industrial and commercial activity. There is also the need to negate potential business losses. According to the Carbon Disclosure Project, Indian stand to collectively lose over ₹ 7.14 lakh crore if they do nothing to mitigate climate risks in the next five years. These risks come from physical phenomena like floods, emerging regulations, emission caps, changing customer behaviour and preferences, and even potential legal issues. But if done right, opportunities worth ₹ 2.9 lakh crore could emerge. Indian suppliers of multinational firms also risk losing $274 billion worth of exports every year if they fail to curb carbon emissions, according to Standard Chartered.