Reduce greenhouse gas emissions: The Net Zero guide for companies

This blog is written by strategy consultant, Floris van Neer.

It’s not only countries that must step up. Companies play a vital role in accelerating the transition. Stakeholders, regulations like the CSRD, and certifications like EcoVadis or the new B Corp Standards expect businesses to measure and manage their carbon footprint.

Most emissions in business operations come from:

• Heating (Scope 1: direct emissions)

• Electricity (Scope 2: indirect emissions)

• Value chain activities like travel or purchased goods (Scope 3: indirect emissions)

In many cases, Scope 3 emissions far exceed Scope 1 and 2 combined. That’s why real change requires looking beyond your own operations.

The Greenhouse Gas Protocol categorises emissions into scopes:

• Scope 1: Direct emissions (e.g., fuel in company cars)

• Scope 2: Purchased energy (electricity, heating, cooling)

• Scope 3: All other indirect emissions (e.g., supply chain, employee commuting, product use)

Measuring all three scopes is essential for a complete GHG inventory and for setting science-based reduction targets.

Strategies to reduce emissions

Once measured, how do you reduce emissions? At The Terrace, we help clients design strategies that fit their business and market. Common actions include:

• Energy efficiency: Upgrade lighting, heating/cooling, and processes to reduce energy use.
• Clean energy: Switch to renewable energy sources (solar, wind) or install on-site renewables.
• Low-carbon operations: Electrify fleets, optimise logistics, reduce business travel.
• Supply chain engagement: Work with suppliers to reduce upstream/downstream emissions.

 What to do with residual emissions? 

Even after reductions, most companies are left with emissions they can’t fully eliminate. To address these, many turn to offsetting: funding projects of others that avoid or reduce emissions elsewhere (like reforestation or renewable energy). It’s a widely used and cost-effective option especially in the short term. High-quality offsets are verified by standards such as Gold Standard or Verra. Well known examples are initiatives that plant trees. While often well-intentioned, their long-term impact can sometimes be hard to verify. For example, companies don’t always have the oversight to ensure the forests are maintained properly.  

However, many traditional offsets don’t actively remove CO₂ from the atmosphere, but rather prevent additional emissions elsewhere. For a company to credibly reach net zero, it must eventually turn to carbon removal, such as direct air capture or biochar, which physically draw down carbon. These technologies are more expensive, but they are essential for tackling unavoidable emissions in the long run, especially by the year 2050, as required by frameworks like the Science Based Targets initiative (SBTi). 

We supported Calco, a Dutch IT talent developer, in measuring its Scope 1–3 emissions and creating a net-zero plan aligned with the Science Based Targets initiative (SBTi). This turned compliance into a roadmap for innovation and long-term value.

Read more about our work for Calco.