Seizing the Moment in the Corporate Roadmap Towards Net Zero

The next five years present a critical opportunity for companies to accelerate their net-zero journeys. Companies must commit to bold actions that will shape the future of energy. The time to act is now!

As businesses face the pressing challenge of decarbonisation, transitioning to net-zero emissions has become increasingly urgent. The energy transition involves balancing rising global energy demands with the necessity of reducing carbon emissions. Companies can take practical steps over the next five years to advance their net-zero journeys, focusing on immediate actions rather than distant targets. Let’s take a quick stock of what is being done in this respect.

Focus on Short-Term Goals

Businesses should prioritise a more immediate timeframe – what can be termed the “203X” horizon. This approach encourages companies to implement strategies that yield results within the next 5 to 15 years, making goals more actionable.

Maersk’s Green Methanol Fleet 

Maersk has launched a fleet of around 25 container ships capable of operating on green methanol, alongside biodiesel and conventional fuels. This dual-fuel capability aligns with Maersk’s 2030 carbon-reduction targets and provides flexibility as green methanol technology evolves. By making these operational changes now, Maersk positions itself to meet future demands while reducing its carbon footprint.

Amazon’s Decarbonisation Efforts 

Amazon is committed to achieving net-zero carbon by 2040 as part of The Climate Pledge. The company is increasing fleet efficiency and expanding the use of low-carbon fuels, including electric and alternative-fuel vehicles. Amazon plans to use zero-emission fuels for at least 10% of its international shipping volume by 2030 and aims for 100% by 2040. In addition, Amazon is experimenting with battery-electric and hydrogen-powered trucks, while also utilising electric cargo bikes for last-mile delivery.

Understand Known and Unknown Variables

To effectively navigate the uncertainties of the energy transition, companies must distinguish between known and unknown variables. By focusing on stable factors, businesses can make informed decisions regarding investments and strategies.

A Chemical Manufacturer’s Strategic Assessment 

A chemical manufacturer recognised the increasing demand for critical battery materials due to the rise of electric vehicles (EVs). The company assessed technology and market trends, running various scenarios to identify strategic choices related to product types and battery chemistries. This thorough analysis allowed them to develop a flexible 10-year growth strategy that adapts to market fluctuations.

Identify Competitive Levers

Companies need to identify their strongest competitive advantages and leverage them effectively. This involves evaluating strategic levers that align with their business models.

DHL Group’s Sustainable Logistics 

DHL Group aims for net-zero emissions by 2050 and is focusing on sustainable air transportation solutions. The company plans to use Sustainable Aviation Fuel (SAF) in a blend of 30% for all air transport by 2030. With around 90% of its carbon footprint coming from its air network, DHL is actively exploring partnerships with fuel suppliers to reduce emissions in its logistics operations.

HARMAN’s Commitment 

HARMAN is working towards achieving net-zero carbon across all scopes of emissions by 2040. The company has set ambitious short-term targets to reduce emissions and energy usage across its value chain while committing to using 100% renewable energy in all its factories by 2025.

Continuous Monitoring and Adaptation

The dynamic nature of the energy landscape necessitates continuous monitoring of key indicators that may require strategic adjustments. Identifying specific metrics or events – termed signposts – can help organisations remain agile.

Electric Vehicle Market Dynamics 

As EV sales rise, companies in the battery materials sector must monitor market dynamics closely, including material prices and government incentives. Establishing a framework for real-time monitoring allows companies to adapt their strategies promptly, ensuring competitiveness in a rapidly evolving marketplace.

Build Resilience Against Disruptions

Disruptive events are inevitable; therefore, companies should develop robust strategies that account for uncertainties and prepare for extreme but plausible scenarios.

Air Products’ Net-Zero Hydrogen Energy Complex

Air Products is constructing a transformative hydrogen facility in Edmonton, Alberta, aimed at achieving net-zero emissions. This complex will utilise advanced technology to produce low-carbon hydrogen, with enough capacity to fuel every major transit agency in Alberta. The facility integrates carbon capture technology, enabling it to capture over 90% of carbon emissions for permanent sequestration

XPO Logistics’ Low Emissions Strategy 

XPO Logistics has committed to reducing CO2 emissions by at least 20% over five years through various initiatives like fleet management improvements and route optimisation. The company has also introduced Low Emissions Sustainable Solutions (LESS), which replaces traditional diesel fuel with hydro-treated vegetable oil (HVO), significantly lowering CO2 emissions.

Maersk’s Dual-Fuel Strategy 

Maersk’s investment in dual-fuel engines exemplifies resilience. By retrofitting existing ships and launching new vessels capable of using multiple fuel sources, Maersk meets immediate carbon-reduction goals while safeguarding against future fuel supply disruptions. This strategic flexibility enables adaptation as technologies mature and market conditions shift.

BP’s Global Hydrogen Pipeline

BP is developing a global project pipeline with a capacity of 2.5 million tonnes of hydrogen production annually. Projects like the Australian Renewable Energy Hub aim to produce 1.6 million tonnes of green hydrogen per year for both domestic use and export. BP’s commitment includes producing 0.5 – 0.7 million tonnes of low-carbon hydrogen by 2030 through various initiatives worldwide.

Reliance Industries’ Green Hydrogen Initiatives

Reliance Industries is one of India’s largest manufacturers of green hydrogen, focusing on using it as a raw material for creating new chemicals and fertilisers. The company aims to significantly reduce carbon emissions while contributing to India’s National Green Hydrogen Mission, which targets an annual production capacity of 5MMT by 2030.

Seizing the Moment

The next five years present a critical opportunity for companies to accelerate their net-zero journeys. By focusing on short-term goals, understanding known variables, identifying competitive levers, continuously monitoring the landscape, and building resilience against disruptions, businesses can position themselves for success in the energy transition.

Emerging leaders are already demonstrating that immediate actions can pave the way for a sustainable future. Companies like Maersk, Amazon, BP DHL Group, HARMAN, and XPO illustrate how practical steps can lead to significant advancements toward net-zero emissions. The time to act is now; companies must embrace this urgency and commit to bold actions that will shape the future of energy.