How can companies contribute to the net zero transition?

As the evidence for damaging climate change becomes clearer every day, there is increasing pressure on companies of all sizes to show how they will meet the challenge of a transition to net zero emissions.  Much of the existing guidance is focused on larger companies, with significant human and financial resources to address the problem.  But most companies are too small to have a dedicated climate team – although not too small to make an impact by reducing emissions, or to care about making a positive impact on the climate.

A well thought through net zero transition plan can help smaller companies allocate responsibilities and capital in a way that aligns with their broader business objectives.  Properly executed, it can optimise benefits and minimise risks associated with the necessary transition to net zero.  It will help all stakeholders – employees, shareholders and customers – understand the steps that need to be taken and provide assurance they are being made in a logical and effective manner.

That’s where a new BSI Flex will come in.  With an emphasis on “doing” rather than just writing another document to collect dust on a shelf, the document is centred  around creating, implementing and maintaining a net zero transition plan.  Aimed squarely at small and medium enterprises – whether conventional companies or not for profit – the BSI Flex will fill a gap between personal actions and those applicable to large corporates.  BSI Flex standards are developed using an agile, iterative model and when released are simultaneously also open for public comment and user feedback.

What will be in the BSI Flex?

The BSI Flex will guide companies on a journey to develop their transition plans, in straightforward steps:

1. The process will start with measuring existing (or baseline) emissions – sometimes called the carbon footprint, signposting quantification methodologies such as ISO 14064-1, the GHG Protocol and DESNZ’s corporate GHG reporting guidelines.
2. It will then suggest how to create targets for reducing emissions – not just the end target (which is net zero, of course) but intermediate milestones, recognising these are unlikely to be on a straight line for smaller companies, but that there may be some easy wins.  Taken together, these targets should create a credible and achievable pathway to reach net zero.
3. The targets can then be related to specific actions or measures to allow the company to follow the pathway, identify priorities for investment in people or assets, to achieve the Net Zero Transition Plan.  Investments may be in new or improved technologies including installing renewable energy, training, or even include modifying the product offering to become a lower carbon option.
4. After the company has started following the plan, it will need to check progress against targets, review the outcomes of activities expected to reduce emissions and, where necessary, to revise the plan.  This does not always mean a delay – it can also include faster action taking advantage of new opportunities or technology.

The Net Zero Transition Plan will need to be seen in the wider context of the company – how its markets are likely to develop in the medium to long-term, and whether there will need to be any adaptation to its business as a result of climate change.

Companies will be encouraged – but not required – to report on their progress against their transition plan.  Full transparency will increase confidence among stakeholders, and provide a visible framework for management to explain their climate-related actions or investments.  Similarly, companies will be able to have their transition plans independently validated against the content of the BSI Flex, but will not be required to do so.

What are the next stages in developing the BSI Flex?

Of course this is just a summary of the expected content of the new BSI Flex.  Work is just about to start on developing the detailed content, and will draw on the combined knowledge of a newly established advisory group, as well as an expert technical author.  This will take note of existing standards around greenhouse gas and climate change management for companies – whether produced by BSI, ISO or third parties such as the Greenhouse Gas Protocol, Science-Based Targets initiative and the UK’s own Transition Plan Taskforce. It will make sure that it does not duplicate (or contradict) existing work, but will genuinely fill a gap for its target audience of primarily small or medium-sized companies. 

The first draft (Draft “0”) of the BSI Flex will be written by early January and will then be passed to the advisory group for detailed review and comments.  Once their ideas have been incorporated into a Version 1, the BSI Flex is likely to be out for a public consultation during March 2024.  This will give everyone with an interest in the transition to net zero a chance to input into the process, creating a document that meets its aims in supporting companies in this important step.  The process is iterative, so after a few months’ experience using the BSI Flex, a Version 2 will be produced, and the process repeated later in 2024.

This route has been chosen for two reasons – it’s vitally important that companies have the tools necessary to plan for the transition quickly, but it recognises that rapidly developed documents should be seen as live things, that may need updates based on their use in the field.  A BSI Flex uniquely allows for this process.

How can you contribute to the process?

Anyone with an interest in helping organizations write or implement net zero transition plans is welcome to join our Community.  Members will gain access to information about the BSI Flex as it develops, and will be able to join discussions that may influence its content.  At this initial stage, we are also keen to find out if you think we are heading in the right direction.  In particular, is there a gap in support and information for small or medium sized companies?  How can we provide the right level of information – is there best practice that could underpin the BSI Flex or be used for case studies?  And what are the main barriers to action – finance, access to information, or simply finding the time to decide what needs to be done?

We’d love to hear from you – so why not sign up for our community today and start sharing your insights.

Please see definitions used above: 

emissions: all greenhouse gases (GHGs) released into the atmosphere that contribute towards climate change, including carbon dioxide, that contribute towards climate change company any type of organization, whether incorporated or not.

net zero: end of the process, when all technical or economically feasible emissions associated with the company’s operations have been eliminated, and any low-level of residual emissions are off-set using removals, either by the company itself or by purchasing carbon credits.