Today, stakeholders demand enterprises reduce carbon emissions and become more sustainable. Soon, however, reducing carbon emissions will no longer be something enterprises do to delight investors or meet customers\u2019 standards \u2013 it will be required by law. <\/p>\n\n\n\n
So, how do enterprises set, reach, and measure emissions goals to reduce their environmental footprint? To discuss the enterprise movement toward net zero carbon emissions, Zayo Director of ESG & Sustainability Sondra Smith joined Elizabeth Hunter, Director of ESG & Social Impact at Ciena, and John Gomes, Partner at Bain & Company on a recent Zayo-hosted webinar moderated by Zayo Vice President of Technology Aaron Werley. Read on for insights from the discussion. <\/p>\n\n\n\n
The first step to reducing emissions and becoming more sustainable is to treat sustainability as a critical component of day-to-day operations instead of an afterthought. \u201cI see sustainability as a lens with which you can do business,\u201d Hunter shares during the webinar, \u201cIt shouldn\u2019t be an add-on.\u201d <\/p>\n\n\n\n
To strive toward net zero emissions, it\u2019s important to first establish what \u201cnet zero emissions\u201d means. <\/p>\n\n\n\n
Net zero emissions<\/strong> is the current gold standard of emissions target-setting that requires companies to take operational initiatives to reduce emissions to reach science-based targets without the aid of market instruments like carbon offsets. <\/p>\n\n\n\n Companies like Ciena and Zayo set science-based targets \u2013 goals aligning with the Paris Agreement goal to keep global warming to 1.5 to 2 degrees Celcius from pre-industrial levels \u2013 that align with the three emissions scopes. <\/p>\n\n\n\n Scope 1 emissions are direct emissions that come from things your organization can directly control. For example, emissions from your company\u2019s vehicle fleet. Scope 2 emissions are emissions from the energy you buy and consume. For example, the electricity you purchase to light your office buildings. Scope 3 emissions are the furthest from your organization\u2019s control \u2013 indirect emissions from the suppliers you use and the consumers of your products. For example, the emissions from the manufacturing processes of your suppliers.<\/p>\n\n\n\n Gaining an understanding of your emissions from each scope is step one in working toward a net-zero emissions goal. <\/p>\n\n\n\n [Watch the Webinar: Toward a Sustainable Future: Net Zero by 2030]<\/a><\/p>\n\n\n\n Now that you have an understanding of where your emissions may come from, it\u2019s time to measure them. While this is no simple task, building this muscle today will put you in a more competitive position later when regulations demand compliance. <\/p>\n\n\n\n \u201cToday\u2019s organizations are not structured to measure emissions,\u201d John Gomes explains, \u201cWe have mechanisms to measure financial data and performance data, but not emissions.\u201d <\/p>\n\n\n\n As a result, methods for measuring emissions often involve piecing together disparate parts of a complex puzzle, sometimes making estimates to fill in the gaps. <\/p>\n\n\n\n Smith suggests companies start with what data they have on hand. It\u2019s easiest to start measurements with scopes 1 and 2 because these measurements are the easiest to track down. However, the process is still fairly manual, involving calculations for even the easiest-to-gather data points. Utility bills, the number of offices, warehouses, ILAs, and the distance traveled by fleet all factor into the emissions equation. <\/p>\n\n\n\n In the long term, Gomes hopes the stopgap emissions calculation solutions in place today will be replaced by automated measurement tools like sensors on vehicles to measure the fuel used and the emissions associated with the consumption. \u201cThe thinking is we\u2019ll have mechanics to measure emissions directly,\u201d Gomes shares. <\/p>\n\n\n\n For now, internal and external partnerships are the key to measuring emissions as accurately as possible. \u201cIt\u2019s a lot of work to do all this measurement,\u201d Hunter explains, \u201cYou\u2019re going to need friends in your organization to help you with this.\u201d <\/p>\n\n\n\n Ciena in particular has established environmental steering committees to understand the sources of emissions from various aspects of its footprint \u2013 things like e-waste, office waste, on-site emissions, and electricity. This breakdown makes measuring emissions more manageable for Ciena. Hunter also suggests building relationships with your finance and data reporting teams to make sense of the data and validate it once you\u2019ve gathered it. <\/p>\n\n\n\n Partnership and a disciplined approach help us reach a more accurate understanding of our scope 1 and 2 emissions, but calculating scope 3 emissions comes with its own set of challenges. Even though scope 3 emissions account for 87% of Zayo\u2019s total emissions, it has been harder to arrive at this number accurately since the data comes from various outside sources. <\/p>\n\n\n\n The key here is to find suppliers who report emissions data and build relationships with all suppliers to create a formalized process for gathering that data. Hunter suggests creating a formal supplier engagement process to get more accurate data and rely less on assumptions and estimates when formulating your overall carbon footprint. <\/p>\n\n\n\n Although measuring emissions can be as much of a challenge as reducing them, measuring and reporting emissions gives stakeholders a level of assurance that you\u2019re doing the right thing. <\/p>\n\n\n\n And it\u2019s not just the right thing to do:<\/p>\n\n\n\n When it comes to setting emissions reduction goals, targets should be science-based, time-oriented, and aggressive. Government and regulatory bodies set high benchmarks guided by targets defined by countries around the world following the collective goal of maintaining the temperature between 1.5 to 2 degrees Celsius of pre-industrial revolution levels. <\/p>\n\n\n\n Zayo\u2019s goal is to reduce scope 1 and scope 2 targets by a little over 97% by 2030 from a 2020 baseline \u2013 something the Science Based Target initiative (SBTi)<\/a> noted as one of the most aggressive targets they\u2019ve seen. Smith believes that\u2019s a good thing, sharing, \u201cIf you don\u2019t draw the line in the sand somewhere, you\u2019re just going to keep pushing it out. So we wanted to be aggressive because it holds us accountable to meet those targets. And if we can do it, why can\u2019t others?\u201d <\/p>\n\n\n\n Zayo\u2019s aim is to set the standard for the telecommunications industry. We continue to explore new ways to reduce our emissions and we couldn\u2019t do it without the insistence of our leaders and stakeholders. \u201cThis is a culture shift,\u201d Smith adds, \u201cThe only way to do it is for your leadership and all your stakeholders to be behind you in this journey.\u201d <\/p>\n\n\n\n Now is the time for leadership to get on board with net-zero emissions initiatives. The wave of sustainability regulations is a warning \u2013 it\u2019s best to establish the guidelines and processes for measuring and reporting emissions now so your organization isn\u2019t scrambling to put them in place when it\u2019s required later. <\/p>\n\n\n\n \u201cWhoever has an aggressive move and a path to driving green operations now will have a competitive advantage and will drive the industry five or 10 years from now when we will be forced to do it right,\u201d Gomes predicts. <\/p>\n\n\n\n With measurement guidelines and robust reporting in place today, Zayo and Ciena are taking steps to reduce emissions and reach aggressive targets. <\/p>\n\n\n\n Zayo is approaching emissions reduction by scope, starting with scopes 1 and 2 \u2013 the emissions most directly within our control. We started with our vehicle fleet, phasing out older, less efficient vehicles and replacing them with hybrid vehicles. For scope 2, we\u2019ve purchased Renewable Energy Credits (RECs)<\/a> to further our goal of using 100% renewable energy. We worked closely with John Gomes and his team at Bain to check the return on investment for our initiatives and check emissions reductions for each. <\/p>\n\n\n\nHow to Measure Emissions<\/h2>\n\n\n\n
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Setting Emissions Reduction Goals<\/h2>\n\n\n\n
How Ciena and Zayo are Reducing Emissions Today<\/h2>\n\n\n\n