Building a Net-Zero Culture

Creating a net-zero culture is not just about setting climate targets — it’s about fundamentally transforming how an organization operates, makes decisions and engages its people. It requires a shift in mindset, governance and day-to-day practices to align with the urgent need to reduce greenhouse gas (GHG) emissions and build long-term resilience. At its core, achieving net zero means reducing carbon emissions as much as possible, and then balancing out any remaining emissions by removing an equivalent amount from the atmosphere through natural or technological solutions.³ For sustainability and environmental, social and governance (ESG) professionals, this journey involves guiding their organizations through a structured, science-based process that embeds climate action into every layer of the business.

To help turn ambition into everyday action, this transformative guide outlines eight practical steps for embedding net-zero thinking into the fabric of your organization.

1. Commitment and leadership buy-in

According to the UNEP (United Nations Environment Programme), to reach net-zero emissions by 2050, annual clean energy investment worldwide must triple by 2030 to around $4 trillion (USD). While most of this investment will need to come from private sources, public finance will play a critical role in de-risking and enabling these flows.⁴

This level of transformation demands more than funding — it requires leadership. Securing executive-level commitment is the first and most important step. Without it, sustainability initiatives often lack the authority, resources and strategic alignment needed to succeed. Leadership buy-in drives internal momentum and signals credibility to external stakeholders, helping to unlock these essential investments.

Organizations should begin by making a public net-zero commitment, ideally aligned with the Science Based Targets initiative (SBTi) or ISO Net Zero Guidelines.¹ ² This commitment must be backed by budgetary support and governance structures that integrate climate goals into corporate strategy, risk management and performance metrics.

To operationalize this, sustainability professionals should work with leadership to embed net zero into board agendas, executive key performance indicators (KPIs) and internal communications. Establishing a cross-functional sustainability steering committee helps keep climate action from becoming siloed and integrates initiatives across departments. Leadership should also model the behaviors they expect from others — such as prioritizing low-carbon procurement, approving green investments and supporting climate literacy across the organization.

2. Measure the carbon footprint

Accurate emissions measurement is the foundation of any credible net-zero strategy. Organizations must conduct a comprehensive GHG inventory that includes Scope 1 (direct emissions), Scope 2 (indirect emissions from purchased energy) and Scope 3 (all other indirect emissions across the value chain). ISO 14064‑1:2018 continues to serve as the foundational standard, now complemented by ISO 14068‑1:2023, which provides guidance for climate neutrality claims. According to the GHG Protocol, Scope 3 emissions often account for more than 70% of a company’s total footprint.¹

To implement this, sustainability teams should establish a baseline year and develop a repeatable process for tracking annual emissions. This includes collecting data from internal operations, suppliers, logistics providers and product life cycles. Engaging procurement and finance teams is essential for data accuracy and completeness. Organizations should also implement internal data assurance processes and consider third-party verification to enhance credibility.

3. Set science-based targets

Once emissions are measured, organizations must set reduction targets that align with climate science. The SBTi’s Corporate Net Zero Standard provides a clear framework for setting near-term (five to 10 years) and long-term (by 2050) targets that are consistent with limiting global warming to 1.5°C.¹ These targets must cover all relevant emissions and be independently validated.

To implement this step, sustainability professionals should conduct scenario analysis to understand the emissions reduction pathways available to their organization. First, break targets down by business unit, geography and emission source. Then, integrate each one into operational plans and capital allocation decisions. Interim milestones should be established to track progress and maintain momentum. Communicating these targets internally and externally builds accountability and trust.

4. Develop an actionable net-zero strategy

A net-zero strategy turns ambition into action. It should outline a clear road map for decarbonization across operations, supply chains and products. According to ISO’s Net Zero Guidelines, this strategy must be actionable, time-bound and aligned with the organization’s broader business objectives.²

To build this strategy, start by identifying key emissions sources and prioritizing reduction opportunities based on feasibility, cost and impact. This includes transitioning to renewable energy, improving energy efficiency, redesigning products for sustainability and engaging suppliers. The strategy should also include governance mechanisms, such as assigning responsibility for each initiative, setting timelines and establishing measurable performance indicators. Regular reviews and updates help keep the strategy relevant and effective.

5. Reduce emissions

Emissions reduction is the core of a net-zero culture. The ISO and SBTi both emphasize that deep, rapid cuts to emissions must be the top priority — offsets should only be used for residual emissions. ¹ ² Organizations must focus on eliminating emissions at the source through operational improvements and innovation.

Companies can start implementing this by investing in energy efficiency upgrades, electrifying fleets and processes, and transitioning to renewable energy sources such as solar, wind or green hydrogen. Scope 1 emissions reduction often involves converting to low-carbon fuels and optimizing production processes. Scope 2 emissions can be reduced by accelerating the switch to renewables and establishing a partnership with utility providers. Engaging suppliers is critical, especially for Scope 3 emissions. This can involve setting supplier emissions targets, offering training and incentives, and integrating climate criteria into procurement decisions. Adopting circular economy principles — such as designing for reuse, recycling and minimal waste — can also significantly reduce emissions across the product life cycle.

6. Offset residual emissions

Even with aggressive reductions, some emissions will remain. These residual emissions should be addressed through high-quality carbon removal projects. The ISO Net Zero Guidelines define offsets as a last resort and emphasize the importance of transparency and integrity in offsetting claims. ²

To implement this, organizations should first quantify their residual emissions after exhausting all feasible reductions. Then, they should invest in verified carbon removal projects such as reforestation, soil carbon sequestration or direct air capture. Offsets must meet rigorous standards for permanence and third-party verification. Offsetting strategies must be clearly documented and disclosed in sustainability reports, along with the rationale for their use. Emissions reductions must be a direct outcome of your offsetting strategies and be tangible and measurable.

7. Report and disclose progress

Transparent reporting is essential for building trust with stakeholders and demonstrating accountability. Organizations should report their emissions and progress toward net zero annually using recognized frameworks, such as CDP (formerly the Carbon Disclosure Project), the Global Reporting Initiative (GRI), the International Sustainability Standards Board (ISSB), and the Corporate Sustainability Reporting Directive (CSRD).¹ In 2024, 99% of companies in the S&P 500 disclosed some form of sustainability information, reinforcing the expectation that transparency is now standard practice among leading firms.⁴

To implement this, sustainability teams should develop a reporting calendar and assign responsibilities for data collection, analysis and disclosure. Reports should include detailed information on emissions, reduction initiatives, targets, methodologies and performance. External third-party data verification enhances credibility and helps identify areas for improvement. Clear, consistent communication — both internally and externally — reinforces the organization’s commitment and encourages stakeholder engagement.

8. Review, improve and adapt

Net zero is not a static goal — it’s a dynamic journey that requires continuous learning and adaptation. According to ISO, organizations must regularly review their progress, update strategies based on new data and technologies, and respond to evolving stakeholder expectations.²

To implement this, start by establishing a formal review cycle to assess progress against targets, identify gaps and adjust plans. This includes conducting internal audits, benchmarking against peers and incorporating feedback from relevant stakeholders, such as employees, customers and investors. Sustainability professionals should foster a culture of innovation and continuous improvement, encouraging teams to pilot new initiatives, share lessons learned and scale success. Embedding these practices into the organization’s DNA and operations helps build long-term resilience and relevance in a rapidly changing world.

How UL Solutions can help

UL Solutions partners with organizations to support their net-zero and sustainability goals through a mix of ESG advisory services and tailored, actionable recommendations. These efforts help strengthen net-zero targets, improve transparency and enhance stakeholder communication.

With end-to-end support and our award-winning ULTRUS™ UL 360 software for ESG and sustainability data management, we help complex global operations:

Set science-based targets
Measure Scope 1, 2 and 3 emissions
Add credibility to net-zero commitments
Manage supplier engagement, regulatory compliance and third-party GHG data verification

We also provide third-party evaluations to assess whether your decarbonization road map is in line with its stated net-zero targets. Our approach helps sustainability teams reduce emissions, streamline ESG reporting and drive continuous improvement with confidence.