The ultimate guide to setting your net-zero strategy

In this climate emergency, we’re all doing our bit to reduce our impact on the environment – whether that’s by flying less, springing for an electric vehicle or finally figuring out how those four different recycling bins work.

Because their emissions can be significant, businesses have a special role to play. Almost every large organisation has gone on record with its carbon pledges and net-zero ambitions. Right now, the UK government is encouraging business leaders to turn fluffy promises into proper commitments.

No matter the size of your business, this guide will help you understand the details of net zero, create realistic targets and timelines, and measure your progress along the way. 

A net-zero strategy lays out how a business will reduce its greenhouse gas emissions (GHGs) as much as possible. It’s normally a detailed plan that unfolds over time. 2050 is the date that most organisations are working towards – following guidance from the 2015 Paris Agreement and the 2018 Special Report by the Intergovernmental Panel on Climate Change (IPCC). 

You might hear both terms, but they’re not created equal. A so-called carbon-neutral business has usually pledged to limit its future carbon dioxide (CO2) emissions. But they mostly ‘offset’ the bad stuff through carbon capture and storage. 

A net-zero business commits to reduce GHG emissions as much as possible and only offset minimal amounts of carbon when it’s unavoidable. These days, net zero is the benchmark. 

Some organisations go further to become carbon negative – meaning they remove more greenhouse gases than they emit. And then there’s the gold star of ‘absolute zero’ – where all emissions are cut out without the need for carbon offsetting or removal. 

Maybe you’ve never sat down at the drawing board and thought about net zero. Or perhaps it’s time to level up your carbon-neutral commitments. Either way, we recommend our patented four-step formula. (It’s not really patented, but there really are four steps.) 

First off, you’ll need to measure your current carbon footprint with an energy audit. This will help you understand the starting point before you set your goals and go on to smash them. The audit might include: 

• Fuel used by company vehicles
• The amount of energy your team uses getting to work
• Electricity, gas and water used at work 
• How much waste is recycled and how much goes to landfill
• Any carbon storage or offsetting. 

Start out by checking your recent energy and utilities bills, travel invoices and fuel receipts. Now is also a good time to ask Jack from accounts why he keeps putting his energy drink cans in the rubbish bin.

Once you’ve gathered the data, you’ll need to convert it into greenhouse gas emissions using an ‘emission factor’. There are nifty calculators that can do this for you, like this one from the SME Climate Hub. 

What are the different emission types? 

Ah, now we’re getting into the detail. Here are the three key categories, as defined by the Greenhouse Gas Protocol. 

Scope 1 emissions:

Direct emissions from sources you own or control, like burning fuel when driving a non-electric vehicle.

Scope 2 emissions:

Indirect emissions that come from the electricity, heating or cooling your company uses.

Scope 3 emissions:

All other indirect emissions, including buying and getting rid of products from suppliers and other things in the value chain.

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How do I start tackling these?

Each employee that switches to an electric vehicle reduces the company’s Scope 3 emissions by 1.5 tonnes a year. How’s that for a quick win? You can help people make the switch by offering a salary sacrifice scheme. Ours comes with up to 40% off public charging, too.

Just like when you’re working out in your slightly-scary-but-well-equipped gym with the lifelong bodybuilders, it’s good to set objective, measurable targets. They help us keep our net-zero ambitions on track. And, increasingly, they’re what governments and regulators expect as the energy transition steps up.

A big area of focus will be cutting your energy usage. Now could be the time to invest in renewable energy sources, and we’re ready to help. As we’ve grown, Octopus has naturally expanded into new areas, creating what we like to call new ‘tentacles’ across the group. These include Zestec, which installs solar panels, heat pumps and EV chargers; Electroverse, our public charging network; and of course us, Octopus Electric Vehicles.

To reach net zero, you’ll need to make sure any emissions you do produce are balanced by the amount you remove or offset. This can involve, for example, planting trees (huge news for squirrels), or looking into sustainable waste management and land use practices.

While you’re making plans, organisations such as the Science Based Target initiative (SBTi) and SME Climate Hub have resources to help you. 

SBTi research shows that 91% of companies that set science-based targets see an overall positive impact – including benefits to strategy, competitiveness, supply chains and managing regulatory changes.

Your net-zero roadmap should include a timeline, milestones and key deliverables.

It’s a place to track:

• The initiatives so far, and their outcomes
• The next steps in your net-zero journey 
• Benchmarks for performance along the way
• The resources you need to reach your goals (staff, time, or money).

The roadmap should include more than emissions. Go big picture and think about how net zero impacts your operations, products and services, buildings, and supply chains. 

Now’s the time to set up – or tweak and perfect – those monitoring processes. This will help you track your progress toward net zero and report on your impact.

Make your team members part of the reporting process. When they can help prove that their net-zero work matters, it keeps them engaged. Give some colleagues responsibilities and a special title like Net-Zero Ninja or Scope 1, 2 & 3 Superstar. Or something less cringe. 

Monitoring and reporting also help you spot opportunities where you can go further and achieve more. 

Going net-zero is key to mitigating the climate emergency. And that’s reason enough to do it. But, in case you needed it, here’s a reminder of all the other things that a sustainability strategy can help you do. 

When you reduce waste, improve efficiency and lower consumption costs, you’re likely to save money in the long run. Your bottom line can grow too – as new customers are drawn to your sustainable brand and existing ones stay loyal.

Smart tariffs from Octopus Energy use off-peak energy, when the grid draws from more renewable sources. 100% of customers saved money during the Shape Shifters trial, and we think that’s what you call a no-brainer.

A strong employee benefits package can help save on costs and support a sustainable, engaged workforce. With an EV salary sacrifice scheme from Octopus Electric Vehicles, you and your team can save up to 40% on brand-new electric cars.

Today’s customers demand more transparency. They want to know where their products come from, how they're made, and what impact they have on the environment. They look for symbols of trust like B Corp certification. In the UK, ENSO manufactures tyres specifically for electric vehicles. Their eco credentials have led them to the finals of the Earthshot Prize and helped them secure a strategic partnership with Uber. It seems that businesses that wear sustainability on their sleeve will win more business in the long term.

Compliance is a good thing, obviously, because it helps you avoid penalties and fines. But that’s not the only benefit. Eco-friendly, compliant companies have to think differently to stay ahead. This spirit of inventiveness can help them challenge the status quo, develop innovative products and services, and seize new opportunities. In 1993, Patagonia became the first outdoor brand to use fleece fabric made with recycled polyester from plastic bottles, and now they’re famous for it. If fleece is your thing. 

Candidates care about your sustainability efforts. A 2025 survey by Deloitte found 70% of Gen Z and millennials said a company’s environmental credentials and policies are very or somewhat important when choosing an employer. This is something GB Railfreight had in mind when they partnered with Octopus Electric Vehicles for their salary sacrifice scheme. Head of Sustainability Sarah Whurr told us, “We wanted to appeal to some of our younger members of staff, who have the planet at heart”.

Your existing team will benefit too. A study by Cisco showed that employees who participated in their social impact programme were more likely to stay with the company and have increased promotion chances. 

Then there’s the impact on shareholders and investors. It’s been proven that sustainable business practices materially improve financial performance. This is great news all round – and certainly keeps investors happy. 

When you make sustainability a priority, there are benefits for your brand, your team, shareholders and investors – not to mention your community and the planet. Spending some time on your net-zero strategy can only be a good thing. Make today the day you switch it up a gear, and follow our tips to steal a sneaky few steps ahead of your competitors.