Net Zero with Scope 3-Centric Methodology
After three decades, the average person still doesn’t know that 40% of the world’s emissions come from our buildings. According to ABI research, only 0.023% of all buildings in the world are net zero — and even most of those are “net zero energy,” which means they only account for Scope 1 (direct emissions) and Scope 2 (indirect emissions from the purchase of electricity, steam heat, or cooling).
And while you’ll be pleased to know India is making more net zero building progress than any other country, most of the buildings of the India of 2040 are yet to be built. Furthermore, although India has set a national net zero goal for 2070, the truth is, we need to get there faster.
Fortunately, with the NDA’s third consecutive term, comes the public’s renewed focus on policies for accelerating our national race to zero, and specifically a zero emissions economy. Prime Minister Modi has made no secret of his goal to ensure India becomes the world’s third largest economy. And given India’s ranking as the frontrunner in net zero building progress, there is no better time to capitalize on our current positioning, pursue that ambitious target, and empower the nation’s real estate leaders to drive accelerated decarbonization. But we must first target existing buildings — and must do so by prioritizing Scope 3 solutions (value chain emissions).
Climate tech startups — of which there are more than 600 nationwide — are poised to play a critical role in this, especially when it comes to fulfilling the country’s COP26 commitments in an affordable and accessible fashion — including accelerating the net zero 2070 goal, and ensuring that by 2030, India has an increase in non-fossil energy capacity to 500 GW, that half of its energy needs are fulfilled by renewables, and that carbon intensity falls by more than 45%.
We created the Global Network for Zero (GNFZ), the world’s premier net zero certification body, so we could not only join, but lead this charge. At the heart of our mission is a Scope 3-centric methodology that encompasses emissions not produced by the organization or from assets owned or controlled by them, but those that are produced indirectly by them from their upstream and downstream value chain. By doing so we are promising to “leave no building, no business, and nobody behind.”
This inclusive ethos has proved invaluable for developers and businesses around the world, and particularly for leaders making the shift right here in India. In fact, because our incremental certification process empowers organizations to calculate and assess Scope 1, 2 and 3 emissions, create a plan and roadmap to get to zero over time, and identify best-in-class strategies for implementation across their value chain, we are seeing firsthand the accelerated returns on investment and the potential for what is possible when an organization recognizes more ambitious target commitments and has the structural support to pursue them efficiently and effectively.
And for companies in India, Scope 3 emissions remain challenging because while they occur in parts of the value chain that most companies have little to no control over, they can often represent up to 90% of the entity’s emissions. Indeed, as a January 2024 World Economic Forum white paper, Decarbonizing Supply Chains: A Scope 3 Playbook For India, highlights in detail, the challenges many in India are seeing on a daily basis are only compounding and will require significant overhauls in calculating and ultimately eliminating these granular, lurking Scope 3 emissions within most organizations’ value chains.
From data availability and accuracy, to non-uniform reporting standards, policy and regulatory gaps, and technological and financial constraints, to climate vulnerability and transportation emissions, Indian real estate developers and tenants are likely already experiencing the impacts of these mounting, concurrent obstacles.
To reach India’s net zero targets, more support for supply chain and operational emissions must be provided. This is precisely why we are ensuring that organizations who partner with us are not only bolstered in tackling Scope 1 and 2 emissions, but are equipped to leverage our platform and embrace Scope 3 emissions reduction plans including lifecycle assessments, implementing energy efficiency measures, promoting circular economy principles, applying green standards, using low-carbon products, and supporting sustainable procurement strategies.
Shree Ramkrishna Exports Pvt. Ltd. (SRK) is a definitive case study for successful acceleration to zero with our process. The multinational diamond crafting company has now accelerated its 2030 net zero targets for its two flagship manufacturing facilities, SRK House and SRK Empire in Surat, by a full six years. In May 2024, SRK completed our Scope-3 centric certification process and successfully eliminated emissions within both facilities well in advance of their initial timelines.
India may be making more net zero building progress than any other country, but the question remains: “What more can we be doing to help organizations start — and stay — on their net zero journeys?” GNFZ stands willing and ready to provide the tools for any company passionate about answering the call.