BDO Joins the Initiative “Net Zero”

20 January 2022

The climate crisis is an imminent threat to the future of our planet, our society and our economy as a whole. At BDO, we believe that each of us has a responsibility to help protect, preserve and renew the resources of our planet, so that the way we live today does not have a negative impact on future generations.

That is why BDO in Ukraine, along with the entire global BDO network, has committed itself, based on scientific data, to achieving Net zero greenhouse gas emissions by 2050 or sooner. This is in line with the Paris Agreement, as well as the reductions, required to limit global warming to below 1.5°C to prevent the most catastrophic effects of global warming.

In the business context, achieving zero emissions means achieving a state in which the company’s activities in the value chain do not directly impact the climate. Recently, the global BDO network has committed to support this goal, becoming part of Net Zero Financial Service Providers Alliance.

Interestingly, there is still no single common definition of Net Zero. But at a recent briefing, prepared by Henning Dräger, Partner on Sustainability and ESG Development of BDO in Ukraine, we tried to shed light on this issue and reveal its main goals.

 

What is the concept of “Net Zero” or carbon neutral?

Simply put, by the concept of “Net Zero” we mean that the total net zero greenhouse gas (GHG) emissions, that an entity (e.g. company, city, state, country or person) emits into the environment, is equal to or less than emissions it eliminates.

Imagine a bath filled with water. Tap water flows, a bathtub is filled, then you open the plug, and let the water drain. The amount of water in the bathtub depends on both the water pressure in the tap and the drain hole. To keep the amount of water in the bathroom at the same level, you need to make sure that the inflow and outflow of water are balanced.

The same principle is used to achieve Net Zero. Businesses, private households and global societies need to balance the amount of greenhouse gases they emit with the amount they eliminate, then we will reach net zero.

 

Read also “ISSB is Formed and Prototype of Sustainability Standards is Released”

 

To support this goal, we at BDO are currently assessing our current carbon footprint, understanding our Scope 1, 2 and 3 emissions, and identifying strategies to reduce and mitigate carbon emissions. And for those emissions that cannot be eliminated, we will develop a strategy of compensation through carbon credits.

As the global corporate leader, BDO is committed to contribute to problem-solving and implement immediate and needed steps to achieve economy with net zero carbon emissions and prevent a climate catastrophe.

 

To learn more about the Assessment of Environmental Impact of our company, contact BDO in Ukraine experts on sustainable development.