Neil Ross Russell, Net Zero Now: “We deliver direct impact by giving SMEs the commercial rationale for taking climate action.”
Providing SMEs with the roadmap to becoming Net Zero.
Going Net Zero has never been more vital than now for businesses. But the route to net zero is a daunting task and requires a larger proportion of resources from smaller enterprises. Specialist climate knowledge and exposure to changing regulations is out of reach for many SMEs, despite the foundational roadmap being broadly similar for same-sector businesses.
Net Zero Now was built on these tensions. Its unique sector-specific approach provides SMEs of all sectors access to a painless roadmap to reach Net Zero. We sat down with Neil, Co-Founder and Managing Partner to learn more about Net Zero Now’s visions and impressive framework for reaching SMEs.
1. Describe your start-up in two sentences
We provide SMEs with a simple, credible and affordable route to Net Zero.
Our approach is based on Sector Protocols. These are industry consensus definitions of the criteria businesses need to meet when measuring, reducing and compensating for carbon emissions. We develop these Sector Protocols alongside industry bodies and corporate partners in each sector to provide:
A clear roadmap to Net Zero
Protection from accusations of Greenwashing
Sector-specific tools to “Measure, Reduce, Compensate & Communicate”
A recognised and trusted Certification Mark allowing SMEs to unlock the commercial benefits of climate action
2. What gave you the inspiration?
Net Zero Now platform image
The inspiration for Net Zero Now came from different sources:
Firstly, it was clear that we don’t stand a chance of maintaining the 1.5 pathway without SMEs. Every major company has a value chain full of SMEs. They make up 99% of all businesses and account for 50% of all business-related emissions. But the messaging about Net Zero was confusing - SMEs didn’t know where to start or what to do.
Secondly, while the unique structure of larger businesses means each needs a bespoke climate strategy; within each sector there is a long-tail of similarly-structured SMEs. How one restaurant should measure, reduce and compensate for its carbon emissions is totally different to a law firm or retailer, but the same as the next restaurant. By creating a single, sector-specific solution, we can support all SMEs in their efforts to reduce emissions.
Thirdly, the climate message doesn’t work. Awareness of the climate crisis is not the issue, we needed to make this a commercial decision. By developing sector-specific industry standards (Sector Protocols) we can not only reduce the cost and complexity of reaching Net Zero, but also use those standards to certify businesses, allowing them to unlock commercial benefits by credibly communicating their achievements to customers, employees and investors.
3. How did you meet?
Two of our Co-Founders, Giles and Simon have worked together for 20+ years at Good Business – the UK’s first sustainability consulting firm - and the Sustainable Restaurant Association which they founded together in 2009. Having a foot in these two camps provided the understanding of the climate challenge and the reality of life as an SME. I met Giles when herding children in NW London 20 years ago. I’m an ex-management consultant with extensive experience of advising and managing businesses in multiple sectors and joined Giles and Simon to build the business.
The combination of Simon & Giles’ climate expertise and my commercial insight is the secret sauce of Net Zero Now!
4. What has been your greatest success to date? And your greatest challenge?
Our greatest success has been proving that our sector-based, partner led model works…We have created a virtuous circle where our industry body and corporate partners provide both endorsement of the Sector Protocols and reach amongst our target market. These protocols provide clarity, consistency and protection from accusations of greenwashing as well as allowing us to configure our platform to ensure businesses have a simple and cost-effective way to measure, reduce and compensate for emissions in accordance with that Protocol.
Our platform allows us to assess businesses’ performance against that industry-standard Protocol and to provide a trusted and registered certification mark that enables them to realise the commercial benefits of taking climate action.
The certification mark provides partners with evidence of tangible, credible reductions of their Scope 3 emissions and the support they are providing to other SMEs in their sector.
Our greatest challenge will be familiar to most, if not all, entrepreneurs and early-stage investors out there – the challenge of balancing growth and cashflow! We have an incredible opportunity in front of us – our ability to answer not only the question of how SMEs should measure emissions (by providing a carbon calculator), but also what they should measure and why (through our Sector Protocols and Certification), makes us a very attractive partner for under-funded industry bodies looking for a climate solution for their members.
5. What kind of impact is Net Zero Now having and how do you measure it?
We are laser focused on the climate crisis and the reduction of carbon emissions. We deliver direct impact by giving SMEs the commercial rationale for taking climate action – both minimising the cost and complexity of the journey and, through our certification mark, maximising the value of the destination. Due to the nature of the business, we can measure the precise volume of carbon measurement and reduction delivered through our platform.
The indirect impact of this is more intangible. Becoming a Net Zero economy is a huge and incredibly complex challenge. Larger businesses are making some of the right moves, but long-term Government targets of 2050 remove the sense of urgency – not one of today’s CEOs will still be in office in 2050 and many SMEs won’t even exist.
By changing the economics of reaching Net Zero – reducing the cost and complexity and increasing the size of the prize – we are making this a commercial decision rather than purely a climate one. This encourages those who can go Net Zero to do so now, building momentum of the economy-wide journey to Net Zero as more and more people work for, buy from, invest in certified Net Zero businesses.
6. When you were little what did you want to be when you grew up?
Captain of Manchester City FC…still dreaming!
7. If you weren’t doing this, what would be your plan B?
See above…!!
8. What would you save in a fire?
Much to my wife’s disappointment, probably my record collection!
9. What is your happy track?
All This Love That I’m Giving – Gwen McCrae (worth Googling!)