Smart Guide to Starting Your Net Zero Journey

Net zero has become a defining goal for governments, businesses and communities around the world. For Australian organisations, it is no longer just an environmental ambition, but a practical consideration tied to energy costs, risk management and future regulatory expectations.

This Smart Guide, first published in February 2024 as a collaboration with Energy Action and updated in December 2025, aims to break down the jargon, demystify key concepts and identify the barriers you may face on your journey to Net Zero. 

What does “net zero” actually mean?

Net zero refers to achieving a balance between the greenhouse gas emissions an organisation produces and the emissions it removes or offsets.

In practice, this means significantly reducing emissions wherever possible and addressing any remaining emissions through credible offsetting or removal mechanisms.

Importantly, expectations around net zero have evolved. Today, credible net zero strategies prioritise direct emissions reduction first, with offsets used only where emissions cannot yet be eliminated.

Why net zero matters for businesses

The momentum toward net zero is accelerating. Governments have committed to national net zero targets, and businesses are increasingly expected to demonstrate how they will contribute.

For many organisations, net zero is now linked to:

• Rising and volatile energy costs
• Increasing expectations around ESG reporting and disclosure
• Pressure from customers, investors and supply chain partners
• Long-term business resilience and risk management

A clear net zero strategy helps businesses take control of these issues rather than responding to them reactively.

Understanding where your emissions come from

For most commercial and industrial sites, electricity consumption is the largest and most controllable emissions source.

Practical first steps include:

• Understanding how and when energy is used across the site
• Identifying efficiency opportunities that reduce demand before new generation is added
• Investing in on-site renewable generation such as solar
• Using battery storage to manage peaks, firm up supply and improve self-consumption
• Electrifying processes where feasible to reduce reliance on fossil fuels

These actions reduce emissions and operating costs at the same time. That dual benefit is why energy-led net zero strategies have gained momentum.

Why solar alone is no longer enough

Rooftop solar remains a powerful first step towards net zero for many businesses, but its limitations are now well understood. Solar generation peaks in the middle of the day, while many businesses face their highest costs in the morning and evening.

Battery storage changes this equation. When combined with solar, batteries allow businesses to:

• Store excess generation and use it when prices are highest
• Reduce reliance on the grid during peak periods
• Create a more predictable energy profile
• Support emissions reduction with fewer offsets required

With advances in battery technology, falling costs and new revenue mechanisms, storage has become a core part of serious net zero planning rather than an optional add-on.

The role of offsets and carbon accounting

A carbon offset is a credit that represents one tonne of greenhouse gas emissions reduced or removed elsewhere to compensate for emissions your business cannot yet eliminate. Offsets still have a role, particularly for emissions that cannot yet be eliminated but credible strategies treat offsets as a last step, not the starting point.

Accurate carbon accounting is essential. Without a clear baseline, businesses cannot prioritise actions, track progress or meet reporting obligations with confidence. 

The gold standard is to integrate emissions measurement with energy data, allowing decision-making to be driven by real operational insights rather than high-level estimates. Our market leading Smart Zero platform offers just this, allowing you to track your carbon emissions as well as your solar and batter performance in one place.

What a credible net zero pathway looks like

While every business is different, credible pathways share common characteristics:

• Clear emissions baselines and realistic reduction targets
• A strong focus on Scope 2 reductions through energy efficiency, solar and storage
• Minimal reliance on offsets, used strategically rather than broadly
• Ongoing optimisation rather than one-off projects
• Transparent reporting aligned with emerging Australian and global frameworks

Net zero is a journey, not a single project

Net zero is a managed transition that benefits from long-term thinking and experienced guidance.

• Net zero done properly delivers more than emissions reduction
• When approached pragmatically, net zero strategies deliver outcomes that extend well beyond sustainability metrics:
• Lower and more predictable energy costs
• Reduced exposure to energy market volatility
• Stronger compliance readiness for future regulation

• Improved stakeholder confidence and business resilience

The most successful businesses are treating net zero as an opportunity to modernise their energy strategy, not just meet an environmental obligation.

FAQs on Starting Your Net Zero Journey

Q: What is a carbon offset in simple terms?

A: A carbon offset is a credit that represents one tonne of emissions reduced or removed somewhere else to balance out emissions a business cannot yet avoid.

Q: Do businesses still need offsets if they invest in solar and batteries?

A: Yes, solar and batteries significantly reduce electricity-related emissions, but most businesses still have some residual emissions that may require high-quality offsets to achieve net zero.

Q: Are offsets a replacement for reducing emissions?

A: No, credible net zero pathways prioritise reducing emissions first, with offsets used only for emissions that cannot realistically be eliminated.

Q: I'm confused by all the jargon; what's the difference between carbon neutrality, zero emissions, carbon negative and climate positive?

A: Carbon neutrality means the business generates carbon dioxide emissions but then offsets them elsewhere to achieve a net-neutral outcome.

Zero emissions: a more ambitious way to achieve net-zero emissions, removing the “net” part and not emitting carbon at all.

Carbon negative or climate positive is when you remove more emissions from the atmosphere than you emit.