Net Zero Accountancy Protocol

AC Y
COU C
N TAN
PROTOCOL
April 2022
SUPPORTED BY
N E T ZERO ACCOU NTANCY PR OTO CO L 2
Contents.
1. INTRODUCTION 3 6. GOING NET ZERO 13

6.1 What is Net Zero? 13
2. ABOUT THE PROCESS 4 6.2 Net Zero in the Accounting Industry 14
6.3 Why go Net Zero Now? 15
3. ABOUT THE PARTNERS 5 6.4 How to achieve Net Zero Now 17
6.5 Step 1: Calculate 18
4. DEFINING NET ZERO 6
6.6 Step 2: Mitigate 20
4.1 The 5 Principles of Net Zero Now 6
6.7 Step 3: Compensate 21
6.8 Step 4: Validate 21
5. THE NET ZERO ACCOUNTANCY PROTOCOL 7
6.9 Step 5: Communicate 22
5.1 Purpose of the Protocol 7
5.2 Using the Net Zero Accountancy Protocol 8
7. DETAILED GUIDANCE 23
5.3 Guiding Principles of the Protocol 8
7.1 Calculate 23
5.4 Who should use the Protocol? 9
7.2 Mitigate 31
5.5 Relationship to other GHG Standards 9
7.3 Compensate 34
and Methodologies
7.4 Validate 37
5.6 Greenhouse Gases 9
7.5 Using the Certification Mark 38
5.7 What is not in the Scope of this Protocol 10
7.6 Communicate 38
5.8 Quality of Data 11
5.9 Use with other Standards and Methodologies 12 8. GLOSSARY OF TERMS 39
5.10 Accounting Standards 12
5.11 Target Setting 12
5.12 Carbon Compensation / Offsets 12
1 Introduction.
The Purpose of the Net Zero Accountancy Protocol is to create It would be illogical for a business to claim to be net zero,
consensus across the accounting industry as to what Net Zero while its primary business activity was enabling avoidable
means for businesses in the sector and to provide an industry climate damage and an industry accepted view must therefore
standard against which business claiming to be Net Zero can be agreed.
be assessed.
Establishing a consistent approach to the way in which
The concept of Net Zero has been at the centre of international these fundamental issues are addressed is essential to the
climate change discussions since the 2015 Paris Agreement, maintenance of the momentum of the Net Zero movement
which bound all signatories to: – businesses will be less willing to start the journey if they are
unsure of the route they need to take, and customers and
“Achieve a balance between anthropogenic emissions by
regulators will be less inclined to believe claims of Net Zero if
sources, and removals by sinks of greenhouse gases in the
there is no consistent standard against which those claims can
second half of this century” 1
be assessed.
...and the conclusion of the IPCC Special Report (2018)
The truth is, the journey to Net Zero will be different for an
which stated:
Accountancy firm in comparison to a restaurant, farm or retailer,
“To ensure Global Heating stays below 1.5C - the minimum but the journey one Accountancy firm needs to go on will be
requirements of the 2015 Paris Agreement - global net C02 very similar to that of other Accountancy firms. A consistent and
emissions must reach ‘net zero’ by 2050 at the latest.” coherent industry approach will provide all stakeholders with
The simplicity of the concept – creating a global economy the reassurance required to accelerate progress. .
where the net emission of Greenhouse Gasses equals zero – has Our goal is to create a pragmatic, effective and publicly
captured people’s imagination, turning the complexities of available guide for Accountancy firms to achieve Net Zero. This
climate science into a clear and achievable goal. By early 2021, “protocol” will be practical and easy to use, whilst remaining
over 1/3 of FTSE 100 companies (but only c.10% of SMEs) had comprehensive in its scope and ambitious in its scientific
set Net Zero targets.2 3 robustness - offering businesses a realistic method of achieving
While these commitments are encouraging, there are striking credible sustainability goals, in line with the global climate goals
inconsistencies in the detail of each commitment, primarily required by the Paris Agreement.
relating to the methodology for calculating business’ current The need for urgent, strong action has never been greater and
emissions, the necessity of committing to ambitious reduction businesses are eager to do the right thing. This protocol aims to
of future emissions and the quality of the carbon credits or help turn that commendable ambition into a practical reality.
offset initiatives used to compensate for any emissions they are
unable to avoid.
Of particular note for the professional services sector is the

need to resolve the challenge of facilitated climate impact,
or what has been called in some quarters “Scope X”. These
are greenhouse gas emissions that are not attributable to the
subject business’ account under current carbon accounting
guidelines but which are nevertheless clearly related to the The best time to go net zero
business’ activity.
was 20 years ago, the next best
time is now.
Net Zero Now, April 2022
1. United Nations Framework Convention on Climate Change, ‘Paris Agreement’.

2. Broadway Initiative, ‘SME Discovery Phase Publication Report’.
3. BSI, ‘Net Zero Barometer Report’.
2 About the process.
To reach the required consensus, Net Zero Now oversee an open and collaborative process involving
thought-leaders and key players from across the accounting industry. To create the protocol, we use
a 5-step development approach, based on the process for certification scheme development used by
the ISO Committee on Conformity Assessment, in which there are 4 key steps:
Research & drafting

Combining our climate knowledge with our partners’ sector
expertise, Net Zero Now will draft an initial protocol, designed
to both comply with the global guidelines and be relevant for
businesses in the sector
Pilot programme
We will then test that protocol with a representative sample of
business from across the sector
Peer review
Before publication, we will share the protocol with a wide group
of industry and climate experts, academics and government to
ensure consensus
Publication
The final protocol will then be published on the Net Zero Now
website alongside a sector-specific Climate Action Playbook
featuring ideas and initiatives for businesses in the sector to
reduce emissions
The Protocol has been developed following thorough peer-review with multiple stakeholders from
the accounting industry and the sustainability sphere. It will be updated annually to include the most
recent advances in the science and best practice concerning sustainability in the accounting industry.
Input is encouraged from all stakeholders interested in Net Zero in the accounting industry.
Suggestions for changes or futures priorities for the development of the protocol should be sent to
[email protected].
3 About the Partners.
The climate crisis requires a response that is both broad Strategic partner, Good Business, has been instrumental in
and deep, that engages everyone and enables everyone to guiding the development process and technical partners at
participate. University College London have provided climate expertise.
Therefore, while the Net Zero Accountancy Protocol is an Our pilot partners were:
initiative that has been coordinated by Net Zero Now, the • Grunberg & Co Chartered Accountants
protocol itself has been developed in partnership with a broad • Wilson Wright LLP
range of industry partners and represents an industry consensus • Blu Sky Chartered Accountants
of what accountancy practices need to do to reach Net Zero and • Counting Clouds
a standard against which their progress can be assessed. The
A wide range of stakeholders were invited to participate in the
protocol will be a freely available resource that all accountancy
consultation, with representatives from academia, third sector,
practices can use for guidance when starting their Net Zero
government agencies, trade associations and business. Their
journey. We cannot achieve the necessary impact working alone
feedback has helped shape the protocol and ensure broad
and Net Zero Now is grateful for the support received from
based endorsement.
collaborating partners that share our ambition for a Net Zero
global economy.
The Net Zero Accountancy initiative has been made possible by

the support of key development partners:
• Sage Group plc
• The Institute of Chartered Accountants of England & Wales
(ICAEW)
• The Association of Accounting Technicians (AAT)
• The Association of Chartered Certified Accountants (ACCA)
• Good Business Charter (GBC)
4 Defining Net Zero.
Net Zero Now and the Net Zero Accountancy protocol are aligned
with the definitions of Net Zero provided by the Race to Zero
Campaign.
“Net Zero occurs when an entity reduces its emissions

following science-based pathways, with any remaining GHG
emissions attributable to that actor being fully neutralised by
like-for-like removals” 4
There are a number of key differences between this definition and

other definitions of terms such as Climate or GHG Neutrality. The
following principles distinguish these key characteristics of Net Zero.
4.1 | The 5 Principles of Net Zero Now
Emissions must be calculated in accordance
1
with the appropriate GHG Protocol methodology
and include all Green House Gasses (GHGs)
Emissions in scope must include all relevant
2
value chain sources (inc. scope 1,2 and 3)
Emissions reduction targets are mandatory and

must be compliant with SBTi ambition criteria
3
and accompanied by credible delivery plans.
These must be enacted from Year 1.
Once a business has verified their carbon footprint

over 2 consecutive years and demonstrated a
reduction of their emissions, in line with their
reduction target, they can offset their residual
emission. The carbon offset instruments must be
certified to recognized international standards and
4
aligned in composition with the Oxford Principles on
Net Zero Aligned Carbon Offsetting
Businesses must share details of their climate
5
plans and action transparently and advocate for
widespread adoption of paths to Net Zero.
4. Race to Zero Expert Peer Review Group, ‘Race to Zero Lexicon,’ 2021
5 The Net Zero Accountancy Protocol.
This first edition of the Net Zero Accountancy Protocol has been developed as a free and universally accessible standard guide,
tailored specifically for practicing accountancy businesses. The protocol builds on existing greenhouse gas (GHG) accounting
standards, scientific evidence, and industry best practice. The aim is to provide a guide for accounting firms to follow in order to
achieve Net Zero certification.
The protocol provides an approved methodology for the development of an Accountancy-specific climate strategy. This includes:
i. The calculation of an Accountancy businesses direct and indirect GHG emissions
ii. Science Based Target setting and associated emissions reduction plans
iii. The purchase of appropriate and valid carbon offset credits
iv. Communication of their actions and results in a clear and transparent manner
Accountancy businesses that follow this methodology are eligible to receive one of three Net Zero Accountancy certifications: either
Net Zero Industry Target, Net Zero Accelerated Target or Net Zero Now. Full details of the difference between these certifications is
provided in sections 6.8 and 7.3.
As new research is produced, the protocol will be updated to ensure that scientific targets and product level emissions data are
current and applicable.
The protocol has been developed following thorough peer-review with multiple stakeholders from the accounting industry and the
sustainability sphere. It will be updated regularly to include the most recent advances in the science and best practice concerning
sustainability in the accounting industry.
5.1 Purpose of the Protocol

The Net Zero Accountancy Protocol provides a set of requirements,
guidance, and recommendations for Accountancy businesses to build
strong, credible, and transparent Net Zero businesses that are recognised
globally by the industry, their clients / customers, employees, investors and
other stakeholders.
The main goal of this document is to provide a step-by-step approach

to help Accountancy businesses understand their direct, indirect and
value chain emissions, focusing on the biggest GHG emissions reduction
opportunities, and helping them offset residual emissions to achieve carbon
Net Zero.
This document aims to assist the accounting industry to become Net Zero
by 2030.
The Net Zero Accountancy Protocol is designed for:

• Accountancy businesses to understand what is required to achieve the
Net Zero Accountancy certification.
• Accountancy businesses to understand the variety of benefits Net Zero
can offer their operations: within multiple departments such as finance,
sustainability, and communications.
• The wider accounting sector, to clarify what ‘Net Zero’ means for the
sector, while ensuring collaboration on best practice to reduce emissions.
• Assessors to understand what is required to ensure consistency of
certification requirements.
5.2 Using the Net Zero 5.3 Guiding Principles of the Protocol
Accountancy Protocol The four principles that guide the construction of the Net Zero
The Protocol is structured to provide an accessible entry Accountancy Protocol are:
point that introduces the key concepts, expanding on them Inclusive

in subsequent sections to offer increased detail To move the accounting sector towards Net Zero, no part of
and complexity. the sector can be left behind. Accountancy businesses are
1. Going Net Zero provides an overview on the implications often deterred from participating in carbon measurement
and significance of going net zero, while presenting and target setting due to the complexity attached to the
a step-to-step framework to achieve the Net Zero process. This protocol has been designed to be accessible and
Accountancy certification. achievable for any type of Accountancy businesses, regardless
2. Detailed Guidance offers a detailed vision over the of size or scale. This collaborative approach is essential across
framework and action required to achieve the Net Zero all sectoral Net Zero Now Protocols.
Accountancy certification, offering extended support to
the FSP and clarifying the requirements for each step.
Pragmatic
Further chapters explore the main trade-offs presented The protocol is primarily concerned with accelerating
when implementing a Net Zero strategy in the context progress towards a wider Net Zero sector. Outputs have
of the accounting industry and present some examples been designed to balance this ambition with what is
of best practice around successful implementation of the practical and achievable. In order to avoid increased
Protocol requirements. complexity, existing standards are adopted where possible.
Within the document, the term must used to indicate a
requirement of the Protocol. The term must not indicates Action orientated
prohibited actions. The term should is used to indicate a Participation must lead to action. This is not an academic
Protocol recommendation, but not a requirement. exercise, and the focus is not on documenting the status quo
Disclaimer: Net Zero Accountancy® is a registered but on validating effective change. Immediate action is
trademark. The copyright notice displayed in this document necessary to guide the sector as a whole to Net Zero by 2030.
indicates when the documents was last issued.

Transparent
To eliminate confusion and inconsistency, transparency is
key. This protocol aims to allow businesses to make public
claims and commitments with confidence. This confidence
is built on following the documented methodology which
underpins the protocol.
5.4 Who should use the Protocol? 5.6 Greenhouse Gases

The information within the Net Zero Accountancy Protocol Global warming occurs due to Greenhouse Gases (GHGs)
is applicable for all practicing accountancy businesses, but accumulating in the atmosphere, however not all GHGs are
is specifically designed for SMEs, defined as businesses with equal in terms of their warming potential. Global warming
with under 500 employees. It forms part of a range of protocols potential (GWP) was developed to allow comparisons of the
provided by Net Zero Now across multiple industries. For more global warming impacts of different gases. Specifically, it is
information about these initiatives, please visit NetZeroNow.org. a measure of how much energy the emissions of 1 tonne of
the gas will absorb over a given period of time, relative to the
While the standards within this Protocol are relevant globally,
emissions of 1 tonne of carbon dioxide (CO2). The larger the
this document has been created specifically for the UK market.
GWP, the more that each gas warms the Earth compared to CO2
over that time period. The time period most frequently used for
GWPs is 100 years.5 6
5.5 Relationship to other GHG
standards and methodologies An example of the three most common GHGs and their GWP are
listed in Figure 1.
This Protocol incorporates and builds on existing best practice
in development of climate strategy. Concerning accounting 265
Global Warming Potential (100 year)
standards for GHG emissions, the Protocol defers to the GHG

Protocol Corporate Standard (including the separate Guidance
on Scope 2 and 3 accounting), and PAS 2050 & 20601-5. Sections
of the Net Zero Accountancy Protocol that deal with GHG
measurement should be considered as Accountancy-specific
additions to these existing standards.
1 28
Greenhouse Gas
CO2 CH4 N2O

Carbon Dioxide Methane Nitrous Oxide
Figure 1. Three most common GHGs and their GWP
These numbers state that, with regards to their contribution to

Climate Change, methane is 28x more potent than CO2, whilst
nitrous oxide is 265x more potent than CO2 . For a full set of GWP,
please refer to the IPCC Fifth Assessment Report.7
In addition to these, there are a number of other gases such

as freons, hydrochloroflourocarbons, tetrafluoroethans,
trifluorides, hexafluorides are used in refrigerants, aerosols and
various industrial processes. While these gases are produced in
much smaller quantities than the three gases listed above, they
are extremely potent. These gases have between 1000x – 24,000x
greater GWP than CO2.
5. IPCC, Climate Change 2014.

6. US EPA, ‘Understanding Global Warming Potentials’.
7. IPCC, ‘Fifth Assessment Report’
5.7 What is not in the Scope of this Protocol

This Protocol recognises the importance for Accountancy businesses to holistically approach sustainability and corporate social
responsibility. However, the Net Zero Accountancy certification is solely and purposefully focused on climate impacts and should be
used in association with other sustainability metrics.
There are a variety of tools, models and frameworks available for businesses to develop a more systemic approach and explore the
full range of social, ethical and economic factors at play and the interrelationship between them.
Figure 2, created by Oxford Economist Kate Raworth, is an infographic named the ‘Doughnut’. The Doughnut depicts the social and
environmental factors that must be managed to ensure the safe and equal distribution of resources globally. There are twelve social
foundations and nine ecological boundaries which are recognised within this metric. Within ecological factors, climate change is one
of several factors that require urgent action.
Beyond the boundary

Boundary not quantified
climate
change
er aci oc
layion LOGICAL CEILING
dif ea
ica n
e
n le t ECO ti
p
de o
oz
wate
r food on
T
FOUNDATI OO
gy CIAL ON he
ER
SH
er SO a
OV
lth
en
on
chelm
pol u
edu
ks
L
air polluti
AL
networ
TF
cation
tion
ical
O R
SH
e
rk
& woom
h o u si
in c
ng
g
bi o l oss
d in
us n &
ice &
uande
di v
ac
ge q
loa
e
e
o r ge
lit r pe just
e rs
y
sp itro
so
it
l
equciial politicea
ho n
y
ty vo ic
p
con land er
ver e s h wat als
sio n f r ra w
w ith d
Figure 2. Doughnut Economics Infographic, Kate Raworth 20178
8. Kate Raworth, Doughnut Economics: Seven Ways to Think like a 21st Century Economist, Book, Whole (White River Junction, VT:Chelsea Green Publishing, 2017), http://uu.summon.serialssolutions.com/2.0.0/link/0/eLvHCXM-
wdZ07C8IwEMcPH4NuPvGtX0CJaVLTUUQRQScnF0maK7q41Iof31xtUQTHJBByEO5_l9wvAfD4jE1_fALTAtFnPIgYN9zouRFah76Ta7RKWbrg3Z_U8qB2e7X1Mvaa6zpNxyqvkgNXzGDyK451Tq4zxv0QUAbhPP5IqgLZ95UvlOI7O3nPJ2SscmX-
7qxqUGJWII6FPDWgEoOAcdNqFPgerkl9wnmnS0Yb9bH1XaaJOfsUOX8puKydfA2lFyyjh2YsACtNEKGHJWIjA5c-iOjhRCeDUKUrAudf7P0_g_1ocpJTtLUfwDlyG1NHJJRo9T4Fyy2Xrg
900
Figure 3 is an infographic provided by the UN on how to use the UN social development goals (SDGs) to become a more sustainable
business. The UN states that by understanding their SDGs, measuring and analysing their performance of your business, and then
implementing change to improve key areas, your business will become more sustainable. The UN has developed a full downloadable
guide on how you can integrate SDGs into your business.9
3.3
Report and 1.1
implement Understand the
change SDGs and their
targets
3.2
Consider data
users’ information
needs 1.2
Conduct principled
prioritization of
SDG targets
Step 3 Step 1
3.1 Report, integrate Define priority
Consider general and implement SDG targets
features of good change
practice when
reporting on the SDGs 1.3
Define your
Step 2 SDG-related
Measure and analyze report content
2.3
Collect and
analyze data
2.1
Set business
2.2
objecttives
Select
appropriate
disclosures
Figure 3. The steps required to integrate the UN SDGs into your business
5.8 Quality of Data

Good quality data is the foundation of accurate climate accounting and the foundation upon which decision making
for emissions reduction is based. The GHG Protocol Corporate Standard is clear that for businesses, GHG measurement is not based
on direct capture of flow rates and concentration monitoring:
“the most common approach for calculating GHG emissions is through the application of documented emission factors. These
factors are calculated ratios relating GHG emissions to a proxy measure of activity at an emissions source”
Emissions calculations are therefore based on a combination of Activity Data that capture the quantity or volume of activity at a
source and Emissions Factors that allocate an amount of carbon dioxide equivalent for each unit of that activity.
9. https://www.unglobalcompact.org/library/562
Businesses should seek to use the highest quality data available,

but also understand that the journey towards good quality data
5.10 Accounting Standards
is an ongoing process that will improve over time. Figure 4 is • The GHG Protocol Corporate Standard (including the
an infographic for activity data and emission factors. For the separate Guidance on Scope 2 and 3 accounting)10
available primary data, specific emission factors should be used. • The latest UK Environmental Reporting Guidelines,11 12
Emission factor specificity will decrease with data reliability. In • PAS 2050 - Specification for the assessment of the life cycle
this regard, a consistent approach should be taken between all greenhouse gas emissions of goods and services13
Accountancy businesses from the base year forward. • PAS 2060 – Carbon Neutrality14
• ISO 14064 – 1: Greenhouse gases — Part 1: Specification with
guidance at the organization level for quantification and
reporting of greenhouse gas emissions and removals15
EMISSIONS
ACTIVITY DATA
FACTORS
HIGHEST
Primary Data Specific
5.11 Target Setting
• Science Based Targets Initiative16
DATA QUALITY
• UN Race to Zero17
Secondary Data Non-specific
5.12 Carbon Compensation / Offsets

Estimates Generic
LOWEST To understand Carbon Offsetting, we must first understand what
is meant by a Carbon Credit.
Figure 4. Infographic of data quality, activity data and • 1 Carbon Credit = 1 tonne of CO2e either removed from the
emission factors atmosphere or prevented from entering the atmosphere
Carbon credits are generated through Greenhouse Gas projects

5.9 Use with other Standards which remove CO2 or prevent CO2 from entering the atmosphere.
and Methodologies These projects are made possible by the sale of the credits that
they generate as a carbon offset.
Where the Net Zero Accountancy Protocol refers to other
There are many different types of Carbon Credit and the
Protocols (for example the GHG Protocol, Corporate Accounting
qualities of those compliant with the protocol requirements are
Standard) the principles of those standards
detailed in Section 7.3.
shall apply.
This Protocol incorporates and builds on existing best practice

within the development of national and international climate
strategy. With regards to the following topics, the protocol
will complement and build upon the frameworks of the
following standards:
10. GHG Protocol, ‘Corporate Value Chain Accounting Report Standard’; GHG Protocol and Carbon Trust, ‘GHG Protocol - Technical Guidance for Calculating Scope 3 Emissions’.
11. UK Government, Department for Environment, Food and Rural Affairs, and Department for Business, Energy and Industrial Strategy, ‘Environmental Reporting Guidelines’.
12. UK Government and Department for Environment, Food and Rural Affairs, ‘Guidance on How to Measure and Report Your Greenhouse Gas Emissions’.
13. British Standards Institution, PAS 2050.
14. British Standards Institution, ‘PAS 2060 Carbon Neutrality’.
15. ISO, ‘ISO 14064-1’, 2018, https://www.iso.org/standard/66453.html
16. Science Based Targets Initiative, ‘SBTi Criteria’.
17. UNFCCC, ‘Race to Zero Campaign’, 2021, https://unfccc.int/climate-action/race-to-zero-campaign.
HIGHEST HISTORICAL CO2 LEVEL 1950
300
CO2 (parts per

N E T ZERO ACCOU NTANCY PR OTO CO L 260 13
220
180
800 700 600 500 400 300 200 100 0
6 Going Net Zero. Thousands of years before today (0=1950)
6.1 What is Net Zero?

415
Climate change remains a global crisis, the severity of which
CO2 (parts per million)

increases each year. The Intergovernmental Panel on Climate
Change (IPCC) is insistent that we must limit the rise in average 410
temperatures to 1.5oC from pre-industrial levels to avoid a

catastrophic impact. In current projections this temperature is 405
expected to be exceeded as early as 2030 significantly exceeded

by the middle of the century. In the same report, the IPCC state Jan 2016 Jan 2019 Jan 2021
Year
that the only way to limit the damage to the environment is to
move beyond the current focus on incremental reductions in Figure 6. CO2 concentration in the atmosphere in time period
emissions, and rapidly shift to a low-GHG economy.18 (2016 – 2021)
420
CURRENT The UK Climate Change Committee has made clear that while
380 the long-term goal is to reduce anthropogenic GHG emissions
to absolute zero, and to have a 100% reduction in GHG from
340
1950
1990 levels by the mid-century20, in certain sectors the most
HIGHEST HISTORICAL CO2 LEVEL
300
pragmatic approach will involve Net Zero emissions in the
260 near term.
220 The Net Zero economy envisaged by policy makers is one in

180 which the gross emissions associated with human activity
are progressively reduced and the remaining, unavoidable
800 700 600 500 400 300 200 100 0
emissions are compensated by activity that offsets their impact
Thousands of years before today (0=1950)
on the atmosphere. These removals are expected to be crucially
important in some sectors where there is difficulty in entirely
Figure 5. Historical trends of CO2 emissions in the Earth’s
eliminating emissions.
atmosphere (Nasa, 2021)19
For businesses, Net Zero is a pragmatic response to the
Figure 5 shows the long-term change of CO2 in the atmosphere. climate challenge which recognises that reducing human
It is clear that the increased levels of CO2 in the atmosphere over made emissions to absolute zero may not be possible in the
415
the last century are not part of the normal cycles that have taken immediate future, particularly for SMEs. Instead, organisational
place over the last 800 thousand years. effort should be directed towards reducing emissions as far
In 2018
410 alone, it was estimated that human actions added 55 as possible each year, leaving a reduced quantity of residual
gigatons (55 million tons) of CO2e to the atmosphere. In the emissions. Capital should then be allocated to programs which
same time period, removals of CO2e by human action were remove a quantity of greenhouse gases from the atmosphere,
405
effectively zero. The result of decades of large imbalances such equivalent to these residual emissions. Offsetting is a vital
as this has been increasing concentration of CO2 in process in achieving Net Zero due to the difficulty in removing
Jan 2016 Jan 2019 Jan 2021
the atmosphere. all emissions. The Net Zero Now protocol provides a realistic
Year
approach to achieving a Net Zero status through the progressive
When modern CO2 records were first captured, in 1958, gradual reduction of emissions on an annual basis and an
atmospheric CO2 was measured at 315 ppm. Since the Paris allocation of capital to programmes that can offset the impact of
Agreement was signed in December 2015, the atmospheric residual emissions.
concentration of CO2 in the atmosphere has increased from 403
parts per million (ppm) to 417 ppm in June 2021.
18. IPCC, ‘Global Warming of 1.5°C’.

19. www.climate.nasa.gov/vital-signs/carbon-dioxide/
20. Climate Change Committee, ‘Net Zero - The UK’s Contribution to Stopping Global Warming’.
6 Going Net Zero.
6.2 Net Zero in the

Accounting Industry
|| 6.2.1 The Accounting Industry
Accounting is part of the broader Professional Services Many large professional services businesses are now starting to
industry, one of the largest sectors of employment in the UK. make genuine progress towards Net Zero, highlighting that this
As of 2018 the sector accounted for 8.5% of UK employment is an industry that doesn't have to damage the environment to
combining full time and part time working; with an increase operate profitably.
of 82,100 employees compared to the previous year. Within
Bain & Company, one of the world's leading management
the professional services sector, almost all categories of
consultancy firms, has made significant progress over the
employment increased within the same time period.
last decade in regard to emissions reduction and offsetting.
Awareness and action around climate change in the industry Since 2011 they have reduced scope 1 and 2 emissions by 78%
has been slow. In 1988 the Intergovernmental Panel on Climate through the introduction of 100% renewable electricity across
Change was established leading to the Kyoto Protocol in 1997 all office spaces and have committed to a 90% scope 1 and 2
and the Paris Climate Agreement in 2015. Yet as recently as reduction by 2030. Bain has been offsetting its remaining scope
2019, the Deloittes European CFO survey of 1,168 CFOs 1 and 2 emissions since 2012 and in addition has offset all
revealed the following business perspectives in regard to emissions from business travel including flights, hotels and taxis
climate change : 21 with a commitment to achieve 100% Net Zero carbon across all
• A thorough understanding of climate risk is rare operations by 203023.
within business
PWC, one of the world’s largest accounting and consultancy
• Few businesses had governance mechanisms to develop
firms, are targeting to be fully carbon neutral by 2022 by
and implement climate strategies
achieving the following goals as set out in 201724:
• Targets for emissions reductions were rarely aligned with
the Paris Climate Agreement. A reduction of 50% in energy consumption (kWh) compared to
• Companies’ primary climate response is currently focused their 2007 baseline.
on short term cost savings effects • To eliminate scope 2 emissions by purchasing electricity from
100% renewables.
Only in the last 2 to 3 years has climate change started to
• Reducing business travel emissions per employee by 33%.
become a key priority for some UK businesses with pressure
• Fully offsetting all scope 1, 2 and 3 emissions with VCS
applied from a variety of stakeholders including consumers,
carbon credits.
investors and financial institutions, employees, activist groups
and government. PWC’s main competitors have all taken slightly different
approaches but all plan to be carbon neutral by 2030 at the
A shift in investor sentiment has been one of the most recent
latest, this falls within the requirements of the Paris Climate
and influential changes in regard to climate change action, with
Agreement to keep temperatures under 1.5C and there is
ESG increasingly becoming a top priority for investors. As of 2018
expectation that the publication in October 2021 of the Science
more than $30 trillion in funds were held in sustainable or green
Based Targets guidelines on Net Zero will result in further
investments, a rise of 34% in two years. Investors representing
strengthening of commitments.
more than $35 trillion in assets have also signed the Climate
Action 100+ initiative with the focus on pressuring the largest These large businesses operate in multiple sectors and have
emitting companies to reduce their emissions. At a recent UN unique structures and therefore require a bespoke solution for
climate summit, a group of investors with assets of $2 trillion reaching Net Zero. Very few SMEs in accounting or any of the
pledged to reach net zero by 2050 . 22 professional services have made similar commitments because
21. European CFO Survey - Into the woods; Deloitte, Autumn 2019. Available: https://www2.deloitte.com/gr/en/pages/finance/articles/autumn-2019-european-cfo-survey.html
22. Ibid
23. Bain & Company Sustainable Procurement Fact Sheet; Bain & Company; 2021 [Online] accessed 02/09/2021. Available: https://www.bain.com/contentassets/110ea77537cd4ebfb1aecc12d231c69d/sustainable-procure-
ment-factsheet.pdf.
24. PWC Low carbon and circular business; PWC 2021; [Online] accessed 02/09/2021. Available: https://www.pwc.co.uk/who-we-are/our-purpose/low-carbon-circular-business.html
6 Going Net Zero.
they do not have the resources to create a bespoke solution and

until now, there has been no standardised definition of what Net
Zero means for them.
The pandemic has provided another reason why SMEs have

been slow to start the journey to Net Zero as many office-based
employees have increased the amount of time spent working
remotely. Company office locations remain the primary choice
for most workers but are now frequently mixed with home
working and shared office working spaces. This complicates
emissions calculation and reduction for employers due to the
lack of control they hold over certain working locations. Some
benefits do arise from certain types of remote working such
as reduced commuting, a source of emissions that is generally
difficult for employers to calculate and reduce.
6.3 Why go Net Zero Now?

It is important to recognise that while there is broad consensus over 200 million each year by 205029. Increased global migration
on the need to achieve Net Zero across the UK economy, the will place added pressure on international infrastructure and
associated ambition, in terms of when this must be achieved is political systems. Nationally, climate change related weather
more contentious. A target of Net Zero by 2050 is seen by many events have led to flooding, droughts, heat waves, air pollution
scientists and climate experts as being too conservative and and various extreme weather events that are life threatening.
timid in the face of the urgent need for action 25 26 27
. The historical These events are adversely impacting on citizens lives now, with
emissions from industrial processes in the UK combined with whole regions of the countries becoming less habitable, leading
the current economic resources available has led many experts to the loss of homes and livelihoods.
to call for Net Zero to be achieved within the next decade.
|| Economic
The following analysis briefly outlines factors which motivate the
As well as the well reported macro-level economic benefits
reasoning to speed up the timeline for Net Zero targets.
of mitigating climate change30, there are various key business
|| Ecological reasons why a business should seek to implement a Net Zero
reduce UK emissions in order to contribute to global GHG strategy.
emission reductions. Global Heating is causing the ice caps Reduce Business Costs
to melt, which is leading to rising global sea levels, with some By monitoring energy and material use, many businesses are
low-lying nations already suffering consequences28. The Climate able to recognise areas where greater efficiency could occur,
Emergency is leading to severe weather fluctuations around reducing inefficiencies and waste and delivering operational
the world, including monsoons, droughts and a long list of cost reductions.31
associated systemic changes.
Spur Innovation
|| Social A focus on internal sustainability can stimulate innovation within
This environmental emergency is creating a humanitarian businesses, including efficiencies, innovative use of energy and
emergency, with over 25 million displaced due to weather novel products and services.
related hazards in 2019 alone. The UNHCR expects this to rise to
25. ‘Net-Zero Carbon Pledges Must Be Meaningful to Avert Climate Disaster’.

26. Dyke, Watson, and Knorr, ‘Climate Scientists’.
27. Rogelj et al., ‘Net-Zero Emissions Targets Are Vague’; Dyke, Watson, and Knorr, ‘Climate Scientists’.
28. ‘Chapter 4’.
29. Refugees, ‘“Climate Change Is the Defining Crisis of Our Time and It Particularly Impacts the Displaced”’.
30. Climate Change Committee, ‘Net Zero - The UK’s Contribution to Stopping Global Warming’.
31. Climate Change Committee.
6 Going Net Zero.
Meet Customer Demand

As consumers become more knowledgeable on the subject of
Climate Change, there is increased expectations on businesses
to make a tangible positive impact on the environment through Several FTSE 100 companies,
their operations. Consumers are frequently making conscious cities and governmental
decisions about their spending and are willing to pay more
organisations have set Net Zero
for sustainable goods and services. There is evidence that
consumers are willing to switch brands based on sustainable by 2030 targets38. There is a
practices and are more likely to share these decisions with their growing need for a framework
friends and on social media.32 33 34 35
for businesses, and particularly
Improve Employee Retention SMEs, that seek to provide a
Considering the effects of investing on sustainable practises
on employees, researchers have found that employees
leadership role in setting the
in companies with strong sustainability programmes had benchmark for Net Zero GHG
increased morale and loyalty, while the turnover was reduced. emissions. The Net Zero Now
Additionally, sustainability positively impacts nearly all
Accountancy Protocol seeks
traditional dimensions of employee engagement including
alignment, discretionary effort, advocacy for the company
to provide this framework to
and pride. businesses in the accounting
|| Political and Legal industry, in order to achieve
Many governments have set legally binding targets concerning Net Zero targets immediately.
climate goals36 and the landmark legal ruling concerning Shell
demonstrates how courts intend to enforce these laws.37
In addition to this, new regulation is expected to follow the UK

Government’s 2021 consultation on the need for all businesses
to publish Scope 1,2 and 3 GHG accounts.
32. Kim et al., ‘Country-Specific Dietary Shifts to Mitigate Climate and Water Crises’.
33. Griskevicius, Tybur, and Van den Bergh, ‘Going Green to Be Seen’.
34. de Groot and Steg, ‘General Beliefs and the Theory of Planned Behavior’.
35. Gilg, Barr, and Ford, ‘Green Consumption or Sustainable Lifestyles?’
36. UK Government, ‘UK Enshrines New Target in Law to Slash Emissions by 78% by 2035’.
37. https://www.bbc.co.uk/news/world-europe-57257982
38. BSI, ‘Net Zero Barometer Report’.
6 Going Net Zero.
6.4 How to achieve Net Zero Now

There are five steps to achieve the Net Zero Accountancy
certification. While these steps are set out sequentially, they may
be carried out in parallel. An outline approach to each of the
steps along with their particular requirements is provided in the
next sections. Figure 7 is an infographic explaining the five steps
professional service businesses must take in order to achieve
the Net Zero Accountancy certification.
Step 1: Calculate
• Complete a full GHG calculation and disclosure in line with follow GHG Protocol Corporate Standard
• Include all Scope 1 and Scope 2 emissions plus all sector material Scope 3 emissions
Step 2: Mitigate
• Commit to ambitious reduction targets in line with what is required to restrict warming to less than 1.50C
i. an absolute GHG emissions reduction (Scope 1 and 2) of at least 50% by 2030
ii. an absolute GHG emissions reduction (all scopes) of at least 30% over 5 years
• Develop a credible mitigation plan to meet the target, and publish annual updates on progress to target
Step 3: Compensate
• Once you have verified your carbon footprint over 2 consecutive years and demonstrated a reduction in your
emissions, in line with your reduction target, you can purchase and retire carbon dioxide credits equivalent to
the whole footprint calculated in step 1
• Only purchase credits that meet good quality standards and are compliant in composition with the oxford
principles. They must retire within 12 months of the accounting period end
• Commit to maintain status as a Net Zero business
Step 4: Validate
• Submit evidence of compliance with protocol requirements to Assessor

• Provide any supporting documentation required
Step 5: Communicate
• Publish Net Zero commitment along with detailed footprint and reduction plan and details for credits
purchased
• Adhere to the terms of use for the certification mark in stakeholder communications
• Advocate for widescale adoption of Net Zero commitments
Figure 7. Net Zero Professional Services certification steps

6 Going Net Zero.
boundaries must be a fair representation of the total GHG

emissions of the business. Equity share or control approaches
6.5 Step 1. Calculate to the accounting of emissions must be chosen and remain
constant throughout the process. For further information
This section covers the methodology for calculation of GHG
regarding how to choose between the equity share or control
emissions consistent with the business achieving the Net Zero
approaches please check the GHG Protocol Corporate Standard
Accountancy certification. It is intended to complement and
or ISO 14064-1.
add to the methodology detailed in the GHG Protocol
Corporate Standard.39 The entities to be covered include all those related with the
accounting service.
The Calculation step requires two parts: Define and Measure.
The definition of the subject must remain constant through
|| 6.5.1 Define
all the required steps in the Net Zero Accountancy Protocol. If
The subject to which the Net Zero Accountancy certification the definition of the subject changes during the certification
is being applied must be clearly defined by name and by process, the steps must be re-started taking into account the
description of relevant legal and/or physical boundaries. introduced changes.
The duration of the time period under consideration must be
Figure 8 is a diagram displaying an overview of all the GHG
defined and should cover a 12-month period.
Sources that must be included within the calculation of subject
For businesses that suffered business disruption during the year GHG emissions. Adopting GHG Protocol terminology, this
they intend to use as a base year, please see box on “Atypical includes all Scope 1 and Scope 2 emissions, plus the upstream
trading from business interruption.” for details of how to set and downstream Scope 3 emissions that are most relevant for
the period for which emissions should be studied. The following the accounting industry. Section 7.1.2 lists these sources in
information is relevant for all data collection periods. more detail.
Organizational boundaries must be clearly defined, considering All indicated sources must be reported and any exclusion and
the subject’s circumstances, and must be consistent across the rationale for the exclusion must be clearly indicated in the
calculation of GHG emissions covering all three scopes. The provided data.
Upstream Workplace Downstream
Purchased goods & services

(office supplies, IT equipment, internet usage) Electricity Fuels
Transport & distribution

Waste
Capital goods
Employee commuting, Owned vehicles Water Cooling

business travel & hotels
Figure 8. An overview of professional service emission sources
39. GHG Protocol, "Corporate Standard" and ‘Corporate Value Chain Accounting Report Standard’
6 Going Net Zero.
|| 6.5.2 Measure
After defining the subject and establishing the boundaries The entity must clearly document and explain any estimations
that will be used throughout the GHG accounting, the GHG and assumptions used in the calculation of the inventory. Where
emissions of the subject must be measured to provide a changes have been made to the methodology, these should be
complete, consistent, and relevant GHG inventory over the described in a transparent manner.
defined timescale.
The Accountancy firms GHG emissions must be assessed in One of the primary benefits of the Net Zero Accountancy
accordance with the requirements established in this section. Protocol is how it seeks to bring together an otherwise
For each of the mandatory sources the subject must identify disparate set of emissions factors relevant to business
appropriate activity data covering the defined time period and in the accounting industry. Details concerning the
multiply this by appropriate emissions factors. methodology for selection of approved data sets, can be
found in the online appendix at www.netzeronow.org.
In many countries, the emissions factors covering many of the
This information will be constantly updated, in order to
operations sources are published annually by government (in
keep up with the burgeoning field of research in lifecycle
the UK this service is provided by the Department of Business,
assessments.
Energy and Industrial Strategy)40 and the subject must use
national, regional, international or other emission factors of
relevance, prioritising those most closely associated with the
emission source.
Emissions data must be reported in units of GHG or CO2e

according to the 100-year potential of each gas. GWP factors
included in the latest report of the Intergovernmental Panel on
Climate Change (IPCC) should be included. GWP factors used in
the assessment must be clearly reported.
Required emission sources that can be demonstrated to

represent a value of less than 0.5% of total emissions for the
business (but collectively no more than 5% of total emissions)
may be excluded where evidence can be presented to
demonstrate that quantification would not be technically
feasible, practicable or cost effective. Where a single source
contributes more than 50% of the total emissions, the 95%
threshold applies to the remaining sources of emissions.41
The method for calculating all purchased goods and service

emissions must use emissions factors covering all emissions
from cradle to retail (point of purchase). The subject must
complete calculations for all purchased goods and service
types that are relevant to their business.
40. UK Government, ‘Greenhouse Gas Reporting’.

41. Science Based Targets Initiative, ‘SBTi Criteria’
6 Going Net Zero.
6.6 Step 2. Mitigate The following businesses interruption provisions have been
designed to enable businesses calculating full value chain
This section covers the creation and implementation of an emissions for the first time to overcome this challenge and
emissions reduction target and a framework for taking action to participate in the initiative.
reduce GHG emissions in alignment with the ambition criteria of
Any interruption to "business as normal" lasting for more than
the Science-Based Targets initiative.
three weeks, is regarded as a business interruption resulting
|| 6.6.1 Set a Target in atypical trading. This does not include regular business
Reducing emissions is an essential step in the Net Zero process. interruption such as an annual two-week holiday when the
The subject must set a target to reduce its GHG emissions in-line business is closed. Disturbances caused by COVID-related public
with the latest science regarding climate change. health advice fall under this definition.
To achieve the Net Zero Accountancy certification, the business Any business calculating emissions for the first time and using an
must have set a reduction target in compliance with the accounting period during which there is an identifiable business
ambition criteria of the Science Based Targets initiative (SBTI)42. interruption resulting in atypical trading, must calculate a ‘Typical
Trading’ year estimation for the purposes of base year and target
The emissions reduction target must represent at least:
setting.
i. An absolute GHG emissions reduction (all scopes) of at least
30% over 5 years43 Typical trading year estimations must be based on scaling of
ii. An absolute GHG emissions reduction (scope 1&2) of 50% partial year data and must use data covering at least 15% of
by 2030 uninterrupted normal opening. For businesses open all year, this
is 55 days, or around two months.
A client analysis activity, we call Scope X, must be carried out
by the Accountancy business. This must demonstrate that they The emissions from this sample period must be scaled-up to
generate more revenue from climate positive activities than provide an estimated Typical Trading year the full year, in order
from climate negative activities. More information can be found to provide data that can be used as a base year and to set
in section 7.2.2 future targets.
Emissions data from the most recent year should be used as Businesses going Net Zero on the basis of a disrupted trading
a base year for the reduction calculations, or according to the year may purchase carbon credits equivalent to the actual
provisions for business interruption. emissions data from the disrupted trading year, not the
scaled-up emissions.
This approach must be documented completely transparently in

Atypical trading from business interruption
associated reporting.
Under normal circumstances, businesses calculating their
emissions for the first time would collect activity data
corresponding to the most recent 12-month accounting period
and use this as their base year for target setting purposes.
As a result of significant business interruption resulting from

the Covid-19 pandemic, the most recent 12-month accounting
period may be an atypical reflection of normal trading and
consequently not an appropriate period for use as a base year
for target setting.
42. Science Based Targets Initiative, ‘Towards a Science Based Approach to Climate Neutrality in the Corporate Sector (Draft for Comments)’.
43. Race to Zero Campaign, ‘Race to Zero Pledge’.
6 Going Net Zero.
|| 6.6.2 Reduce Emissions 6.8 Step 4. Validate

This step covers the actions that may be taken to reduce After performing the three activities that concern the calculation,
emissions by Accountancy businesses with the objective to mitigation and compensation of GHG emissions produced by
achieve the targets set in the previous step. the Accountancy firm, the last technical step towards the Net
Zero Accountancy certification is for a qualified party to assess
The Accountancy business must provide an achievable carbon
and validate the conducted activities.
emissions reduction plan to meet the emissions targets set.
The largest sources of emissions should be prioritised, and The subject business must submit all the required information,
cost-effectiveness of the measures should be taken into as stipulated in the protocol, to achieve the Net Zero
consideration, regarding alternative emission reduction actions. Accountancy certification to a qualified assessor.
The methodology used to forecast GHG emissions reductions The assessor will review the documentation and award the
should align with that used to quantify the original GHG certification to the subject business if all requirements are met.
emissions, and therefore the same principles apply. The assessor can at any time require further detail in any of the
areas concerning the documentation if doubts about any of the
GHG reduction plans must be reviewed at least annually and
principles stated in this protocol arise, including completeness,
progress against planned actions must be tracked. Feasibility
accuracy and robustness of data provided, and the subject
assessments of possible additional action should be undertaken
business must provide it to successfully achieve the certification.
to ensure that the required reduction targets are met. A director
or senior manager should be responsible for the development Businesses that calculate, set targets, and develop action plans
and implementation of the emission reduction plan. in accordance with the criteria have the option to either be
certified to:
A guide to the actions that may be considered to reduce
emissions is outlined in Section 7.2.2 as well as an online On the Road to Net Zero:
resource, “Climate Action Playbook for Accountancy Practices” • Carbon Footprint: Businesses need a verified assessment of
is available here. their carbon footprint over a 12-month period, calculated in
accordance with this protocol
• Emissions Reduction: Businesses must commit to meeting
the short-term emissions reduction targets as prescribed in
this protocol
• Net Zero Commitment: Businesses must commit to reaching
Net Zero by a given year no later than the “long stop date” as
6.7 Step 3. Compensate outlined in this protocol
This section covers the commitment by the Accountancy firm to Or

acquire high quality carbon offsets equivalent to their residual
Net Zero Now:
emissions footprint.
• Carbon Footprint: Businesses need a minimum of 2 verified
Accountancy businesses that wish to be certified as Net Zero assessments of their carbon footprint, each over a 12-month
Now must buy and retire carbon offsets equivalent to 100% period, calculated in accordance with this protocol
of the calculated footprint. Those credits must be certified to • Emissions Reduction: Businesses must commit to meeting
international standards the short-term emissions reduction targets as prescribed in
this protocol. In addition, the verified assessments of their
The composition of purchased credits must be in accordance
carbon footprint must show that they are on track to meet
with the ratios and taxonomy set out by the Oxford Principles.
those targets
See Section 7.2.2 for more information.
6 Going Net Zero.
• Net Zero Commitment: Businesses must demonstrate that

6.9 Step 5. Communicate
they have invested in certified carbon offsets equivalent to
the carbon footprint generated in the previous 12-month The final step consists of making accurate, transparent and
period. These offsets must be in line with the Oxford relevant information about the details and process of becoming
University Principles for Net Zero Carbon Aligned Offsetting, a Net Zero Accountancy business available to all stakeholders
outlined in section 7.3.1. and using the certification to engage stakeholders.
To retain their Net Zero Certification, businesses must complete The Net Zero Accountancy certification marks are the main tool
and publish an annual validated carbon footprint and details provided to communicate the net zero status of the business to
of the carbon offsets initiatives used to compensate for any stakeholders. The ability and right to use the mark is dependent
residual emissions. on the ability of the business to complete all the certification
requirements successfully.
In each case, the applying business must take action towards
meeting the reduction targets and continue to follow this Once certified, Accountancy businesses should use the mark to
pathway. If the applying business falls below 65% of the target communicate their actions and raise awareness of their status,
reduction pathway, it must demonstrate that measures are in ensuring that all communications must be factually based,
place to correct this, or certification will be removed. providing clarity and transparency about the procedures and
results achieved to avoid misunderstandings. The use of the
If the applying business has put in place a rectification plan but
Net Zero Accountancy certification marks must comply with the
still falls below 65% of the target reduction for 2 consecutive
requirements and guidance stipulated on its use.
years, certification will be suspended.
The Accountancy businesses participating in the Net Zero
Accountancy certification must disclose all GHG inventory
metrics related to the certification, including gross emissions,
targets, reduction activities, current progress to targets, and
details of carbon credits.
Accountancy businesses should also ensure that all claims are

consistent with any national or regional guidance or legislation
concerning green claims.
7 Detailed Guidance.
This chapter aims to provide more detailed and technical

information of how to reach Net Zero, using the same structure
as laid out in the previous section.
i. Calculate
ii. Mitigate
iii. Compensate
iv. Validate
v. Communicate
7.1 Calculate
Calculating emissions requires the use of two types of data: The following activities must always be included to achieve a Net
activity data and emission factors. Zero Accountancy certification45:
• Any accounting directly managed by the certification holder,
“Activity data” is a quantitative measure of a level of activity that
or that operates under the same brand, that contributes to the
results in GHG emissions (for example, litres of fuel consumed,
activities performed at the business.
or kilograms of material purchased).
• Any upstream and downstream activities performed by
An “emission factor” is a factor that converts activity data third parties that are necessary to the functioning of the
into GHG emissions data (for example kg CO2 emitted per accounting service (e.g., transportation, production of office
litre of fuel consumed, or kg CO2 emitted per kilograms of commodities, etc.).
material produced).
The Net Zero Accountancy certification is held by the certificate
Accountancy businesses must follow the guidelines for setting holder, and it is not transferrable to other supply chain entities.
organisational and operational boundaries set out here and in
|| 7.1.2 Operational Boundaries
Chapters 3 & 4 of the GHG Protocol.44
Emissions inventories must include activities of any accounting
|| 7.1.1 Organisational Boundaries
service or other site managed by the business that form part
Accountancy businesses must define the organisational entity of its operations as well as the upstream and downstream
that is the subject of the certification. Certification requirements activities performed by third-parties that are necessary to the
apply to this entity as well as any subsidiaries. functioning of the professional service (e.g. business travel, office
Accountancy businesses operating in multiple countries, even supplies, etc)
if they are under the same brand, are considered as different Accountancy businesses must account for all the emissions
businesses for each country and must apply separately. from sources identified as “required” in Figure 9. This includes all
For Accountancy businesses with multiple sites, or numerous scope 1 (direct) and scope 2 (indirect) emissions together with
activities taking place under the same brand name, all sites and the most material scope 3 (value chain) emissions.
brands that operate under the same brand nationally, must
contribute data to the certification process.
44. GHG Protocol and Carbon Trust, ‘GHG Protocol - Technical Guidance for Calculating Scope 3 Emissions’
45. DEFRA, BEIS, and UK Government, ‘Environmental Reporting Guidelines’.
GHG Assessment Emission Sources Certification
Direct emissions arising from owned, leased or directly controlled stationary

sources that use fossil fuels and/or emit fugitive emissions (e.g. natural gas,
refrigerants)
Scope 1 Direct emissions from owned, leased or directly controlled mobile sources
(e.g. leased cars, refrigerants)
Direct emissions from employee mileage claims
Scope 2 Emissions from the generation of purchased electricity, heat, steam or cooling
1a. Office commodities supplied to the subject
1b. Internet and server usage, cloud storage

Purchased
1 goods & 1c. Mains water supplied to the subject
services
1d. Other goods and consumables
1e. Subcontractors
2 Capital Goods
Fuel and 3a. Upstream emissions of purchased fuels

energy related Upstream emissions of purchased electricity, e.g. Utility bill from landlord,
activities (not 3b.
3 work from home electricity supply, rental space electricity supply
included in
Scope 1 or 3c. Transmission and distribution (T&D) losses
GHG Scope 2) 3d. All other fuel and energy related activities
Protocol:
Corporate Scope 3 4a. Outbound courier deliveries of packages
Standard upstream
Upstream 4b. Third-party transportation and storage of service-related goods
Scope 1 4 transportation
and 2. and distribution 4c. Third-party transportation and storage of sold products
Value
Chain 4d. All other upstream transportation and distribution
Standard
5a. Recycled waste by category
Scope 3 Waste
5 generated in 5b. Waste to landfill or to incineration
operations
5c. Mains water waste
6a. All transportation by air, public transport, rented/leased vehicle and taxi
Business
6 6b. Emissions arising from hotel accommodation associated with business travel
travel
6d. Events / conference overhead
7 Employee commuting
8 Upstream leased assets
Downstream
9 transportation 9a. Third-party deliveries services
and distribution
10 Processing of sold services
Scope 3 11 Use of sold services

down-
stream 12 End-of-life treatment of sold services
13 Downstream leased assets
14 Franchises 14a. Franchise Licensed Premises
15 Investments
Legend Required Recommended Not required
Figure 9. A list of all emission sources Accountancy businesses must account for
|| 7.1.3 Measure
Accountancy businesses must follow the GHG Protocol All GHG emission sources included in the emissions assessment
methodology for calculating emissions or ISO 14064-1 46 47
. must be categorised and published according to the categories
For each emissions source, Accountancy businesses should defined in Table 3. Each of the categories defined as required
identify the relevant unit metric, the activity or consumption within the Protocol must contain information with either the
data for the year and the associated unit emissions factors. calculated result, a zero result, or a clear reasoning behind its
Unit emissions factors can be specific to the product or service exclusion from the assessment.
used only if a life cycle analysis has been carried out and data For general guidance on all categories set out in Table 2, please
published. Otherwise, industry benchmarks must be used and refer to the GHG Protocol Standard or ISO 14064-1.49 50
explicitly referenced in the calculations.
“
Direct measurement of GHG emissions
by monitoring concentration and
flow rate is not common…the most
common approach for calculating GHG
emissions is through the application of
documented emission factors. These
factors are calculated ratios relating GHG
emissions to a proxy measure of activity
at an emissions source.” 48
An example of the data required for an electricity consumption

figure is shown in Figure 10:
Scope 2
Unit metric
kWh
Annual Consumption
20,000
Emissions Factor kg CO2e/ kWh
0.212
Emissions from
KG CO2e
the generation of
purchased electricity 4,200
Figure 10. Example emissions calculated from electricity consumption
• the unit metric is kWh,

• the consumption is drawn from electricity invoices from the
supplier or monitoring of the electricity meter
• the associated emissions factor is drawn from published sources.
46. ISO 14064 – 1: Greenhouse gases — Part 1: Specification with guidance at the organization level for quantification and reporting of greenhouse gas emissions and removals.
47. GHG Protocol, ‘Corporate Value Chain Accounting Report Standard’.
48. World Business Council for Sustainable Development and World Resources Institute, ‘A Corporate Accounting and Reporting Standard (Revised Edition)’.
49. GHG Protocol and Carbon Trust, ‘GHG Protocol - Technical Guidance for Calculating Scope 3 Emissions’.
50. ISO 14064 – 1: Greenhouse gases — Part 1: Specification with guidance at the organization level for quantification and reporting of greenhouse gas emissions and removals
|| 7.1.4 How to report GHG Emissions from Carbon || 7.1.6 Scope 2 – Indirect Energy Emissions
Neutral and Net Zero Suppliers
Scope 2 emissions are the indirect energy emissions associated
Businesses are increasingly considering the option of becoming to your business. They are the emissions associated with the
carbon neutral while offering services to other companies. As an electricity, heat and steam purchased from the national grid. If
increasing practice, this will have an impact on GHG emissions your business does not purchase energy directly from an energy
calculation for businesses that trade with them. supplier, but rather it’s included within a utility bill, provided by
a 3rd party (e.g. a landlord, shared workspace, etc.), please see
When accounting for these services in the GHG inventory the
section 7.1.9, ‘all-inclusive bill’ scenario, for more information.
following steps must be followed:
1. Suppliers must provide written confirmation that the goods For businesses that purchase “green” electricity, both the
or services provided are Net Zero or carbon neutral and any average locational grid factor and market factor should be
relevant third-party certification. reported i.e. calculated and reported once with the national
2. Where certification is not provided an inventory for the grid emission factor, and a second time with an emission factor
supplier’s GHG emissions and evidence of the purchase and specific to the supplier. For further guidance see GHG Protocol
retiring of equivalent approved carbon credits is required. Scope 2 Guidance51.
Where confirmation is provided that a supplier was offering

Electricity / heat /
a Net Zero product or service during the accounting year, the Consumption
subject business may account for goods or services purchased steam X (kWh)
from this supplier as zero emissions. (kg CO2e / kWh)
If suppliers are not fully Net Zero or carbon neutral but make
claims to have substantially lower emissions than the market || 7.1.7 Scope 3 - Purchased goods and services
average, it is recommended that they produce an independent
This section details how the greenhouse gas impact of
Life Cycle Analysis detailing the carbon footprint of the products.
purchased goods and services, from cradle-to-retail, is
This LCA must then be attached to the footprint, to ensure that
accounted for in Scope 3 emissions under the Net Zero
the lower emissions can be accurately calculated.
Accountancy certification.
|| 7.1.5 Scope 1 - Direct Emissions Accountancy businesses must account for all upstream
Scope 1 emissions are the direct emissions associated to your emissions of the office. Businesses should include all purchased
business. This includes any fuel combustion for heating (e.g. items and services within their Scope 3 accounting and must
natural gas boiler), fuel for transport in company owned vehicles include 90% by purchase value.
(or for any mileage claimed back), chemicals required for air
In accordance with the Quality Data principles (Section 5.8),
conditioning or refrigeration in an open looped system and any
emissions for each source should be calculated with best quality
process emissions.
activity data and emissions factors available.
In the absence of item specific emissions factors, businesses

Fuel / Refrigerant /
Process gas X Volume (L or m3)
should adopt a pragmatic approach towards achieving a
complete GHG assessment of raw material purchases with best
(kg CO2e / volume) match emissions factors.
When calculating the impact of purchased items or services

in terms of GHG emissions, more accurate emissions factors
should be prioritised where available with full source details
submitted with validation documents.
51. GHG Protocol Scope 2 Guidance

Use of peer reviewed studies may be allowed in the context

of the Net Zero Accountancy certification and must be first Unit metric
Office commodity
submitted to Net Zero for approval. supplied to the 1 kg
Figure 11 lists the most commonly used purchased goods subject || Paper
Annual Consumption
and services by Accountancy firms and specific calculations
should be completed for each item. Where additional products
10,000
Emissions Factor kg CO2e/ kWh
are used, and specific emissions factors are not available, the
nearest feasible category should be used. 0.19
KG CO2e
1,860
This is not an exhaustive list and may be added to with more
specificity. However, purchased goods and services reporting
must not be less specific than this list.
Figure 12. Example emissions calculated from purchased

OFFICE COMMODITIES
goods consumption
Paper
Stationery
Furniture
Uniforms Unit metric
Office commodity
IT supplied to the 1 laptop
PC/Laptops subject || Laptop
Annual Consumption
Monitors
Phones
10
Emissions Factor kg CO2e/ laptop
329
Internet Usage
Cloud Storage
Server Usage KG CO2e
SERVICES 3,290
Subcontracting
FOOD & DRINK
Figure 13. Example emissions calculated from IT
Tea and Coffee
equipment consumption
Milk
Snacks
Entertaining and subsistence || 7.1.8 Scope 3 - Capital Goods
Figure 11. Required purchased goods and services Emissions associated with large capital goods purchases such as
vehicles, construction or technical electronic equipment must
Figures 12 and 13 are example calculations for purchased be accounted for in full in the year in which they are purchased.
goods and services. They are not amortised as may be the case with financial
accounting methods. For full details of this, please refer to
Category 2 in the GHG Protocol Technical Guidance.
Due to the high variation in available capital goods the supplier

of the good is the first source of data for emissions factors. If this
is not available, the carbon footprint of manufacturing the assets
should be calculated by life cycle analysis in accordance with
ISO 14040:2006 or from peer reviewed literature.
|| 7.1.9 Scope 3 - Fuel and Energy Related Activities The assumption for this calculation is that energy usage is
uniform across the building.
This section details how the greenhouse gas impact of
electricity, heat and steam purchased not from an energy If the energy consumption of the whole building or relevant
company, is accounted for in Scope 3 emissions under the Net metered area is unavailable, the methodology for the all-
Zero Now Accountancy Protocol. inclusive scenario must be followed.
Most businesses will purchase their electricity, heat and steam All-Inclusive Utility Bill Scenario
directly from an energy supplier e.g. Ecotricity and report
If the electricity bill for the building as a whole is unattainable, or
within Scope 2. However, there are circumstances where this
your business is provided with a single service bill that combines
is not the case e.g. working in shared offices (e.g. WeWork), an
rent and utilities, the following methodology must be followed
all-inclusive utility bill, or employees working from home. If
to obtain the emissions associated to Scope 3 fuel and energy
your business hosts events, the electricity supplied to the event
related activities.
location should also be calculated within this section. Other
goods and transport associated to the event should be included The UK government provides a tool which estimates the carbon
within purchased goods and services, as well as upstream footprint of a building from required energy certificates. The tool
and downstream transportation. This section of the Net Zero is able to provide an annual mass of CO2e provided per m2. By
Accountancy Protocol details how energy emissions associated knowing the postcode of your building and the total m2 of office
to shared offices, an all-inclusive services bill, work from home space your business rents, you are able to calculate the CO2e of
and events are calculated. energy consumption based on the size of office space rented.
Shared Office Scenario UK government energy certificate tool:

https://find-energy-certificate.digital.communities.gov.uk/find-
Within a shared workplace, the emissions associated to your
a-certificate/type-of-property
business are a percentage of those generated by the overall
metered area. Where the area in M2 allocated to your business is not clear, the
benchmark for area per employee should be used:
Whether you hot desk, or rent three floors, to calculate the
emissions associated with your energy use you must know the Basic: 10m2 / employee
energy use associated with the building as a whole and divide Comfort: 15m2 / employee
by the proportion for which you are responsible: either a square
Luxury: 20m2/ employee
meter fraction for fixed office space, or per employee per day
for hotdesking.
Work from Home Scenario
In the situation where employees work from home, the energy

consumption associated to the employee working on the
business must be measured and reported.
The adopted approach uses average daily incremental energy

use data for gas and electricity that results from employees
working from home.
2.47 kWh electricity per person per day Where disposal method is not available, businesses should
8.91 kWh natural gas per person per day assume landfill.
For further information, see the Anthesis Working from Home Where no quantity, category or disposal method data is
White Paper53. available, businesses should assume 97kg general waste per
employee, disposed of to landfill.54
Estimates may be used to derive the number of days during the
accoiunting year that em ployees spent working from home and || 7.1.12 Scope 3 - Business Travel
these may be supplemented by sampling surveys of employees This category details how the greenhouse gas impact of
in larger businesses. business travel is accounted for in Scope 3 emissions under the
Events Net Zero Accountancy certification.
The emissions associated with the energy consumption of Business travel includes emissions from the transportation of
hosting an event must be calculated and reported for the Net employees for business-related activities in vehicles owned or
Zero Now Accountancy Protocol. The methodology to do so operated by third parties, such as:
follows similar methodologies for the shared office scenario or • Aircraft
the all-inclusive scenario. • Trains

• Buses
If the annual energy consumption for the building rented as a • Ferries
whole is known, then the energy consumption of the event can • Passenger cars
be calculated by dividing this figure by the number of days the
building has been rented for, and the percentage of the building Emissions from transportation in vehicles owned or controlled
used for the event. If the annual energy consumption of the by the reporting company are accounted for in either scope
building is unknown, the UK government energy certificate tool 1 (for fuel use) or scope 2 (for electricity use). Emissions from
must be used in its place. leased vehicles operated by the reporting company not included
in scope 1 or scope 2 are accounted for in scope 3 (Upstream
|| 7.1.10 Scope 3 - Upstream Transportation leased assets). Emissions from transportation of employees
and Distribution to and from work are accounted for in scope 3, (Employee
Accountancy businesses must calculate and report the commuting) .
emissions associated with their upstream transportation and Emissions from business travel must be recorded in the format
distribution, such as third-party transportation and storage of of transportation method and distance travelled.
service-related goods.
Transportation method
Delivery Method Deliveries Made Average Distance (km) X (kg CO2e / passenger / km)
(CO2e/km) X (#) X Distance (km)
Emissions from business travellers staying in hotels must be

|| 7.1.11 Scope 3 - Waste calculated and reported within the Net Zero Now Accountancy
All waste produced by the Accountancy businesses must be Protocol. Where applicable, the emissions associated to
recorded. Recycled and non-recycled waste should attending an event, e.g. a conference should also be reported.
be categorised.
Hotel visit Hotel country of origin
Mass of material by Disposal method (kg (no. of nights) X (kg CO2e / night)
type (tonnes) X CO2e / tonne)
Where categorisation of waste is not available, businesses

should use a single quantity of general waste
53. Estimating energy consumption & GHG emissions for remote workers. Anthesis. 2nd February 2021. Available: https://www.anthesisgroup.com/whitepaper-estimating-energy-consumption-ghg-emissions-for-remote-workers/
54. The World Bank, Trends in Solid Waste Management to 2050
|| 7.1.13 Scope 3 - Employee Commuting

Accountancy businesses should carry out an employee
transport survey capturing a representative sample to quantify
the climate impact of employee travel. If a survey is not
completed impact must be calculated based on an estimation
of the total annual number of journeys made for each transport
type, together with the average distance travelled per journey.
Commuting Method Journeys Made Average Distance

(kg CO2e/km) X (#) X (km)
|| 7.1.14 Scope 3 - Upstream Leased Assets

Accountancy businesses should include the emissions
associated to the operation of any leased assets in the reporting
year that are not already included in the S1&2 data.
|| 7.1.15 Scope 3 - Downstream Transportation and

Distribution
Accountancy businesses must calculate and report the
emissions associated with their downstream transportation and
distribution, such as requiring third-party to travel as part of the
service delivered.
Transportation method
Distance (km) X (kg CO2e / km)
|| 7.1.16 Scope 3 – Franchises

Where a business operates franchises under a common brand,
all franchisee emissions must be included in the franchisor GHG
inventory.
For reporting purposes the franchise owner must calculate and

report under its scope 3, Category 14 emissions.
1. The scope 1 and scope 2 GHG emissions of the franchisees
2. The scope 3 GHG emissions of the franchisees
The Franchisor shall be responsible for cascading emissions

reduction targets to the Franchisees and making arrangements
for the allocation of any associated carbon compensation costs.
7.2 Mitigate
|| 7.2.1 Set Targets
Accountancy businesses must set and publish targets for explanation of all the considerations taken in the process.
emissions reduction that are supported with a base year, Recalculations of base years should be done along with the
timescales and a clear achievability plan. guidance provided in the GHG Corporate Standard Protocol or
ISO 14064-1.
Science-based targets (SBTs) are carbon emission targets that
are specifically developed in line with climate science and Tracking progress to target
the level of decarbonisation that is required to limit global
Progress towards achieving these targets must be reported
temperature increase in line with science. SBTi is a collaborative
annually during the process of re-certification. Professional
initiative by CDP, World Resources Institute (WRI), the WorldWide
service businesses that are considerably off track to meet their
Fund for Nature (WWF) and the United Nations Global Compact
goals must demonstrate that measures are in place to correct it.
(UNGC), that helps companies to set targets aligned with science
A business is considered to be ‘considerably off-track’ is one that
by providing guidance, effectively helping them transition into a
is below 65% of the way towards meeting the target.
low carbon economy.
To receive certification under the Net Zero Accountancy

Protocol, Accountancy businesses must have or set a reduction
target in compliance with the ambition criteria of the Science
Based Targets initiative (SBT).
The emissions reduction target must represent at least:

i. An absolute GHG emissions reduction (all scopes) of at least
30% over 5 years55
ii. An absolute GHG emissions reduction (scope 1&2) of 50%
by 2030
A client analysis activity, we call Scope X, must be carried out

by the Accountancy firm. This must demonstrate that they
generate more revenue from climate positive activities than
from climate negative activities. More information can be found
in section 7.2.2
How to choose a base year?
Accountancy businesses should use the most recent year of

data when setting base years for targets.56
If the base year was impacted by significant business disruption,

the steps outlined in Provisions for Business Interruption apply.
Recalculations in base year values must be undertaken in the

event of acquisitions or disposals but not for organic growth.
Details of any base year recalculations should be submitted

to third party assessors for their consideration, along with a
clear reasoning of why a recalculation is necessary, and an
55. Race to Zero Campaign, ‘Race to Zero Pledge’.

56. GHG Protocol and Carbon Trust, ‘GHG Protocol - Technical Guidance for Calculating Scope 3 Emissions’; UK Government, Department for
Environment, Food and Rural Affairs, and Department for Business, Energy and Industrial Strategy, ‘Environmental Reporting Guidelines’.
|| 7.2.2 Aligning services with a Net Zero Economy || 7.2.3 Reduce

Credibility is the foundation of the Net Zero Certification and it Accountancy service businesses must develop emissions
is clear from stakeholder engagement that this is compromised reduction plans to achieve targets, as specified in Section 6.6.1,
in the event that services offered by the subject business are that prioritise pragmatic and cost-effective action around the
responsible for a net increase in GHG emissions. main sources of emissions.
Subject businesses must therefore conduct a screening of GHG reduction plans must be reviewed at least annually
services offered and allocate services and associated revenue to assess the progress against planned actions, assess the
on the basis of whether these services are climate positive, feasibility of further reductions and ensure that the required
climate negative or climate neutral. In each case the principle reduction targets are met. A director or senior manager should
to be applied is whether the service offered directly facilitates or be responsible for the development and implementation of the
enables the associated climate impact. emission reduction plan.
Example 1 - Negative climate impact: Providing R&D tax credits Net Zero Now has prepared an advisory document listing
services for an innovation that decreases vehicle efficiency. steps businesses in the accounting industry can take to reduce
their GHG emissions. This document can be found online at
Example 2 - Positive climate impact: Providing project finance
Netzeronow.org. The structure of that document is outlined in
advisory services for the construction of a new solar power
Table 6 below.
installation.
Businesses are advised to check with local authorities and
Example 3 - Climate neutral: Providing bookkeeping, payroll
business advisers on grants, incentives and offers to support the
and tax return services for any type of business
adoption of action in each of these areas.
Businesses applying for net zero certification must demonstrate
that they generate more revenue from climate positive activities
than from climate negative activities and commit to eradicate
revenue generated from climate negative activities within
5 years.
☑ Optimise how the boiler / furnace operates

Efficiency
Creation of heat ☑ Minimise heat / steam losses
or steam
Biomass ☑ Utilise a sustainable source of biomass for fuel
☑ Minimise travel where possible

Reduce
Company ☑ Utilise public transport where possible
vehicles
Electrify ☑ Electrify company vehicles
☑ Review gas type and operations

Fridges / Freezers ☑ Ensure systems are well maintained
☑ Minimise losses from refrigeration systems
Onsite AC /
Refrigeration
☑ Review gas type and operations
AC ☑ Ensure systems are well maintained
☑ Reduce usage where possible
Figure 14. Type of reduction activities

☑ Explore possibilities to understand where and when electricity is used: sub-meters

Audit, Analyse, and half hourly data and set reduction targets
Target, Act ☑ LED lighting
☑ SMART systems within offices
National grid
electricity ☑ Select a ‘green’ energy supplier
Supplier
☑ Install solar PV directly on to building
Incentivise ☑ Incentivise employees working from home to have green electricity suppliers.
National grid heat Audit, Analyse, ☑ Explore possibilities to understand where and when electricity is used: sub-meters
and steam Target, Act and half hourly data and set reduction targets
☑ Explore possibilities to understand where and when you are purchasing goods and
Purchased goods Audit, Analyse,
services. Target hotspot areas and reduce the purchase of goods and services to only
and services Target, Act
items that are truly necessary
Audit, Analyse, ☑ Ensure the capital good is 100% necessary before purchase. Take into the account
Capital goods
Target, Act it’s carbon footprint from a full LCA. Is there a lower carbon alternative?
Audit, Analyse, ☑ Explore possibilities to understand where and when electricity is used: sub-meters
Fuel and energy Target, Act and half hourly data and set reduction targets
related activities
Lobby ☑ Lobby your building manager to select a ‘green’ energy supplier
☑ Explore how to reduce delivery frequency with consolidation of orders

Reduce
from suppliers
☑ Explore local sourcing to minimise delivery distance

Upstream
transportation ☑ Use public transport where possible
Sourcing ☑ Leverage low carbon transport. I.e. Rail over flying
☑ If flying is necessary, choose economy over business or first class
☑ Can video conferencing be utilised over travel?
Audit, Analyse,
☑ Assess waste across types and streams
Target, Act
Waste Reduce ☑ Reduce waste throughout the professional service process as much as possible
☑ Recycle waste material appropriately as much as possible

Recycle
☑ Encourage clients to recycle appropriately
Reduce ☑ Explore how to reduce business travel frequency
Business
☑ Use public transport where possible
transport
Sourcing ☑ Leverage low carbon transport. I.e. Rail over flying
☑ If flying is necessary, choose economy over business or first class
Figure 14. Type of reduction activities (cont.)

☑ Incentivise walking or cycling to work

Incentivise ☑ Incentivise public transport to get to work
Employee
☑ Install electric charge points for employee use
commuting
Work from home ☑ Can the office be closed entirely for 1 or 1+ days per week?
Upstream Audit, Analyse, ☑ Ensure the leased asset is 100% necessary before leasing. Take into the account it’s
leased assets Target, Act carbon footprint from a full LCA. Is there a lower carbon alternative?
Downstream ☑ Explore how to reduce travel frequency of clients

Reduce
transportation ☑ Can video conferencing be utilised over travel?
Audit, Analyse,
☑ Assess waste across types and streams
Target, Act
Waste Reduce ☑ Reduce waste throughout the professional service process as much as possible
☑ Recycle waste material appropriately as much as possible

Recycle
☑ Encourage clients to recycle appropriately
☑ Franchise owner should set companywide initiatives to reduce the GHG emissions.
Audit, Analyse,
Franchise Upon auditing all franchised locations, the highest emitting locations should be
Target, Act
targeted for emission reductions.
Figure 14. Type of reduction activities (cont.)
7.3 Compensate
Once an Accountancy firm has calculated and begun reducing Businesses that calculate, set targets, and develop action plans
emissions in line with science based targets, carbon credits in accordance with the criteria have the option to either:
should be used to offset residual emissions.
On the Road to Net Zero:
The purchase of offsets must be in line with the core Oxford • Carbon Footprint: Businesses need a verified assessment of
Principles for Net Zero Aligned Carbon Offsetting. These state their carbon footprint over a 12-month period, calculated in
that: emissions reductions must take priority, high quality accordance with this protocol
offset schemes must be used, and the composition of offsets • Emissions Reduction: Businesses must commit to meeting
must regularly revise and updated to meet the latest the short-term emissions reduction targets as prescribed in
scientific guidance.57 this protocol
• Net Zero Commitment: Businesses must commit to reaching
Carbon offsets are an external environment instrument that
Net Zero by a given year no later than the “long stop date” as
can be used to offset the remaining residual emissions from
outlined in this protocol
professional service businesses in order to achieve Net Zero
status. These credits are generated by implementation of Or
projects that either stop GHGs being emitted (avoidance) or
Net Zero Now:
extract and store GHGs from the atmosphere (sequestration).58
• Carbon Footprint: Businesses need a minimum of 2 verified
assessments of their carbon footprint, each over a 12-month
57. Allen et al., ‘The Oxford Principles for Net Zero Aligned Carbon Offsetting’.
period, calculated in accordance with this protocol
58. UNFCCC, ‘Race to Zero Campaign’.
• Emissions Reduction: Businesses must commit to meeting

the short-term emissions reduction targets as prescribed in
this protocol. In addition, the verified assessments of their
carbon footprint must show that they are on track to meet
those targets
• Net Zero Commitment: Businesses must demonstrate that
they have invested in certified carbon offsets equivalent to
the carbon footprint generated in the previous 12-month
period. These offsets must be in line with the Oxford
University Principles for Net Zero Carbon Aligned Offsetting,
outlined in section 7.3.1.
To retain their Net Zero Certification, businesses must complete

and publish an annual validated carbon footprint and details
of the carbon offsets initiatives used to compensate for any
residual emissions.
If the applying business falls below 65% of the target reduction

pathway, it must demonstrate that measures are in place to
correct this, or certification will be removed.
If the applying business has put in place a rectification plan but

still falls below 65% of the target reduction for 2 consecutive
years, certification will be suspended.
|| 7.3.1 Carbon offsets

Accountancy businesses that wish to be certified as Net Zero Now must buy and retire carbon offsets equivalent to 100% of the
calculated footprint. Those credits must be certified to international standards
The composition of purchased credits must be in accordance with the ratios and taxonomy set out by the Oxford Principles, listed in
Figure 15.
How is the offset generated?
Emission reduction Carbon removal
Is carbon stored?
No Yes Yes
How is carbon stored?
1 2 3 4 5
Avoided emissions, or emission Emissions reduction Emissions reduction Carbon removal Carbon removal
reduction without storage with short-lived storage with long-lived storage with short-lived storage with long-lived storage
Forward-looking, Clear retrospective Avoided damage to ecosystems CCS on industrial facilities Afforestation & reforestation DACCS
counterfactual emissions data Changes to ag practices that CCS on fossil-fuel power plant Soil carbon enhancement BECCS
baseline: N2O abatement retain already-stored carbon Ecosystem restoration Mineralisation
Renewable Methane Enhanced weathering
energy abatement
Cleaner
cookstoves
Less permanent More permanent Less permanent More permanent

Higher risk of reversal Lower risk of reversal Higher risk of reversal Lower risk of reversal
Figure 15. Taxonomy of Carbon Offsets (Oxford University)59
100%
The five types of offsets, as described by the Oxford Based on this timeline, avoided emissions and short-term
Principles, have differentAvoided emissions,
long-term impactsor emission
with emission removal must be gradually phased out over the
reduction with short-lived storage
Percent breakdown of offset portfolio
regards to climate change mitigation. Due to the coming years, ensuring that long-term storage of GHG emissions
1 2
current state of the offset / removal market, and in becomes more prevalent and eventually all offsets will be
Carbon removal
line with future expected developments, long term with short-lived storage
Carbon Removal with Long-Lived Storage.
carbon removal is currently not available at a large 4
enough scale to make it practical for businesses going 2021 2022 2023 2024 2025
Net Zero Now. 1 & 2reduction
Emissions 55% 53% 50% 47% 45%
with long-lived storage
Based on these mitigating circumstances linked to
33 0% 1% 3% removal
Carbon 5% 7%
the current carbon offset market, alternative methods with long-lived storage
may be used in combination. The composition of 4 45% 45% 45% 45% 45%
5
offsets must follow the suggested ratios as listed in 5 0% 1% 2% 3% 3%
Figure 16.
0% Figure 16. Composition of carbon offsets that must be
followed for Net Zero Professional Services)60
2020 2030 2040 2050
59. Allen et al., ‘The Oxford Principles for Net Zero Aligned Carbon Offsetting’.
60. Allen et al.
Purchase of credits
To receive certification under the Net Zero Accountancy Protocol, the purchase of approved carbon credits equivalent to the total GHG
emissions produced by the business in the assessment year must be made in full once the carbon footprint is complete.
7.4 Validate
To support the integrity of the Net Zero Accountancy certification, this step defines all required actions to meet the quality assurance
and documentation requirements within the Protocol.
Quality assurance must be conducted by the professional service. The process consists of an evaluation of the processes, data and
calculations undertaken, ensuring that all the requirements established in the Protocol have been met.
Documentation must be submitted to the assessor for verification including input data, calculations, assumptions and estimations,
procurement evidence and quality assurance attestations.
Table 9 lists details of the verification requirements and procedures relating to each step in the process. The ability and right to use the
Net Zero Accountancy certification mark is dependent on successful validation of the submitted documentation.
Step Verification Requirements
The definition of the subject and assessment year must be recorded, and full, itemised GHG inventory
provided.
1. Calculate All calculation tools and emissions factors must be documented and from approved sources.
The Assessor may require additional information in the event that concerns arise over the quality, completeness,
accuracy or robustness of the presented data.
The Accountancy business must submit evidence of a commitment to a valid reduction target together with
an emissions reduction plan to meet the defined targets.
2. Mitigate The Accountancy business must submit a commitment statement signed by a director.
The Assessor may require additional information in the event that concerns arise over the quality, completeness,
accuracy or robustness of the presented data.
Accountancy businesses going Net Zero must submit evidence that approved credits equivalent to the total
3. Compensate GHG emissions in the assessment year have been purchased and retired.
Accountancy businesses committing to Net Zero must complete and sign the commitment statement.
Accountancy businesses must complete and sign a quality assurance attestation and submit together with all
4. Validate
the necessary documentation.
Use of the Net Zero Accountancy certification mark must adhere to the utilisation of the mark guidelines. All
5. Communicate the communications transmitted to customers must be factually based and consistent with the steps followed
to achieve the certification.
Figure 17. Verification requirements

7.5 Using the Certification Mark 7.6 Communicate

Companies that have successfully completed the Net Zero Providing accurate and transparent information about your Net
Accountancy certification, are permitted and encouraged to use Zero certification is a key element of taking part in the initiative.
the relevant Net Zero Accountancy logo to communicate their
The communications made regarding the conformance
actions to customers and other relevant stakeholders.
with the Net Zero Accountancy certification must be made
The logos have been designed to allow companies to give a in the appropriate form of disclosure, and must include an
clear and transparent statement about their achievements unambiguous identification of the subject, the qualifying date
and intentions, while helping educate customers in Net Zero and application period, and access to all evidence supporting
businesses. By using the Net Zero Accountancy certification the qualifying explanatory statement.
logo, Accountancy businesses can unequivocally demonstrate
Communicating the certification should be done via the use of
that they have met the requirements of the Net Zero Protocol,
the Net Zero certification mark. Use of this logo must conform to
signalling leadership in environmental issues, differentiating
guidelines and all communications must be factually based and
from the competition and meeting the demands from
consistent with the certification achieved.
customers for more sustainable options.
Rights to using the mark are subject to Accountancy businesses
Requirements
receiving Net Zero certification
The logo can only be used by the certification holder in its own
Accountancy businesses should have a high-level understanding
communications and must not be used by any subsidiary that
of all their major environmental, social, and economic impacts,
has not undertaken and successfully passed the certification
and ensure that their Net Zero claims are appropriate and
process.
presented in relation to these major impacts.
As part of the quality assurance of the Net Zero Accountancy
All Accountancy businesses should make their GHG inventory
Protocol, all usage of the Net Zero Accountancy logo must be in
emissions relating to their Net Zero certification public. This
accordance with the terms of use.
could include, total gross emissions, a brief description of the
The certification logo must not be copied or edited. If this emissions sources, justification of any excluded or included
occurs, the certification logo will automatically be invalid. sources, reporting period covered any trends evident from the
data, targets and reduction activities.
If the requirements and guidelines provided in the Net Zero
Accountancy Protocol regarding the usage of the certification All claims should be consistent with any national or regional
logo are not met, NZN has the right to withdraw its license and guidance or legislations on such claims.
request its removal to the affected entity.
AC
COU CY
N TAN
8 Glossary of terms.
For a more in depth lexicon and glossary of words and terms linked to climate change, see the IPCC Annex61.
Absolute Zero
When no greenhouse gas emissions are attributable to an actor’s activities across all scopes.
Anthropogenic Removals
The withdrawal of greenhouse gases from the atmosphere, as a result of deliberate human activities.
Assessor
An independent body/organisation that will inspect reported data to ensure it meets the standards of this and other protocols.
Carbon Footprint
Often used to refer to all Greenhouse Gas Emissions associated with a product, business or entity. See Greenhouse Gas.
Carbon Neutral
Carbon neutrality is achieved when human made C02 emissions are balanced by human made C02 removals.
Carbon Offsetting
An action or activity (such as the planting of trees) that compensates for the emission of carbon dioxide or other greenhouse gases
to the atmosphere. A carbon offset occurs when an individual company or organization directly or indirectly (by funding projects in
other locations) removes greenhouse gases from the atmosphere or prevents a certain quantity of greenhouse gases from
being released.
Climate Change
A change of climate which is attributed directly or indirectly to human activity that alters the composition of the global atmosphere
and which is in addition to natural climate variability observed over comparable time periods. Also referred to as the Climate
Emergency, Global Warming and Global Heating.
Climate Neutral
See Carbon Neutral. In addition to Carbon, climate neutral often refers to all greenhouse gas emissions.
Climate Positive
Activity that goes beyond achieving Net Zero to create an environmental benefit by removing additional carbon dioxide from
the atmosphere.
Cradle-to-grave
Measuring the total greenhouse gas emissions from the extractions of raw materials to create the product, through to the product’s
manufacture, distribution, use and eventual disposal by consumer.
Cradle-to-retail
Measuring the total greenhouse gas emissions from the extractions of raw materials to create the product, through to the product’s
manufacture, packaging and distribution to the retailer.
Emissions Factor
A term used for calculations of the greenhouse gas footprint associated with a product or activity. Emissions factors are often
presented in CO2e (Carbon dioxide equivalent). For more information, see Section 2.1 Greenhouse Gases.
Global warming potential (GWP)

Measure of the quantity of heat a greenhouse gas traps in the atmosphere up to a specific time horizon, relative to carbon dioxide.
For more information, see Section 2.1 Greenhouse Gases.
61. IPCC, 2018: Annex I: Glossary [Matthews, J.B.R. (ed.)]. In: Global Warming of 1.5°C. An IPCC Special Report on the impacts of global warming of 1.5°C above pre-industrial levels and related global greenhouse gas emission
pathways, in the context of strengthening the global response to the threat of climate change, sustainable development, and efforts to eradicate poverty
8 Glossary of Terms.
Greenhouse gas (GHG)

A gas that contributes to the greenhouse effect by absorbing infrared radiation. Groups of gases recognised by the United
Nations Framework Convention on Climate Change (UNFCCC) include carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O),
hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulphur hexafluoride (SF6).
Greenhouse gas (GHG) Neutral

See Climate Neutral.
Ibid
Same as previous reference.
Net Zero
See Section 3.
Paris Agreement / Paris Aligned

The Paris Agreement was a United Nations mandated treaty, that was adopted in 2015. The agreement,
adopted by 196 signatories, sought to “limit the temperature increase to 1.5’C above pre-industrial
levels’, which is what alignment is aimed at achieving.
Science Based Targets initiative (SBTi)

Emissions reduction targets that are informed by the latest climate science and are
sufficiently robust to meet the goals of the Paris Agreement. See section 2.4.1.
Scope 1, 2 & 3 emissions

Scopes refer to different sources of greenhouse gas emissions within an
organisation. A detailed breakdown of scopes is listed on the GHG
Protocol website.
Zero emissions
Applies to the state of a subject when new Greenhouse Gas emissions
are reduced to zero.
AC
COU CY
N TAN
PROTOCOL
[email protected]

Net Zero Accountancy Protocol

Uploaded by

Copyright:

Available Formats

Net Zero Accountancy Protocol

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Net Zero Accountancy Protocol

Uploaded by

Copyright:

Available Formats

AC Y

1. INTRODUCTION 3 6. GOING NET ZERO 13

Of particular note for the professional services sector is the

1. United Nations Framework Convention on Climate Change, ‘Paris Agreement’.

2 About the process.

Research & drafting

3 About the Partners.

The Net Zero Accountancy initiative has been made possible by

4 Defining Net Zero.

“Net Zero occurs when an entity reduces its emissions

There are a number of key differences between this definition and

4.1 | The 5 Principles of Net Zero Now

Emissions must be calculated in accordance

Emissions in scope must include all relevant

Emissions reduction targets are mandatory and

Once a business has verified their carbon footprint

Businesses must share details of their climate

5 The Net Zero Accountancy Protocol.

5.1 Purpose of the Protocol

The main goal of this document is to provide a step-by-step approach

The Net Zero Accountancy Protocol is designed for:

5 The Net Zero Accountancy Protocol.

The Protocol is structured to provide an accessible entry Accountancy Protocol are:

point that introduces the key concepts, expanding on them Inclusive

indicates when the documents was last issued.

5 The Net Zero Accountancy Protocol.

5.4 Who should use the Protocol? 5.6 Greenhouse Gases

standards for GHG emissions, the Protocol defers to the GHG

CO2 CH4 N2O

Figure 1. Three most common GHGs and their GWP

These numbers state that, with regards to their contribution to

In addition to these, there are a number of other gases such

5. IPCC, Climate Change 2014.

5 The Net Zero Accountancy Protocol.

5.7 What is not in the Scope of this Protocol

Beyond the boundary

Figure 2. Doughnut Economics Infographic, Kate Raworth 20178

5 The Net Zero Accountancy Protocol.

5.8 Quality of Data

5 The Net Zero Accountancy Protocol.

Businesses should seek to use the highest quality data available,

5.12 Carbon Compensation / Offsets

Carbon credits are generated through Greenhouse Gas projects

This Protocol incorporates and builds on existing best practice

CO2 (parts per

800 700 600 500 400 300 200 100 0

6 Going Net Zero. Thousands of years before today (0=1950)

6.1 What is Net Zero?

CO2 (parts per million)

temperatures to 1.5oC from pre-industrial levels to avoid a

expected to be exceeded as early as 2030 significantly exceeded

220 The Net Zero economy envisaged by policy makers is one in

18. IPCC, ‘Global Warming of 1.5°C’.

6 Going Net Zero.

6.2 Net Zero in the

6 Going Net Zero.

they do not have the resources to create a bespoke solution and

The pandemic has provided another reason why SMEs have

6.3 Why go Net Zero Now?

reduce UK emissions in order to contribute to global GHG strategy.