What is Carbon Neutrality? The Key to a Sustainable Future

In an era where the impact of climate change is more palpable than ever, we at HCCB recognise that corporations play an instrumental role in forging sustainable pathways. We understand that a synergy between business growth and environmental responsibility is increasingly essential. This ethos emphasizes the pressing need for carbon neutrality – which is both noble and imperative.

What is carbon neutrality?

Carbon neutrality refers to achieving a net-zero carbon footprint. This means that any carbon dioxide released into the atmosphere from a company's activities is balanced by an equivalent amount being removed. Achieving neutrality is critical in mitigating the adverse effects of climate change and ensuring the sustainability of our planet for the future.

To achieve this equilibrium, companies need to consider not just their direct operations but also their entire value chain: from sourcing raw materials and manufacturing to transportation and consumption. Organizations can focus on limiting CO2 emissions by investing in processes that mitigate their release, as well as engaging in carbon offsetting activities such as reforestation or funding renewable energy projects that replace fossil fuel-based energy. Incorporating practices from the Green Revolution can further enhance sustainability efforts by optimizing agricultural productivity with minimal environmental impact. But why is carbon neutrality important?

The importance of achieving Carbon Neutrality 

The importance of achieving carbon neutrality ties back into the larger global issue of climate change, a crisis confronted by both corporate worlds and individuals alike. It's not just critical for their immediate impact i.e. reducing the greenhouse gas emissions that contribute to global warming, but also essential in the shared effort to ensure the sustainability of our planet for future generations.

In this context, as a leading beverage manufacturing company in India, we at HCCB, are committed to taking responsibility for our environmental footprint. By working towards carbon neutrality, alongside other companies, we set an example for other industries to follow.

The benefits of carbon neutrality

Achieving carbon neutrality offers far-reaching benefits, spanning from health and environmental impacts to economic and business advantages. Here are some key benefits explained:

Bolstering public health

A reduction in carbon emissions often goes hand-in-hand with a decline in other air pollutants. This could lead to better air quality and thus significant public health improvements, reducing respiratory conditions and associated healthcare costs.

Protecting ecosystems

High levels of CO2 in the atmosphere and oceans can deeply harm the ecosystems that we rely on. By achieving carbon neutrality, we can protect biodiversity and the health of our ecosystems, preserving them for future generations.

Securing food supplies

Climate change poses a significant threat to agriculture and, therefore, to our food supply. Moving towards carbon neutrality can mitigate this risk, helping to maintain a steady food supply by reducing the occurrence of extreme weather events and longer-term changes in climate that impact crop yields.

Stabilizing energy prices

Renewable energy sources like wind and solar, critical for carbon neutrality, are generally more immune to price volatility compared to fossil fuel-based power. This can lead to more predictable, and often lower, energy costs in the long run.

Future-proof operations

Striving to achieve carbon neutrality encourages companies to adapt their operations to be more sustainable, effectively future-proofing their business. By becoming less dependent on fossil fuels and more efficient in resource use, companies can anticipate and reduce risks related to climate change and future regulation.

Fostering innovation

The drive towards carbon neutrality can foster innovation, as new technologies and practices are required to reduce emissions across various sectors. This can lead to competitive advantages and business opportunities.

Building trust with stakeholders

Businesses that commit to carbon neutrality send a powerful message to their stakeholders, including employees, customers, and investors. They demonstrate their commitment to sustainability and corporate responsibility, which can enhance their reputation and build trust.

Differences between carbon positive, carbon neutral, and carbon negative

While understanding what does carbon neutral mean and in conversations surrounding climate change and sustainability, certain terminologies are often used interchangeably. Particularly in the realm of carbon footprint and emissions, the terms "Carbon Positive," "Carbon Neutral," and "Carbon Negative" are often mentioned. But what precisely do they imply?

What is carbon positive? 

When an entity (be it an individual, a business or a country) is referred to as Carbon Positive, it means that they are releasing more carbon dioxide into the atmosphere than they are offsetting or eliminating. The entity's actions result in a net increase in atmospheric CO2, thus accelerating the harmful impacts of climate change. This status not only intensifies global warming but also can lead to negative public perception and potential regulatory penalties.

What is carbon neutrality?

As mentioned above, achieving Carbon Neutrality is an important milestone in any sustainability journey. It denotes a state where the amount of carbon dioxide emissions produced by an entity is counterbalanced by equivalent actions that remove CO2 from the atmosphere. Through a variety of efforts, a company can achieve a carbon-neutral status, implying that the entity's activities are not contributing to the increase of CO2 in the atmosphere.

What is carbon negative? 

Going beyond neutrality, a carbon-negative status represents an entity's dedicated commitment to combating climate change. This means that an entity actively removes more carbon dioxide from the atmosphere than it emits.

Carbon Neutral Certification: A Testament to Our Commitment

A consequential milestone in our journey towards sustainable operations at Hindustan Coca-Cola Beverages (HCCB) has been the attainment of the 'Commitment to Carbon Neutrality' certification. This significant achievement reflects not just our efforts for the present but is a stepping stone toward our long-term vision of achieving net-zero carbon emissions by 2050.  

This accolade, awarded by the renowned global quality assurance and risk management company DNV, is for our Aranya production facility in Bidadi, near Bangalore, Karnataka, India. By adhering to the international standard PAS 2060, we've demonstrated a systematic approach towards measuring, reducing, and offsetting our carbon footprint, hence, successfully integrating environmental considerations into our operational framework. 

This diligent process is anchored by a far-sighted strategy aimed at eradicating our carbon emissions completely. This goal paves the way for a more sustainable and environmentally responsible operating framework that aligns with our commitment to not only meet, but also exceed the targets set forth by international environmental standards.

How can we achieve carbon neutrality?

Achieving carbon neutrality demands a comprehensive and diversified approach. Here is how we established our first carbon-neutral factory in Aranya: 

Setting clear targets

At HCCB, we have committed to reduce our greenhouse gas emissions across the value chain by 25% by 2030 (compared to a 2015 baseline). Our long-term vision is to achieve net-zero carbon emissions by 2050.

Transition to renewable energy

In a bid to reduce our dependence on fossil fuels, we have been proactive in transitioning towards clean, renewable energy sources. At present, about 33% of HCCB's electricity demand is met through renewable sources.

Promoting energy-efficient technologies

We have deployed cutting-edge energy-efficient technologies across our operations to minimize energy consumption. Our initiatives, such as HHO and Subcarb technologies, have resulted in a significant reduction in our energy intensity.

Diversified energy portfolio

Currently, 33% of our electricity is sourced from renewables via Power Purchase Agreements (PPAs). In addition, we have solar rooftop installations across seven locations, along with the deployment of biomass boilers, making a significant contribution to our total renewable energy use.

Investing in carbon capture measures 

At HCCB, we have adopted several carbon capture measures ranging from reforestation to technologies such as Carbon Capture and Storage. 

Fostering innovation in operations 

We have integrated sustainable practices in all aspects of our business, including production, supply chain, and marketing. Initiatives like the use of hydrocarbon coolers and 'zero emission growth' targets underscore our commitment to achieving our sustainability goals.

Encouraging behavioural change

At HCCB, we understand that achieving sustainability is as much about individual behavioural changes as it is about infrastructural and technological innovation. We strive to foster a culture of sustainability within our organisation.

Our recent accomplishment highlights our ability to maintain 'zero emission growth', successfully limiting greenhouse emissions even with a 19% business volume increase. This key milestone underlines our firm resolve and unwavering commitment towards achieving our goal of net-zero emissions by 2050.

For us, carbon neutrality isn't just a target; it's an imperative stepping stone towards securing our future. Our journey to achieve carbon neutrality across factories is not a solitary one but a collective endeavour. Understanding what is carbon neutrality and why is it important allows us to comprehend the critical role that businesses can play in mitigating climate risks and moving towards a cleaner world. We firmly believe in the enormous potential that businesses hold in reversing environmental damages and moving towards a sustainable future.  Let us continue to strive towards building a future that harmoniously intertwines prosperity, growth, and respect for our earth.