A Business Decision-Maker’s Guide to Setting Realistic Net-Zero Goals

March 25, 2026

For many businesses, achieving net-zero has become a strategic priority. With investors, regulators, and consumers in regions like Southeast Asia placing greater emphasis on sustainability, scrutiny around emissions commitments continues to grow.

It can be challenging to determine what net-zero targets you can meet within your existing operations and how quickly these reductions can be delivered. But with the right approach, it will be possible to establish clear goals that are both credible and achievable. Here are some practical considerations to guide you through the process:

1) Establish a Baseline

A clear understanding of your business’s current emissions should form the foundation of any net-zero effort. This assessment establishes a baseline, providing measurable reference points to track and evaluate progress over time.

The process typically involves calculating emissions from energy use, fuel consumption, and day-to-day activities across your operations. These are commonly grouped into three categories: Scope 1, Scope 2, and Scope 3. The first two categories often serve as a starting point, as they fall within your direct control and are generally easier to measure. The third—which extends beyond your immediate operations—should also be incorporated as data becomes available to ensure a more complete view of your environmental impact.

While achieving full accuracy may take time, a well-informed estimate can still support sound decision-making and guide early planning efforts. For more consistent results, you can partner with a provider that helps develop a sustainability plan and standardise your data collection and reporting processes.

2) Identify High-Impact Emission Sources

Once a baseline is established, the next step involves identifying which activities generate the highest levels of emissions. Not all emission sources contribute equally to your overall footprint, and knowing which ones have the most impact allows you to focus attention where reductions will have the greatest effect.

In many cases, major contributors are found in Scope 3. These are emissions that occur across your value chain, such as those from suppliers, transport, and product use. Nevertheless, the specific sources may vary depending on how your business operates. That’s why a closer review of emissions data can help pinpoint which areas require immediate action and which can be addressed over a longer timeframe. With this level of insight, resources can be directed towards initiatives that deliver measurable reductions rather than being spread too thinly across lower-impact areas.

3) Set Realistic, Science-Based Reduction Targets

Clear targets can shape how your net-zero strategy is executed, but they must be scientifically grounded in order to produce measurable outcomes. Science-based frameworks, such as those from the Science Based Targets initiative (SBTi), can help align your targets with recognised emission reduction pathways. This way, your commitments are based on defined reduction requirements, thus making them more credible.

In addition to these frameworks, internal factors, such as available resources, operational constraints, and planned growth, should also be considered when finalising your targets. Taking these into account helps ensure that your targets remain achievable within your business context and can be maintained over time.

4) Choose Implementation Strategies That Fit Your Operational Capabilities

There are several strategies available to reduce emissions, but only those that match how your business operates in practice are likely to deliver the most impact. Strategies that can be implemented using existing processes and resources tend to be more consistent and easier to sustain. Plans that rely on major changes or don’t have the right support, on the other hand, can slow progress or lead to delays.

A practical approach to implementation is to prioritise actions that can be integrated into current processes. For instance, you can improve energy efficiency within existing facilities by optimising equipment use. You can also adjust your procurement practices to favour lower-emission suppliers, which can help reduce indirect emissions linked to your supply chain.

Once these initial actions are in place, you can introduce more complex initiatives in stages. For example, as your capabilities develop, you may invest in energy-efficient technologies or transition to alternative energy sources.

When selecting these strategies, make sure to consider key factors such as resource availability, technical requirements, and timelines. This helps ensure that efforts remain manageable and don’t interfere with core operations.

5) Communicate Progress with Transparency

Clear communication plays an important role in maintaining trust and accountability. It offers a clear view of your progress, allowing stakeholders to assess whether your targets are supported by measurable results.

A practical way to provide this visibility is through regular reporting. This demonstrates that your business is actively tracking performance and taking its commitments seriously. When preparing updates, make sure they reflect actual performance against your baseline and targets, including any gaps or delays. This level of transparency allows stakeholders to understand how your strategy is being carried out in practice, and whether adjustments are being made in response to current results.

Furthermore, using recognised frameworks for reporting will allow disclosures to remain comparable across reporting periods and meet evolving expectations from regulators and investors. With consistent and transparent communication, your organisation can maintain credibility and uphold a system for smart, responsive decision-making.

Net-zero commitments carry long-term implications for how your business operates and evolves. An approach to target-setting with a good understanding of your emissions and capabilities allows you to set realistic goals that can be carried out in practice. Upon attaining a clearer direction, you can respond to changing expectations without losing sight of what is practical. In the end, this will support more consistent progress and strengthen your organisation’s ability to adapt over time.