GNFZ adopts a new approach to green certification

According to Mahesh Ramanujam, President and CEO at Global Network for Zero, transitioning to net zero is challenging, especially with high costs and complex Scope 3 emissions. GNFZ addresses these obstacles by offering phased, accessible certification pathways tailored to varied regional needs, making sustainability feasible for all.

What challenges do businesses face in achieving net zero emissions?

The biggest hurdles are planning and implementation. We have yet to see many credible net zero transition plans. My company hopes to make a difference here. As more projects go through our platform, we will use that data to demonstrate a successful plan. We see net zero commitments on the implementation side, but progress could be faster. This is evident with buildings – only about 0.23 percent worldwide are net zero. It is a stark reminder of how far we have to go.

There are other issues, too. Upfront investment costs are a barrier for many businesses, especially SMEs. Many companies need more in-house expertise to plan and execute net-zero strategies. Making the business case is also difficult since we still need ROI data. Carbon accounting is another problem area. Dealing with supply chain emissions (Scope 3) is another hurdle, as value chain emissions are not easy to control. Many companies also deal with internal stakeholder resistance, which can slow progress. Finally, there are inconsistencies in methodologies, which can lead to confusion. If you are getting started, I would recommend using the Greenhouse Gas (GHG) protocol to conduct an emissions inventory so you can put together a quality strategic plan.

Could you explain what the Global Network for Zero is and its approach?

Global Network for Zero (GNFZ) is a global net zero certification body

. GNFZ is dedicated to overcoming traditional barriers to decarbonisation. We aim to empower individuals and organisations to embark on their sustainability journeys from any starting point and work toward achieving net zero. We emphasise the importance of incrementalism, which is crucial in making net zero attainable for everyone.

We launched our comprehensive platform, enabling organisations to calculate their building or portfolio’s Scope 1, 2, and 3 emissions, identify effective strategies to reach their targets sooner, certify their net zero achievements, and receive ongoing support. We are actively working with buildings across the U.S., India, Latin America, Europe, the Middle East and Asia to transition them to net zero.

How does Global Network for Zero differ from traditional green certification systems methodology?

GNFZ takes a different approach than traditional green certification systems. First of all, we need to have prerequisites to get started. We believe in meeting people where they are, regardless of their current performance. Our goal is to provide any building, anywhere in the world, with a roadmap to zero emissions. Another difference is our focus on all emissions – Scope 1, 2 and 3. We help businesses, portfolios, and buildings finally address Scope 3 emissions effectively, as they are overlooked. We have made our system more user-friendly. It is simple, affordable, and accessible. Yet, we still adhere to the highest levels of performance. We believe that going green should not be overly complex or prohibitively expensive. In essence, we are trying to lower the barriers to entry while raising the bar on impact.

Could you detail how GNFZ addresses Scope 3 emissions for their contribution to global carbon emissions in the real estate and construction sectors?

We adopt a comprehensive approach to addressing Scope 3 emissions, as achieving a net zero future is impossible without addressing Scope 3. GNFZ aims to tackle the full spectrum of emission variables by prioritising these emissions from the start. Scope 3 emissions often constitute more than 70 percent of an organisation’s total emissions – and in buildings, this can be as high as 80 to 90 percent.

Organisations must recognise that understanding Scope 3 emissions is vital for implementing effective reduction strategies. Unfortunately, many companies are still not fully transparent about their total Scope 1-3 emissions. To address this gap, we advocate for regulations mandating the reporting of supply chain and operational emissions. This transparency is essential for achieving India’s net zero targets, as we aim to make significant progress before the 2070 goal. GNFZ supports organisations in utilising performance data to develop and implement strategies for reducing Scope 3 emissions. Our strategy involves performing life cycle assessments, enhancing energy efficiency, and integrating circular economy practices. We also emphasise using green standards, selecting low-carbon materials, and encouraging sustainable procurement across all processes.

Our net zero certification for existing buildings focuses primarily on operational emissions. For Scope 3, we evaluate 15 categories: transportation, processing of sold products, use of sold products, end-of-life treatment of sold products, leased assets, franchises, and investments. We also address embodied carbon during retrofitting projects.

What role does your experience with the U.S. Green Building Council play in shaping GNFZ’s approach to sustainability?

My experience with USGBC played a pivotal role in shaping GNFZ’s approach. This experience formed the foundation for what we built at GNFZ. We noticed the issues the market faced in implementation and meticulously created our product to break down barriers. However, we did not want to release another program or replicate what others were doing. We aimed to create something that could scale and bring about concrete change.

We started market research to identify the unique value proposition we could bring to the existing buildings market. We had conversations with industry leaders and genuinely listened to the issues they were grappling with. We learned that a shortage of technology or programs did not hold back progress. It is rather a need for ROI data to make the business case for transitioning existing buildings to net zero, along with a realistic roadmap they could leverage to accelerate their progress over time.

This led us to build a network of like-minded professionals working together to accelerate a zero-emissions world. We knew we needed to create a platform with data built into it from the beginning, serving as the driving force to start building that ROI story. As a result, we have carefully curated our platform and certification to address the specific issues these professionals face in implementing sustainable practices.

How do you adapt its certification standards to suit different regions in diverse climate conditions?

Our certification is tailored to consider region-specific factors like local climate, energy needs, and infrastructure. While the approach remains the same, we customise net zero implementation strategies per the specific project and its regional conditions. GNFZ adapts benchmarks for emissions, renewable energy, and efficiency to ensure they are both realistic and impactful across India’s varied environments—from arid regions to coastal areas.

How do you ensure that Global Network’s pathways are adaptable to changing climate policies and emerging technologies?

We have designed our platform to ensure our pathways remain adaptable to changing climate policies and emerging technologies. We maintain a constant feedback loop with our users and industry experts, allowing us to evolve our offerings rapidly. Our short development cycle enables us to swiftly incorporate the latest emerging technologies and policy changes into our platform.

We have established an advisory group comprised of top market leaders. This group helps us maintain a forward-focused approach and anticipate upcoming changes in the sustainability landscape. Their insights and expertise allow us to stay ahead of the curve, ensuring our pathways remain relevant and effective in the face of evolving climate policies and technological advancements. This combination of a flexible platform, rapid development cycles, and expert guidance allows us to provide our users with up-to-date, adaptable pathways that reflect the latest in sustainable practices and technologies.

How does GNFZ help businesses balance short-term costs with long-term sustainability benefits?

One of the major advantages of GNFZ is our incremental approach to net zero. This means that no matter the scale or size of a business, we take a path that breaks down the journey into phases, targeting the low-hanging fruits first, which will give the maximum gains at minimal investment. From there, we gradually build a roadmap that targets all emissions areas to ensure cost-effectiveness and deliver an ROI.