Strategic Intelligence: Net Zero Strategies in Sport

Strategic Intelligence: Net Zero Strategies in Sport

Summary

Of the selected major sports companies analyzed in this report, those in motorsports were earlier in setting emissions targets than the most prominent football teams. Only one major football team has had its Net Zero target approved by the Science-based Targets Initiative (SBTi), a verifier of corporate emissions targets.

The sports sector is concentrating on three main strategies to reach these targets -

• Alternative fuels and electric motorsports
• Decarbonizing stadiums and sports teams
• Sponsor engagement

Companies achieve net zero emissions by cutting greenhouse gas (GHG) emissions to as close to zero as possible, with any remaining emissions then “offset.”. Sports companies are typically slow to adopt environmental impact-reducing practices compared with companies in other sectors. Many have high emissions profiles thanks to global fanbases travelling to support their team, as well as production of merchandise and, in the case of Formula 1, parts for cars. They must therefore work to incorporate sustainable practices and subsequently reduce production-associated emissions, as well as working to minimize Scope 3 emissions from fan travel wherever possible.

Companies in the sports sector are far away from net zero.

Intense regulatory pressure on emissions means companies in all sectors need a net zero strategy. This report analyses companies within the sports sector: principally football clubs, motorsports teams, sporting federations, and sports sponsor brands.

Alternative fuels and electrification are decarbonizing motorsports.

These are typically the easiest emissions to track and reduce. Sports organizations are sourcing electricity from renewable sources or installing on-site renewables to cut these emissions.

The English Premier League has introduced a cross-league net zero initiative.

It will help those teams without net zero strategies to start developing their own strategy following best practices.

Net zero will impact sponsor relationships.

Sponsors with net zero high on their agenda should help their sponsored teams develop net-zero strategies. Emissions data is sparse across the sector, and sponsors can share techniques and expertise. Teams that want to promote their efforts on sustainability should set stricter requirements for sponsors, or they could risk greenwashing accusations.

Key Highlights

• The sports sector is concentrating on three main strategies to reach net-zero
• Alternative fuels and electric motorsports
• Decarbonizing stadiums and sports teams
• Sponsor engagement

Scope

• This report offers a comprehensive analysis of net zero strategies within the sports industry, highlighting the key approaches being implemented by companies to reach this goal.
• It features prominent sports companies making progress towards achieving net zero emissions, along with case studies showcasing specific strategies in action.
• Additionally, the report presents detailed Scope 1, 2, and 3 emissions data for a selection of major sports companies, providing valuable insights into their environmental impact reduction efforts.

Reasons to Buy

• GlobalData’s thematic intelligence ecosystem is a single, integrated global research platform that provides an easy-to-use framework for tracking all themes across all companies in all sectors.
• This report is essential reading for senior executives to understand how the sports industry is striving towards net zero.

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