Understanding our impact on the environment is crucial for taking meaningful action against climate change. This glossary simplifies key terms like "Carbon Neutral," "Net Zero," and "Carbon Offset," empowering you to navigate the evolving landscape of sustainability:
What is Carbon Neutral?
Carbon Neutral is achieved when the same amount of CO₂ released into the atmosphere is offset or removed by various means.
Organisations can certify as carbon neutral by measuring their emissions and then offsetting the balance through financed projects outside of its value chain, without actually reducing its own emissions. However, we would always actively encourage reducing emissions where possible.
What is Carbon Negative?
Carbon Negative is when a business or individual offsets more CO₂ from the atmosphere than they produce.
What is Net Zero?
Simply put, Net zero means no longer adding to the total amount of greenhouse gases in the atmosphere. A company works to reduce almost all emissions generated and then utilises Carbon removal credits to offset those essentials emissions generated.
Science Based Target (SBTi), defines true ‘Net Zero” as an approximate 90% reductions in absolute emissions from the entire value chain and only around 10% (real and credible) offsets.
What is the difference between Carbon neutral and Net Zero?
A business can claim carbon neutrality by measuring its emissions and then offsetting the balance through financed projects outside of its value chain, without actually reducing its own emissions. Net zero, on the other hand, compels companies to more meaningfully reduce value chain emissions.
Net zero is where a company works to reduce almost all emissions generated and then utilises Carbon removal credits to offset those essentials emissions generated. Carbon Neutral puts no targets on a business to reduce their emissions.
Carbon neutrality only covers direct emissions (scopes 1 and 2), with optional additions of indirect emissions (scope 3). Net-zero must cover direct and indirect emissions (scopes 1, 2 and 3) alongside the removal of all greenhouse gases being emitted into the atmosphere, such as methane (CH4), nitrous oxide (N2O) and other hydrofluorocarbons.
What is a carbon credit?
A carbon credit is a way to reduce or remove greenhouse gases from the atmosphere to make up for emissions that are produced somewhere else.
Will becoming Carbon Neutral solve the climate crisis?
As part of the Paris Agreement on climate change, countries across the world committed to keep global warming well below 2°C above pre-industrial levels, whilst trying to limit warming to 1.5°C. Becoming Carbon neutral helps to bring awareness to this goal but it is not enough without companies committing to reduce their actual emissions alongside supporting offsetting projects.
Is carbon offsetting considered Greenwashing?
Whilst we actively encourage organisations to look at their sustainability practices internally and work to reduce emissions alongside Carbon offsetting, we recognise that some companies approach is to simply offset to give the impression of being ‘Greener’ than what they are.
However, supporting Carbon offsets is still creating a positive impact, regardless of the motivation behind them.