Net Zero
Definition
Net zero refers to achieving a balance between the greenhouse gases emitted into the atmosphere and those removed from it. This means reducing emissions as much as possible and offsetting any remaining emissions through carbon removal projects. The goal is to limit global warming to 1.5°C above pre-industrial levels.
Why It Matters
Net zero targets have become the benchmark commitment for organisations serious about climate action. Companies setting net zero goals are increasingly expected to back them with credible, science-based transition plans.
Related Terms
Carbon Neutrality
Carbon neutrality means achieving a state where the net carbon dioxide emissions associated with an entity or activity are zero. This is typically achieved by measuring emissions, reducing them as far as possible, and then compensating for remaining emissions through carbon offsets. Carbon neutrality differs from net zero, which usually requires deeper absolute emission reductions.
Carbon Offset
A carbon offset is a reduction or removal of greenhouse gas emissions made to compensate for emissions occurring elsewhere. Offsets are typically measured in metric tonnes of CO2 equivalent and can be generated through projects such as reforestation, renewable energy, or methane capture. They are purchased as credits on voluntary or compliance carbon markets.
SBTi (Science Based Targets initiative)
The Science Based Targets initiative (SBTi) provides companies with a clearly defined pathway to reduce greenhouse gas emissions in line with the goals of the Paris Agreement. It validates corporate emission reduction targets against climate science to ensure they are ambitious enough. SBTi targets cover Scope 1, 2, and increasingly Scope 3 emissions, with a net-zero standard for long-term decarbonisation.
Scope 1 Emissions
Scope 1 emissions are direct greenhouse gas emissions from sources owned or controlled by an organisation. These include emissions from on-site fuel combustion, company vehicles, and industrial processes. They are the most straightforward emissions for a company to measure and reduce.