Carbon Neutral vs. Net Zero: What Are The Key Differences?
The urgency to combat climate change has never been greater, and achieving net zero emissions is at the heart of global efforts to limit global warming.
Both carbon neutral and net zero are sustainability goals that involve reducing and balancing greenhouse gas (GHG) emissions, but they differ in scope and approach. The two are often used interchangeably, although there are differences.
Carbon Neutral refers specifically to carbon dioxide (CO₂) emissions, achieved through projects such as tree planting and rewilding to remove or reduce CO₂. Many institutions use carbon offsetting and/or carbon credits, and some consider offsetting to be sufficient. That approach is unsustainable in the long term as not all offsetting projects do what they promise and contend that they provide a license to pollute the environment. Another criticism is that offsetting is not economically sustainable because poor countries are paid to offset carbon while rich countries continue to emit, and the number of emissions from the world’s rich compared to the world's poor is highly disproportionate.
Net Zero includes all greenhouse gases (GHGs), and is aligned with global climate goals such as the Paris Agreement to limit temperature rise to 1.5°C. It is more ambitious and comprehensive than Carbon Neutral, as it requires systemic change rather than just offsetting emissions.
Achieving Net Zero
Obviously the ideal way to do this is to cut greenhouse gas emissions entirely. Unfortunately not all emissions can be eliminated completely, so those that remain need to be actively removed. Achieving net zero is essential to stabilise the climate, reduce environmental risks, and foster economic and social resilience.
Our Approach
We believe in, and practice, constructive collaboration. We actively promote “mindset change”, because we believe that climate change mitigation can only be achieved if it is supported by mindset change on individual and collective levels.
We recommend the use of science based targets.
Key Strategies for Reaching Net Zero
To achieve this, CO2 emissions need to fall by nearly half by 2030 and reach net zero by 2050, according to the UN's climate body, the IPCC. But despite these international commitments, emissions stubbornly remain at record highs.
When we are commissioned by clients, we approach this in one of several ways, but we always start by gaining a detailed understanding of the people, the culture, the working environment, the operations, the processes, the goods and/or services they provide, their suppliers, their clients and any other information we can obtain.
We then evaluate the strategy, or if none exists we help build one. The same applies to the policies surrounding the environmental and operational objectives. These must be congruent, if they are out of line the probability of success is reduced.
We always calculate the current carbon footprint to give the client a baseline against which the progress of climate change mitigation and sustainability targets can be monitored.
Our key focus areas include:
· Climate Change Mitigation: we understand the complexities involved in reducing emissions and provide a focussed, practical approach to the design and development of reduction strategies, the implementation of strategies and operational plans, frequent monitoring of outcomes compared to targets, and progress reporting.
ESG, CSR, and CSG Initiatives: we focus on policy initiatives and practical implementation strategies for enhancing corporate responsibility and sustainability credentials.
Risk Management: our qualified and experienced risk management professionals provide templates for building and maintaining a risk register; quantifying risk exposures, determining a risk appetite; identifying current and emerging risks; monitoring the dynamic changes of the risk profile; and providing practical risk mitigation strategies.
Stakeholder Engagement: our philosophy and constructive collaboration with every client is our foundation for building mutual trust and respect with stakeholders to protect and enhance your brand reputation.
Ethical Business Practices: we emphasise the importance of continually demonstrating integrity and responsibility in every aspect of our relationship, including adherence to the Nolan Principles of Public Life.
We deliver workshops and training courses to provide staff with the information and tools to identify, measure, and reduce Scope 1, 2, and 3 emissions.
1. Decarbonizing Energy Systems
Transitioning to renewable energy sources such as solar, wind, and hydropower.
Increasing energy efficiency across industries and homes.
Electrifying transportation and heating systems to reduce reliance on fossil fuels.
2. Sustainable Industry and Business Practices
Implementing circular economy principles to minimize waste.
Adopting low-carbon technologies in manufacturing and logistics.
Encouraging sustainable supply chains and responsible sourcing.
3. Carbon Capture and Storage (CCS)
Deploying technologies to capture CO2 from industrial processes and storing it underground.
Enhancing natural carbon sinks, such as forests and wetlands, through afforestation and conservation efforts.
4. Policy and Regulatory Measures
Governments setting ambitious carbon reduction targets and enforcing regulations.
Carbon pricing mechanisms, such as cap-and-trade and carbon taxes, to incentivize emission reductions.
Investments in green infrastructure and research to accelerate climate solutions.
5. Individual and Community Actions
Reducing energy consumption through lifestyle choices.
Supporting sustainable businesses and adopting eco-friendly habits.
Advocating for climate policies and participating in local sustainability initiatives.
Challenges and Opportunities
While the transition to net zero presents challenges, including high initial costs and technological hurdles, it also opens opportunities for economic growth, innovation, and job creation in the green sector. Businesses that prioritize sustainability gain a competitive edge, and countries investing in clean energy secure long-term prosperity.
The Road Ahead
Achieving net zero requires a collective effort from governments, businesses, and individuals. By embracing clean energy, sustainable practices, and forward-thinking policies, we can build a resilient future and mitigate the worst effects of climate change. The time to act is now—each step toward net zero is a step toward a healthier planet.
We can help you to:
Develop your SBTs
Develop your sustainability strategy, including developing a pragmatic carbon reductions programme.
Waste management
How to benefit from the circular economy
Provide tools to calculate your carbon footprint, and to update the results at times of your choosing.
Provide tools to develop/improve your risk management framework.
Integrate your sustainability strategy into your risk management framework.
Integrate sustainability as part of business as usual.
To find out how you can benefit from incorporating SBTs into your climate change programmes schedule a call with us