Net Zero

What is Net Zero?

Net zero means achieving a balance between the greenhouse gases an organisation puts into the atmosphere and the amount removed. The concept is rooted in climate science: to limit global warming to 1.5°C above pre-industrial levels (the goal of the Paris Agreement), global CO₂ emissions must reach net zero by approximately 2050.

It is important to distinguish between net zero and carbon neutral. Carbon neutrality can be claimed by offsetting emissions through the purchase of carbon credits, without necessarily reducing actual emissions. Net zero, as defined by leading frameworks like the Science Based Targets initiative (SBTi), requires deep decarbonisation first — typically reducing emissions by at least 90% from a baseline year — with residual emissions addressed through permanent carbon removals (not avoidance offsets).

The SBTi Corporate Net-Zero Standard, launched in 2021, is the most rigorous framework for corporate net zero commitments. It requires companies to: set near-term science-based targets (5–10 year horizon) to reduce Scope 1, 2, and 3 emissions in line with 1.5°C pathways; set long-term targets to reduce emissions by at least 90% by no later than 2050; and neutralise any residual emissions (the remaining ≤10%) through permanent carbon dioxide removals such as direct air capture or bioenergy with carbon capture and storage (BECCS).

In the UK, the Climate Change Act 2008 (amended in 2019) commits the country to achieving net zero greenhouse gas emissions by 2050. This national target cascades into corporate expectations through procurement requirements (PPN 06/21), financial regulation (TCFD), and investor pressure.

For organisations, the path to net zero typically involves: establishing a comprehensive baseline across Scope 1, 2, and 3; setting validated science-based targets; implementing reduction measures (energy efficiency, fleet electrification, renewable energy, supply chain engagement); tracking progress with regular carbon accounting; and addressing residual emissions through high-quality carbon removals only once maximum reductions have been achieved.

Common criticisms of net zero commitments include vague timelines without interim milestones, over-reliance on offsets instead of actual reductions, exclusion of Scope 3 from targets, and lack of transparent reporting on progress. Credible net zero plans require clear baselines, interim targets, specified reduction actions, and transparent annual reporting.

How Climatise Helps

Climatise helps organisations build credible net zero strategies by providing a complete emissions baseline, scenario modelling for different reduction pathways, and year-on-year tracking against targets. The platform shows where the biggest reduction opportunities lie and helps you prioritise actions that will have the most impact.

Frequently Asked Questions