Carbon Neutral VS Net Zero
Despite often being used interchangeably, the terms carbon neutral and carbon net zero have vastly different implications for the climate and in tackling rising emissions. It’s important to consider these terms in context.
So what are carbon emissions and why is it a hot topic?
When we refer to carbon emissions, we are referring to the release of carbon dioxide into the atmosphere when burning fossil fuels such as oil, gas, and coal. As carbon is a greenhouse gas it helps trap heat in the atmosphere leading to global warming and climate change.
In 2016, the world came together at the Paris Climate Agreement to pledge to keep global temperature rises below 2°C, but to achieve this large-scale change was, and still is, required.
How are companies managing their emissions?
Carbon management is the process of measuring and managing the amount of emissions caused directly or indirectly by an organisation, from energy use, waste, transport and logistics. This is captured as a carbon footprint which is calculated and expressed as carbon dioxide equivalent (CO2e).
The Greenhouse Gas Protocol is a standardised framework for measuring emissions and is split into three categories:
- Scope 1 – Directly produced emissions (logistics and manufacturing)
- Scope 2 – Indirectly produced emissions (resources used such as heating / electricity)
- Scope 3 – All other emissions including those produced by an organisations supply base
The removal or reduction of carbon emissions output into the atmosphere, decarbonisation, reduces an organisations carbon footprint and therefore its impact on the climate.
How are companies setting targets to reduce their emissions?
Often organisations will refer to moving towards or being Net Zero, this refers to an overall balance between the amount of greenhouse gas emissions produced and the amount removed from the atmosphere. Net Zero is reached when the amount we add is no more than the amount taken away. Net Zero requires reduction of carbon emissions as far as possible, before considering offsetting.
Being Carbon Neutral means balancing carbon dioxide emissions released into the atmosphere through everyday business activities, with the amount absorbed or removed from the atmosphere. Overall, it means no carbon dioxide emissions are added to the atmosphere.
Carbon Offsetting is often used to compensate for carbon emissions, such as planting trees or renewable energy projects, but being Carbon Neutral is not the same as being net zero (although often it is used interchangeably).
So, the key difference is that Carbon Neutral could be achieved in theory through offsetting or buying carbon credits alone, whereas Net Zero requires a reduction of carbon emissions as far as possible before considering offsetting or achieving carbon neutrality as a steppingstone on the way to net zero.
How can a company reduce carbon emissions?
Looking to the future becoming carbon positive is the best possible option a company can take to protect the planet, removing more carbon emissions from the atmosphere than you have produced.
The key for any procurement professional is to delve into the claims made around Carbon Neutrality and Net Zero to ensure there is a deep understanding of what’s been achieved and how – to gain a true measure of performance.
By providing data driven insights, Calathea provides the visibility a business needs to ensure its ESG agenda is not only inward facing, Scope 1 & 2, but addresses Scope 3 and their supply chain impact.
