Climate Target

What is Net Zero?

Net zero means achieving a balance between greenhouse gas emissions produced and emissions removed from the atmosphere. When the amount of CO₂ added equals the amount taken away, the net emissions are zero.

Understanding Net Zero

Net zero is the most ambitious climate target a company or country can set. Unlike simple carbon offsetting, net zero requires deep emissions reductions — typically 90% or more — before any offsetting can be claimed.

The concept emerged from climate science showing that to limit global warming to 1.5°C, the world must reach net zero CO₂ emissions by approximately 2050. This means all sectors — energy, transport, industry, agriculture — must transform.

Net Zero vs Carbon Neutral

Net Zero

  • Requires 90%+ actual emissions reduction
  • Only residual emissions can be offset
  • Must use permanent carbon removal
  • Covers all scopes (1, 2, and 3)
  • Aligned with 1.5°C science

Carbon Neutral

  • Can offset 100% without reducing
  • May use any type of carbon credits
  • No requirement for permanence
  • Often only covers Scope 1 and 2
  • Less rigorous standards

How to Achieve Net Zero

1

Measure

Calculate your complete carbon footprint including Scope 1, 2, and 3 emissions

2

Reduce

Cut emissions through energy efficiency, renewable energy, and process changes

3

Remove

Invest in carbon removal for residual emissions (max 10% of baseline)

4

Report

Transparently disclose progress against your net zero target

Net Zero Timeline

2015

Paris Agreement sets net zero goal

195 countries agree to limit warming to 1.5°C, requiring net zero by mid-century

2019

Net zero commitments accelerate

Major companies begin setting science-based net zero targets

2021

SBTi Net Zero Standard launched

First framework defining corporate net zero with credible criteria

2030

Interim targets due

Most companies must halve emissions by 2030 to stay on 1.5°C path

2050

Net zero deadline

Global target for achieving net zero emissions

Frequently Asked Questions

What does net zero mean?

Net zero means achieving a balance between the greenhouse gases emitted into the atmosphere and those removed from it. When emissions produced equal emissions removed, the net result is zero - hence 'net zero'.

What is the difference between net zero and carbon neutral?

Carbon neutral typically means offsetting emissions through carbon credits without necessarily reducing them. Net zero requires actual emissions reductions (usually 90%+) with only residual emissions offset through permanent carbon removal.

When do companies need to reach net zero?

The Paris Agreement aims for global net zero by 2050 to limit warming to 1.5°C. Many companies have set targets for 2030-2050, with SBTi requiring at least 90% emissions reduction before using offsets.

How do you achieve net zero?

Achieving net zero involves: 1) Measuring all emissions (Scope 1, 2, 3), 2) Reducing emissions through efficiency and clean energy, 3) Eliminating emissions where possible, 4) Removing remaining emissions through carbon removal technologies or nature-based solutions.

Start Your Net Zero Journey

ESG PULSE helps you measure emissions, set science-based targets, and track progress toward net zero.