What is Net Zero?

03 June 2022

Net zero is a nuanced and complex topic, but in straightforward terms, it means a world in which GHGs have been reduced to a minimum – and remaining emissions removed from the atmosphere.

To achieve this, an organization must:

  • Reduce: plan a trajectory to reduce emissions across their entire value chain. Set a net zero target year based on science, with interim milestones on how to get there, all consistent with a 1.5ºC mitigation pathway. This means that, in addition to a longer term target to reach net zero emissions, they must also have a short-term target to reduce emissions in the next 5-10 years, in line with science.
  • Compensate: become climate neutral by financing projects beyond direct corporate value chains to further avoid and remove emissions
  • Neutralize: once emissions have been reduced to close to zero levels, eradicate unavoidable residual emissions with carbon removals to achieve and claim net zero.

By supporting climate projects around the world, companies can achieve the interim milestone of climate neutrality while transitioning towards net zero.

The Gold level of the CO2Neutral Label is aligned with Net Zero pathway.

Learn more about climate neutrality and net zero.