By: Emma Abrams
You may have seen companies make claims about being carbon neutral or on track to be ‘net-zero’. That sounds great, but what does it mean? And how do companies get there?
The Intergovernmental Panel on Climate Change (IPCC) is clear that we must reach net-zero emissions by 2050 to limit global warming to 1.5°C and avoid the most catastrophic impacts of climate change. Companies achieving both carbon neutrality and net-zero emissions will be key to achieve this goal.
Carbon neutral means that all carbon dioxide released into the atmosphere is balanced out by an equal amount of carbon dioxide being removed through carbon sinks. Carbon neutrality relies heavily on carbon offsets to compensate for emissions. The Science Based Targets initiative (SBTi) explains that, “In general, when companies claim carbon neutrality they are counterbalancing CO2 emissions with carbon offsets without necessarily having reduced emissions”. Due to this, ‘carbon neutral’ is only a short-term solution in the path to net-zero.
The UN says that “net zero means cutting greenhouse gas emissions to as close to zero as possible, with any remaining emissions re-absorbed from the atmosphere”. Ideally, no emissions are emitted at all, so nothing will need to be captured or offset. For example, a building that exclusively relies on solar power and not fossil fuels is ‘net-zero’.
Net-zero emissions include all greenhouse gasses, not just carbon dioxide. The term is often used to refer to goals for a whole country, or even the whole planet. So far, 150 countries have commitments to net-zero, as well as 952 of the world’s 2,000 largest companies.
Companies hoping to become carbon neutral or net-zero must first measure their scope 1, 2 and 3 emissions. Then they can identify where they can reduce emissions and buy credible offsets to compensate for the rest. The Oxford Principles for Net Zero Aligned Carbon Offsetting recommend that companies with net-zero targets prioritize reducing their own emissions, which will minimize the amount of offsets needed.
There are many certifications and pledges companies can take on to show their customers they are committed to a net-zero emissions future. Emerger Strategies is now an Open Certification provider for Climate Neutral, a trusted, independent standard for climate neutrality. Certified Climate Neutral brands must commit to reducing their future emissions and offsetting all current emissions, allowing companies to achieve carbon neutrality by compensating for emissions and taking steps towards net-zero.
Another pledge companies can take is through SBTi. Companies can set a Science Based Target that aligns with limiting global warming to 1.5°C, consistent with reaching net-zero by 2050. SBTi explains that setting science based targets help companies increase brand reputation, investor confidence and bottom-line savings. These pledges are also good for consumers, as they can easily make informed decisions.
Does your company want to set their own Science Based Target, or take the first steps to becoming carbon neutral? Since 2016, we’ve helped companies along every step of their sustainability journeys. Learn more about our Sustainability Consulting services or contact us today!
Emma is our 2023 Summer Sustainability Intern, and a sophomore at the University of Delaware, where she is majoring in Environmental and Natural Resource Economics. She spent her first semester studying in Auckland, New Zealand. While an avid world traveler, the lowcountry will always be home; She grew up swimming and tossing cast nets in the creeks around Charleston and Edisto, and her love for this environment drives her passion for sustainability. Emma has long been involved in environmental activism, and now hopes to make a career in protecting the ecosystems and communities she cares about. With experience in advocacy, research, data analysis and a healthy dose of optimism, she hopes to bring a fresh perspective and new solutions to the environmental field. Emma is excited to be working with Emerger Strategies to help Charleston create a greener future.