When a company talks about being carbon neutral, it means that the company balances out the amount of carbon dioxide (CO2) emissions it produces by reducing its emissions as much as possible and then offsetting the remaining emissions through various activities. Offsetting typically involves investing in carbon reduction projects such as reforestation, renewable energy, or carbon capture to counteract the carbon emissions produced by the company's operations. This results in a net zero carbon footprint, where the total emissions released are compensated for by equivalent carbon removal or savings, achieving a balance often called "net-zero emissions" or carbon neutrality.
Explanation of Carbon Neutrality
- Being carbon neutral does not mean a company ceases to emit carbon entirely but rather that it compensates for its emissions through offsets.
- Companies measure their total greenhouse gas emissions, implement strategies to reduce those emissions, and purchase carbon credits or contribute to projects that reduce or absorb carbon to offset what remains.
- This approach is part of a larger commitment to sustainability and climate action, often validated through certifications and standards like PAS 2060 or ISO 14068, which ensure transparency and verifiability of claims.
Common Practices
- Reduce emissions by improving energy efficiency, switching to renewable energy sources (solar, wind, etc.), and changing materials or processes to more sustainable options.
- Offset residual emissions by supporting projects such as reforestation, renewable energy development, or carbon capture initiatives.
- Purchase carbon credits from verified programs that directly contribute to reducing or capturing greenhouse gases elsewhere.
Overall, being carbon neutral means the company operates in a way that the carbon it emits is balanced by the carbon it removes or offsets, resulting in no net increase in atmospheric carbon dioxide from its activities.
