Net Zero isn’t the target, it’s a necessity.

At its core, Net Zero refers to a state of equilibrium. It’s achieved when the amount of carbon emitted into the atmosphere equals the amount removed from it.

To understand what Net Zero is, think of it like a hanging balance. On one side, you place 1 kg of apples (carbon emissions). On the other side, you place a 1 kg standard weight (carbon removal). When both sides are equal, the scale is balanced. That’s what Net Zero means: emissions and removals in perfect harmony.

Let’s say there was a malfunction, and the scale tips toward the apples. In that case, you either pay more, or get less than what you expected. That’s a loss.

The same principle applies to Net Zero. When emissions outweigh reductions, we lose balance, and that puts us all at catastrophic risk.

Let’s dive into the story of how Net Zero came to be.

It was the Intergovernmental Panel on Climate Change (IPCC) that first emphasised the need to stabilise greenhouse gas concentrations in the early 1990s, laying essential groundwork for the concept of Net Zero to develop. Although the Paris Agreement of 2015 did not mention the term Net Zero, it called for achieving “a balance between anthropogenic emissions by sources and removals by sinks of greenhouse gases” by the second half of this century.

The phrase Net Zero was first introduced in the IPCC Special Report on Global Warming of 1.5°C, published in 2018 - the first authoritative international scientific document to use it.

Following its introduction in 2018, Net Zero then rapidly became a keystone of both climate science and corporate sustainability. Many countries began setting Net Zero targets to stop global warming. Businesses started using Net Zero plans to show they were serious about protecting the planet. Thus, Net Zero became the green path leading us towards a more sustainable future.

When it comes to climate action, Net Zero is the destination, without which we’re merely piling emissions upon emissions.

Net zero, carbon neutrality, and climate neutrality may sound similar, but they are not. Each represents a distinct approach, yet all echo the urgency of tackling emissions and confronting climate change.

Companies aiming for Net Zero focus on deeply cutting emissions across their entire operations and value chain, then offset only what they can’t eliminate – like Microsoft and IKEA. Carbon Neutrality usually means measuring emissions and balancing them by buying carbon offsets without necessarily reducing emissions first, a strategy used by companies like Google. Climate Neutrality takes a wider approach, addressing all greenhouse gases and broader environmental impacts while combining reductions with offsets, as seen with Unilever.

For corporations, clearly distinguishing between Net Zero, carbon neutrality, and climate neutrality is crucial for setting unfailing climate strategies and navigating regulatory requirements.

Unlike what one might hope, the road to achieving Net Zero isn’t a single turn - it’s a gradual journey driven by collaboration, consistency, and transparency.

1. Assessing Current Emissions

Use a standardised approach to measure emissions consistently each year – or even better, every month. It's best to rely on recognized frameworks such as the GHG Protocol or ISO guidelines to ensure credibility.

Scope 1: Direct emissions from sources you own or control

Scope 2: Indirect emissions from electricity, heating, or cooling that your company buys from someone else

Scope 3: All other indirect emissions - including waste generated, business travel, and even emissions from suppliers

Explore a deeper breakdown of Scope 1, 2, and 3 emissions here.

Scope 1: Batch manufacturing records, equipment logs, and vehicle mileage

Scope 2: Energy consumption records

Scope 3: Details about vendors, records of shipments, business travel spending reports, and insights into how products are being used

2. Setting Science-Based Targets

If Net Zero is the big target, then the science-based targets help set the sub-targets that act as a road map.

Science-based targets are aligned with the most up-to-date findings in climate science.

Here’s how it’s typically done:

The Science Based Targets initiative (SBTi) provides a globally recognised framework that helps businesses set greenhouse gas reduction goals grounded in climate science. You can learn more about it here.

3. Implementing Reduction Strategies

While many organisations can discuss and set ambitious sustainability goals, only a few successfully turn those targets into action. The most successful emissions reduction strategies are those embedded into daily activities and the business model.

Let’s look at a few reduction strategies for Scope 1, 2, and 3 emissions.

4. Investing in Carbon Offsetting

Go out and plant a tree, and you’re now a part of carbon offsetting.

No matter your GHG emissions reduction strategies, some emissions will not be reduced - that’s where offsetting comes in. Organisations can offset the environmental effects of their greenhouse gas emissions by contributing to initiatives that either cut down on carbon or capture it. Technologies like Carbon Capture and Storage (CCS) and Direct Air Capture (DAC) remove CO₂ from the atmosphere and store it safely, helping the planet.

But there’s a catch. Environmentalists say that carbon offsets don’t really fix the main issue. And they do have a good point. Carbon offsetting can become a method of buying a way out of problems, instead of finding a real solution. There’s also the risk of double counting and greenwashing, where companies appear more sustainable than they actually are. Ultimately, whether carbon offsetting serves as a meaningful solution or merely a shortcut, depends on how it’s applied – by you, the end user.

One common way to participate in carbon offsetting is through carbon credits. A single carbon credit represents the reduction of one metric ton of CO₂ emissions from the atmosphere. It can be bought or sold between companies that wish to cancel out emissions together - kind of like a chocolate bar you share in exchange for a couple of chips from your buddy.

Though in theory Net Zero might seem easy to achieve, it comes with its own set of challenges.

The three most important challenges are:

1. Insufficient tools – Without the right digital platform, achieving Net Zero becomes overly difficult, even unattainable. This is because of the massive amounts of data generated across all scopes - it’s like trying to navigate a maze without a map.
2. Limited understanding – While many businesses today want to go green, their understanding of sustainability, Net Zero, and evolving regulations, often isn’t deep enough to lead with real success.
3. The complexity of Scope 3 emissions – Scope 3, which we call the king of emissions, involves a massive amount of data - and the reduction measures are just as complex, since they require cooperation from both suppliers and customers across the value chain. What makes it even more challenging is that companies often have limited control over these external actors, yet they’re still held accountable for the emissions.

KarbonWise helps tackle challenges you face on your way forward to Net Zero, by functioning as your strategic consulting arm in responding to climate and regulatory pressures. Our end-to-end solutions are tailored to fit the requirements of your industry.

Successfully moving toward Net Zero emissions involves using a mix of digital tools, data platforms, and established frameworks - such as the GHG Protocol, Science Based Targets initiative (SBTi), and the Task Force on Climate-related Financial Disclosures (TCFD.)

One valuable tool in this space is KarbonWise, a user-friendly platform designed to help businesses measure, manage, and reduce their carbon footprints. Request a free demo to get started on the journey to Net Zero.

Now that what is Net Zero is answered, the urgent question becomes how organisations can transform their operations to meet these critical targets.

Net Zero emissions targets for companies is the need of the hour. It’s the path organisations are moving towards in the near future. While reaching Net Zero by 2030 or 2050 is no small feat, it can be accomplished with consistency.

The future awaits!

1. How to achieve net zero emissions for businesses?

Net Zero can only be attained with proper tools in place and a strategy based on a structured framework. Businesses must start by measuring their full carbon footprint (Scopes 1, 2, and 3), set science-based targets, and implement a clear roadmap that includes emissions reduction, renewable energy adoption, and credible offsetting.

2. What are the steps to become carbon neutral?

To become carbon neutral, a company usually follows these steps:

1. Measure
2. Reduce
3. Offset
4. Report

3. What are carbon credits? 

Carbon credits allow companies to emit a set amount of carbon dioxide legally. If a company can't reduce all its emissions, it can buy credits to support projects like planting trees or clean energy.