Skip to main content
All CollectionsAbout climate change for businessesWhat are the key concepts I need to know?
What’s the difference between ‘Carbon Neutral’ and ‘Net Zero’?
What’s the difference between ‘Carbon Neutral’ and ‘Net Zero’?
Jordan Edrich avatar
Written by Jordan Edrich
Updated over a week ago

Net Zero (as validated by the SBTi) is a more ambitious target state than Carbon Neutral (as validated under the ISO standard and PAS 2060).

Broadly there are four key differences to note.

  1. Boundary (how many scopes are included) - The boundary of a net zero target includes global scope 1, 2 and 3 emissions of the organisation, whereas carbon neutrality for an organisation only requires scope 1 and 2, with scope 3 emissions encouraged but not mandatory (although this is not the case for SMEs when it comes to SBTi.)

  2. Boundary (is it a product or service?) - The boundary of a carbon neutral claim can refer to a specific product or service, instead of encompassing the whole organisation in the case of net zero.

  3. The reduction in reported emissions required differs. Net zero targets must align to a 1.5°C science-based target, whereas the level of ambition of a carbon management plan for carbon neutrality is not specified.

  4. The approach to dealing with residual emissions differs. Specific greenhouse gas removals required for net zero targets, whereas carbon offsets are accepted for carbon neutrality.

Useful links:

Did this answer your question?