With the language used in conversations about the environment and climate change becoming a growing part of everyday life and business, there is surprisingly little clarity on what some of the jargon we often hear actually means.
Two of these terms, carbon neutral and net zero, are often thought to refer to the same thing and are frequently used interchangeably by many in the media, politics and indeed business. However, while there can be some crossover, these terms actually mean two quite different things.
In this article, we look at the differences between carbon neutral and net zero, why it matters and what businesses and individuals that want to have a more positive and sustainable impact on the planet can do to achieve them.
Definition of carbon neutral
Carbon neutral refers to a business or individual taking steps to ensure that they offset the carbon equivalent emissions (CO₂e) that they generate with equivalent activities that reduce or remove CO₂e emissions elsewhere. This is usually done through funding offsetting activities, such as renewable energy projects, regenerative agriculture and forest conservation programs
Definition of net zero
Net zero refers to a business or individual reducing the actual emissions they generate (again including all greenhouse gases, not just CO2) as much as possible (90%), and balancing the remaining percentage of emissions by investing in projects that reduce or remove them. A significant part of achieving net zero is avoiding generating greenhouse gas emissions in the first place through changed operational practices..
Why is it important to differentiate between carbon neutral and net zero?
While there may be some similar activities involved in both becoming carbon neutral and reaching net zero, the latter involves going much further and having a larger contribution to the global efforts to reduce emissions.
Ensuring that the correct terms are used helps to bring clarity to the situation and ensure that businesses are transparent to their customers or clients about what they are doing in the area of sustainability. This can help to avoid potential claims of greenwashing.
Should businesses aim for carbon neutrality or net zero?
The aim for many businesses is to ‘leave no trace’ and essentially do as much as possible to reduce any negative impact that they have on the planet by their operations and partnerships. However, moving towards a more sustainable future is a journey and simply can’t happen overnight for most.
For this reason, many businesses choose to make short, medium and longer-term sustainability goals, with the ultimate aim of reaching net zero, but with other smaller objectives along the way. For lots of businesses, as they take steps towards net zero, they start by aiming first for being carbon neutral, alongside efforts to reduce the emissions that they produce.
Take a look at our article on why businesses should work towards carbon neutrality to find out more.
Businesses are able to become carbon neutral much more quickly when they opt for an approach to reduce their energy use, waste and carbon footprint in general, alongside offsetting activities. It is naturally also more cost-effective if they need to offset less, because their emission levels are already decreasing.
If the business has an ultimate goal to reach net zero, all measures they take to reduce the emissions they generate will help work towards this aim, alongside contributing to the national and global effort.
How businesses can decarbonise to help reach net zero
Every business is unique, so your specific decarbonisation activities and measures will depend on the nature of your organisation, how you operate and what you do. However, we’ve compiled some of the most common areas in which businesses can make changes to reduce the carbon emissions they generate.
Insulate your buildings
If your business owns any buildings, effective insulation will make a big difference to the energy needed to heat or cool the space, which is one of the biggest costs and generators of emissions for many organisations.
Properly maintain heating and cooling equipment
Any heating system used by a business that isn’t well-maintained is likely to be inefficient, which means it’ll be using more energy to achieve the level of operation you need. Regular servicing can make all the difference to a) keep it working as efficiently as possible, which is better for your bank balance and the planet, and b) extend the life of the equipment.
Replace obsolete appliances and equipment with more energy-efficient models
At some point, appliances and equipment that your business uses will come to the end of its useful life and will need to be replaced. Ensuring that you choose more energy-efficient models in their place will gradually help the business to reduce energy use on essential functions, thus reducing the carbon emissions overall. This could also mean looking at alternative technology, such as heat pumps.
Solar PV
The cost of solar PV equipment has come down considerably in recent years, making it a more viable option for many businesses with buildings or land that can utilise this renewable energy source and cut grid energy costs significantly. Payback periods can be as short as a few years, depending on the circumstances.
Along with reducing waste and limiting energy use, choosing to work with partners or a supply chain that are also on the journey towards net zero can play a significant role in shrinking a business’ greenhouse gas emissions.
Offsetting carbon emissions alongside reducing the business’ footprint
With an approach that looks to both reduce the emissions produced by the business at the same time as offsetting the remainder, organisations can make important steps to having a positive impact on the planet, whilst also bringing benefits to the business.
At Switch2Zero, we can help you on your journey toward carbon neutrality and net zero with our range of solutions.
From estimating your business carbon footprint now and providing instant offsetting options alongside ongoing tools to maximise your positive impact, we’re here to help you introduce regenerative practices within your organisation that will make a brighter future for everyone.
Register for free to get started.
