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Net zero
Sustainability glossary · Carbon and climate

Net zero

Carbon neutrality

Definition

Net zero is the state in which greenhouse gas emissions are reduced as far as possible and the small residual remainder is balanced by permanent removals of CO2 from the atmosphere. At company level, it means deep cuts across the whole value chain first.

Under the SBTi Corporate Net-Zero Standard, a company reaches net zero by cutting its emissions across scopes 1, 2 and 3 in line with a 1.5°C pathway, usually by around 90% by 2050, then neutralizing what remains with carbon removals.

Net zero is a long-term target, not a claim about a product today. Since September 27, 2026, EU consumer law bans claims that a product has a neutral, reduced or positive climate impact when they rely on carbon offsets. ISO 14068-1 (2023) sets requirements for carbon neutrality claims that stand up to scrutiny.

Go further

  • Carbon neutrality, net zero and offsetting: avoiding greenwashing→

Related terms

SBTiCarbon offsettingClimate transition planGreenwashing
Last reviewed October 6, 2026← Back to the glossary

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