Carbon Neutral vs. Net Zero

Keep Your Goals Ambitious and Your Terminology Clear

In the face of climate change, many companies are making an effort to reduce their carbon emissions and embrace other measures that contribute to greater corporate responsibility around the environment. At Burlodge, we’ve decided to formalize our commitment to these ideals by becoming operationally Carbon Neutral by the end of 2022. It’s an ambitious target, but we think that for change to occur, companies across the world must genuinely commit to a program and real goals.

In a previous article (published on 17 March), we mapped out how carbon emissions tied to a company are sorted by Scopes 1 – 3. In effect, Scope 1 emissions are company owned and controlled emissions. Scope 2 emissions are effectively owned by the company but are purchased from another provider (energy purchases are the most common example). And finally, Scope 3 are all the indirect emissions that affect the company, both from upstream and downstream activities. This amounts to an extensive list and it's where most emissions reside. ?

Say What You Mean

Within this movement towards Carbon Neutrality, it’s important to distinguish between the terminology commonly used to describe the goals or achievements that a company pursues. To claim to be “Carbon Neutral” means the carbon produced by a company can be measured and tracked. Through reduction activities within the business and the purchase of carbon offsets, the company can achieve a carbon neutral status. The phrasing is clear.

“Net Zero” is far more stringent in scope. It’s important to be clear, because as terms like these become more commonly used, there is the tendency for them to be misrepresented or used in an unintended manner by companies. Or equally problematic, used interchangeably. This is where it’s important to make distinctions between the standards established by Carbon Neutral and Net Zero. ?

In this case, Net Zero refers to reducing the carbon emissions across the company’s entire value chain. It factors in the emissions of suppliers and other supports that all feed into the production of our goods (link back to the Scope 3 standards of upstream and downstream activities). They are not owned or controlled by the reporting company. This is not only a tall order, but it requires all companies in the value chain to comply with these standards.

In short, Net Zero envisions the momentum of change occurring steadily as more companies take that initial step of first achieving Carbon Neutrality. On principle, we believe Carbon Neutrality is the responsible direction for Burlodge. It requires change, which isn’t necessarily easy from both a production standpoint, as well as convincing personnel to embrace the movement.

Carbon Neutrality and Net Zero are mutually admirable goals but be sure to keep each phrase in its intended lane. Making a claim of one when actually meaning the other can put a company’s reputation in jeopardy, even when its overall intention is to enact positive change.

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