Net zero means reducing greenhouse gas emissions across Scope 1, 2, and 3 as close to zero as possible — typically by 90% or more — and then balancing any residual emissions through permanent atmospheric carbon removals. It is distinct from carbon neutral, which can be achieved largely through offsetting without deep operational reductions.
The most widely accepted definition comes from the Science Based Targets initiative (SBTi) Corporate Net-Zero Standard, which requires near-term and long-term science-based reduction targets aligned with limiting warming to 1.5°C.
Why it matters
Net zero is now embedded in UK law (Climate Change Act 2008, as amended) and in public procurement requirements such as PPN 006, which requires suppliers to commit to net zero by 2050 or sooner. Customers, investors, and tender bodies increasingly distinguish between credible net-zero commitments and weaker carbon-neutral claims.
Crucially, a net-zero commitment is meaningful only if it is paired with a measurable baseline, year-on-year tracking, and a transparent reduction pathway. A target without a footprint is not a plan.
A practical example
A UK manufacturer commits to net zero by 2045. To make the commitment credible, it establishes a baseline footprint covering Scope 1, 2, and material Scope 3 categories; sets interim targets (e.g., 50% reduction by 2030 versus baseline); and publishes annual progress against those targets in a Carbon Reduction Plan.
We support net-zero commitments by establishing the baseline measurement that makes them defensible. See how on the methodology page.