With the impacts of climate change intensifying across the globe, the concept of carbon neutrality has gone mainstream. the term ‘Carbon neutrality’ refers to achieving net zero carbon emissions by balancing the amount of greenhouse gas (GHG) emissions released with an equivalent amount offset or sequestered.
The EPA’s glossary of climate change terms defines carbon neutrality as:
A process where there is no net release of CO2. For example, growing biomass takes CO2 out of the atmosphere, while burning it releases the CO2 again. The process would be carbon neutral if the amount taken out and the amount released were identical. A company or country can also achieve carbon neutrality by means of carbon offsetting.
What Does Net Zero Mean for Business?
Becoming carbon neutral is an important strategy for mitigating global climate change. This beginner’s guide covers the key concepts, steps and best practices companies and individuals can follow to achieve carbon neutrality.
Key Takeaways
- Carbon neutrality means achieving net zero carbon emissions by balancing emissions with carbon removal.
- The carbon footprint measures the total greenhouse gas emissions caused directly and indirectly by an individual, organization, event or product.
- Going carbon neutral involves reducing emissions and offsetting remaining emissions through certified carbon credits.
- Individuals, businesses, events and products can all take steps to become carbon neutral.
- Transparency, emissions reductions and high-quality offsets are key to credible carbon neutrality.
The Carbon Footprint
The starting point for any carbon neutrality strategy is to calculate your carbon footprint. This measures the total greenhouse gas emissions caused directly and indirectly by an individual, organization, event, or product.
For individuals, your carbon footprint accounts for emissions from home energy use, transportation, food choices and more. For businesses, it encompasses emissions across operations, supply chains and the full life cycle of products and services.
To become carbon neutral, you first need to understand your biggest sources of emissions in order to prioritize reduction opportunities. Resources like the EPA’s carbon footprint calculator can help both individuals and businesses estimate their footprint.
| Source | Share of Emissions | Reduction Strategies |
| Transportation | 30% | Drive electric vehicles, use public transit, bike and walk more |
| Food | 15% | Eat less meat and dairy, choose local foods |
| Home energy | 12% | Improve efficiency, install solar panels |
| Air travel | 11% | Fly less frequently, opt for direct flights |
| Consumer goods | 11% | Buy less and reuse, choose eco-friendly brands |
This step-by-step guide outlines best practices for calculating your carbon footprint accurately.
Scope 1, 2 and 3 Emissions
Assessing a company’s carbon footprint involves categorizing emissions into three categories or “Scopes” according to the Greenhouse Gas Protocol:
- Scope 1: Direct emissions from company owned and controlled sources like vehicles and manufacturing.
- Scope 2: Indirect emissions from purchased energy generated off-site like electricity, steam and heating.
- Scope 3: All other indirect emissions from activities upstream and downstream of the company’s operations. This includes emissions from raw materials, transportation, distribution, investments, employee commuting and product use.
While Scope 1 and 2 emissions are mandatory to report, Scope 3 emissions often represent the majority of a company’s carbon footprint. Consider retail giant Walmart. Scope 1 and 2 emissions from their operations are around 17 million metric tons CO2e. But Scope 3 emissions from their supply chain and product life cycles total over 400 million metric tons.
That’s why addressing Scope 3 emissions is crucial for companies to achieve true carbon neutrality across their full value chain.
Reducing Emissions
The next step is to implement policies and measures to actively reduce your carbon footprint.
Organizations should look at operational improvements in energy efficiency, sourcing renewable energy, electrifying vehicle fleets, reducing business travel and engaging suppliers to decarbonize.
For individuals, everyday choices around home energy, transportation, diet, shopping and air travel add up to impact footprint reduction.
This top 10 list of ways to shrink your carbon footprint provides easy, practical tips. From lowering your home thermostat to eating less meat, small changes can make a measurable difference.
https://www.youtube.com/watch?v=7rqL3FnYJ5o
Prioritizing emissions reductions is a fundamental part of achieving carbon neutrality in a meaningful, environmentally beneficial way. Offsetting should come after minimizing your footprint as much as current technology and budgets allow.
Offsetting Emissions
Even after reducing emissions in every feasible way, most individuals and organizations will still have residual greenhouse gas emissions that cannot yet be fully eliminated.
These leftover emissions can be offset through the purchase of carbon credits – with each credit typically representing 1 ton of CO2e emissions reduced or removed from the atmosphere.
Credits are generated from activities like:
- Forestry conservation and tree planting
- Renewable energy like solar or wind farms
- Methane capture from landfills or animal waste
- Energy efficiency retrofits in low-income communities
Each offset credit is verified through a rigorous certification process. Credits should only come from projects that prove additionality, meaning the emissions reductions would not have happened without the funding from credit purchases.
The EPA’s overview of renewable energy certificates provides more on how these credits are verified and tracked.
Choosing high-quality offsets from reputable providers is crucial to ensure your credits genuinely represent emissions reductions. This buying guide for carbon offsets covers what to look for. Here is Part 2 of the 3,000 word article on “Demystifying Carbon Neutrality: A Beginner’s Guide”:
Going Carbon Neutral: Individuals and Households
Becoming carbon neutral may sound daunting, but individuals and households can take simple, impactful steps to achieve it.
The first priority is to calculate your carbon footprint using an online calculator. This will reveal your biggest emission sources like home energy, transportation, food and air travel.
You can then target high footprint areas with lifestyle changes and upgrades:
- Install solar panels or purchase green power for your home
- Improve insulation, seal air leaks, and purchase energy efficient appliances
- Drive an EV or hybrid vehicle and walk, bike and use public transport more
- Reduce meat consumption and food waste
- Buy sustainable products and advocate for change
https://www.youtube.com/watch?v=TY5EI07rPEg
After minimizing emissions through your daily choices, you can offset the remainder through a carbon offset provider. Look for one that supports projects with social and environmental co-benefits.
This guide on carbon offset sources for individuals compares different offset providers for households.
| Action | Emission Reduction |
| 1 year as a vegetarian | 0.8 metric tons CO2e |
| Seal air leaks in home | 0.5 metric tons CO2e |
| Recycle for 1 year | 0.3 metric tons CO2e |
| Change 5 lights to LED | 0.1 metric tons CO2e |
Little changes add up. If enough people take responsibility for their personal carbon footprint, it can catalyze broader societal shifts toward sustainability.
Going Carbon Neutral: Businesses
For companies, carbon neutrality requires a comprehensive, strategic approach across operations.
The starting point is conducting a thorough greenhouse gas inventory following the GHG Protocol to categorize Scope 1, 2 and 3 emissions. This reveals the biggest sources like facilities, fleet vehicles, supply chain, distribution and product life cycles.
Armed with emissions data, companies can establish ambitious reduction targets aligned to climate science, like those validated by the Science Based Targets initiative. Goals to reduce Scope 1 and 2 emissions at least 50% and Scope 3 emissions at least 30% by 2030 put companies on a net zero trajectory.
To meet targets, businesses should implement measures like:
- Energy efficiency retrofits and installing renewable energy
- Electrifying vehicle fleets and reducing business travel
- Engaging suppliers to reduce upstream emissions
- Designing products and services for circularity
Regular reporting and auditing ensures emissions reductions remain on track. Unavoidable residual emissions can be offset through investing in carbon credits. High quality standards like CarbonNeutral certification validate the credibility of offsets.
This guide on the top carbon offset providers for businesses compares different options.
Achieving carbon neutrality requires cross-functional coordination and persistent progress toward long-term decarbonization. But the investment pays dividends in terms of branding, compliance, costs savings and climate impact.
Going Carbon Neutral: Events
Whether it’s a conference, concert, wedding or fundraiser, events of all kinds can achieve carbon neutrality with careful planning.
The first step is to calculate emissions across all event elements:
- Venue energy use
- Attendee travel and lodging
- Catering, food and drink choices
- Waste generation
- Promotional materials, signage and swag
https://www.youtube.com/watch?v=2fzXDFv-OLI
Strategies to minimize the event footprint include:
- Choosing a central, transit-accessible location
- Offering remote participation options
- Using renewable energy at the venue
- Serving plant-based meals with minimal waste
- Providing eco-friendly lodging recommendations
After reducing emissions in every way possible, the remaining footprint can be offset through event-specific carbon credit purchases. Programs like Climate Neutral Certified Events facilitate this process.
This guide on carbon offset platforms for events outlines the best options.
Taking responsibility for event emissions is becoming an expectation. Carbon neutral events demonstrate social and environmental leadership.
Communicating Carbon Neutrality
Meaningful carbon neutrality relies on transparent emissions accounting, ambitious reduction efforts and verified offsets.
Clear communication and third-party validation give credibility to any carbon neutrality claim. This prevents misleading or exploitative “greenwashing.”
Respected standards like PAS 2060 and The CarbonNeutral Protocol outline strict criteria for neutrality across emissions inventories, reductions, offsets, communications and independent auditing. Organizations that achieve certification to these standards can confidently promote their status.
Discover more on the rigorous certifications for carbon neutrality in this overview.
Frequently Asked Questions
What does carbon neutral actually mean?
Carbon neutrality refers to achieving net zero carbon emissions by balancing the amount of carbon released with the amount sequestered or offset.
Do carbon offsets really work?
High-quality offsets that follow established standards truly represent emissions reductions. But low-quality offsets don’t result in a real climate benefit.
How much does it cost to go carbon neutral?
For individuals, expect to pay around $10-$20 per metric ton of CO2e emissions offset. For companies, average offset prices range from $5-$15 per ton depending on project types and purchase volumes.
What are the benefits of carbon neutrality?
Benefits include environmental leadership, enhanced brand reputation, regulatory compliance, risk mitigation, cost savings and sustainability impact.
How can I get started on being carbon neutral?
Start by calculating your carbon footprint. Then implement reductions through efficiency, renewable energy, travel changes and other measures. Offset remaining emissions through a verified provider.
