What is Net Zero?
A plain-English explanation of what net zero means, how it differs from carbon neutrality, and what a credible net zero commitment looks like for a small business.
Key Takeaways
- Net zero means reducing emissions as far as possible and balancing any remainder with verified carbon removals.
- Net zero is more rigorous than carbon neutrality, which allows more reliance on offsets.
- A credible net zero target includes a clear reduction pathway, not just offset purchases.
What net zero actually means
Net zero means that the greenhouse gases your business emits into the atmosphere are balanced by an equivalent amount being removed. The key word is 'net' — it does not mean zero emissions, but it does require getting emissions as close to zero as possible through genuine reductions, with only residual hard-to-abate emissions balanced by high-quality carbon removals. The UK government has a legally binding net zero target for 2050. Many businesses are setting their own targets aligned with science-based pathways that require significant emissions cuts well before 2050.
Net zero vs carbon neutral
Carbon neutrality and net zero are often used interchangeably but they differ in rigour. Carbon neutral typically means purchasing enough carbon offsets to balance your current emissions — without necessarily reducing them. Net zero, as defined by frameworks like the Science Based Targets initiative (SBTi), requires deep actual reductions (typically 90%+) before any use of offsets or removals. 'Net zero' claims backed only by cheap offset purchases are increasingly challenged as greenwashing. A credible net zero commitment must include a documented reduction pathway with interim targets.
What a credible SME net zero commitment looks like
A credible net zero commitment for an SME includes: a measured baseline carbon footprint; a written reduction plan with specific actions and timelines; science-aligned interim targets (e.g. 50% reduction by 2030); and a clear policy on offsets — using high-quality, permanent removals only for genuinely residual emissions. The SME Climate Hub offers a free commitment platform and guidance. Joining it and publishing your plan, even if modest, signals serious intent to customers and investors. Avoid declaring net zero without the supporting reduction evidence, as this carries reputational and regulatory risk.