Net zero: what net zero emissions mean and how to achieve them

Net zero, or net zero emissions, is the state in which an organisation reduces its greenhouse gas emissions as far as possible and neutralises what it cannot eliminate (the residual emissions) through permanent carbon removals, so that the net balance between what it emits and what it takes out of the atmosphere is zero.

The key lies in the order: emissions are cut deeply first, and only what remains is compensated at the end. Reaching net zero is not the same as declaring yourself carbon neutral by buying offsets. According to the reference standard, the SBTi Corporate Net-Zero Standard, net zero requires cutting scope 1, 2 and 3 emissions to zero or to a residual level consistent with the eligible net-zero pathways, with the long-term target set for 2050 at the latest, and neutralising only that residue with permanent removals.

What net zero is

Net zero is reached when the emissions a company still releases into the atmosphere are balanced by an equivalent amount of carbon dioxide removed permanently. The underlying idea is simple: neutralising the impact on paper is not enough, you have to genuinely reduce emissions at source and reserve neutralisation only for those that, with the available technology, cannot be eliminated.

That is why net zero is associated with a real, verifiable decarbonisation pathway rather than a mere label. The phrase that sums up this philosophy is "less net, more zero": the priority is to bring gross emissions close to zero, not to dress up the result with credits.

Net zero versus carbon neutrality

Net zero and climate neutrality are often used as synonyms, but it is worth distinguishing two concepts that in practice demand different levels of ambition. Carbon neutrality, as it has historically been understood and as set out in the ISO 14068-1 standard, allows a greater weight for emissions offsetting: a company can declare itself neutral by offsetting much of its footprint with credits, without having first cut its emissions drastically.

Net zero, by contrast, requires deep reductions as a precondition and only allows the small residual percentage to be neutralised with permanent removals. In other words: every net zero organisation is carbon neutral, but not every carbon neutral organisation meets the requirements of net zero.

The hierarchy: measure, reduce, remove and offset

Reaching net zero follows a logical order that no shortcut can skip. It is the same mitigation hierarchy set out in the ISO 14068-1:2023 standard: first reduce within the organisation's boundary, then enhance removals within that boundary and, only as a last resort, offset the residual emissions.

1. Measure

It all starts with knowing the baseline. Calculating the full carbon footprint, by scope and with traceable emission factors, is the basis on which any credible target is built. Without rigorous measurement you cannot set a goal or check progress.

2. Reduce

This is the decisive phase and the one that weighs most. It means cutting emissions at source: energy efficiency, renewable electricity, process electrification, fleet changes, product redesign and working with suppliers on the value chain. Reduction is not bought, it is done, and under net zero it is what has to bring gross emissions down to their residual level. You can see how it is approached in our guide to the decarbonisation strategy.

3. Remove

For the residual emissions that cannot be eliminated, carbon removal comes into play: taking CO2 out of the atmosphere and storing it permanently, whether through natural carbon sinks or technological solutions. Removals are a complement to reduction, never a substitute.

4. Offset

Offsetting through carbon credits comes last and only makes sense once feasible reductions have been exhausted. It is worth distinguishing between avoidance credits (which prevent emissions elsewhere) and removal credits (which take out carbon already emitted): for net zero, the residue must be covered with permanent removals, not just avoidance.

The SBTi Corporate Net-Zero Standard

The Science Based Targets initiative (SBTi) is the global reference for defining corporate targets aligned with science. On 11 June 2026 it published version 2.0 of its Corporate Net-Zero Standard, which sets the requirements a company must meet to credibly claim it is pursuing net zero.

The standard requires combining short-term targets, for this decade, with long-term targets set for 2050 at the latest, and cutting scope 1, 2 and 3 emissions to zero or to the residual level set by the applicable net-zero pathway. Only then are the residual emissions remaining in the target year neutralised with permanent carbon removals. Version 2.0 replaces the fixed reduction percentage used by the previous version with pathways by scope, asks for separate scope 1, scope 2 and scope 3 targets, and introduces a categorisation of companies (category A and category B, by size and geography) with differentiated requirements. New validations will follow version 2.0 from 2027, and companies that already hold validated targets move across at their next review.

Setting targets in line with this methodology is what turns an intention into an auditable commitment. We explain it in detail in the article on how to set decarbonisation targets aligned with the Paris Agreement.

The role of removals

No organisation can bring its gross emissions exactly to zero: there are always hard-to-decarbonise processes. That residue is addressed through removals, which take out and store carbon durably. The difference from a simple avoidance offset matters: avoiding someone else's emission does not remove the CO2 the company has actually released, whereas a permanent removal does take it out of the atmosphere.

That is why net zero prioritises permanent removals to close the balance, placing them as the final complement to a reduction that has already done most of the work. A company that went further and removed more carbon than it emits would reach a carbon negative state.

Timelines: net zero by 2050

The reference horizon is global net zero by 2050, consistent with limiting warming to 1.5 °C above pre-industrial levels, the central goal of the Paris Agreement. At company level, that collective goal translates into two layers of targets: short-term targets that require reducing now, during this decade, and long-term targets that set net zero for 2050 at the latest.

Working with both timelines avoids the risk of postponing all the effort to a distant future. The bulk of the reduction must happen in the coming years, not be saved for the end of the period. Turning that double horizon into concrete actions is the job of a good carbon footprint reduction plan.

Frequently asked questions

Are net zero and carbon neutrality the same?

Not exactly. Carbon neutrality can be reached by giving offsetting a significant weight, whereas net zero first requires deep cuts in scope 1, 2 and 3 emissions down to the residual level set by the applicable pathway, and only neutralises that residue with permanent removals. Every net zero company is carbon neutral, but not the other way round.

Can I achieve net zero with offsets alone?

No. Offsetting comes last in the hierarchy and only covers the unavoidable residual emissions left after reducing as much as possible. A net zero based mainly on buying credits, without real reductions, does not meet the SBTi criteria and edges close to greenwashing.

By when does net zero have to be reached?

The global goal is to reach net zero by 2050, in line with limiting warming to 1.5 °C. Companies set short-term targets for this decade and long-term targets with a 2050 deadline at the latest, so that the bulk of the reduction happens as soon as possible.

Start measuring to reach net zero

The first step towards net zero is always the same: measuring the carbon footprint to know how much you emit and where. With Manglai's carbon footprint software you can calculate your footprint by scope, define science-based reduction targets and chart the path to net zero emissions.