For a company or business, achieving net-zero implies reducing greenhouse gas emissions in line with a trajectory of +1.5°C (set by the Paris Agreement) and removing an amount of CO2 equivalent to the residual emissions of the specified period.

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In October 2021, SBTi’s net-zero standard for companies came out with the goal of providing a reliable assessment and communication methodology.

People often confuse the concept of net-zero with carbon (or climate) neutrality, which is achieved when all residual anthropogenic greenhouse gas emissions are compensated by an equal amount of reduced, avoided or removed emissions within a given time horizon. It is clear that carbon neutrality is an intermediate (or short-term) objective to ensure that corporate efforts are consistent with the achievement of the net-zero target in the medium-long term.

In particular, the concept of carbon / climate neutrality is outdated and does not represent a best practice in terms of climate strategy: this is because it leaves room for interpretation on the need to reduce emissions before compensation and on the quality of credits used for compensation. It is therefore preferable to commit to financing climate action beyond the supply chain, integrating this activity into a pathway of reducing emissions in line with the Paris Agreement, toward a long-term net-zero goal. Aiming for net-zero through a strategy that includes emissions reductions and climate action financing is currently the approach that is consistent with international standards, an approach that is certainly more credible from a communication perspective as well.


Why should you rely on Carbonsink?

Your company will find expertise, experience and professionalism in all phases of the climate journey aimed at achieving the net-zero target. The journey encompasses not only the definition and subsequent submission of the target to SBTi, but also the measurement of the carbon footprint and climate risks, the definition of the reduction strategy and the choice of climate action financing projects. This path will give the company strategy absolute credibility and align it with international best practices.

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