Avoiding greenwashing through net zero and carbon neutral certifications
What it means for a product to be 'carbon neutral' is changing. Net zero certifications are being evolved too.
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Since their inception, the definitions of net zero and carbon neutral have often created confusion. Now, a wave of new regulations, standards and protocols are helping to formalise these certifications, creating clearer expectations and accountability for organisations.
The updates have mostly been driven from advertising standards agencies who are recognising that brands can purposefully mislead consumers with unclear or confusing claims and sustainability terminology.
The European Union’s greenwashing regulations
In September 2023, the
to combat greenwashing and enhance consumer confidence in sustainability claims. The new rules prohibit vague or unverifiable statements (including carbon neutral) without substantial evidence. Companies are now required to provide detailed explanations of how they achieve carbon neutrality, including the extent of emission reductions and the role of carbon credits.
The UK’s updated advertising guidance
The UK’s
has also issued updated guidance to address the lack of consensus around carbon neutral and net zero claims. This guidance incorporates principles from the Competition and Markets Authority and focuses on reducing consumer misunderstanding:
Avoid unqualified claims:
As with the EU’s greenwashing regulations, statements like "carbon neutral" or "net zero" must include context or explanatory details to avoid misleading consumers.
Clarify emissions reductions vs offsetting:
Clearly communicate whether claims are based on direct emissions reductions, offsetting, or a combination of both.
Future goals must be credible:
Claims about future carbon neutrality or net zero targets should be supported by verifiable strategies.
Transparency in offsetting:
Provide accessible information about the offsetting schemes being used, ensuring they meet recognised standards.
Prominence of qualifying information:
Ensure critical information is displayed alongside the main claim to enable informed decision-making by consumers.
These recommendations highlight the importance of transparency and evidence-based claims in sustainability communications.
What does net zero mean?
Net zero refers to removing the equal amount of greenhouse gases from the atmosphere as are emitted. This concept applies to entire organisations, industries or nations and requires a comprehensive approach that includes committing to reducing emissions as well as removing or offsetting:
Reduce emissions:
Human-caused emissions, such as those from energy use and transportation, should be minimised as much as possible.
Remove carbon:
Any remaining emissions must be balanced with carbon removal methods, including natural solutions like reforestation or technologies such as direct air capture and storage (DACS).
What are the updates happening around net zero?
Science-Based Targets Initiative (SBTi) Corporate Net-Zero Standard V2.0
The Science-Based Targets initiative (SBTi) has played a key role in setting corporate net zero standards. In its
, the initiative aims to:
Align with the latest scientific insights and global best practices.
Address challenges in setting and implementing Scope 3 targets.
Promote continuous improvement and delivery of targets.
Improve compatibility with other frameworks.
These revisions underscore the importance of measurable, science-aligned goals in achieving net zero.
ISO’s upcoming Net Zero Standard
The International Organization for Standardization (ISO) is developing its first
, set for release in 2025. Based on guidelines published during COP27, the standard is expected to:
Include all relevant greenhouse gases in reduction efforts.
Limit offsets to high-quality, permanent removal projects.
Emphasise circular economy practices, such as materials reuse.
Incorporate both scientific and Indigenous knowledge for decision-making.
What about carbon neutral?
Carbon neutrality is often more narrowly defined than net zero, making it a suitable certification for specific products, services or activities. Unlike net zero, it may apply only to carbon dioxide emissions. Historically, carbon neutral status could be achieved by calculating a footprint and offsetting it - without reduction requirements.
However, we welcome the news that the concept is evolving to place greater emphasis on direct emissions reductions. To transition carbon neutral certification to something more holistic, the organisations behind the certificates are making changes:
The CarbonNeutral Protocol
Updated in 2024, the
which aims to be a globally-recognised standard, outlines a holistic approach:
Define:
Determine whether to certify an entire organisation, product, or specific activity.
Measure:
Calculate total emissions comprehensively.
Set targets:
Commit to near-term, science-aligned reduction goals within a 5-10 year timeframe.
Reduce:
Implement internal reductions and invest in external reduction projects.
Communicate:
Clearly and credibly convey climate action progress to stakeholders.
The Carbon Trust
Interestingly, the
have refined their ‘carbon neutral’ label and are now promoting ‘carbon neutral footprint’ labelling.
To achieve a carbon neutral footprint verification, for a product or an organisation, businesses must have:
A verified footprint which shows a reduction on the previous footprint calculation
A reduction plan, which details how further reductions in the carbon footprint will be achieved
Carbon offsets equivalent to emissions that could not be reduced
The verification is for the ‘cradle to grave’ footprint, which means the entire lifecycle of the product, right the way through to disposal.
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Arguably, the concepts of carbon neutral and net zero have become
more
similar in their requirements, but this isn’t necessarily any
less
confusing. However, we welcome the focus on carbon accounting, science-based target setting and reduction action, alongside offsetting. We would support further development of these certifications to suggest a certain % of offsetting and carbon removal was via nature-based solutions.
Overall, for clarity, a carbon neutral certification best suits a product, process or single event, and net zero is a more appropriate target at an organisational or national level.
As ever, at Earthly, we always suggest that businesses actually go ‘beyond’ net zero or carbon neutral - and support more nature-based carbon removal than their footprint indicates. Our brilliant customers tend to offset 110 - 150% of their carbon.
If you’d like any advice about calculating a carbon footprint, emissions reduction, carbon credits or nature-based solutions -
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