Carbon neutral means balancing the greenhouse gas emissions associated with a defined organisation, product, service or activity so that its net carbon impact is neutral over a specified period.
For a business, this normally starts by defining the emissions that are included and calculating the resulting carbon footprint. The organisation can then identify opportunities to reduce those emissions, such as improving energy efficiency, reducing fossil fuel consumption or changing how goods and services are purchased. Emissions remaining within the defined footprint may then be balanced using eligible carbon credits or other recognised measures.
Carbon neutral does not necessarily mean that a business produces no greenhouse gas emissions. It is therefore important to understand the boundary of a carbon-neutral claim and how it has been achieved.
Businesses making environmental claims should also be able to substantiate them. A claim that an organisation or product is carbon neutral should clearly explain what has been measured, what emissions have been reduced and how any remaining emissions have been addressed.
