Climate & Emissions

Carbon Neutral A state in which the net carbon dioxide emissions associated with a product, service, or organisation are zero, achieved through a combination of emissions reductions and verified offsetting of residual emissions. The credibility of a carbon neutral claim depends on what is included in the measurement boundary and the quality of any offsets used. This is not net zero and should be used to claim net zero (this is a common mistake we see A LOT).

Net Zero means reducing greenhouse gas emissions across the full value chain to a level consistent with limiting global warming to 1.5°C, with only genuinely residual emissions then removed. Under the Science Based Targets initiative (SBTi) Corporate Net-Zero Standard, companies must achieve at least 90% emissions reductions before any removal-based claim can be made. Net zero is about cutting not compensating.

Scope 1, 2 and 3 Emissions The standard framework for categorising greenhouse gas (GHG) emissions, established by the GHG Protocol:

• Scope 1 — direct emissions from owned or controlled sources (e.g. company vehicles, on-site fuel combustion). See our reporting guide for more info.
• Scope 2 — indirect emissions from purchased energy (electricity, heat, steam). This also includes EV charging/mileage.
• Scope 3 — all other indirect emissions across the value chain, including those from suppliers, business travel, employee commuting, product use, and end-of-life disposal. There are 15 categories – check out our Scope 3 Reporting Guide for help.

Scope 3 is typically the largest share of a company’s footprint and the hardest to measure. It is also increasingly the focus of both regulation and investor scrutiny.

GHG Protocol is the most widely used international accounting standard for measuring and managing greenhouse gas emissions. It provides the methodology behind Scope 1, 2, and 3 categorisation and underpins most corporate carbon reporting frameworks.

Carbon Footprint is the total amount of greenhouse gas emissions (measured in tonnes of carbon dioxide equivalent (CO₂e)) caused directly or indirectly by an individual, organisation, product, or activity over a defined period and boundary.

Streamlined Energy and Carbon Reporting (SECR) is a mandatory UK regulation requiring large companies and LLPs to disclose their annual energy use and greenhouse gas emissions in their Directors’ Report. You need to meet two of three qualifying thresholds: £36m+ turnover, £18m+ balance sheet, or 250+ employees. See our full guide here. 

Science Based Targets (SBTs) Emissions reduction targets that are aligned with the level of decarbonisation required to meet the goals of the Paris Agreement. Targets are validated by the Science Based Targets initiative (SBTi), which provides sector-specific guidance on what constitutes a credible pathway to net zero.

Carbon Offsetting The practice of compensating for greenhouse gas emissions by funding an equivalent reduction or removal of emissions elsewhere. For example, through investment in renewable energy projects, reforestation, or carbon capture. Offsets are increasingly scrutinised for quality, permanence, and additionality, and cannot substitute for genuine emissions reductions under credible net zero frameworks.

Greenwashing means environmental claims that are exaggerated, vague, or unsupported by evidence. Greenwashing is not always deliberate; it often results from teams not understanding the language. Under EU Directive 2024/825 (the ECGT), certain categories of unsubstantiated green claims constitute an unfair commercial practice. See our overview on the EU’s Empowering Consumers for the Green Transition.  

Just Transition The principle that the shift to a low-carbon economy should be fair and inclusive, protecting workers and communities, and ensuring that the costs and benefits of decarbonisation are distributed equitably.