Explained byWBCSD

Understand the concept of Net Zero and what it means for your business

What net zero means for businesses

According to the IPCC, net zero refers to a state in which greenhouse gas (GHGs) entering the atmosphere are balanced by removals pulling GHGs out of the atmosphere and storing them so that they can’t be re-released.

To avert the worst impacts of climate change and preserve a livable planet with below 1.5°C of warming, net zero CO2 emissions must be achieved by 2050. This means that at a global level, nearly all CO2 emissions must be eliminated by 2050 and emissions must be reduced by 50% by 2030 (IPCC) compared to 2019 levels. In addition, deep reductions in non-CO2 emissions are required to limit warming to 1.5°C (IPCC).

Companies have a significant role to play in keeping warming below 1.5°C. A similar path to net zero by 2050 must be followed, led with emissions reduction and relying on removals only where necessary. According to SBTi and in order to limit warming below 1.5°C, businesses must eliminate 90-95% of value-chain emissions by 2050 and neutralize the 5-10% of emissions that cannot be eliminated with permanent carbon removals.

Learn more about removals.