Carbon neutral means that the total sum of emissions generated by an entity are offset, through means of reducing them or by compensating for them through various offsetting or emissions absorption projects.
To qualify as carbon neutral, a business or organization has to also take into account emissions generated by its suppliers, as well as emissions generated by the use of their product or service. Carbon neutrality can be achieved first through a carbon assessment which calculates your carbon footprint. Then, after taking the necessary carbon management reduction actions, a company can begin exploring the possibilities for offsetting their remaining emissions.
It is important to distinguish carbon neutral from Net Zero, two terms which can be easily confused:
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