Net Zero: The Complex Subject we are all Expected to Know Without Being Taught.
Date Posted:Fri, 17th Oct 2025
In today’s business world, terms like net zero, carbon footprint, and Scope 1, 2, and 3 emissions are becoming unavoidable. Whether you’re responding to new client requirements, investor scrutiny, or regulatory shifts, or simply want to do the right thing: understanding what “net zero” really means is your essential first step.
But here’s the truth:
- You can’t reduce what you haven’t measured.
- You can’t build a roadmap without a baseline.
- Waiting to baseline can make reaching net zero harder.
So before you make promises or publish targets, you need to know your numbers. That’s where carbon baselining comes in - and where your net zero journey begins, no matter what you may be already doing.
What Does Net Zero Really Mean?
“Net zero” is not just a rebrand of “carbon neutral.”
Under the Science Based Targets initiative (SBTi), net zero is a science-aligned end goal - one that requires deep, permanent emissions cuts before any offsetting takes place.
Here’s the key difference:
- Carbon neutral: You can offset 100% of your current emissions with credible, verified carbon credits. This minimises your impact now, but doesn’t necessarily mean your emissions have been reduced.
- Net zero: You have reduced your absolute emissions by at least 90% from your baseline across your operations and value chain. Only the final 10% or less - the truly unavoidable emissions - are balanced with high-quality, permanent carbon removal. It’s not an overnight badge. Achieving it is a multi-year process requiring:
1. ✅ Systematic emissions reduction
2. ✅ Verified data and transparent reporting
3. ✅ Collaboration across your supply chain - because your net zero is only credible if your suppliers are aligned too
And increasingly, this isn’t a “nice to have.” It’s fast becoming a business expectation in tenders, ESG reporting, and investment decisions.
Why Your Baseline Matters
Your carbon baseline is the foundation for your net zero plan. It’s a snapshot of your emissions in a single year - ideally the most recent full year available.
Think of it like this:
- If net zero is your destination, then the baseline is your starting point on the map.
- The end point being measured against this baseline. All the baseline emissions being removed bar the final 10% which may be deemed unavoidable if applicable.
- Without the baseline, you can't set meaningful reduction targets, track progress, or report credibly.
A robust baseline gives you:
✅ Clarity on where your emissions come from
✅ A benchmark to measure real progress
✅ The confidence to set targets that align with international standards (like SBTi)
And if you're working with clients in supply chains, or responding to tenders - an independently verified baseline builds trust and competitive advantage.
What Are Scope 1, 2, and 3 Emissions?
Understanding your emissions starts with recognising where they come from:
Scope 1: Direct emissions
These come from sources you own or control directly. Think: company vehicles, onsite fuel combustion (e.g. boilers, generators), or emissions from manufacturing processes.
Scope 2: Indirect emissions from purchased energy
These are emissions from the electricity, steam, or heating and cooling you purchase and use.
Scope 3: Value chain emissions (indirect)
This is the largest and most complex category. It includes emissions from:
- Your suppliers
- Business travel
- Product distribution
- Waste and disposal
- The use of products you sell
Scope 3 often makes up 70–90% of a company’s total emissions, and it’s increasingly under scrutiny from clients, regulators, and investors to report upon. A business has to know these emissions if they are to achieve net zero.
Why Act Now?
If your business is planning to set a net zero target by 2030, 2040 or 2050 - you need to establish your baseline now. Why?
- You’ll need at least 3 years of historical reporting to show credible progress.
- Many industry certifications and ESG frameworks require a baseline year as early as possible.
- Waiting means you’ll fall behind on regulatory and market expectations - and lose out on competitive opportunities.
Net Zero: The Complex Subject We’re All Expected to Know Without Being Taught
In business today, net zero isn’t just a buzzword, it’s fast becoming a baseline expectation from clients, investors, regulators, and even your own employees. Yet for many, it’s still a concept shrouded in confusion.
That’s why we’ve created our new 8-part series to break it down, from understanding your carbon footprint and Scope 1, 2, and 3 emissions, to setting science-based targets and building a credible reduction plan.
Here’s the truth:
1. You can’t reduce what you haven’t measured.
2. You can’t set targets without a baseline.
3. Waiting to start makes your journey harder.
Your carbon baseline marks the starting point of your net zero journey. It’s a clear snapshot of your emissions in a single year, giving you the data you need to:
✅ Understand your biggest emission sources
✅ Set realistic, science-aligned targets
✅ Build credibility with stakeholders
And with Scope 3 emissions (from suppliers, travel, waste, and product use) often making up 70–90% of total impact, this is no longer something you can ignore.
Why act now?
Starting early ensures you have the historical data needed to prove progress, and keeps you ahead of changing regulations and market demands.
Your net zero journey starts here.