Carbon neutral

Carbon neutral is a claim about a specific period, typically a year. You measure your footprint, reduce what you can, and then offset the rest. It is often confused with net zero, but the two are different. Net zero requires deep cuts first, with only a small residual balanced by permanent removals. Carbon neutrality can be achieved today, mostly through offsets.

What it means for a small business

Carbon neutral claims have become harder to make well. In the UK, PAS 2060 was the usual standard, but it was withdrawn at the end of 2025. Its replacement is the international ISO standard for carbon neutrality, ISO 14068, which puts more weight on reducing emissions before offsetting and on how claims are worded.

The bigger risk is consumer law. Claims like “carbon neutral” or “climate positive” must be accurate and backed by evidence, and the Competition and Markets Authority has had direct powers to fine businesses for misleading claims since April 2025. Its Green Claims Code is the place to start.

For most small businesses, it is safer and more convincing to say what you have measured, what you are cutting and what you have offset, rather than making a single headline claim.

An example

A café measures its footprint at 18 tCO2e for the year, cuts energy use by 10% and buys verified credits to cover the remainder. Instead of “we’re carbon neutral”, it writes: “We measured our 2026 footprint at 18 tCO2e using UK government factors, reduced energy use by 10%, and offset the remaining emissions through [named scheme].”

How ESG Now handles it

The ESG Now report measures your footprint and shows exactly what is included and excluded, which is the evidence any carbon neutral claim needs. It does not certify carbon neutrality or sell offsets. Read carbon neutral vs net zero for a fuller comparison, or start your free report.