Carbon Neutral vs Net Zero: What’s the Difference for SMEs?

Your tender document asks if you have a "Net Zero Plan". Or maybe they ask if you are "Carbon Neutral". Are they the same thing?

Carbon Neutral

Generally means you have measured your emissions and purchased "offsets" (like tree planting credits) to cancel them out. It is a math equation: Emissions - Offsets = Neutral.

Net Zero

This is harder. It means you have reduced your absolute emissions as close to zero as possible (e.g., switching to electric vehicles, solar power) before offsetting the tiny remainder. It is a long-term transition.

What should you do?

Don't panic. Most tenders just want to see you are on the journey. Step 1 is always measurement. You cannot be neutral or net zero if you don't know your starting number.