Net Zero Emissions

Net Zero Emissions means that the amount of greenhouse gases emitted is completely neutralized through measures such as emissions reductions and offsetting unavoidable emissions. The aim is not to release any additional greenhouse gases into the atmosphere.

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Net Zero Emissions, often simply referred to as “Net Zero,” describes the state in which a balance is reached between greenhouse gases emitted and removed from the atmosphere. This can happen at company, country or global level and is an essential part of international climate protection goals such as Paris Agreement.

To achieve Net Zero, companies and countries are pursuing a Three phase strategy:

1. Reducing emissions:
   Minimize direct and indirect emissions in scope 1, scope 2 and scope 3. This includes, for example, the use of renewable energy, energy efficiency measures and the transition to low-emission technologies.
2. Avoiding emissions:
   Substitution of climate-damaging processes and materials, e.g. through sustainable supply chains or the use of low-carbon raw materials.
3. Compensation for unavoidable emissions:
   Offsetting remaining emissions by investing in climate protection projects such as reforestation, carbon capture and storage technologies (CCS) or the purchase of emission certificates.

Net Zero differs from climate neutrality by focusing on actual emissions reductions along the entire value chain rather than just on compensation. It also requires a long-term strategy and compliance with science-based targets (SBTs).

Manufacturing companies are faced with the challenge of achieving net-zero goals as they are increasingly affected by regulations such as CSRD, who EU taxonomy and the Carbon Border Adjustment Mechanism (CBAM) are required. Net Zero is not only an ecological goal, but also a competitive criterion that is increasingly being demanded by investors, customers and authorities.