Carbon neutral

    ESG & Governance

    A claim that a company's or product's emissions have been fully balanced, usually by buying carbon offsets.

    Carbon neutral is a weaker claim than net zero. A company can call itself carbon neutral by buying enough offsets to match its emissions, even if its own emissions are not falling. The claim often covers only Scope 1 and 2. Under India's 2024 consumer greenwashing guidelines, environmental claims of this kind need supporting evidence. Always check what the claim covers, how much depends on offsets, and how good those offsets are.

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