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Charting the path to net-zero for businesses

Net-zero means that a business has reduced the greenhouse gas emissions from its operations and value chain by 90%. This is in line with climate science, limiting global warming to 1.5°C. Any remaining unavoidable emissions (up to 10% of overall company emissions against the base year) are then mitigated by funding carbon removal projects. So, what’s the best way to get there?

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In recent years, net-zero has become a buzzword sweeping through corporate boardrooms, governments, and water cooler conversations. Businesses increasingly want to be part of the solution and take climate action, with net-zero representing the ultimate goal. It’s become a beacon of hope for mitigating the worst impacts of climate change. However, net-zero is also one of the most widely misused terms in the climate space, often used interchangeably with “carbon neutral”, and bolted onto ambitious corporate targets with arbitrary dates and no supporting evidence. 
Much of the confusion stems from the fact that, until recently, there was no universally accepted definition of the term. While carbon neutrality and net-zero are both rooted in balancing human-induced (anthropogenic) emissions, the paths to achieving them are very different. You can check out our<a href="https://ecologi.com/articles/blog/carbon-neutral-vs-net-zero-whats-the-difference" target="_blank" rel="noopener"> blog with more detail on the differences between carbon-neutral and net-zero</a>, and hear why at Ecologi we recommend following a net-zero pathway, and not a carbon neutral one.

Clearing up the confusion with the SBTi Net-Zero Standard

Fortunately, the <a href="https://sciencebasedtargets.org/net-zero" target="_blank" rel="noopener">Science Based Targets initiative (SBTi)</a> has stepped up to clear the confusion in recent years, by publishing the <a href="https://sciencebasedtargets.org/resources/files/Net-Zero-Standard.pdf" target="_blank" rel="noopener">SBTi Net-Zero Standard</a>. In doing so, the SBTi has provided a clear definition of net-zero and shown how businesses can achieve it. 
With a robust framework grounded in climate science, business leaders can now confidently set emissions reduction targets in line with the Paris Agreement and take the climate action necessary to limit global temperature rise to 1.5°C.
Under the <a href="https://sciencebasedtargets.org/resources/files/Net-Zero-Standard.pdf">SBTi Net-Zero Standard</a>, corporate net-zero is defined as: 
<ul>
<li style="font-weight: 400;" aria-level="1">Reducing scope 1, 2, and 3 emissions to zero or to a residual level that is consistent with reaching net-zero emissions at the global or sector level in eligible 1.5°C-aligned pathways </li>
<li style="font-weight: 400;" aria-level="1"> Neutralising any residual emissions at the net-zero target year and any GHG emissions released into the atmosphere thereafter.</li>
</ul>

The process of getting to net-zero for businesses consists of four key elements:
&nbsp;
<ol>
<li>Near-Term Science-Based Targets &#8211; not interchangeable with long-term targets, near-term targets galvanise action and initiate change to make sure that businesses can achieve rapid and significant reductions in emissions (<a href="https://sciencebasedtargets.org/resources/files/Net-Zero-Standard.pdf" target="_blank" rel="noopener">typically 4.2% p.a</a>*) by 2030, in line with climate science.</li>
<li>Long-Term Science-Based Targets &#8211; determine how much a company must reduce their value chain emissions to align with limiting warming to 1.5°C. A company cannot claim to be net-zero until the long-term science-based target has been reached (90% reduction in emissions*). The deadline for long-term targets is 2050, but more ambitious companies are striving to reach net-zero before this.</li>
<li>Beyond Value Chain Mitigation &#8211; The SBTi encourages companies to take action and fund projects with climate benefits beyond their value chain. This will help to mitigate GHG emissions and lead to additional benefits for people and the planet in support of the UN’s Sustainable Development Goals. Beyond value chain mitigation should supplement, rather than replace, a comprehensive decarbonisation strategy &#8211; and it can include, for example, funding carbon avoidance or removal projects, nature restoration schemes, research and development, new technologies, and supporting environmental legal defence (amongst others). As a result of funding carbon removal or avoidance projects, a company may become &#8216;carbon neutral&#8217;. However, this is not the end goal, and emissions reduction should be prioritised.</li>
<li>Neutralisation &#8211; The SBTi acknowledges that it may not be feasible for some industries to achieve zero emissions and decarbonise 100% of the value chain. As a result, once long-term decarbonisation targets have been reached, companies must use carbon removals to neutralise unavoidable emissions (which must not exceed 10% of overall company emissions against the base year).   </li>
</ol>
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* Targets and required reduction varies across industries. Please refer to the SBTi Net-Zero standard for clarification.

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Now you know what net-zero means, it’s time to put the theory into action Here’s a six-stage pathway to reaching corporate net-zero. While it may seem linear, the process is circular and dynamic. You will need to revisit each stage a number of times before achieving long-term science-based targets and becoming certified as net-zero. That’s all part of the journey.
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<ol>
<li>Commit &#8211; There must be an acknowledgement that your business can be part of the solution and needs to change. Net-zero doesn’t happen overnight, it’s a transition that needs a long-term commitment. It requires systematic processes and structural changes across the entire value chain. So the relevant internal stakeholders need to understand the reasons for change and buy into the process.</li>
<li>Calculate &#8211; Calculation is key to understanding your starting point, identifying emission hotspots in your value chain and seeing the greatest opportunities for reduction. This stage is repeated throughout your journey to net-zero (typically on an annual basis) to measure performance against your targets and the impact of your reduction strategies.</li>
<li>Strategy and Target Setting &#8211; Once you’ve measured your emissions and established a starting point, you can begin to analyse your footprint and identify a suitable transition strategy to decarbonise your operations. Strategy and target setting should be done in unison. There is little point in setting targets if you don’t know how to achieve them.  Every business is unique, and what may be a suitable target for one business may be unrealistic for another. By developing a strategy alongside targets, you can assess their feasibility. Likewise, science-based targets complement strategy as they guide your level of ambition, hold you accountable and provide a measurable indicator of success.</li>
<li>Reduce and Engage &#8211; Once a strategy has been established, it is essential to start implementing the plan by following a logical and achievable set of steps. This is not an overnight process and must also align with your business environment to be economically sustainable. Working with your supply chain is essential, as for many businesses up to 90% of emissions can come from the  value chain. While this makes things more challenging, there are steps that you can take to support sustainable procurement and reduce your indirect emissions. *We intend to run further workshops and provide tools to support you in achieving this.</li>
<li>Remove &#8211; The penultimate stage of net-zero occurs after significant reduction has been achieved, and it’s the removal of unavoidable emissions through buying and retiring carbon removal credits. Under the SBTI Net-Zero Standard, only up to 10% of your overall emissions against the base year can be removed in this way. You can only become certified as net-zero if using carbon removal credits as opposed to avoidance credits. You may, however, use carbon avoidance credits throughout your journey to becoming net-zero, to offset your emissions while implementing emissions reductions to achieve carbon neutrality. It should be emphasised that carbon neutrality is a stepping stone to net-zero and is a supplementary action to mitigate the effects of your current emissions. Net-zero should remain your long-term goal.</li>
<li>Certify &#8211; Once you’ve taken action to reduce your emissions and potentially become carbon neutral, you will return to the calculation stage to assess the difference your changes have made, then re-evaluate your strategy and next steps. You will likely have to go through this cycle a number of times before you have achieved the required level of emissions reductions and transitioned to a state of net-zero. Then it’s time to really celebrate, as you can be certified as net-zero under the SBTi.</li>
</ol>
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Crucially, whilst undertaking their net-zero journey businesses need to begin to prioritise people and planet, rather than just profit. This pathway, and the knowledge it requires may seem daunting. But we’ve been working hard behind the scenes to simplify the process by developing our very own carbon accounting tool. Ecologi Zero has been designed to remove the barriers that prevent small and medium-sized enterprises (SMEs) from starting their net-zero journey.
Ecologi Zero lets you calculate and analyse your footprint for free, using simple interactive dashboards. We also plan to introduce new features in the coming months, to support you through strategy development, target-setting and emissions reduction. Plus, you’ll soon also be able to support beyond value chain mitigation and carbon avoidance projects through Ecologi’s Impact Shop. 
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<a href="https://ecologi.com/business/zero" target="_blank" rel="noopener">Find out more about Ecologi Zero and start your net-zero journey</a>

Ready to make a difference for our planet? Get in touch, and let’s chat about how we can help you on your climate journey. 

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UK Voluntary Carbon Market Guide: Best Practices for Climate Action

The voluntary carbon market plays an important role in corporate climate strategies – but its effectiveness relies on buyers doing due diligence and rigorous quality assessment on each project, as well as placing the purchase of credits in the right place in the climate journey.
To ensure meaningful climate impact, businesses must develop a comprehensive carbon strategy and find ways to fund only high-quality credits in the voluntary carbon market – and this guide shows you how to do so with Ecologi.

<h2>Table of contents</h2>
<ul>
<li>When to buy carbon credits</li>
<li>Our new carbon projects assessment framework</li>
<li>Ecologi&#8217;s core due diligence principles</li>
<li>How Ecologi scores and ranks carbon credit projects</li>
<li>Questions to ask your carbon credit supplier</li>
<li>Take action in the voluntary carbon market</li>
</ul>

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<h2>When should businesses buy carbon credits in the voluntary market?</h2>
Businesses must not use credits in place of making direct, measurable reductions in their emissions. Instead, follow these steps to ensure you buy your carbon credits on the right step of your corporate climate action journey, and in the right way:
<ol>
<li style="font-weight: 400;" aria-level="1">Measure your emissions first – to allow you to understand where your business’s emissions are coming from. 
</li>
<li style="font-weight: 400;" aria-level="1">Set science-based targets and work towards them – set ambitious targets aligned with the SBTi and compatible with the global 1.5ºC warming target.</li>
<li style="font-weight: 400;" aria-level="1">Beyond value chain mitigation (BVCM) – design your BVCM portfolio to work alongside your decarbonisation plan and address your unabated emissions in each reporting year. Align it with SBTi guidance and the Oxford Principles. </li>
<li style="font-weight: 400;" aria-level="1">Buy high-quality carbon credits – use this guide to ensure the carbon credits you buy meet rigorous quality standards. Remember, under the SBTi framework you’ll also need permanent carbon removal credits for neutralising your residual emissions when you reach your net-zero date.</li>
<li style="font-weight: 400;" aria-level="1">Disclose and report transparently – publicly disclose information about your carbon credit purchases, and clearly communicate the limited role of carbon credits in your broader sustainability strategy.</li>
</ol>

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<h2>Ecologi&#8217;s carbon project assessment framework</h2>
In April 2025, we published a report summarising how we assess carbon credit projects against our rigorous proprietary rubric. A snapshot of what goes into our carbon credit project assessment is below, or you <a href="https://cms-assets.offset.earth/app/uploads/20250428124112/Ecologi_Whitepaper_A4.pdf" target="_blank" rel="noopener">download the full whitepaper here</a>.

<h2>Carbon project due diligence: Ecologi’s core principles</h2>
At Ecologi, we maintain general due diligence principles which we apply universally across the voluntary carbon market, to support our efforts to supply only high-quality carbon credits.
<ul>
<li style="font-weight: 400;" aria-level="1">ICROA-endorsed standards only – we supply credits exclusively from carbon standards which are ICROA-endorsed.</li>
<li style="font-weight: 400;" aria-level="1">Responsive to ICVCM decisions – we support the ICVCM’s two-tick approach to providing CCP-Approval to project methodologies, and we go further still, to assess individual projects on their merits and limitations as well.</li>
<li style="font-weight: 400;" aria-level="1">Keep the carbon credit life cycle as short as possible – 75% of our credits in 2024 came directly from project developers and their nominated dispensaries (as opposed to intermediaries on the secondary market), maximising the proportion of purchase price which goes to the developer.</li>
<li style="font-weight: 400;" aria-level="1">Locally-appropriate projects only – we take care to ensure that supported projects are being applied in appropriate geographies, where they can have the greatest impact.</li>
<li style="font-weight: 400;" aria-level="1">Deep project-level scrutiny – our extensive assessment criteria are specific to each type of project, and we assess every project against these criteria, ensuring the project’s specifics have been taken into account.</li>
<li style="font-weight: 400;" aria-level="1">Methodological consensus – we synthesise data we receive from our partners Sylvera, BeZero Carbon, Calyx Global and Renoster) with our own in-house analysis to uncover where there is consensus about project quality, and improve confidence.</li>
</ul>

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<h2>How to evaluate carbon credits: Ecologi&#8217;s scoring methodology</h2>
We designed a three-layer assessment process which takes into account the merits and limitations of the carbon standard used, the carbon credit methodology used, and of the individual project design.
The tables below summarise some of the data inputs we use at each stage.

<h3>Assessment level: Carbon Standard</h3>
Examples: Gold Standard, Verra, Puro Earth, Isometric, Plan Vivo.

<h3>Assessment level: Methodology (or ‘Protocol’)</h3>
Examples: GS TPDDTEC, VM0048, ACM0002.

<h3>Assessment level: Project</h3>
Examples: GS 10790, VCS 1571.

Criteria in the assessment are categorised as either quality criteria or risk criteria, and are segmented by our three pillars of impact: Climate, Nature and People. Based on how it meets each criterion, the project gains points for quality criteria, and loses points for excess risk – ultimately giving a risk-adjusted value out of 100 for each of these pillars.
Having gathered our risk-adjusted pillar scores, we use our own unique scoring formula which weights the risk-adjusted Climate score of the project equally with the combined risk-adjusted Nature and People scores. The formula then produces an ‘overall’ score (also out of 100) for the project. In order to be supplied by Ecologi, projects must meet a minimum overall score of 80, and must achieve no lower than 65 in any given risk-adjusted pillar score.

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<h2>Key questions to ask carbon credit suppliers</h2>
Selecting the right carbon credit provider is important to help guide you to make informed choices as part of your corporate sustainability strategy. Before purchasing carbon credits, businesses should ask:
<h3>Project quality </h3>
<ul>
<li style="font-weight: 400;" aria-level="1">Do you assess/validate/underwrite project quality? If so, how?</li>
<li style="font-weight: 400;" aria-level="1">Do your projects get good ratings from the ratings agencies? If so, what ratings are they?</li>
<li style="font-weight: 400;" aria-level="1">Do you source credits directly from project developers, or from the secondary market?</li>
<li style="font-weight: 400;" aria-level="1">Do you monitor projects over time to ensure continued success, and how do you remedy it, if a project&#8217;s quality drops?</li>
</ul>
<h3>Due diligence</h3>
<ul>
<li style="font-weight: 400;" aria-level="1">How do you ensure you are supporting the right projects in the right locations?</li>
<li style="font-weight: 400;" aria-level="1">How do you account for project permanence and mitigate risks?</li>
<li style="font-weight: 400;" aria-level="1">What makes your projects additional?</li>
<li style="font-weight: 400;" aria-level="1">How do you assess the project&#8217;s impacts on climate, nature and people?</li>
</ul>
<h3>Positioning</h3>
<ul>
<li style="font-weight: 400;" aria-level="1">How do you contribute to the development of a high integrity voluntary carbon market?</li>
<li style="font-weight: 400;" aria-level="1">Do you align your portfolios with the Oxford Principles? If so, how?</li>
<li style="font-weight: 400;" aria-level="1">How do you reflect ICVCM guidance on carbon credit methodologies and technologies?</li>
<li style="font-weight: 400;" aria-level="1">Do you build multi-year portfolios that align to mid- &amp; long-term SBTs?</li>
</ul>
As the voluntary carbon market evolves, corporate buyers have the power and the responsibility to demand high-impact credits to drive real climate progress. This means buyers have a responsibility to do due diligence before placing an order for carbon credits.

<h2>Take action in the voluntary carbon market</h2>
As a business committed to corporate climate action, understanding the voluntary carbon market is essential for making informed decisions about carbon credits. Our comprehensive whitepaper provides deeper insights into creating an effective sustainability strategy.
<a href="https://cms-assets.offset.earth/app/uploads/20250428124112/Ecologi_Whitepaper_A4.pdf" target="_blank" rel="noopener">Download our full whitepaper</a> to learn how your business can navigate the voluntary carbon market with confidence.

<h2>Connect with one of our climate experts</h2>
Please complete our form to arrange a 30-minute discovery call to discuss your goals and get a tailored solution for your business.

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Charting the path to net-zero for businesses

Carbon neutral vs net-zero

Clearing up the confusion with the SBTi Net-Zero Standard

The key elements of corporate net-zero

A six-stage path to achieving net-zero

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