If you’re communicating your organisation’s carbon footprint, net zero goals or carbon neutral status, it’s important to get the language - and the facts - right.
This blog draws on insights shared by our CEO Barbara Nebel and Impact Director Nicole Sullivan in a recent Carbon Clarity webinar, highlighting how to use carbon terms correctly and communicate your claims with confidence.
You can watch the full replay here.
Why clarity matters
In a fast-changing policy landscape sustainability claims are under increasing scrutiny. Get it wrong and you could face reputational damage, legal risk or loss of trust.
‘Businesses have been taken to court for making carbon claims that weren’t properly backed up. Be cautious and get advice before making public statements.” Nicole warns.
Making strong carbon claims can be a great way to show leadership - but only if they’re backed by real action and robust evidence. “We get asked all the time: can we say this? Is this claim okay?” says Barbara. “There’s a lot of confusion, but once you understand the terms, it gets much easier to get it right.
Important terms for carbon clarity
Here’s what key carbon terms mean and practical advice to help you use them correctly.
What is carbon neutral?
This means your business, product or service has measured its greenhouse gas emissions, taken steps to reduce them and used carbon offsets to balance what’s left.
In a nutshell: You need a defined subject (e.g. your office, a product line), a clear timeframe, a verified carbon footprint and a credible plan to reduce emissions. Offsets should only be used for emissions you can’t currently avoid, after making your best efforts to reduce them. This is defined in the ISO 14068 standard.
Example: A business with verified emissions for 2023 offsets what it couldn’t reduce using certified carbon credits and communicates this with a statement like: “We’re carbon neutral for our office operations in 2023, certified to ISO 14068.”
What is climate neutral?
Climate neutral goes a step further than carbon neutral. It means you’re not causing any net impact on the climate, and you’re considering more than just greenhouse gases.
In a nutshell: To make a climate neutral claim, you need to reduce emissions, offset the remainder and consider broader climate effects, for example heat retention caused by land use changes. The IPCC provides guidance here.
Example: A company building a nature-based tourism site looks at both its emissions and how the project affects the local environment. It then uses verified offsets to balance remaining effects.
What is net carbon zero?
This means you’ve cut emissions as much as possible and are offsetting only what’s unavoidable.
In a nutshell: Defined by the Science Based Targets initiative (SBTi), net carbon zero requires “deep emissions reduction” first. Offsetting alone is not enough. You must reduce most of your footprint through meaningful changes (e.g. cleaner energy, efficient transport).
Example: A manufacturing company reduces emissions by 90% by electrifying its fleet and switching to renewable energy, then offsets the remaining 10% to reach net carbon zero.
What is zero carbon?
This means no carbon emissions are generated at all across the entire lifecycle. It’s extremely difficult to achieve.
In a nutshell: Zero carbon means zero emissions at every stage, from raw materials to end-of-life. For most products and services, this is not currently possible due to emissions embedded in supply chains.
Example: A wind turbine powered entirely by renewable energy during manufacture and transport might come close, but most businesses will not be able to make this claim credibly.
What is carbon negative / carbon positive
Carbon negative means you’re removing more carbon from the atmosphere than you’re emitting. Carbon positive is often used to mean the same thing, but it’s confusing and best avoided.
In a nutshell: There’s no official threshold for what counts as carbon negative, and measurement uncertainties make it risky to claim this unless you clearly demonstrate it.
Example: A forestry company captures more carbon through planting than it emits through operations, verified by third-party measurement.
What is a carbon credit?
A carbon credit represents one tonne of carbon dioxide equivalent (CO₂e) reduced, removed, or avoided by a certified project. This could be through tree planting, renewable energy or methane capture.
What are carbon offset?
A carbon offset is when you buy a carbon credit to balance out emissions you produce. It only works if the offset project is real and measurable.
So how can you do it right?
Here’s how to communicate responsibly and avoid greenwashing:
1. Use accurate, consistent language
Know the difference between net zero, carbon neutral, and climate neutral. Use them correctly and consistently and avoid vague claims. Saying “we’re carbon neutral” isn’t enough. Explain what that means, how you achieved it and what standards you followed.
2. Follow the standards -not just loosely
Look for ISO 14068 for carbon neutrality, ISO 14067 for product footprints, and ISO 14064 for organisational footprints. Don’t say “aligned with ISO”. Follow the relevant standards properly if you want your claims to hold up. “Complying with the right ISO standard is key,” said Barbara. “We’ve seen claims that are ‘inspired by ISO’, but that’s just not good enough.”
3. Use high-quality offsets and be upfront about them
Offsetting is a useful tool, but only when you’ve done everything you can to reduce emissions first. As Nicole said: “Do your best, then offset the rest.”
Share details about the projects and be clear on what they actually achieve. Make sure offsets are additional, impactful and verified. Check if they’re listed on recognised registries like Gold Standard or Verra.
4. Tell the whole story
Avoid vague promises and future goals without a credible plan and verified data to support them. If you’re just starting your sustainability journey, that’s okay. Be open about what you’ve measured, what you haven’t and what you’re working on. That builds trust.
“Even if you’re a small business without certification, you can still tell a credible story. Just be clear and honest about where you’re at,” said Nicole.
Need help?
If you're unsure whether your carbon claims are credible, get them reviewed by experts. thinkstep-anz now offers a fixed-price carbon claim review to help businesses check their language, identify risks and communicate confidently.