Carbon Neutral vs Net Zero: What Companies Are Claiming [Data Study]

The terms “carbon neutral” and “net zero” are thrown around a lot these days, especially in boardrooms and sustainability reports. But are they being used correctly? And more importantly, are companies walking the talk?

1. 93% of the world’s largest 250 companies now report on sustainability, including carbon reduction

Sustainability is no longer optional

Let’s face it: if your company isn’t reporting on sustainability, you’re in the minority—and you’re falling behind. Today, 93% of the world’s biggest companies have sustainability disclosures. This isn’t just about appeasing regulators or avoiding bad press. It’s about future-proofing the business, meeting stakeholder expectations, and staying competitive.

Why are so many companies reporting?

Three main reasons:

• Investor pressure: ESG investing is mainstream. If you’re not showing your environmental efforts, you’re missing out on funding opportunities.
• Customer expectations: Customers—especially younger ones—prefer brands that show care for the planet.
• Regulatory requirements: Governments are pushing hard for transparency, and laws are tightening every year.

Actionable advice

If you’re new to sustainability reporting, start small. Use frameworks like GRI (Global Reporting Initiative) or SASB to guide your initial steps. Focus on disclosing your carbon footprint across Scope 1 and 2 emissions, and if possible, include some Scope 3 data (like supply chain emissions).

Remember, it’s better to be clear and honest than to oversell and underdeliver.

2. 64% of Fortune 500 companies have climate targets, but only 12% have Net Zero targets aligned with science

Ambition is easy. Alignment is hard.

Most companies are setting climate goals. That’s good. But the problem? Only a small fraction are actually setting targets that meet scientific guidelines. Just 12% have targets aligned with the Science Based Targets initiative (SBTi), which demands deep emissions cuts and accountability.

What’s the disconnect?

Many companies stop at vague pledges: “We aim to be carbon neutral by 2040.” But they fail to say how they’ll get there or whether those plans align with climate science. That’s like promising to lose weight but refusing to change your diet or exercise.

Actionable advice

Don’t just announce a Net Zero target. Align it with SBTi or similar frameworks. Here’s how:

• Calculate your baseline: Measure your full emissions—Scopes 1, 2, and 3.
• Set near-term goals: Targets for the next 5–10 years keep you focused and show credibility.
• Decarbonize before offsetting: Cut emissions first; use offsets only for what you truly can’t avoid.
• Get verified: Third-party validation adds credibility and transparency.

3. 45% of corporate Net Zero targets lack clarity on scope and emissions coverage

Vague targets create confusion

Almost half of all corporate Net Zero pledges don’t clearly state what emissions they’re addressing. Are they cutting just direct emissions, or are they including the entire value chain? When goals are unclear, it’s hard to know what’s being claimed—and whether it’s real.

Why does scope clarity matter?

There are three scopes of emissions:

• Scope 1: Direct emissions from your operations.
• Scope 2: Indirect emissions from purchased electricity.
• Scope 3: Everything else—like supply chain, product use, and travel.

Most emissions are in Scope 3, especially for consumer goods and tech firms. Ignoring them means ignoring the biggest part of the problem.

Actionable advice

When creating your Net Zero roadmap:

• Be specific about what’s included: Don’t say “net zero” unless you mean all scopes—or clearly state what’s excluded.
• Publish your emissions inventory: Break down emissions by scope in your sustainability report.
• Review annually: Update your scope definitions as your data gets better and operations evolve.

Clarity builds trust. Don’t leave room for misinterpretation.

4. Only 22% of companies claiming to be “carbon neutral” include Scope 3 emissions

Scope 3: The elephant in the room

This stat shows a hard truth. Most carbon-neutral claims skip Scope 3, even though these emissions often account for more than 70% of a company’s total impact. That means businesses are ignoring the biggest piece of the puzzle—and still calling themselves “carbon neutral.”

Why Scope 3 is often ignored

• Complexity: It’s harder to track because it involves suppliers and customers.
• Data gaps: Many companies don’t have the systems to collect and analyze it.
• Control: Businesses feel they can’t manage what they don’t directly operate.

But ignoring Scope 3 doesn’t make it disappear. Regulators and watchdogs are catching on, and soon, companies will be held accountable.

Actionable advice

Start tracking Scope 3 now. Here’s how:

• Map your value chain: Identify the top emission sources—usually upstream suppliers and downstream product use.
• Engage suppliers: Ask them to share their emissions data or adopt reduction targets.
• Use proxy data if needed: It’s better to estimate with industry averages than ignore it entirely.

Being honest about Scope 3—even if you don’t have perfect data—puts you ahead of the pack.

5. 71% of Net Zero targets lack interim emissions reduction goals

The danger of long-term-only promises

Saying you’ll be Net Zero by 2050 sounds good. But what are you doing in 2025? Or 2030? Over 70% of Net Zero goals lack any short- or medium-term checkpoints. That makes it easy to delay action and hard for others to hold companies accountable.

Why interim goals matter

Interim goals:

• Show you’re making progress
• Help build internal momentum
• Let stakeholders track your efforts
• Protect you from greenwashing claims

They’re the breadcrumbs that show your path to Net Zero isn’t just wishful thinking.

Actionable advice

Don’t wait until the last minute. Break your Net Zero journey into steps:

• Set targets every 5 years: For example, reduce Scope 1 and 2 emissions by 30% by 2030.
• Tie bonuses or KPIs to milestones: Make emissions reductions part of business performance.
• Report progress annually: Even if you fall short, showing your attempt builds credibility.

Short-term goals = long-term trust.

6. 39% of companies use the term “Net Zero” interchangeably with “Carbon Neutral” in public disclosures

Words matter more than you think

If nearly 4 in 10 companies are mixing up “Net Zero” and “Carbon Neutral,” that’s a problem. The terms may sound similar, but they’re very different in meaning, especially when it comes to how emissions are handled.

When companies confuse the two, it doesn’t just create uncertainty—it opens the door to skepticism and can damage trust with investors, customers, and regulators.

What’s the actual difference?

• Carbon Neutral: This typically means a company offsets all its emissions—possibly without reducing them much at all.
• Net Zero: This is about reducing emissions drastically first, then using offsets only as a last resort.

Net Zero is long-term and deeper. Carbon neutrality can be short-term and less rigorous.

Why does this mix-up happen?

• Marketing teams aren’t aligned with sustainability leads
• Buzzwords catch on faster than technical definitions
• No global standard mandates consistency (yet)

Actionable advice

Here’s how to avoid the confusion in your business:

• Define the terms internally: Make sure your entire team understands the difference.
• Use precise language in all communication: Say what you mean. If you’re offsetting current emissions without drastic reductions, say carbon neutral.
• Educate stakeholders: Help your audience understand the difference so they can trust your intentions.

This clarity shows leadership and transparency—two traits customers and investors respect.

7. Only 18% of companies that claim carbon neutrality have fully offset their reported emissions

Partial offsets don’t equal carbon neutrality

When a company claims to be carbon neutral, the expectation is simple: they’ve balanced out their carbon emissions entirely. But in reality, less than one in five companies that make this claim have actually offset all their emissions.

The rest? They either offset only a portion or don’t offset at all. Some just plant trees. Some buy low-quality credits. Either way, it’s misleading.

Why does this happen?

• Offsetting can be expensive
• Some companies underestimate their emissions
• Others assume partial offsets are enough to claim neutrality

The problem is, public claims don’t come with asterisks. Customers hear “carbon neutral” and assume it means total balance.

Actionable advice

If you’re going to make the claim, follow through completely. Here’s how:

• Audit your emissions: Use verified tools or third-party experts.
• Offset 100% of your emissions if you’re claiming neutrality.
• Choose high-quality offsets: Use standards like Gold Standard or VCS that offer permanence and traceability.
• Be transparent about your methodology: Break down how you calculated your footprint and how you chose your offsets.

People respect honesty, even if you’re only partway there. But claiming more than you’ve done? That’s a credibility risk you don’t want.

8. 85% of climate pledges rely at least partially on carbon offsets

The offset dependency dilemma

Offsets are not inherently bad. In fact, they can play a helpful role in tackling emissions that are difficult or impossible to eliminate. But here’s the catch—85% of company climate plans rely on them in some way, and often too heavily.

When most of your carbon reduction strategy is built on buying offsets rather than cutting actual emissions, that’s not a plan—it’s a band-aid.

Why so much reliance?

• Speed and ease: You can buy offsets overnight. Emission cuts take time.
• Lack of internal innovation: Companies fall back on offsets instead of changing core processes.
• Greenwashing temptation: Offsets are used to create the illusion of action.

Actionable advice

If your climate strategy includes offsets, use them wisely:

• Use them as a last resort: Cut as much as you can internally first.
• Limit their share: Ideally, no more than 10–15% of your carbon plan should depend on offsets.
• Be clear about what you’re offsetting: Say whether you’re covering all scopes or just operational emissions.
• Verify every offset: Only buy from credible sources with proven impact.

Don’t let offsets become a crutch. Use them as a bridge, not a destination.

9. Among companies using offsets, only 36% use verified or high-integrity offset sources

Not all offsets are created equal

Buying carbon offsets might check a box, but if the offset project doesn’t really reduce emissions—or worse, if it already existed—it’s just smoke and mirrors. Yet more than 60% of companies don’t use verified, high-integrity sources for their offsets.

That means most offsets on corporate climate ledgers aren’t trustworthy.

The issues with low-quality offsets

• Double counting: The same emission savings get claimed by two parties.
• Temporary storage: Forests can burn down. If they do, the carbon comes right back.
• Lack of additionality: If the project would’ve happened anyway, it doesn’t count as a true offset.

Actionable advice

To make sure your offsets really count:

• Choose projects with independent certification: Look for Gold Standard, Verra (VCS), or Plan Vivo.
• Ask for proof: Get documentation and track records for the projects you support.
• Prioritize permanence and additionality: Ensure the emission savings are long-term and would not exist without your support.
• Favor local co-benefits: Some offsets also support biodiversity, education, or clean energy in underserved communities—choose these for greater impact.

In short: if you’re going to invest in offsets, make them real. Your reputation depends on it.

10. 11% of companies with Net Zero claims have credible decarbonization roadmaps

Plans without paths are just promises

It’s one thing to say “we’ll be Net Zero by 2040.” But only 11% of companies making that promise actually show how they’ll do it. That means 89% don’t offer enough detail for stakeholders to believe them—or to check in on their progress.

Without a roadmap, even well-meaning targets can fall apart. There’s no way to course-correct if you don’t know what the course looks like.

What makes a roadmap credible?

• Clear timelines
• Specific reduction targets per scope
• Technology pathways identified
• Investment strategy outlined
• Executive accountability defined

Most importantly, a real roadmap doesn’t just say what the destination is—it shows how you’ll get there.

Actionable advice

To build a strong and credible roadmap:

• Break your goal into phases: What happens in the next 2, 5, 10 years?
• Tie targets to business units: Make departments responsible for their own emissions.
• Back up goals with funding: Budget for innovation, cleaner tech, and supply chain improvements.
• Report against it regularly: Treat it like any other strategic plan. Review and adjust as needed.

A Net Zero goal without a roadmap is just a headline. A real plan? That’s where leadership lives.

11. 58% of surveyed consumers believe “carbon neutral” means zero emissions, indicating widespread confusion

Consumers are being misled—often unintentionally

More than half of consumers think “carbon neutral” means a company produces no emissions at all. That’s a problem, because in most cases, carbon neutrality is achieved through offsets, not actual reductions. This misunderstanding isn’t just academic—it affects brand trust and purchasing decisions.

When people believe you’re not polluting at all but discover you’re still emitting and just offsetting, they feel misled. That gap between perception and reality is where reputational risk lives.

Why the confusion?

• Lack of standard definitions in public messaging
• Misleading marketing and branding
• Oversimplified explanations by companies

This confusion isn’t always intentional. But without proper communication, even honest companies can end up misleading their audience.

Actionable advice

To avoid creating confusion—and to build long-term trust—here’s what you can do:

• Educate while you market: If you claim “carbon neutral,” explain what that means in plain terms. Use simple visuals on your website or packaging.
• Be transparent about offsets: Say how much of your emissions were reduced and how much were offset.
• Avoid greenwashing terms: Phrases like “zero carbon footprint” should be used only if you’ve actually reduced emissions to zero.
• Use footnotes or detail pages: Link to your full sustainability explanation so curious customers can dive deeper.

When customers know you’re being upfront, they’re more likely to stick with you—even if you’re still on the journey.

12. Just 8% of companies disclose the methodology behind their neutrality or Net Zero claims

Transparency is rare—and that’s a red flag

Only 8% of companies explain how they arrived at their carbon neutral or Net Zero status. That’s not nearly enough. Without a methodology, how can anyone evaluate the legitimacy of the claim?

It’s like showing up to a job interview and saying, “I got a degree,” without saying from where or in what. The claim might be true, but without proof or process, no one can trust it.

Why do companies skip the methodology?

• It’s complicated to explain
• They fear scrutiny
• They haven’t actually calculated properly

But hiding the method makes the claim weaker—not stronger.

Actionable advice

If you want your sustainability claim to stand up to scrutiny:

• Publish a simple summary of your method: Include how you measured emissions, what scopes were covered, and how offsets were applied.
• Use consistent frameworks: Refer to standards like GHG Protocol, SBTi, or ISO 14064.
• Include third-party verification where possible: Audits build trust.
• Keep it simple, but accurate: Don’t drown readers in jargon. Clarity beats complexity.

A good methodology shows you’re serious. And it signals you’re not just throwing around buzzwords—you’re backing them up.

13. 90% of Science Based Targets initiative (SBTi)-approved Net Zero plans require deep emission cuts of at least 90–95% by 2050

Net Zero isn’t just about offsets—it’s about cutting deep

When SBTi approves a Net Zero plan, it expects real action. And real action means slashing emissions—not just buying your way to good PR. A full 90% of approved plans require at least a 90% cut in emissions by 2050. That’s serious business.

So if your company is aiming for Net Zero without major internal changes, you’re probably not aiming high enough.

Why are deep cuts so critical?

• Offsets alone won’t save the climate
• Tech advancements will take time
• You can’t offset forever—there’s a limit

Science-based targets are designed to meet the Paris Agreement goals. They demand action, not lip service.

Actionable advice

To align with science:

• Start with a full emissions inventory
• Set a minimum 90% reduction target by 2050
• Design your strategy around real operational changes: renewable energy, efficiency, cleaner supply chains
• Use offsets sparingly—and only for the final 5–10%

It’s not about being perfect today. It’s about showing that your journey is grounded in reality and driven by science.

14. 67% of companies claiming Net Zero fail to disclose their reliance on offsets

Hidden offsets are risky business

Nearly 7 out of 10 companies that say they’re Net Zero don’t say how much of that claim relies on offsets. That’s a big deal. Because if a claim is 90% based on offsets, but the public thinks you’ve actually cut emissions—you’ve got a trust issue.

It’s not wrong to use offsets. But hiding how much you rely on them? That’s what raises red flags.

Why do companies skip this disclosure?

• They fear criticism
• They believe the details are too technical
• They assume no one is asking

But regulators and watchdogs are asking now. And soon, customers will too.

Actionable advice

If offsets are part of your plan:

• Disclose the breakdown: Say how much of your footprint you reduced vs. offset.
• Label offsets by type: Nature-based, energy-based, or removals? Be specific.
• Explain the timing: Are they annual offsets or one-time purchases?
• Include this in your reports and on your site: Transparency wins trust, especially when things aren’t perfect.

Think of disclosure as proactive reputation management. The more you share, the less others need to guess.

15. 31% of companies promising Net Zero by 2050 have no disclosed Scope 3 data

Ignoring Scope 3 is like ignoring the iceberg under the water

When nearly a third of companies making Net Zero pledges aren’t even reporting Scope 3 emissions, that’s a huge blind spot. Because for many companies, Scope 3 can represent more than 80% of total emissions.

You can’t manage what you don’t measure—and you definitely can’t claim Net Zero without knowing your full impact.

Why is Scope 3 so often missing?

• It’s harder to track: It involves suppliers, customers, shipping, and more.
• There’s no standard enforcement
• Some companies genuinely don’t know where to start

But leaving it out doesn’t make it disappear.

Actionable advice

If Scope 3 feels overwhelming, here’s where to begin:

• Start with categories that matter most: Purchased goods, transportation, and use of sold products are common hotspots.
• Use available tools: Spend-based calculators and industry benchmarks can help if you don’t have supplier data yet.
• Engage your supply chain: Ask for data, offer support, and prioritize vendors who are tracking emissions.
• Update your plan yearly: As data improves, refine your reporting.

Don’t wait until you have perfect data. Start with estimates. Progress is more important than perfection.

16. Carbon neutrality claims rose by 400% between 2015 and 2022

The race to look green

In just seven years, carbon neutrality claims exploded by 400%. That’s not a typo. The push for greener brands, ethical investing, and regulatory readiness has driven a massive wave of companies saying they’re “carbon neutral.”

But with such rapid growth comes a major challenge: quality. Not all claims are created equal. Some are deeply researched and backed by data. Others? Not so much.

Why the sudden spike?

• Public pressure increased: Consumers now expect businesses to care about the environment.
• ESG investing boomed: Funds started prioritizing companies with strong environmental performance.
• Brand value: “Green” became a marketing advantage, leading to more companies chasing the label.

What’s the risk?

More claims mean more scrutiny. And regulators, media, and watchdogs are starting to dig into the fine print. Empty or weak claims could backfire—hard.

Actionable advice

If you’re making or planning a carbon neutral claim:

• Ensure it’s based on real numbers: Don’t use generic calculators or estimates without proper review.
• Document everything: Keep records of how you calculated emissions, what you offset, and how.
• Communicate clearly: Don’t just say you’re carbon neutral. Say what that means and how you achieved it.
• Keep updating: As standards evolve, review your claim annually and make improvements.

Being first to claim carbon neutrality isn’t as important as being the most credible.

17. 28% of Net Zero targets include clear sector-specific strategies

One-size-fits-all doesn’t work for Net Zero

Less than a third of companies tailor their Net Zero strategies to their specific industry. That’s a missed opportunity. After all, a cement manufacturer and a SaaS company face completely different emissions challenges.

Without sector-specific strategies, companies risk creating vague or irrelevant plans that don’t match their actual impact.

Why specificity matters

• Better results: Tailored strategies hit the right targets more effectively.
• Stakeholder confidence: Investors and partners trust plans that show industry awareness.
• Regulatory readiness: Many future rules will be sector-based, so it pays to prepare now.

What do sector-specific plans include?

• Manufacturing: Focus on energy intensity, process heat, and material inputs.
• Retail: Address packaging, logistics, and product lifecycle.
• Tech: Emphasize data center efficiency and Scope 3 software use impacts.

Actionable advice

Here’s how to build a plan that fits your business:

• Benchmark against your peers: Look at what leaders in your sector are doing.
• Map emissions to your operations: Know where your carbon hotspots are.
• Prioritize impact over optics: Don’t just do what’s trendy—do what moves the needle.
• Adjust as you grow: Revisit your strategy each year as your business evolves and more data becomes available.

Net Zero isn’t just about setting goals—it’s about making them make sense.

18. 52% of climate claims from companies are not externally verified

Trust needs third-party eyes

Over half of all climate claims go unchecked by independent experts. That’s like grading your own test—of course you’ll pass. But stakeholders want verification. Investors, partners, and customers need proof that your numbers are accurate and your strategy is real.

Without third-party review, even honest claims can come across as shaky.

Why do companies skip verification?

• Cost concerns: Third-party audits can be expensive.
• Fear of exposure: Some don’t want weaknesses to be revealed.
• Complexity: Verification processes can be technical and time-consuming.

But skipping this step could do more damage in the long run.

Actionable advice

To build trust, bring in outside expertise:

• Work with established auditors: Look for firms with experience in GHG verification or ESG auditing.
• Start small: You can verify part of your data first, like Scope 1 and 2 emissions.
• Use SBTi or CDP frameworks: These offer structure and credibility for external validation.
• Publish verification reports: Even a simple summary shows transparency and builds confidence.

In a world full of green claims, being verified helps you stand out.

19. 41% of companies use internal carbon pricing mechanisms to guide emissions reductions

When carbon has a cost, behavior changes

Nearly half of companies now use internal carbon pricing. That’s a smart move. By putting a price tag on each ton of carbon emitted, they change how decisions are made—from procurement to travel to supply chain strategy.

Internal carbon pricing is about accountability. It turns emissions into numbers that the finance team can work with.

Why it works

• Creates financial incentives to cut emissions
• Helps prioritize sustainability projects
• Prepares for future carbon taxes or regulation

When departments are charged for their emissions, they suddenly become much more creative about reducing them.

Actionable advice

If you want to implement internal carbon pricing:

• Start with a shadow price: Set an internal price (like $50/ton) without charging departments, just to assess impact.
• Move to a real charge: Once ready, make teams pay into a carbon fund based on their emissions.
• Use funds for green projects: Invest the money into efficiency upgrades, clean tech, or training.
• Adjust annually: As carbon markets change, update your internal price accordingly.

Putting a dollar sign on carbon emissions helps bring sustainability into core decision-making—where it belongs.

20. 60% of Net Zero targets focus only on operational emissions (Scope 1 and 2)

The easy parts get all the attention

Most companies target only their operational emissions—what they produce directly or through energy use. That’s Scope 1 and 2. But ignoring Scope 3 means ignoring supply chains, product use, business travel, and more.

When 60% of Net Zero plans skip Scope 3, it shows that many businesses are tackling the easiest emissions and avoiding the hardest.

Why this is a problem

• Scope 3 often makes up the majority of total emissions
• Skipping it weakens credibility
• Customers and regulators are starting to demand full coverage

You can’t claim “Net Zero” unless you account for the whole picture.

Actionable advice

Even if Scope 3 is messy, you can’t leave it out. Here’s how to start:

• Identify your biggest Scope 3 categories: Purchased goods, transportation, or product use?
• Estimate using spend-based tools: Even rough data is better than nothing.
• Prioritize actionable hotspots: Focus on a few key areas where change is possible.
• Communicate progress—not perfection: Show stakeholders that you’re working toward full coverage.

Covering Scope 3 isn’t just about emissions—it’s about integrity. If you want your Net Zero goal to be taken seriously, this step is non-negotiable.

21. 76% of offset projects used in corporate claims are vulnerable to issues like double counting or permanence

Not all carbon credits are created equal

More than three-quarters of the offset projects used in corporate climate claims have serious problems. Some are counted more than once. Others are temporary solutions, like forests that might burn down. Still others were going to happen anyway, making the “offset” meaningless.

This doesn’t mean offsets are bad. But it does mean the system is full of risks—and your company’s reputation is on the line if you choose the wrong ones.

What are the common risks?

• Double counting: Two companies claim the same offset, especially across countries.
• Permanence: A forest planted today might be gone in 10 years.
• Additionality: If the project would have existed without your funding, it doesn’t count as a true offset.

All of these reduce the impact of your claim—and raise questions about your credibility.

Actionable advice

To ensure your offsets are actually doing good:

• Stick to high-quality standards: Use Gold Standard, Verra (VCS), or similar certifications.
• Avoid cheap, unverified credits: Low-cost often means low quality.
• Ask detailed questions: How is permanence ensured? Who else claims this offset? What would have happened without your payment?
• Diversify: Don’t rely on one type of project or geography—spread your impact across a few trusted options.

Choosing strong offsets isn’t just a compliance issue—it’s a brand integrity choice.

22. 29% of Net Zero targets reference compliance with SBTi or similar frameworks

Standards matter—but too few are using them

Only 29% of Net Zero goals are tied to a structured, science-backed framework like the Science Based Targets initiative (SBTi). That’s concerning. Without a standard, it’s hard to tell whether your target is rigorous or just a marketing headline.

Standards like SBTi bring consistency, transparency, and scientific grounding to climate targets. They act like blueprints for doing it right.

Why aren’t more companies using frameworks?

• They fear they won’t meet the criteria
• They’re unsure how to start
• They think the process is too slow

But in today’s world, self-defined targets are losing credibility fast.

Actionable advice

If you want your Net Zero goal to be taken seriously:

• Explore SBTi or similar tools early: Their website offers step-by-step guidance.
• Use the framework as a guide, even before formal submission
• Be open about your process: Say “in progress toward SBTi validation” if you’re not there yet.
• Don’t wait until everything’s perfect: It’s okay to submit initial targets while you refine Scope 3 data.

Think of frameworks like SBTi as guardrails—they help you stay on the right path and prove you’re not just guessing.

23. 13% of companies have public transition plans to achieve Net Zero

Most companies are making promises, not plans

Only 13% of businesses with Net Zero claims actually share how they’ll get there. That’s a big gap. A goal without a transition plan is like setting a destination on your GPS without mapping a route.

Transition plans show seriousness. They say, “Here’s what we’re doing, when, and how.”

Why are transition plans rare?

• They’re hard to build: They require timelines, budgets, and coordination.
• They expose challenges: Companies worry about revealing weak spots.
• They attract accountability: Once public, people expect updates.

But hiding the plan does more harm than good. If you’re aiming for Net Zero, stakeholders want to see your steps—not just your destination.

Actionable advice

To create a clear and useful transition plan:

• Break your timeline into stages: For example, cut Scope 1 by 20% by 2027, Scope 2 by 50% by 2030, etc.
• Include operational, supplier, and financial steps
• Be honest about the hard parts: Transparency about hurdles builds trust.
• Review and update annually: Make your plan a living document, not a one-off slide deck.

Your transition plan should feel like your business plan for emissions. If you wouldn’t run a business without a strategy, don’t run your climate goal without one either.

24. In 2023, 1,200+ companies had Net Zero pledges, up from 500 in 2020

The Net Zero movement is gaining serious momentum

In just three years, the number of Net Zero pledges more than doubled. That shows growing awareness—and pressure. But growth also raises questions. Are these real plans or just trendy PR moves?

As more companies join the race, expectations will grow. So will scrutiny.

What’s driving the surge?

• ESG investing pressure
• Regulatory changes on the horizon
• Customer expectations
• Competitor influence

It’s no longer a niche issue. If you’re not thinking about Net Zero, you’re already late to the game.

Actionable advice

If you’re joining the Net Zero movement now:

• Be late—but be great: Learn from early adopters’ mistakes. Study their plans and improve on them.
• Don’t rush to publish without substance: Take the time to build your data and strategy first.
• Benchmark against your sector: See what leaders are doing and aim to match or exceed.
• Join alliances or platforms: Groups like the UN Race to Zero can offer guidance and credibility.

Net Zero is becoming the new baseline. Make your pledge count, not just exist.

25. Only 10% of these companies had short-term emission goals (<2030)

Long-term goals are easy. Short-term action is what counts.

Only 1 in 10 companies with Net Zero targets have meaningful goals before 2030. That’s a huge red flag. The climate doesn’t care about 2050 promises if nothing changes this decade.

Short-term goals are the real proof of commitment. They show that you’re not just planning—you’re doing.

Why are short-term goals rare?

• They require immediate investment
• They create near-term accountability
• They expose current performance gaps

But without them, it’s impossible to measure real progress or build trust.

Actionable advice

To strengthen your roadmap with near-term milestones:

• Set 2025 or 2030 benchmarks: Break down big goals into small, measurable steps.
• Tie them to actions, not just outcomes: “Switch 75% of operations to renewable energy” is clearer than “reduce emissions.”
• Align short-term goals with internal planning cycles: Connect them to budgets, OKRs, or product timelines.
• Report on progress annually: Even small updates show transparency and intent.

Remember: long-term goals win headlines. Short-term goals win trust.

26. 74% of ESG investors view Net Zero plans as critical to investment decisions

Net Zero is now an investor issue

Almost three out of four ESG investors say that a company’s Net Zero strategy influences their investment decisions. That’s a strong message. Sustainability isn’t just a PR or compliance play—it’s now directly linked to financial opportunity.

If your company doesn’t have a clear Net Zero roadmap, you might be missing out on serious capital.

Why do investors care?

• Risk mitigation: Companies without a carbon plan face potential regulations, lawsuits, and reputational damage.
• Growth alignment: ESG-aligned firms often outperform in the long term.
• Market shifts: As global policies evolve, sustainable businesses are more resilient.

This means that even traditional investors are watching climate metrics—closely.

Actionable advice

To attract ESG capital and investor trust:

• Publish a detailed Net Zero strategy: Include timelines, budgets, and reduction methods.
• Disclose emissions clearly: Use GHG Protocol standards and break down by scope.
• Share progress regularly: Use annual sustainability or ESG reports.
• Tie climate goals to financial outcomes: For example, link reduced emissions to energy cost savings or supply chain efficiencies.

Investors don’t expect perfection. But they do expect clarity, accountability, and progress.

27. 44% of company sustainability reports use inconsistent definitions for carbon neutrality

Inconsistency creates confusion—and doubt

Nearly half of all sustainability reports define “carbon neutrality” differently. Some include Scope 1 and 2 only. Some throw in limited Scope 3. Others use outdated offsets or make claims without any reductions at all.

This inconsistency is a credibility killer. If your report says “carbon neutral,” but doesn’t match what others mean, how will stakeholders know what to trust?

Why this happens

• Lack of global standard enforcement
• Different industries use different language
• Reports are often written by multiple departments without coordination

But inconsistent reporting can dilute even the most genuine climate efforts.

Actionable advice

If you publish sustainability claims:

• Create a company-wide definition: Define what “carbon neutral” means in your context—and stick to it.
• Include a glossary in your report: Explain key terms so readers don’t misinterpret your claims.
• Align with known frameworks: Refer to ISO, GHG Protocol, or SBTi when describing methods.
• Have reports reviewed: Get internal and external review to ensure consistency across sections and years.

Consistency builds trust over time. Say what you mean—and mean it the same way every time.

28. Over 70% of companies do not clarify whether carbon neutrality applies to all global operations

Partial neutrality creates confusion

Most companies claiming carbon neutrality don’t say if it applies globally or just to certain regions or products. That’s a major gap. For stakeholders, it raises a simple question: are you carbon neutral everywhere—or just where it’s easy?

Without clarification, people assume the best—and feel betrayed when they discover otherwise.

Why companies leave this out

• Global data is harder to track
• Different markets have different maturity levels
• Some operations may be excluded due to complexity

But clarity is more valuable than perfection.

Actionable advice

If you’re claiming carbon neutrality:

• Specify your scope: Say exactly what operations, geographies, or products are covered.
• Use visuals: A simple map or chart can show coverage at a glance.
• Be transparent about exclusions: Say what’s not included and why.
• Create a timeline for expansion: If you start with a single region or product line, explain when the rest will follow.

Honesty builds goodwill. Most people will understand a limited scope—if you’re upfront about it.

29. 47% of climate-related lawsuits now involve misleading Net Zero or carbon neutrality claims

The courtroom is catching up

Almost half of all climate lawsuits now focus on misleading green claims. That should get every company’s attention. Regulators, NGOs, and even consumers are taking legal action when Net Zero promises are exaggerated or misrepresented.

What used to be a marketing issue is now a legal risk.

What triggers legal action?

• Overstated emissions cuts
• Vague or unsubstantiated Net Zero goals
• Lack of disclosures on offsets
• Inconsistencies across marketing and reporting

Once a company is accused of greenwashing, the damage isn’t just legal—it’s reputational.

Actionable advice

To protect your business:

• Verify every claim before publishing
• Align marketing with sustainability reporting: Ensure there are no mixed messages.
• Use precise, accurate language: Avoid vague terms like “eco-friendly” or “green” without backup.
• Have legal and ESG teams review materials together

The best protection from greenwashing lawsuits is truth and transparency. Build your claims on a foundation of fact, not fluff.

30. 25% of firms with Net Zero goals have appointed Chief Sustainability Officers to lead implementation

Leadership makes the difference

Only one in four companies with Net Zero goals have a dedicated Chief Sustainability Officer (CSO). That means most are managing ambitious climate plans without someone clearly in charge.

Net Zero isn’t a side project—it’s a transformation. And it needs leadership at the top.

Why a CSO matters

• Centralizes decision-making
• Aligns departments
• Drives accountability
• Brings long-term focus

Without clear ownership, goals get lost, progress stalls, and nobody takes full responsibility.

Actionable advice

If your company is serious about sustainability:

• Create a CSO or equivalent role: Even if it starts part-time, someone must own the mission.
• Give them budget and authority: Sustainability needs resources and decision power to succeed.
• Embed climate KPIs into all leadership roles: Don’t isolate responsibility—distribute it across the org.
• Involve the board: Governance matters. Boards must understand and support climate strategy.

Real climate action isn’t just technical—it’s cultural. And it starts with leadership.

Conclusion

In today’s business world, sustainability isn’t just a nice-to-have—it’s a strategic imperative. But as we’ve seen through these 30 critical statistics, there’s a wide gap between what companies are claiming and what they’re actually doing when it comes to “carbon neutral” and “Net Zero” goals.