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Carbon neutral vs net zero: what the claims mean and how to spot greenwashing

A neutral guide to carbon neutral, net zero and climate positive claims, the standards behind them (ISO 14068, SBTi, UN HLEG) and India's 2024 greenwashing guidelines.

How can you spot greenwashing?

For individuals

Ask five quick questions when you see a green claim:

  1. What exactly is green? The whole product, only the packaging, or one factory?
  2. Is there a number and a period? "30% less plastic than our 2023 pack" is clearer than "eco-friendly".
  3. Who checked it? Look for a named certification or independent verification, not just a logo the company designed itself.
  4. Does it rely on offsets? If "carbon neutral" comes mainly from buying credits, the product's own emissions may not have fallen much.
  5. Is the future promise backed by a plan? A "net zero by 2040" claim should come with interim targets and yearly progress reports.

For businesses

If your company wants to make a climate claim, the standards above point to a few safe habits:

  • Measure first. Prepare a greenhouse gas inventory under the GHG Protocol or ISO 14064-1, covering scopes 1, 2 and, where relevant, 3.
  • Reduce before you balance. Show actual cuts against a base year before using credits.
  • Use precise wording. Say what is covered, the period, the method and the share achieved through credits.
  • Separate targets from achievements. "We aim to reach net zero by 2050" and "We are net zero" are very different claims.
  • Get it verified. Independent third-party verification makes a claim far more credible and is expected under ISO 14068 and the CCPA approach.
  • Disclose credit details. If you use carbon credits, name the programme, project type, vintage and whether they are reductions or removals.
  • Watch every market. A claim allowed in India may be restricted in the EU, and vice versa.

This article is general information, not legal advice. For a specific claim, check the latest text of the rules and take professional advice.

Sources: IPCC AR6 Working Group III, Annex I: Glossary (2022); IPCC AR6 Working Group III, Summary for Policymakers (2022); UNFCCC, Paris Agreement (2015); ISO 14068-1:2023 Climate change management: Transition to net zero, Part 1: Carbon neutrality (catalogue page); BSI, PAS 2060 and ISO 14068-1 carbon neutrality; SBTi, The Corporate Net-Zero Standard (web page); SBTi, SBTi launches world-first net-zero corporate standard (28 October 2021); United Nations, High-Level Expert Group on the Net-Zero Emissions Commitments of Non-State Entities, Integrity Matters (2022); Press Information Bureau, CCPA issues Guidelines for Prevention and Regulation of Greenwashing and Misleading Environmental Claims (15 October 2024, Release ID 2064963); Department of Consumer Affairs, Guidelines for Prevention and Regulation of Greenwashing or Misleading Environmental Claims, 2024 (PDF); ASCI, Draft Guidelines: Environmental/Green Claims (16 November 2023); European Commission, Directive (EU) 2024/825 on empowering consumers for the green transition (Transition Pathways page); Directive (EU) 2024/825, Official Journal of the European Union; MoEFCC, India First Biennial Transparency Report (BTR-1) to the UNFCCC; ISO 14068:2026 Climate change management: Carbon neutrality (ISO committee page; replaces ISO 14068-1:2023); SBTi blog: Countdown to validation: new resources to prepare for the Corporate Net-Zero Standard V2.0 (2026)

This article was prepared with AI assistance and checked by the GreenEye team against the sources shown in each section.

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