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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.

What do Indian rules say about green claims?

CCPA Guidelines, 2024

On 15 October 2024 the CCPA issued the Guidelines for Prevention and Regulation of Greenwashing or Misleading Environmental Claims, 2024, under its powers over misleading advertisements in the Consumer Protection Act, 2019. According to the official PIB release:

  • They define "environmental claim" and "greenwashing" and apply to environmental claims by manufacturers and service providers.
  • Vague or generic words such as "eco-friendly", "green", "sustainable" and "natural" should not be used without adequate, accurate and accessible qualifiers and substantiation.
  • Specific claims must be backed by credible certification or reliable scientific evidence, including the method and data used.
  • Claims must say which part they refer to: the product, the manufacturing process, the packaging, and so on.
  • Third-party certification is accepted as substantiation, and material information must be disclosed clearly.

Legal summaries of the guidelines also report that future or aspirational claims, such as a net zero target, may be made only when backed by clear and actionable plans.

ASCI's advertising guidance

The Advertising Standards Council of India (ASCI), the industry's self-regulatory body, released draft guidelines on environmental and green claims in November 2023. They say that absolute claims such as "eco-friendly" or "planet friendly" need a high level of substantiation, that claims should be based on the full life cycle unless stated otherwise, that aspirational claims about future goals need clear and actionable plans, and that carbon offset claims should disclose when the reductions will take two years or more to happen.

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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