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 is greenwashing?
Greenwashing is when a company makes its products, services or operations look better for the environment than they really are. It can be a false claim, an exaggerated or vague one, a claim that hides important facts, or green images and logos that create a misleading impression.
India's Central Consumer Protection Authority (CCPA) describes greenwashing as a marketing tactic where companies falsely claim or exaggerate the environmental benefits of what they sell, often using vague words such as "natural", "eco-friendly" or "green" (Press Information Bureau, 15 October 2024).
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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