Carbon neutral: what it means for a company and what you can claim from 2026
Climate neutrality, net zero and offsets: what ISO 14068 requires, what the directive on environmental claims bans from 27 September 2026 and how to communicate your progress without risk.
A company is carbon neutral when the greenhouse gas emissions it generates, measured over a defined boundary and period, are balanced by equivalent reductions and removals. In 2026 the word carries more weight than before: from 27 September, Directive (EU) 2024/825 bans presenting a product as having “zero climate impact” when the result relies on offsets. Here you will find what it really means, what you can say and where to start.
What carbon neutral means
Carbon neutral, or climate neutrality, means a net balance of zero between the emissions generated and those reduced or removed over a given period, usually one year. The calculation is done in tonnes of CO₂ equivalent and covers all greenhouse gases, not just carbon dioxide.
Getting there always takes three steps, in this order:
- measure Scope 1, 2 and 3 emissions with a recognised method, such as the GHG Protocol;
- reduce emissions with concrete actions on energy, processes, transport and suppliers;
- balance only what remains, with high-quality carbon credits or removals, through offsetting.
The critical point is always the last one. Neutrality achieved mainly by buying credits, without documented reductions, no longer holds up against either standards or the law.
Carbon neutral, net zero and climate positive: the differences
The three terms are often used as synonyms, but they describe very different commitments:
| Term | What it means | Role of offsets |
|---|---|---|
| Carbon neutral | Net zero emissions over a defined period, for an organisation or a product | Allowed only for the residual, after reductions and within a plan |
| Net zero | Deep emission reductions across the entire value chain, in line with the 1.5 °C goal, by a set date | Only to neutralise the final residual, with permanent removals |
| Climate positive | Removing more emissions than are generated | The most exposed claim: if based on credits, it is banned for products |
Carbon neutral is therefore a snapshot of one year, while net zero is a long-term trajectory. The most widely used reference for corporate net zero is the standard of the Science Based Targets initiative.
The reference standard: ISO 14068
The international standard on carbon neutrality is ISO 14068. It was first published in 2023 as ISO 14068-1 and replaced the British PAS 2060, withdrawn at the end of 2025. In September 2026 it was updated as ISO 14068:2026, keeping the structure of the first edition.
Compared with PAS 2060, it raises the bar on four points:
- hierarchy of actions: reductions and removals across the value chain come first, offsets only after;
- management plan: you need reduction targets, a trajectory towards net zero and a timeline;
- full boundary: relevant indirect emissions must be included, starting with Scope 3;
- credit quality: additional, permanent, verified by third parties and retired in a registry, with no double counting.
What changes from 27 September 2026
Directive (EU) 2024/825, known as the Empowering Consumers for the Green Transition Directive, applies from 27 September 2026 and has been transposed in Italy into the Italian Consumer Code. It covers commercial practices aimed at consumers and introduces three rules that directly affect green claims:
- no more neutrality claims based on offsets: you cannot state that a product has a neutral, reduced or positive impact on the climate if the result depends on carbon credits;
- no more generic claims: wording such as “green”, “eco” or “environmentally friendly” is banned unless you can show recognised environmental excellence;
- future commitments only with a plan: statements such as “we will be neutral by 2030” require a detailed and realistic plan, measurable targets and periodic verification by an independent expert.
You can still say that you fund climate projects, as long as you do so clearly and without presenting it as product neutrality. For the most common mistakes, read the guide on how to avoid greenwashing.
How to become carbon neutral, step by step
- Define the boundary. Decide whether the claim covers the organisation or a product, which sites it includes and the reference year.
- Measure emissions. Calculate Scope 1, 2 and 3 starting from utility bills, fuel invoices and purchases, as explained in the guide to the corporate carbon footprint.
- Set targets. Write an emissions reduction plan with annual milestones and named owners.
- Actually reduce. Energy efficiency, electrification, renewable energy backed by guarantees of origin and environmental criteria for suppliers.
- Balance only the residual. Choose certified credits and, where possible, removals; retire them in a registry in the company’s name.
- Get verified and communicate precisely. Third-party verification makes the result defensible to customers, banks and authorities.
What you can claim, and how
The strongest message is almost always the measured figure, not the label. A few practical examples:
| Avoid | Better |
|---|---|
| “Zero-impact product” thanks to purchased credits | “In 2025 we reduced Scope 1 and 2 emissions by 18% compared with 2023” |
| “Green company” | “100% of the electricity at our plants is covered by guarantees of origin” |
| “Carbon neutral by 2030”, with no plan | “Target of −42% emissions by 2030, with a public plan and annual verification” |
The percentages in the table are examples: in your own communication, use only figures you can document with your emissions inventory.
Carbon neutral is not a label you can buy with credits: it is the result of measurement, reductions and verification. From 27 September 2026, offsets are no longer enough to support a climate claim on a product. The starting point that always holds up is a reliable emissions inventory, with a credible reduction pathway.
