A 2-minute guide to the Net Zero Initiative

What is the Net Zero Initiative (NZI)?

The Net Zero Initiative is a science-based framework designed to bring clarity to net-zero ambitions of companies. In particular, it provides a science-based methodology for evaluating an organization’s direct, avoided, and removed greenhouse gas emissions.

Unlike vague claims of “carbon neutrality” or over-simplified offsetting, the NZI framework gives clear guidelines to reduce the impact of companies and communicate about it more responsibly. Here are its key principles:

• The term “carbon neutrality” refers only to the goal of balancing emissions and removals on a global scale. This term does not apply to an organization.

• Companies must contribute to this goal by transforming their activities to align with a net-zero-compatible world.

• **Emission reductions and removals **must be accounted for separately.

• Companies can contribute to the net zero by** selling a solution that decarbonises.**

• Carbon finance can trigger reduction, avoidance and removals, but cannot net a company’s emissions.** Financial contributions are counted separately.**

The 3 pillars of the Net Zero Initiative

The NZI framework is built around three complementary pillars. To truly contribute to the global net-zero goal, organisations must take action in all three areas simultaneously:

• Reduce Your Own Emissions (Pillar A)

Focus on cutting your direct (scope 1 and 2) and indirect (scope 3) emissions.

• Help Others Reduce Emissions (Pillar B)

Sell products or solutions that enable companies to decarbonise their operations.

• Finance low-carbon projects outside your value chain that lead to measurable reductions.

• Develop Carbon Sinks (Pillar C)

Invest in carbon removal projects both within and outside your value chain.

These pillars are complementary, not interchangeable. To make a real impact, all three need to work together.

Should I use the NZI framework?

The NZI framework is ideal for any organisation wanting to have a climate strategy backed up by science. Whether you’re a climate consultant helping businesses navigate their decarbonisation journey or a company ready to align with global net-zero targets, NZI provides the structure you need.

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