CO2 Neutral/Net zero
CO2 neutrality means that a company has taken measures to capture or remove the same amount of CO2 from the atmosphere as the company produces.
What do I need to know?
CO2 neutral/net zero = CO2 emission - CO2 capture or compensation ≤ 0. For a company to be CO2 neutral/net zero, it does not mean that they have reduced their emissions to zero. Instead, it indicates that the company has found a way to 'make-up for' the amount of CO2 that they are emitting. This could be through carbon capturing, buying green electricity from the grid or putting up solar panels on the roof of their building.
Why is it important?
As a real estate owner, this is important for two reasons. First, we should be aware that almost all commercial tenants have a net zero policy and/or are required to report on their emissions to their parent company and/or vendor business partners. Since a significant portion of a company's emissions typically comes from its offices, both reporting and strategy must be supported. Second, real estate is an asset in its own right and will be valued and invested in the context of net zero strategies going forward.
Want to get started with live emission tracking for your real estate portfolio? Future proof your business with the Legacy CO2 accounting platform.
CO2 is a type of carbon gas found in natural resources such as fossil fuels. All forms of energy production, such as central heating, electricity, water, which are based on fossil fuels, emit greenhouse gasses calculated as CO2e.
ESG is the substitute for Corporate Social Responsibility (CSR) and stands for the three central areas in which companies operate with sustainable, responsible business practices.