Net Zero Initiative: A Single Framework for a Collective Contribution to Net Zero
Founded in 2018 by the consulting firm Carbone 4, the Net Zero Initiative (NZI) aims to organize and standardize companies’ efforts toward carbon neutrality.
Since 2020, it has been joined by institutional stakeholders such as ADEME and the Ministry of Ecological Transition, as well as by companies and industry experts.
Together, they are seeking to redefine what it truly means to “contribute to global carbon neutrality.”
The Challenges of Carbon Neutrality: Rigor, Transparency, Ambition
In the context of the fight against climate change, many companies lack precision and consistency in their efforts to achieve carbon neutrality.
Several issues were raised at the start of the project:
➡️ Lack of scientific rigor
Many initiatives lack specific criteria regarding the types of emissions to be considered, the reductions required before carbon offsetting can be considered, or, more broadly, the strategy being implemented. Corporate communications fall far short of actual scientific requirements, opening the door to greenwashing.
➡️ Lack of transparency
The carbon offset market —or the carbon footprint market —still lacks a clear framework, allowing some companies to claim they are “carbon neutral” without any real justification. This makes it difficult to compare companies and to identify those that are truly committed.
➡️ Lack of ambition
The emission reduction measures chosen by some companies lack ambition. The CSRD is expected to provide a more stringent framework in the future but has not yet had an impact on the voluntary carbon offset market. This market does little to encourage companies to invest in more costly but necessary emission reductions. Offsetting thus becomes an easy way to circumvent genuine and meaningful reduction efforts.
Finding 1: Concepts Misused by Companies
Terms related to carbon neutrality are too often misused, leading to ineffective initiatives or even greenwashing.
❗Common mistakes:
🔴 Individual Carbon Neutrality: A Misconception
Terms like “carbon-neutral company” or “climate-positive” are often used incorrectly. In reality, the scientific literature is very clear on the definition: net-zero carbon can only be defined on a global scale. A single company cannot achieve carbon neutrality on its own, but it can actively contribute to it.
🔴 Offsetting Versus Reduction
A common misconception is that offsetting alone is sufficient to achieve carbon neutrality. The NZI emphasizes that it is essential to directly reduce emissions before considering offsetting, which should only be applied to unavoidable residual emissions.
🔴 Accounting for Indirect Emissions (Scope 3)
Many companies limit their efforts to direct emissions (Scope 1 and 2), ignoring their indirect carbon impact related to the value chain (Scope 3).The NZI emphasizes the importance of including these emissions for a comprehensive approach to carbon neutrality.
The NZI's Response: A Common Methodological Framework
To address the shortcomings and flaws in current carbon neutrality initiatives, the NZI proposes a structured methodology that goes beyond mere promises of emissions reductions. By establishing precise and measurable standards, it helps organizations adopt practices that are transparent and aligned with scientific requirements.
The NZI methodology is based on three pillars:
📉 TDirect and Indirect Emissions
Companies must reduce their greenhouse gas (GHG) emissions from their direct operations (Scope 1 and 2) as well as across their entire value chain.
♻️ Accelerating Economy-Wide Reductions
Beyond their own emissions, companies are encouraged to support decarbonization projects in other sectors, thereby contributing to broader GHG reductions.
♾️ Contributing to Global Carbon Neutrality
Finally, the NZI proposes offsetting residual emissions through carbon capture and storage initiatives, such as reforestation and carbon sequestration in soils.
Summarized in this dashboard
The 10 Fundamental Principles for Companies That Are Committed
The NZI is based on 10 guiding principles that help organizations achieve true carbon neutrality:
1️⃣ A matter of global balance:
The goal is to balance GHG emissions from human activities on the one hand, and the absorption capacity of carbon sinks on the other.
2️⃣ Contribute to collective carbon neutrality:
Net-zero carbon is part of a global effort, not an individual one.
3️⃣ Three action areas for a company:
Reduce GHG emissions across its value chain, help its ecosystem reduce its GHG emissions, and develop carbon sinks on a global scale. These action areas must be measured, quantified, managed, and reported separately.
4️⃣ Reduce before offsetting:
Prioritize direct reduction before any offsetting.
5️⃣ Measurement and transparency:
Establish specific metrics.
6️⃣ Alignment with climate science:
For a credibleclimate strategy, emission reduction targets must be consistent with the 1.5°C orbelow-2°C carbon budgets. These targets must be specified for both the medium and long term.
7️⃣ Concrete and rapid results:
A climate strategy is only valuable if it leads to actual reductions in a company’s GHG emissions, in line with the established trajectory.
8️⃣ Include your ecosystem:
Support initiatives that decarbonize other sectors. Companies are encouraged to contribute to decarbonization beyond the scope of their carbon footprint.
9️⃣ Contribute to carbon capture projects:
Fund or develop solutions to remove CO2 from the atmosphere.
🔟 Rigorous and Impeccable Communication:
Companies are encouraged to communicate transparently and sincerely about their climate strategy, emphasizing their concrete results and using metrics and language that help promote a rigorous approach to climate issues.
The Net Zero Initiative (NZI) provides companies with a rigorous framework for taking effective action in response to the climate emergency. By prioritizing emissions reductions, promoting transparency, and adopting a collective vision, the NZI transforms carbon neutrality into an achievable and credible goal.
By fully committing to this approach, companies do more than simply reduce their impact: they become key drivers of global change, strengthening their credibility and resilience in a world undergoing transition.
