The terms “carbon neutral” and “net zero” have become common goals for businesses committed to reducing their impact on global warming. However, some organizations are taking their efforts even further, striving to become carbon negative. But what does carbon negative actually mean? In this blog post, we will explore the concept of carbon negativity, how it differs from related terms like net zero and carbon neutral, and whether businesses can truly achieve this ambitious goal. We’ll also highlight the example of EY, a global organization leading the way in carbon reduction.
Carbon negative – a definition
Carbon negative refers to a state in which a company, organization, or country removes more carbon dioxide (CO2) from the atmosphere than it emits through its activities. To achieve carbon negativity, entities not only need to reduce their greenhouse gas emissions, but also actively remove additional carbon dioxide from the atmosphere using strategies such as reforestation, carbon capture and storage, and other carbon removal technologies. In short, carbon negative means that the overall carbon footprint of an organization is not just balanced but is actually contributing to a net reduction in the atmosphere’s carbon content.
This concept goes beyond “carbon neutral” or “net zero emissions,” where the goal is to offset or balance the amount of carbon emitted by an organization through efforts like investing in renewable energy sources or purchasing carbon credits. Carbon negative entities take this a step further, leaving a positive impact on the environment by effectively reducing global carbon levels and helping to fight climate change.
Differences to other key terms
Net zero
Net zero emissions refer to the point at which the amount of emissions produced is equal to the amount removed from the atmosphere. To achieve net zero, companies work to reduce emissions as much as possible and balance the remainder by investing in projects that remove or offset carbon, such as renewable energy projects or carbon sequestration. While net zero emissions help halt the growth of global emissions, they do not actively reduce the total amount of CO2 already in the atmosphere.
Carbon neutral
Carbon neutral is closely related to net zero but often implies less stringent reduction efforts. A carbon-neutral organization balances the emissions it produces by offsetting an equivalent amount of carbon through projects such as afforestation or carbon offset schemes. Achieving carbon neutrality does not necessarily require cutting emissions drastically; it can be achieved by compensating for carbon emitted through purchased offsets, even if significant fossil fuels are still in use.
Carbon positive
Carbon positive refers to the idea of not only achieving carbon negativity (removing more carbon than emitted) but also generating an overall positive environmental impact. Often used interchangeably with carbon negative, the term highlights the notion of creating an environmental benefit rather than just neutralizing or reducing harm. A carbon-positive business produces more carbon offsetting than necessary, going beyond balancing its emissions and contributing excess positive environmental gains through innovations like clean energy technologies or major carbon sequestration projects.
Can a business be carbon negative?
Achieving carbon negativity is an ambitious goal, but some businesses are already making strides in that direction. To become carbon negative, a business must not only reduce emissions across its value chain but also remove more carbon than it emits. This can be accomplished by combining direct efforts to reduce emissions (e.g., switching to renewable energy sources) with investments in carbon removal technologies and offset projects that actively remove CO2 from the atmosphere.
A prime example of this is the professional services firm EY (Ernst & Young). In January 2021, EY announced its carbon ambition, aiming to reach net zero emissions by 2025. As part of this commitment, EY has been working to reduce its absolute greenhouse gas emissions by 40% compared to its FY19 baseline. This goal is consistent with the 1.5°C pathway outlined in the Paris Agreement, which seeks to limit global temperature rise by reducing global emissions.
EY’s efforts paid off in FY21 when the firm achieved carbon negativity globally. By FY22, EY remained carbon negative for the second consecutive year. This means that the company offset or removed more carbon from the atmosphere than it emitted. EY achieved this by cutting carbon emissions, largely through a reduction in travel and energy use during the COVID-19 pandemic, and through investing in high-quality carbon offset projects, such as afforestation and carbon capture initiatives. Their approach includes targeting emissions across Scopes 1, 2, and 3 and continuing to decouple business growth from emissions growth.
However, EY faces challenges moving forward. As the business returns to more normal operations post-pandemic, emissions—especially from business travel—are expected to rise again. Nonetheless, EY is confident that by adhering to its carbon action plan and continuing to invest in carbon removal technologies, it can remain on track to meet its net zero goal by 2025 while maintaining carbon negative status.
How EY is reducing GHG emissions and remaining carbon negative
Ernst & Young Global Limited (EY) is a multinational professional services partnership which is on a carbon negative trajectory, focusing on several key initiatives:
- Reducing carbon gas emissions: EY has significantly reduced its carbon footprint by cutting down on travel, optimizing energy use, and embracing more sustainable operations. This effort includes reducing emissions from office electricity usage and encouraging the use of renewable energy sources.
- Investing in carbon removal: EY is actively investing in carbon offset programs that remove CO2 from the atmosphere. This includes projects focused on reforestation, carbon capture, and storage technologies, and other initiatives aimed at reducing the carbon content of the atmosphere.
- Sustaining carbon negativity: Despite the anticipated rise in carbon emissions as business travel resumes, EY is committed to balancing these emissions by further expanding its carbon removal efforts. This involves decoupling emissions from growth and focusing on sustainable practices across its entire life cycle.
A note on Contributions
Carbon offsetting, while initially introduced with the promise of balancing carbon emissions, has faced significant challenges over the past 25 years. Despite its intentions to support global decarbonization and climate justice, emissions have continued to rise, with voluntary carbon markets often allowing businesses to bypass meaningful reductions. This has led to the exploitation of carbon credits as a means to achieve carbon neutrality without reducing a company’s own carbon footprint. As a result, these mechanisms have been criticized for merely masking emissions rather than promoting real environmental benefits.
The concept of contributions offers an alternative path. Instead of focusing on offsetting, companies can adopt a negative carbon footprint approach, allocating resources towards direct emissions reductions and excess carbon removal. This involves setting internal carbon prices and investing in climate projects that align with a company’s values, such as direct air capture or other technology-based solutions. By funding these projects, organizations around the world contribute to climate goals while also reducing waste and advancing the development of new technology for carbon removal.
A contribution-based approach provides a more transparent, strategic, and impactful way for companies to fight climate change. It emphasizes reducing emissions at the source, creating a zero-carbon future, and fostering long-term climate action. By supporting meaningful climate projects that align with their goals and local ecosystems, organizations can make lasting contributions to decarbonization while avoiding the financial and reputational risks associated with traditional offsetting schemes.
The path to carbon negativity
Achieving carbon negativity is no small feat, but it represents a critical step in the fight against climate change. Businesses like EY are proving that it is possible to go beyond carbon neutrality and net zero emissions by actively removing more carbon than they emit. Through a combination of reducing emissions, investing in renewable energy sources, and supporting carbon removal projects, businesses can achieve carbon negativity and contribute to a more sustainable future.
However, the path to carbon negativity is challenging. It requires not only cutting greenhouse gas emissions but also investing in new removal technologies and projects that help reduce the overall carbon content of the atmosphere. While some companies may initially find this daunting, the growing global emphasis on sustainability, highlighted by international agreements like the Paris Agreement, makes it a necessary step for companies committed to reducing their negative impact on the planet.
In a world where decarbonization has become central to business strategy, companies that aim for carbon negative status are leading the way in creating a sustainable future—one where economic growth and environmental responsibility go hand in hand.
