Understanding Net Zero: Principles and Application

“Net zero” is a term that now appears everywhere. But despite its widespread use, it’s often misunderstood.

In simple terms, net zero focuses on reducing the amount of greenhouse gas emissions released into the atmosphere to as close to zero as possible, and only using removal techniques for balancing any residual emissions. For an organisation, this means achieving at least a 90-95% reduction in its total emissions against the chosen baseline year.

This guide explains what net zero actually means, how it works, and why it matters: particularly for UK businesses and events.

What Does Net Zero Mean?

Net zero means reducing greenhouse gas emissions to at least 90% against the chosen baseline (for national net zero targets, the baseline year is 1990) and balancing any residual emissions - expected to account for less than 10% of total emissions - by removing the same amount from the atmosphere.

In practice, this means an organisation, country, or sector works to cut emissions at source first - for example by using cleaner energy, improving efficiency, or changing how goods and services are produced. Once emissions have been reduced to the lowest feasible level, any residual emissions are then balanced through verified removal activities, such as carbon sequestration or carbon capture technology.

It is crucial to note that credible net zero commitments focus on long-term, structural emissions reductions, with offsets or removals used only as a final step, not as a substitute for real action. Net zero means ensuring that the total amount of greenhouse gases released is equal to the amount removed by reducing total emissions to as close to zero as possible and balancing remaining emissions with anthropogenic (meaning resulting from human activities) removals, achieving no net increase in anthropogenic atmospheric emissions. The term “net” recognises that some emissions are currently difficult or impossible to eliminate completely. 

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What Are Greenhouse Gas Emissions?

Greenhouse gas emissions are gases released into the atmosphere that trap heat and contribute to climate change. They act like a blanket around the Earth, preventing heat from escaping and causing global temperatures to rise.

The most common greenhouse gases include:

• Carbon dioxide (CO₂): Produced mainly from burning fossil fuels for energy, heating, and transport.
• Methane (CH₄): Released from agriculture, waste, and energy production, and far more potent than CO₂ in the short term.
• Nitrous oxide (N₂O): Emitted from agricultural activities, fertilisers, and certain industrial processes.
  
  

Although carbon dioxide is the most talked-about, net zero targets typically cover all greenhouse gases, not just CO₂, because each contributes to global warming in different ways. To allow these different gases to be compared consistently, emissions are usually expressed as carbon dioxide equivalent (CO₂e).

For events, greenhouse gas emissions usually come from:

• Travel of visitors, contractors and staff.
• Food and beverage impacts.
• Other purchased goods and services such as materials or merchandise.
• Energy/temporary energy
  
  

Understanding where these emissions come from is essential, as it forms the foundation for measuring impact, setting reduction targets, and developing a credible path to net zero.

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Net Zero vs Carbon Neutral: What’s the Difference?

Although the terms are often used interchangeably, net zero and carbon neutral are not the same: and the difference matters.

What Does Carbon Neutral Mean?

Carbon neutrality can be achieved by balancing anthropogenic greenhouse gas emissions with anthropogenic removals. An organisation may achieve carbon neutrality by offsetting its emissions (i.e. investing in carbon removal projects to compensate for greenhouse gas emissions). However, this does not necessarily mean the organisation has mitigated or reduced its emissions, nor does it mean that gases other than carbon dioxide are included.

Carbon neutrality:

• Typically focuses only on CO₂ and scope 1 and 2 emissions.
• Often relies heavily on offsetting
• Accepts all types of offsets, varying widely in quality and credibility depending on the offsets used
  
  

While carbon-neutral claims can play a role in climate action, they are often criticised as a low-effort or shortcut approach and viewed as less robust if not backed by real emissions reductions.

What Does Net Zero Mean?

Net zero takes a more comprehensive and science-based approach.

Net zero commitments:

• Cover all greenhouse gases, not just carbon dioxide, and requires addressing scope 1, 2 and 3 emissions.
• Require deep, long-term emissions reductions across operations and supply chains
• Only accepts carbon removal offsets, and only for residual emissions that cannot be eliminated
• Are aligned with recognised frameworks such as the Science Based Targets Initiative (SBTi) and GHG Protocol
  
  

Net zero is designed to deliver lasting change for the future, rather than simply compensating for current emissions.

Why the Difference Matters

Net zero is considered the gold standard for credible climate action. As regulation, investor scrutiny, consumer awareness, fan expectations and ESG reporting standards continue to evolve, organisations that rely solely on carbon neutral claims may face growing scrutiny around transparency, greenwashing, and long-term credibility. 

Music fans, in particular, are becoming increasingly concerned about climate change and expect the industry to take meaningful action. Research shows strong support for the music industry, reducing its own environmental impact through practical measures, a view also shared by most non-music fans.

In short:

• Carbon neutral focuses on balancing emissions today (short-term).
• Net zero focuses on eliminating emissions for the future (long-term).

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Measuring & Reducing Emissions in Practice

A credible net zero strategy starts with accurately identifying emission sources. This requires robust, data-led measurement across operations, supply chains, and activities.

A practical and recent example of this is our work on the first comprehensive carbon footprint of the live music industry, delivered in collaboration with the MIT Climate Machine, Live Nation Entertainment, Warner Music Group, and Coldplay. The report provides a thorough, data-driven assessment of emissions across multiple types of live music events in the UK and US, establishing an industry baseline that identifies key impact areas and enables targeted emissions reduction strategies. Find out more here.

After establishing a robust carbon footprint and assessing emission sources, targeted reduction strategies can be implemented to reduce emissions where they have the greatest impact. 

A recent example of this in practice is Coldplay’s world tour, which reduced emissions by implementing initiatives such as tourable battery systems, renewable energy, green travel partnerships, and reusable LED wristbands, achieving a 59% reduction compared to their previous stadium tour. In addition, a tree was planted for each concertgoer, resulting in seven million trees planted across various projects, supporting residual emissions mitigation.

Final Thoughts: Net Zero, Explained Simply

Net zero is not about making quick claims or relying on offsets. It is about understanding emissions, reducing them at source, and addressing the impact that remains. While the concept can seem complex, the principle is straightforward: cut everything you can, and only balance what you cannot.

For UK organisations, net zero is an increasingly important part of operating responsibly and competitively. Clear definitions, credible targets, and transparent action are now expected by regulators, investors, customers, and supply chain partners alike.

By understanding what net zero really means, and how it differs from concepts like carbon neutrality, organisations are better placed to make informed decisions, avoid misleading claims, and build a more resilient, future-focused strategy.

Net zero is not a one-time achievement, but an ongoing journey that requires continuous emissions accounting, implementation of reduction measures, and regular reassessment.

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