What do climate neutral and CO2 compensated mean?
Terms such as "climate neutral", "CO₂ neutral", "CO₂ compensated" and "Net Zero" are used in different ways. We explain the differences, the meaning of greenhouse gas inventories and the legal limits of such claims.
Climate neutral, CO₂ offset and net zero: what is the difference between these terms?
“CO₂ offset” has often been used when companies have purchased emission credits or financed external climate protection projects. However, this does not change the actual emissions of a product or company.
“Net zero” in principle requires a substantial actual reduction of greenhouse gas emissions and a separate treatment of remaining residual emissions. The specific requirements depend on the standard in question and the defined accounting boundaries.
The European Union is pursuing the legally established goal of achieving climate neutrality across the Union by 2050. To do so, greenhouse gas emissions are to be reduced as a priority, and remaining emissions are to be balanced out by removing greenhouse gases. This political goal must be distinguished from voluntary measures taken by individual companies.
From 27 September 2026, it is expressly prohibited under the German Act against Unfair Competition (UWG) to attribute a neutral, reduced or positive environmental impact to a product on the basis of the offsetting of greenhouse gas emissions.
Greenhouse gas inventories and external climate protection projects: What is the difference?
A greenhouse gas inventory records emissions within defined time and organisational boundaries. The Corporate Carbon Footprint (CCF) looks at the emissions of a company, the Product Carbon Footprint (PCF) at those of a specific product within defined life cycle stages.
Company-related emissions are usually divided into three categories:
- Scope 1: Direct emissions from owned or controlled sources
- Scope 2: Indirect emissions from purchased energy
- Scope 3: Other upstream and downstream emissions, for example from goods, transport, business travel or the disposal of products sold
When an inventory is published, it must be disclosed which emissions were included and which time period, data and assumptions the calculation is based on.
Independently of this, companies can support external climate protection projects or purchase emission credits. Such projects can, for example, provide renewable energy, avoid emissions or remove CO₂ from the atmosphere. Their proven effect depends on the respective project and on the calculation, monitoring and verification procedures used.
What criticism is there of climate protection projects?
External climate protection projects can involve various integrity risks. Important points to check include additionality and the calculation of the emission impact, possible double counting and leakage effects, the permanence of stored carbon, the project and registry status, and the independent verification of the results.
Certification according to a recognised standard can set requirements for calculation, monitoring and verification, but it is not a blanket guarantee for all claimed effects. Project effects should therefore only be presented for the period and scope for which they have been documented.
How do we handle greenhouse gas inventories and climate protection projects?
We make a clear distinction between the accounting of our greenhouse gas emissions, our own measures to avoid and reduce them, and the additional financial support of external climate protection projects.
We document financial contributions and purchased emission credits separately from our greenhouse gas inventories. They are not counted as compensation, neutralisation or reduction of the emissions of our products, orders or company.
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