Carbon neutrality is achieved when, over a given period of time, the amount of CO₂ emitted is balanced by an equivalent amount of CO₂ removed from the atmosphere.
For your company, this is not just an environmental milestone: it is a strategic choice that responds to the growing expectations of customers, investors, and regulators.
Being carbon neutral means taking full responsibility for your climate impact and clearly demonstrating your company’s commitment to sustainability. It is a structured journey that requires transparency, and concrete action, going beyond mere statements of intent.
Offsetting emissions by purchasing carbon credits is not enough. Companies must first measure their emissions accurately, then reduce them by implementing targeted improvements across business processes and operations. Only after these steps should the remaining emissions—those that are technically or economically unavoidable—be offset.
1. Measure your company’s emissions
You cannot improve what you do not measure. The first step toward carbon neutrality is calculating your company’s carbon footprint. This means quantifying emissions through a structured inventory aligned with international standards such as the GHG Protocol.
The analysis must include three distinct categories, known as Scopes. Scope 1 includes direct emissions from your operations, such as on-site fuel combustion and company vehicles. Scope 2 covers indirect emissions from purchased energy, mainly electricity and heating. Scope 3, often the most complex to map, includes all upstream and downstream emissions along the value chain: suppliers, logistics, product use by customers, and end-of-life treatment.
This calculation provides a clear picture of your starting point, highlighting which activities, processes, or stages of the value chain generate the greatest impact and allowing you to prioritize intervention areas. Accurate measurement also forms the foundation for monitoring progress over time and communicating results credibly to stakeholders and investors.
2. Reduce emissions at the source
Once you have a clear mapping of your emissions, the next step is implementing concrete interventions. Reduction is the essential component of any carbon neutrality journey: it means addressing the root causes of emissions by modifying processes, technologies, and behaviors to decrease the amount of CO₂ released into the atmosphere.
Actions can span several areas, including:
- Energy efficiency: optimize systems, lighting, building insulation, and implement real-time energy monitoring systems to identify waste.
- Renewable energy: switch to green energy supply contracts, install photovoltaic systems, or adopt other self-generation solutions suited to your context.
- Responsible supply chain management: integrate sustainability criteria into procurement procedures, request emissions data from suppliers, and prioritize partners committed to decarbonization.
- Responsible supply chain management: integrate sustainability criteria into procurement procedures, request emissions data from suppliers, and prioritize partners committed to decarbonization.
- Production process optimization: reduce raw material waste, minimize packaging, improve waste management, and apply circular economy principles.
Reduction must come before offsetting to ensure credibility in your climate strategy. Cutting emissions wherever possible demonstrates genuine commitment to tackling climate change and can generate lasting operational and financial benefits. Offsetting should follow to neutralize remaining emissions, completing the balance toward carbon neutrality.
3. Offset residual emissions
Even with the best reduction efforts, some emissions will remain unavoidable—at least in the short to medium term. This is where offsetting comes into play through the purchase of certified carbon credits.
While reduction directly lowers emissions from your own operations, offsetting finances third-party projects that reduce or remove CO₂. These projects range from renewable energy installations and reforestation initiatives to carbon capture and storage technologies and other climate interventions.
Each credit represents one metric ton of CO₂ avoided or removed from the atmosphere. By purchasing these credits through specialized platforms or intermediaries, you can account for those tons of CO₂ as compensation for your residual emissions.
Be aware: not all credits are equal. Look for projects that guarantee:
- Additionality: the project would not have occurred without carbon credit financing.
- Permanence: the CO₂ reduction or removal is long-lasting.
- Verifiability: credits are certified by independent third parties according to internationally recognized standards.
- Co-benefits: beyond CO₂ reduction/removal, the project generates additional positive impacts for local communities and/or the environment.
4. Communicate results transparently
After measuring, reducing, and offsetting your emissions, communication becomes the tool to showcase your commitment and ensure accountability to stakeholders. A credible climate strategy requires equally rigorous communication: clear, honest, and based on verifiable data.
Transparency is the foundation of effective communication. Openly share your baseline data, your reduction targets, and the actions being implemented. Report progress year after year using measurable metrics, and explain the rationale behind the offset projects you support. This transparent approach builds stakeholder trust and reinforces the credibility of your climate strategy.
Your carbon neutrality journey with Kyklos Carbon
Kyklos Carbon is the partner that supports you at every stage of your carbon neutrality journey. We help you calculate your company’s carbon footprint according to international standards, identify high-impact areas, and propose tailored solutions to effectively reduce and offset emissions.
We also assist in drafting sustainability reports that transparently communicate your climate commitment, achievements, and future objectives.
To simplify the purchase of certified carbon credits, we are developing a dedicated marketplace platform. It is not yet available, but if you would like to stay updated and explore potential involvement in the early testing phases, you can contact us—we will provide further information as soon as it becomes available.
4 Key steps to guide your company toward carbon neutrality