What Does “Climate Neutral” Business Mean?

The number of companies announcing that they are or will become climate neutral is growing. Accepting a company as “climate neutral” means that they will absorb more greenhouse gas emissions than they produce.

It is the trend of the time, companies to realize the changes that are taking place and in turn try to co-shape or participate in these changes and not to run behind the changes.

The business world is aware of its responsibility for climate change. The truth is, however, that there is no “Bible” as to how climate neutral action is defined, what elements make it up, how these elements are controlled and go hand in hand with climate neutrality, but also by whom they are controlled.

In legal terms, there is no established term “climate neutral”. But what happens when companies for various reasons, can not be “climate neutral” in all their activities, but due to the current trend, they put in their product a green symbol, making it more attractive, without losing the trend of the time.

What is the transparency process and how is it ensured?

The proper process for a company to be entitled “climate neutral” must first enter a process that records the pollutants caused throughout its production chain, at the same time improving its own processes and after exhausting all these, and can not avoid pollutants, then resort to the rights market.

If a company does not follow this process, then “climate neutral” certification has no substantive content. However, if such issues arise, there should be specific uniform standards with global validity, as is the case with ISO certification.

Only in this way can this certification of climate neutrality be used as an addition to the goodwill of businesses, enabling both business financiers and potential investors to have the necessary framework to evaluate business strategy in terms of achieving the goals of climate change.

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TRUST ECONOMICS

Trust Economics is a specialized independent economic research, analysis and consultancy business. Our team provides ingenious analysis in the macro & micro economic field, in the field of financial market, regional and sectoral analysis equally, forecasts, consultancy, specialized studies-research/projects from its headquarters in Athens, Greece.

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