Net zero refers to the balance between the amount of greenhouse gas emissions produced and the amount removed from the atmosphere. It is a state where the total amount of greenhouse gases released into the atmosphere is no more than the amount removed. This can be achieved through reducing emissions and/or offsetting them by investing in projects that remove greenhouse gases from the atmosphere, such as reforestation or carbon capture and storage.
Net zero is seen as a critical goal in addressing climate change, as it is widely acknowledged that the buildup of greenhouse gases in the atmosphere is leading to global warming and its associated impacts, such as rising sea levels, more frequent and severe heat waves, and more intense storms. Achieving net zero emissions is viewed as a key step towards limiting global warming to less than 2 degrees Celsius above pre-industrial levels, which is the goal of the Paris Agreement.
The ESG space is changing day by day, creating more uncertainty for decision makers
