1Net Zero and Carbon Neutrality are Different.
Net zero considers all GHG vs Carbon neutrality only focuses on Carbon Dioxide. The major difference between Net Zero and Carbon Neutrality is that in Carbon neutrality offset strategies can be deployed. In contrast, Net zero does not allow any offsetting.
2Scope 3 Emissions are Important:
Scope 3 emissions account for a significant amount of their carbon footprint for most businesses(typically more than 70%). For example, an organization that manufactures products will often have significant Scope 3 carbon emissions from processing the raw materials versus a service company.
According to Science-Based Target Initiative (SBTi) criteria, "If a company has significant scope 3 emissions (over 40% of total scope 1,2 and 3 emissions), it should set a scope 3 target."
3Rules for Emissions Accounting and Allocation:
Organizations must identify the operational boundaries between them and their suppliers/partners /customers across the value chain to correctly account for and allocate carbon emissions. There are two critical rules for accomplishing this:
A Scope 1, 2, and 3 are mutually exclusive for an organization - If the emissions are already accounted for in Scope 1 or 2 of an organization, they can't be accounted for in its Scope 3, to avoid double counting. For example, the indirect emissions from electricity consumption are categorized as and accounted for as the consumer's Scope 2 emissions. Therefore, they cannot be accounted as purchased products or services in its Scope 3 emissions.
B The same emissions can be double counted between organizations - The emissions of one organization can be allocated to another organization if they have related business activities. For example, a manufacturer's emissions from producing a product can be allocated to the customer who buys that product as upstream Scope 3 emissions.