The concept of Net Zero Carbon

Сarbon neutrality is greenhouse gas reduction to zero level in the process of the company activity. The goal of the concept is to create a responsible attitude of business to the environment and an understanding of the necessity to comply with modern requirements of the business sustainable development and ESG concept.


Net Zero Carbon is achieved in the following ways:


  1. In the first place, by minimizing direct emissions and transitioning to renewable energy sources. The process means addressing CO2 emission sources, but this way creates serious economic difficulties for a company. Another way to reduce emissions is to imply innovative green technologies, which realization is frequently economically unviable in the short-term, but in the long- term, it shows the resistance of the company to climatic risks and regulatory mechanisms for reduction of greenhouse gas emissions. This company becomes more attractive for investment.
  2. Through carbon sequestration, for instance, when the fuel is burnt. Also, the carbon dioxide pumping to underground formations, that are free from hydrocarbon, is practiced.
  3. CO2 emissions management, using of natural “CO2 reservoirs” such as biomass and biofuels from plants absorbing it and crop plants.
  4. Compensation of emissions through offsetting is the certificates that allow financing and developing subzero carbon projects in energy efficiency and renewable energy sources, greenhouse gas absorption such as planting trees. The realization of projects producing green hydrogen.


Accounting for greenhouse gases allows complying with ESG tendencies, being an active participant in the new low-carbon market. Therefore, companies need to be able to calculate their emissions, know how to optimize and offset them with the view to achieving Net Zero Carbon. It creates green investment flows and new socially responsible clients. In the future, these skills, will let businesses save a large amount of money on the pay carbon tax, which system is being developed now by various countries in the frame of the Paris Climate Agreement.



There are 2 key standards of greenhouse gas reporting for enterprises: GHG Protocol and SO 14064. They highlight 2 main methodologies. Three Scopes for accounting of greenhouse gas emissions exist:


Scope 1 – direct emissions. The greenhouse gas emissions from their own sources or company assets.


Scope 2 – indirect energetic emissions that are generated from the consumption of energy produced by external sources.


Scope 3 — indirect emissions on the entire chain of company business process as incoming and outgoing connections. It includes all other greenhouse gas emissions that turn out as the result of company activity on the entire supply chain and marketing.


Scope 1 and Scope 2 emission calculations are necessary during the preparation of non-financial reporting according to GHG Protocol or ISO 14064.


Emissions are assessed by the companies that have long-term and ambitious goals in sustainable development, achievement of carbon neutrality and making an additional profit from ecologically focused consumers and investors.


HPBS Company provides services in carbon neutrality:

  1. consider individual features of carbon-intensive company business processes;
  2. develop the recommendation of process optimization;
  3. develop different alternative solutions to reduce carbon footprint;
  4. produce the modeling of results of renewable energy using;
  5. calculate CAPEX investment and OPEX operational costs;
  6. do a SWOT Analysis of variants.


The author’s course “Calculation, optimization and compensation of greenhouse gases according to the best international practices” is developed. It is available on the educational platform. To date, we develop the course in English for our foreign audience.


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Authors: llya Zavaleev, Vladislav Rossinsky


Сourse on calculating greenhouse gas emissions
A Course of Lectures on the Green Economy
The Concept of Carbon Neutrality
Calculation of the Carbon Footprint
ESG, Development of the Company’s Climate Strategy