# Net Zero

*ESG & Sustainable Finance — Finicade finance glossary*

Net zero means cutting emissions as far as possible and neutralising the residual with permanent removals. The word net carries the weight: a target met mostly through offsets rather than actual reductions is not the same commitment as one that isn't. Credible pledges specify interim targets, cover Scope 3, and limit the role of offsetting explicitly.

**Also known as:** net zero emissions, carbon neutral, net zero target

**Related terms:** [Science-Based Targets](https://finicade.com/glossary/science-based-targets), [Carbon Credit](https://finicade.com/glossary/carbon-credit), [Scope 1, 2 and 3 Emissions](https://finicade.com/glossary/scope-1-2-and-3-emissions), [Transition Finance](https://finicade.com/glossary/transition-finance), [Greenwashing](https://finicade.com/glossary/greenwashing)

Source: https://finicade.com/glossary/net-zero