The difference between net-zero and carbon neutrality

At Kvadrat, we want to take immediate action to reduce our emissions in line with climate science. Therefore, we are thrilled to announce that our near-term science based target has been successfully validated by the Science Based Target initiative (SBTi). As a member of SBTi, we have committed to achieve 50% greenhouse gas (GHG) reduction in scope 1-2 by 2026, reaching 100% by 2030 to become net-zero in scope 1-3 by 2040.
Net-zero and carbon neutrality are two terms that are often used interchangeably when companies mention their pursuit of limiting climate change. However, there are significant differences in their approach and long-term impact. To make a meaningful contribution and prevent further acceleration of the global climate emergency, we believe it is imperative to reduce greenhouse gas emissions and become net-zero. As one of the first textile companies in Scandinavia to be validated by SBTi, we commit to foster an impactful change in our industry by taking concrete climate action. We believe having our near-term science based target validated is the first clear and vital step towards our ambitions to become net-zero by 2040. 

Three scopes of emissions 

Emissions are usually divided into three scopes, which are summarized below: 
  • Scope 1: Emissions that come directly from controlled sites, such as company cars and global energy usage. 
  • Scope 2: Emissions that are produced on behalf of a company, such as electricity generation and heating. 
  • Scope 3: Emissions that arise across a company’s value chain, such as purchased products and business travel. 

Emissions reduction versus offset

According to the SBTi, a net-zero target requires companies to actively reduce occurring greenhouse gas emissions across all scopes, and only accepts max 10% residual emissions to be offset. Whereas a carbon neutrality commitment refers to outbalancing emissions of a company (often only covering scope 1-2 emissions). A carbon neutrality target can be achieved through emission compensation such as the purchase of offsets through carbon credits. 
We must prioritize the reduction and avoidance of emissions in our own operations and value chains in order to reach short-term deep and urgent decarbonisation and secure the achievement of a global net-zero economy. 

Below, you can find a comparison between net-zero and carbon neutrality:  


Accounts for all greenhouse gas emissions, not only carbon 

Active reduction of greenhouse gas emissions within the internal and external operations of an entity is required  

Allows for max. 10% offsetting of residual emissions of a company´s total emissions

Covers always emissions across scopes 1-3 


Carbon Neutrality 

Accounts often for only one group of greenhouse gas emissions, namely carbon 

Outbalancing of carbon emissions from an entity can be achieved through offsetting activities outside the entity´s value chain 

Allows for 100% off-sets to balance out carbon emissions 

Covers often only emissions across scopes 1-2


Kvadrat commits to the SBTi

As a company, Kvadrat aims to become net-zero.
That’s why we joined the SBTi in March 2022. Our Net Zero Transition Roadmap includes the reduction of all energy consumed, the electrification of space heating and processes as well as the sourcing of renewable energy to build the foundation for our long-term sustainable production and supply chains. On top of this, we will move towards circular systems that offer take-back and product lifetime-extending services on many of our ranges.  To become net-zero by 2040, we have defined specific targets:  
  • We will achieve 50% carbon reduction in scope 1-2 by 2026, reaching 100% by 2030 to become net zero in scope 1-3 by 2040 (baseline 2019)
  • We will offer circular services by 2025, which will generate 40% of our revenue by 2035 
Read more about our targets and how we aim to achieve them in our sustainability strategy.