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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Environment

Meera Chemicals Ltd. wants to meet a board-approved target of net zero by 2050. Which approach is most consistent with credible carbon accounting practice for this goal?

The company should reduce its own emissions first and use offsets or removals only for residual emissions. Offsets do not reduce the gross inventory, and credible net-zero claims require deep reductions rather than reliance on purchased credits.

  1. ACut its own emissions first and use offsets only for residual emissionsCorrect
  2. BBuy offsets to cover all emissions and avoid reductions
  3. CReport only Scope 1 emissions and exclude others
  4. DCount offsets bought as a reduction in Scope 3 inventory directly

Explanation

Credible net-zero pathways prioritise actual emission reductions across the inventory, with offsets or removals neutralising only hard-to-abate residual emissions. Offsets are not deducted from the reported gross inventory, so the last option is wrong. Excluding scopes or relying wholly on offsets undermines credibility.

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