What does carbon neutrality mean?

Carbon neutrality in finance refers to the commitment of financial institutions and organizations to reduce their carbon footprint to zero. This involves measuring and reducing greenhouse gas emissions associated with their operations, investments, and lending activities. Carbon neutrality in finance also entails offsetting any remaining emissions through the purchase of carbon credits or by investing in renewable energy projects. By achieving carbon neutrality, financial institutions can demonstrate their commitment to environmental sustainability and contribute to global efforts to mitigate climate change. This can also help them attract socially responsible investors and customers, reduce their exposure to climate-related risks, and align with international climate targets and regulations. Overall, carbon neutrality in finance is a proactive approach to addressing the environmental impact of financial activities and promoting a low-carbon economy.