Welcome to Impact Insights, the podcast series of Astero Investment Managers.

The alarming effect of carbon dioxide and other greenhouse gases on the climate is a subject of growing concern.

To help reduce the amount of GAGs in the atmosphere, more regulatory organizations are putting restrictions in place.

Independent of regulations, many companies are pushed to control their carbon emissions,

also known as their carbon footprint, by traditional market forces including investors, competitors and customers.

Even in the new run, businesses have been drawn to carbon neutrality, but actually the only

workable option should be Netviro.

Our today's guest is Natasha Gerda, head of research and Astaire Investment Managers.

She helps us to clarify the terms commonly used in CO2 emission reduction.

Natasha, actually, does the concept of carbon neutral means zero emissions?

No, not at all.

Although net zero and carbon neutral are often referred to in an intangible way, and they

both actually results in CO2 being removed from the environment, the two terms are not the same.

First, net zero refers to a situation where the amount of greenhouse gases that are removed

from the atmosphere are being equal to those emitted by human activity.

So first, emission reductions would generally follow a certain trajectory, for instance, a pathway towards 1.5 degrees.

Any residual emission would generally focus on greenhouse gas sequestration from the atmosphere.

So to achieve net zero means to go beyond the removal of just carbon emissions.

Organizations such as the science-based target initiative

have developed pathways for companies to validate their net zero green gas

reduction targets and ensure that they align with that science

deems necessary to limits global warming to 1.5 in the near term.

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