Direct and Indirect Emissions
To be considered carbon neutral, an organization must reduce its carbon footprint to zero. Determining what to include in the carbon footprint depends upon the organization and the standards they are following.
Generally, direct emissions sources must be reduced and offset completely, while indirect emissions from purchased electricity can be reduced with renewable energy purchases.
Direct emissions include all pollution from manufacturing, company owned vehicles and reimbursed travel, livestock and any other source that is directly controlled by the owner. Indirect emissions include all emissions that result from the use or purchase of a product. For instance, the direct emissions of an airline are all the jet fuel that is burned, while the indirect emissions include manufacture and disposal of airplanes, all the electricity used to operate the airline's office, and the daily emissions from employee travel to and from work. In another example, the power company has a direct emission of greenhouse gas, while the office that purchases it considers it an indirect emission.
Read more about this topic: Carbon Neutrality
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