By Albin Axelsson – Founder & CEO, A Triple C Consulting

Over the past few years, we've seen a surge in companies announcing their intent to be “Net Zero by 2050.” These declarations are often headline-grabbing and seen as a signal of climate leadership.

But here’s the uncomfortable truth:
Having a Net Zero target does not automatically mean a company is aligned with the goals of the Paris Agreement.

This distinction is not just academic. It has real-world implications for how we evaluate climate ambition, manage regulatory risks, and build credible ESG strategies.

So, What’s the Difference?

At first glance, Net Zero and Paris alignment might seem interchangeable. Both are concerned with reducing greenhouse gas emissions. But the underlying logic behind each concept is different:

  • Net Zero is about reaching a point—typically by 2050—where a company’s remaining emissions are balanced by removals (e.g., carbon offsets).
  • Paris alignment is about ensuring that a company’s emissions pathway is consistent with the remaining global carbon budget that limits warming to 1.5°C or well below 2°C.

In simpler terms:
Net Zero is the destination. Paris alignment is the journey—and whether you stay on the right path.

Why Timing Matters

A company can have a Net Zero target for 2050 but still produce too many emissions in the short term, blowing past its share of the carbon budget. That overshoot could make a 1.5°C world impossible, even if Net Zero is eventually reached.

This is why interim targets, sector-specific pathways, and cumulative emissions are so important. It’s not just where you end up—it’s how quickly you act and how your efforts compare to what the science requires.

A Shrinking Budget, A Moving Goalpost

The carbon budget for 1.5°C is shrinking fast. The more we overshoot today, the steeper the cuts we’ll need tomorrow. This reality is turning Paris alignment into a moving target. Even well-intentioned companies may find themselves off-track simply because others haven’t done their part.

As sustainability professionals, we need to be honest about this. We also need tools and frameworks that reflect the difference between ambition and actual alignment.

Key Insights from a Must-Read Paper

If you're looking to dig deeper into this topic, I highly recommend the paper “Net Zero Alignment – Science-based concepts and definitions for real economy company-level assessments” by Giorgis Hadzilacos, Tanguy Sene, and Jes Andrews. It does an excellent job of explaining:

  • Why sector-specific decarbonization pathways are essential
  • The difference between point-in-time and cumulative approaches to measuring emissions
  • How Net Zero targets can be misleading if not linked to a science-based carbon budget
  • The regulatory and reputational risks of mislabeling funds or disclosures
  • The challenges of calculating company-level carbon budgets, especially for Scope 3 emissions

What Should Companies Do?

For sustainability leaders and Chief Sustainability Officers, here’s where to start:

  1. Audit your climate claims. Make sure you clearly distinguish between Net Zero targets and Paris alignment in all communications.
  2. Push for sector-specific alignment. Don’t rely on global averages—use the most relevant pathways for your industry.
  3. Challenge internal targets. Are they genuinely aligned with a 1.5°C budget or just aiming for a distant endpoint?
  4. Map your risk exposure. Mislabeling alignment can lead to regulatory scrutiny, reputational damage, or even litigation.
  5. Educate internally. Boards, investor relations teams, and product developers should all understand the nuances.

A Role for Smart Technology

At A Triple C Consulting, we believe in combining regulatory insight with modern tools. AI-powered platforms now offer real solutions for:

  • Measuring emissions accurately across Scope 1, 2, and 3
  • Benchmarking progress against sector-specific pathways
  • Monitoring real-time emissions trends
  • Identifying actionable emissions reduction opportunities

These technologies make it easier to navigate the complexity of alignment and provide real-time data to support decision-making.

Final Thought

Net Zero targets are important—but they’re not the full story. If we want to build trust and deliver real impact, we need to go further. That means aligning with science, clarifying our claims, and ensuring we stay on track—not just in 2050, but today.

Let’s move beyond ambition and start focusing on accountable, science-based alignment.


Want to discuss how your company can navigate Net Zero and Paris alignment with confidence? Get in touch with me at www.atriplecconsulting.com.