By Cat Long
CEO & Co-founder, Trace
Sustainability is no longer just a corporate checkbox; it’s a competitive necessity. With consumers prioritising eco-conscious brands, a clear commitment to net zero strengthens client relationships, enhances brand reputation, and drives long-term growth.
As sustainability targets gain momentum, the Australian advertising industry faces a crucial question: is it better to pursue carbon neutrality or net-zero emissions? For businesses looking to create genuine environmental impact, understanding these concepts is essential.
The difference in a nutshell
Carbon neutral means a business has balanced its carbon emissions by reducing what it can and offsetting the rest. As such, carbon neutrality can be used to describe a business’ current state. Meanwhile, net zero is a long-term commitment, requiring businesses to cut emissions aggressively, leaving only residual emissions, which must be permanently removed. It’s about making deep-rooted changes that result in near-total emissions elimination, which is likely to take many years.
It’s important to recognise that while becoming ‘carbon neutral’ suggests positive intent, the term can be controversial. This stems from the fact that the term is not well-defined or patrolled, and hence can beckon scrutiny from consumers, regulators and other stakeholders.
Why this matters for Australian advertising
The ad industry, known for its influence, also has a hefty environmental footprint. The global Ad Net Zero initiative to reduce advertising’s carbon impact underscores that while carbon neutrality is a positive step, net zero is the end goal. For Australian advertisers, embracing net zero strategies means more than just good PR—it’s about long-term responsibility to the environment and aligning with global industry standards.
An actively changing climate landscape also means that an over-reliance on offsets without focusing on meaningful emissions reduction can lead to accusations of “greenwashing” and erode brand credibility. With increasingly climate-savvy consumers, the industry faces pressure to avoid hollow claims and demonstrate true accountability in its sustainability efforts.
At Trace we believe carbon neutrality should be encouraged until Net Zero can be fully achieved. However, claims must be clearly and transparently communicated as part of a business’ longer-term decarbonisation strategy.
Steps to reach Net Zero
Ad Net Zero encourages advertising agencies and businesses globally to adopt a 5-Point Action Plan:
- Reduce emissions from advertising business operations
- Reduce emissions from advertising production
- Reduce emissions from media planning and buying
- Reduce advertising emissions through awards and from events
- Harness advertising’s power to influence culture and drive positive change
By adopting these steps, Australian advertisers can play an active role in transforming the industry’s environmental impact.
The road ahead
For Australia’s advertising sector, the message is clear: carbon neutrality is a positive start, but the journey to net zero reflects a commitment to authentic change. Ad Net Zero’s framework empowers agencies to drive measurable impact, meet evolving client demands, and become leaders in sustainability.
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Trace works to empower businesses to make progress towards net zero, and share that progress through transparent sustainability reporting. Find out more and contact them here.
ACA members can also refer to our Member Resource Hub for more information, resources and to access the recording of our recent E&S webinar hosted by Kimberlee Wells, Chair, ACA’s Environment & Sustainability Committee.
