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Key Points:
- Nature-based and technological carbon removals are essential elements of companies’ net-zero strategies, providing a vital complement to direct emissions reductions and recognized by the latest SBTi guidance.
- By building a credible carbon removal portfolio, businesses can meet stakeholder expectations and ensure their net-zero targets are achievable and aligned with science.
- BSR shares how carbon removal can help companies meet their net-zero goals and key steps for execution.
The number of companies with public climate commitments has grown exponentially in the last few years, with over 1,900 companies worldwide setting targets validated by the Science-Based Targets Initiative (SBTi). Turning those targets into credible, science-aligned action that captures business opportunity requires a variety of tools and approaches. One such approach, carbon removal, can help companies address ongoing emissions and neutralize what remains.
Carbon removal refers to technologies and practices that pull carbon dioxide out of the atmosphere and store it durably for long periods of time (often decades to centuries or more), rather than allowing it to quickly reenter the carbon cycle. That makes it fundamentally different from most traditional carbon credits, which tend to avoid or reduce emissions rather than remove them. Furthermore, the latest SBTi Net-Zero Standard consultation materials suggest a recognized role for removals both in the short term (to address ongoing emissions) and in the long term (to neutralize residual emissions).
Based on a webinar series organized in partnership with Climeworks, BSR discusses how carbon removal can help companies meet their net-zero goals and key steps for execution.
Why Carbon Removal Matters for Business
1. Residual emissions are unavoidable, and even with exhaustive decarbonization efforts, most businesses will have a portion of emissions that are exceedingly difficult to eliminate (for instance, from certain industrial processes or long-haul transportation). The IPCC estimates that carbon removal, in addition to carbon reduction, is required on the order of 6–16 billion tons of CO2 annually by 2050 to limit warming to no higher than 2°C.
2. Credible net-zero strategies require neutralizing residual emissions through high-quality carbon removal, starting today. Acting early creates immediate climate impact and ensures that technological carbon removal technologies can reduce their costs and scale to meet demand by 2040–2050, while natural carbon removals play an important role in supporting integrated climate and nature action concurrently. Leading guidance bodies, including SBTi, ISO Net-Zero, and the Oxford Offsetting Principles, strongly encourage carbon removal as part of their net-zero guidance.
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Authors
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Associate, Delivery Team, BSR
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Director, Climate and Nature, BSR
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Sacha Corby
Director, CDR Science and Technology, Climeworks
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Richard Probst
Vice President, Advisory, Climeworks
Topics
The carbon removal space is complex, but it can be broken down into three broad categories:
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Nature-based removals, such as reforestation and agroforestry
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Engineered removals, which use technology and innovation to physically remove carbon dioxide from the atmosphere, like direct air capture (DAC) or bioenergy with carbon capture and storage (BECCS)
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Hybrid solutions, which blend natural processes with technology for long-lasting storage, like biochar or enhanced rock weathering
From Ambition to Execution
Many companies are still in the early stages of leveraging carbon removals. In the webinar series, more than half of the participants reported that they’re either “exploring” or “planning to integrate” carbon removals in the next 12–24 months.
Here are four actions companies can take today:
1. Map Your Residual Emissions Pathway
Understanding what emissions will likely remain in your net-zero target year is essential for shaping a credible carbon removal strategy. But this isn’t just about long-term planning; it’s also about acting now. Companies aligning with frameworks like SBTi, ISO, or the Oxford Principles are increasingly expected to demonstrate early action, not just distant targets. While mapping your residual footprint anchors your strategy in science and signals seriousness to stakeholders, it doesn’t need to delay progress. Many businesses start with small, high-quality carbon removal purchases, building experience and securing capacity, while refining their roadmap in parallel.
2. Identify the Business Opportunity of Carbon Removal
Carbon removal is becoming a strategic differentiator. It strengthens ESG ratings and validates net-zero and decarbonization commitments, which is critical for investor confidence and brand reputation. Industry leaders are already integrating carbon removal into near-term roadmaps. Starting pilot purchases today signals climate leadership, prepares your company for evolving regulations, mitigates technology risk, protects competitiveness, and opens new business opportunities. In a world where sustainability equals resilience, early action positions your business as credible, competitive, and future-ready.
3. Engage Early and Transparently with Procurement Options
Start with pilot purchases or pre-commitments (e.g., offtake agreements, which typically include key terms such as price, volume of carbon removals, delivery timeline, and verification requirements) rather than reactive spot-market purchases. Acting early avoids price spikes, secures access to projects that meet your criteria before they sell out, and creates options for future volume as demand accelerates. Leading companies are reserving credits years in advance and locking in affordable rates for high-quality projects, while also securing flexibility for long-term needs.
Early engagement also involves building capability. Starting small allows you to learn fast, strengthen internal processes, and establish partnerships with trusted portfolio managers who can advise on policy shifts and evolving market dynamics. This proactive approach positions your company to scale confidently when carbon removal becomes a major procurement category.
4. Build a Diversified Carbon Removal Portfolio
Combine approaches strategically: leverage lower-cost nature-based removals for near-term impact and deploy durable engineered solutions for long-term neutralization. Incorporate hybrid strategies to balance cost and permanence. A well-designed portfolio should also diversify across projects and suppliers, as relying on a single source creates exposure to delivery delays, underperformance, or price volatility.
As carbon removal scales, the most effective strategies will balance cost, permanence, and ecological limits and will be centered into human rights approaches to ensure they work for people. No single solution can get us to net zero alone; a smart blend is essential to meet climate goals reliably and at scale.
Looking Ahead
All paths to net zero include nature and technological carbon removal. Businesses that consider the best portfolio of options for their industry will not only meet regulatory and stakeholder expectations—they’ll also help shape the emerging carbon removal market itself.
Whether engaging internal stakeholders on this topic or ensuring carbon removals sourcing is done with integrity and respects global human rights standards, it’s important to start early. If you are interested in taking action, please reach out to BSR’s Climate and Nature team.
The authors wish to thank the following Climeworks colleagues for their contributions: Hjördís Baldvinsdóttir, Charlotte Bricheux, Moritz Benisch, Chiara Caduff, Matthias Henzgen, and Guillaume Janin.
Our Experts
Our team consists of global experts across multiple focus areas and industries, bringing a depth of experience in developing sustainable business strategies and solutions.
Sacha Corby
Director, CDR Science and Technology, Climeworks
Richard Probst
Vice President, Advisory, Climeworks
