What Does It Mean to Be a Carbon-Neutral Company? Stok’s Approach

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What Does It Mean to Be a Carbon-Neutral Company? Stok’s Approach

We’re proud to celebrate becoming a carbon-neutral company across Scopes 1, 2, and 3 in 2025! We believe it’s important to clarify what this claim means, why we think it’s worth making, and how we advise other companies to use it. There isn’t yet industry consensus—whether across regulatory frameworks or corporate communications—on how to best define and use terms like “carbon neutral” and “net zero.” We’d like to add our reasoning to the discourse. Aligning with Stok’s values of “own it” and “demand better,” this is part of how we lead with transparency while continuing to dig deep into long-term solutions for meaningful decarbonization.

WHAT DOES IT MEAN TO BE A CARBON-NEUTRAL COMPANY?

Stok has achieved carbon neutrality across Scopes 1, 2, and 3 with the support of renewable energy certificates (RECs) and verified carbon credits. We’ve committed to continue operating as a carbon-neutral company into the future.

WHY MAKE A CARBON NEUTRALITY CLAIM?

In the spirit of anti-greenhushing, we want to celebrate our wins! While we haven’t yet reduced our Scope 1, 2, and 3 emissions to zero before offsets, we’re working toward those reductions via our Science Based Targets initiative (SBTi) verified long-term goal: net zero by 2050. Given our significant investment in carbon offsets in 2025 to achieve net zero residual emissions across Scopes 1, 2, and 3, we believe carbon neutral best describes Stok today on our path toward net zero.

Our decision to compensate for emissions while we work toward reductions acknowledges the critical need for near-term carbon removal to urgently mitigate the impacts of climate change. This investment in immediate carbon reduction and removal solutions that can act at scale in the future is needed too—it just can’t be the only solution. In 2025, Stok invested in two verified, high-integrity carbon credit projects: Terpene Belt Farms (Regenerative Agriculture) and Tradewater U.S. ODS 9 (Destruction of Ozone-Depleting Substances). Learn more about these projects on p. 35 of our 2025 Impact Report.

WHAT MAKES A CARBON NEUTRALITY CLAIM CREDIBLE?

We believe that companies that are meaningfully working toward zero and have fully offset their ongoing emissions with verifiable offsets can credibly describe their operations as carbon neutral. Though the SBTi doesn’t use the term carbon neutral, other entities like the Government of Canada support the term for companies that have compensated fully for their Scope 1, 2, and 3 ongoing emissions. We’ve also been inspired by our longtime client and industry leader Salesforce’s Supplier Sustainability Exhibit, which requires suppliers to “deliver their services on a carbon neutral basis” via absolute emissions reductions and compensating for residual emissions with high-quality carbon credits.

For Stok, we’re continuing to take our Scope 1, 2, and 3 emissions reductions as far as we feasibly can, then compensate for any residual emissions with RECs and high-integrity carbon credits. We’ll undertake this process annually, measuring our reductions and then fully offsetting residual emissions. We’ll continue to grow with the industry as the terms and our emissions reduction strategy continue to evolve, prioritizing transparency in this fast-moving space.

Are you navigating carbon neutrality or your company’s path to net zero? We’re here to help you reach your climate goals and celebrate the wins along the way. Talk with our team and learn more about Stok’s progress toward our science-based targets (SBTs) in our 2025 Impact Report.

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