For a business to achieve Net-Zero, direct and indirect emissions (Scope 1-3 emissions) are reduced as much as possible. Once reduced, you can offset any remaining emissions. You usually set a baseline year to start measuring, and then report emissions every year to track progress.
A Net-Zero policy is different to carbon neutral because:
It must cover your company’s entire business emissions (scopes 1-3)
You must reduce emissions as much as possible before you can factor in offsetting.