Carbon neutral means a brand or product's measured emissions are matched by an equivalent reduction or removal elsewhere — usually through purchased carbon offsets.
The claim is only as good as the offsets behind it. Credible carbon-neutral programs use verified standards (Verra VCS, Gold Standard, Climate Action Reserve), demonstrate additionality (the project wouldn't happen without the funding), and prioritize reductions before offsets.
Be wary of brands that claim carbon neutrality without disclosing scope-3 emissions, offset provider, or verification standard. "Net zero" is a stricter, longer-term version that targets near-elimination of emissions rather than reliance on offsets.