Carbon Offsets: Reducing Your Corporate Carbon Footprint

Environmental sustainability is the topic of conversation at every C-suite table, as it should be — and if it isn't, boy, do we have news for you! The WEF has ranked our failure to act on climate change as the world’s most significant risk. In addition, humans are responsible for most of the increase in greenhouse gasses (GHG) in the last 100 years. 

Carbon offsets are a method to promote the growth of renewable energy to counteract any personal carbon emissions. Like a form of trade, carbon offsetting balances your company's CO2 emission with investments in programs and activities that, in return, work to reduce CO2 emissions.  

Sometimes referred to as ‘carbon credits,’ these are transferable instruments certified by the government or independent programs. They represent an emission reduction of one metric tonne of carbon dioxide. Essentially, purchasing a credit enables an equivalent emission reduction elsewhere in the world — thus, net climate benefit. 

Corporate Carbon Footprint

Measured in tonnes, a corporate carbon footprint is the amount of any organization's greenhouse gas emissions. To address the climate crisis, corporations are making it a mission to establish sustainable policies and reduce their footprint.

You need a comprehensive outline of your company's operations to get a complete picture of the amount of emissions your company is responsible for — and this can be challenging.

In addition, mandated environmental, social, and governance (ESG) reporting has driven corporations to quantify and reduce their emissions as investors become more vocal about their expectations.

Whether a multinational corporation or a small business, a carbon footprint is the start of any company’s journey towards sustaining a green globe. Reputation is also vital here; the world doesn’t forget the corporations behind some of the planet’s largest ecological disasters — just in the nation, two unfortunate examples are Exxon Valdez, and BP’s mass oil spills.

Purchasing Carbon Offsets

Businesses can purchase carbon offsets through one of many programs; however, it would behoove your company to ensure these are reputable organizations. Keep an eye out for standard certifications by The Gold Standard and Green-e to guarantee your money goes to an endorsed program. 

Several trustworthy programs exist for companies to seamlessly purchase carbon offsets. These include:

• Verra
• NativeEnergy
• TerraPass
• 3Degrees
• Sustainable Travel International

Where Do Carbon Offsets Go?

You’ve invested in enough carbon offsets to either be carbon neutral or above. Now what? Climate action projects will utilize this funding to remove/reduce GHG emissions. Some of these eco-friendly exercises include: 

• Renewable energy — wind projects, hydropower, solar installations
• Nature — forest preservation, planting trees, sustainable farming
• Community-based — water wells, sustainable fuel source for cooking

Why Does Your Company Need Carbon Offsets?

Your company’s carbon footprint should first be reduced by implementing energy-efficient strategies and reducing water consumption. Utilizing carbon offsets complements this initiative as you should not exclusively rely on them to manage your corporation's emissions. 

There are many other benefits of carbon offsetting, including: 

• Meeting ESG standards for outside investors
• Short-term solution to mass GHG emissions
• Keeps green projects funded and operating

The UN Intergovernmental Panel on Climate Change found that humanity must reach ‘net-zero’ by 2050 to avoid the disastrous impacts of warming the globe by 1.5+ degrees Celsius. Therefore, all industries must go the extra mile to ensure they do their part to reduce carbon emissions. 

Since the transportation sector is creating insurmountable carbon emissions, some airlines offer the possibility to offset your carbon footprint at checkout. However, reducing your carbon emissions is always better than purchasing carbon offsets. 

One of EXEC’s partners, United Airlines, is committed to decarbonizing aviation. For example, they are invested in alternative fuel manufacturers, purchasing aircraft with significantly higher fuel efficiency, and electrifying their ground service fleet. 

In addition, United Airlines is the first national airline committed to investing in technology that captures and clears carbon dioxide from the air. They are also investing in more sustainable aviation fuel production than any other global airline in hopes of reducing 100% of their GHG by 2050. 

Conclusion

This planet's lifespan depends on our commitment to energy-efficient initiatives and reducing carbon emissions. Promoting sustainable operations and implementing changes where needed will keep our globe greener. 

Further Reading: Sustainable Business Travel, Explained