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Corporations have set environmental responsibility goals in greater numbers than ever before as the world reckons with the climate crisis. More than 1,200 companies, 1,000 educational institutions and 400 financial institutions around the world have joined the Race to Zero, a commitment to achieving net zero carbon emissions by 2050. And those numbers continue to grow: some 86% of S&P 500 companies outlined sustainability goals in 2018, compared to fewer than 20% in 2011.
Investors and consumers are driving much of this goal setting as both look to put more of their dollars behind environmentally responsible companies. According to data compiled by Harvard Business School, 77% of consumers want to buy from companies committed to making the world a better place, and 73% of investors say that efforts to improve the environment and society contribute to their investment decisions. This consumer interest is a key reason companies have voluntarily committed to lowering emissions.
Yet as companies increasingly look to purchase carbon offsets, marketplace inefficiencies have created challenges even for those with the best of intentions. Transparency and evaluation of carbon credit quality remain difficult for both large companies without subject matter expertise as well as small companies and startups, which are more resource constrained and therefore can’t invest in the legal and other expertise needed to navigate the market.