Share this:
Corporations can integrate carbon credits into their ESG strategies by purchasing carbon credits from verified carbon offset projects. These projects work to reduce or avoid greenhouse gas emissions, and the carbon credits represent the verified amount of emissions reductions achieved by the project. Corporations can use these carbon credits to offset their own emissions, meet their ESG targets and demonstrate their commitment to environmental sustainability.
One benefit of integrating carbon credits into ESG strategies is that it helps companies achieve their emissions reduction targets more quickly and cost-effectively. In some cases, it may not be feasible or practical for a company to reduce its emissions directly, so purchasing carbon credits can provide an alternative means of achieving emissions reductions.
There are also reputational benefits to integrating carbon credits into ESG strategies. By publicly demonstrating a commitment to environmental sustainability, companies can improve their reputation among customers, investors, and other stakeholders.
Real-world examples of businesses successfully achieving their targets through carbon offset purchases include companies such as Apple, which has committed to becoming carbon neutral across its entire supply chain by 2030. Apple has already achieved carbon neutrality for its corporate operations and is working with suppliers to reduce their emissions through the purchase of carbon credits.
In 2020, Microsoft announced that it would be carbon negative by 2030, and it plans to achieve this through a combination of internal emissions reductions and investments in carbon offset projects, including forest carbon projects. Microsoft has already invested in several forest carbon projects, such as the Tambopata-Bahuaja Biodiversity Reserve in Peru and the GreenTrees Reforestation Project in the United States.
The French food and beverage company Danone has committed to becoming carbon-neutral by 2050 and has already invested in forest carbon projects to help achieve their ESG targets. In 2019, Danone partnered with the Livelihoods Fund for Family Farming to support reforestation and agroforestry projects in Africa and Asia. The projects aim to restore degraded lands, improve soil health, and sequester carbon.
Amazon, has set a goal to reach net-zero carbon emissions by 2040. To achieve this goal, Amazon is investing in renewable energy and energy efficiency, as well as purchasing carbon credits. In 2019, Amazon announced that it would purchase 100,000 electric delivery vehicles and invest in reforestation projects to offset its emissions.
Delta Air Lines has committed to becoming carbon-neutral by 2030. To achieve their ESG targets, they are investing in more fuel-efficient aircraft, reducing their use of single-use plastics, and purchasing carbon offsets. In 2020, they purchased over 1.7 million carbon offsets, which is equivalent to taking nearly 350,000 cars off the road for a year.
The outdoor clothing company Patagonia has a long-standing commitment to sustainability and has invested in several forest carbon projects over the years. In 2020, Patagonia announced that it would be carbon-neutral by 2025 and plans to achieve this through a combination of internal emissions reductions and investments in carbon offset projects, including forest carbon projects.
Overall, forest carbon projects are a popular option for businesses looking to become carbon-neutral or reduce their carbon footprint, and there are a variety of projects and companies available to help businesses achieve their sustainability goals.
