If you follow sustainable business news, then you have certainly read about the scrutiny the voluntary carbon market (VCM) has faced over the last few years, and companies that have purchased carbon credits to achieve carbon neutrality have even been accused of greenwashing. Well, according to a recent TIME article, most companies who purchase carbon credits are not greenwashing, but are, in fact, climate leaders.
A new study from Ecosystem Marketplace finds that “not only are carbon credits purchases funding rapid climate action, but are also associated with companies that are already addressing climate change in their direct operations and throughout their value chains.
Findings include:
- Companies engaging in the voluntary carbon market are reducing their own emissions more
quickly than their peers.- They are 1.8X more likely to be decarbonizing year-over-year;
- 1.3X more likely to have supplier engagement strategies, an indicator that companies buying carbon credits are also actively working with suppliers, employees, and customers to address climate impacts; and
- The median voluntary credit buyer is investing 3X more in emission reduction efforts within their value chain. They do so by investing in emissions reduction activities for their business and operations, including renewable energy consumption and the purchase of Renewable Energy Certificates (RECs).
- Voluntary carbon buyers are more likely than non-buyers to have targets to address climate change, and their targets are more ambitious.
- They are 3.4X more likely to have an approved science based climate target;
- 1.2X more likely to have board oversight of their climate transition plans; and
- 3X more likely to include Scope 3 Emissions in their climate target – notable given that Scope 3 emissions constitute the majority (91%) of carbon buyers’ emissions, and also are the hardest for companies to exert control over, as these emissions are generated by the company’s suppliers upstream, customers downstream, and other companies and organizations in the value chain.”
High-quality, nature-based carbon credits are a powerful tool for driving climate mitigation and resilience through the conservation and restoration of nature, all while benefitting local communities and biodiversity.
Is your company interested in becoming a climate leader? We have helped companies just like yours achieve carbon neutrality and even become Climate Neutral Certified. Whether your company needs help in measuring its Carbon Footprint, sourcing high-quality, nature-based carbon credits, or becoming Climate Neutral Certified, Emerger Strategies can help your company become a climate leader. To learn more, please visit our Sustainability Consulting Services for more information!