Carbon Offset: Importance, benefits and why it’s worth it
Carbon offsetting is the process of neutralizing the number of carbon dioxide emissions that a person or organization emits in the course of a specific activity or in the course of its operations.
A carbon offsetting program works on the principle that carbon dioxide absorbed by the atmosphere can offset carbon dioxide emitted elsewhere.
Why do companies use carbon offsets?
Increasingly, organizations from all sectors are recognizing that green strategies are the “right thing to do” as part of a broader ethical and ESG (sustainability) oriented culture. They are also under public pressure to improve their ESG performance.
ESG reports are becoming more transparent, disclosure requirements are becoming more stringent, and reporting results are being used to assess and evaluate your organization’s potential as an investment, business partner and supplier.
Let’s assume that your operations generate significant amounts of carbon. If this is the case, carbon offsetting by the company may be the only realistic way to achieve a significant reduction in carbon emissions, at least in the short term.
Take a step toward carbon-neutral operations
Climate change is a major issue for all of us – not just for image, reporting or balance sheet reasons, but for our survival as a planet – that organizations must use every weapon in their arsenal to address. While carbon offsetting for companies is not a magic wand for companies looking to improve their ESG position, it is a solid and proven tool that you should include in your toolbox and can have a tangible impact on your carbon footprint. Carbon offsetting for companies can deliver tangible improvements in ESG performance in a structured approach that prioritizes:
- Measuring and understanding the drivers of your company’s carbon footprint
- Take steps to minimize carbon emissions
- Offsetting emissions that you cannot reduce yourself
