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Many organisations now recognize the importance of reducing their impact on the planet and are actively seeking solutions that will help them in lowering their carbon footprints across their supply chains. One increasingly popular solution is the use of carbon credits via the Voluntary Carbon Markets (VCM).
In this blog post, courtesy of Earth Chain, we will explain how the Voluntary Carbon Markets work and provide an overview of how they can help businesses contribute towards positive climate change.
What are the Voluntary Carbon Markets?
Voluntary Carbon Markets allow organisations that emit carbon dioxide into the atmosphere to purchase what is known as carbon credits. Carbon credits can then be used to compensate for the carbon emissions the organisation is emitting into the environment. One carbon credit is equivalent to one ton of CO2 or other GHG (Greenhouse Gas) and is sold by project developers that are leading certified climate impact projects around the world.
What makes these markets voluntary?
These markets are known as voluntary, as they provide companies and organisations with an option to engage. This is opposed to the Compliance markets, where some industries engage in legally binding policies due to their high volume of emissions.
This could be useful for a business if they are considering offsetting their carbon emissions and contributing to projects and schemes that actively protect and restore the environment in one way or another.
Climate Impact projects
Examples of climate impact projects include the likes of reforestation projects, where people are helping to rebuild areas of forestry that have fallen victim to the acts of deforestation and wildfires. Others involve a focus on renewable energy, where investment is put into the replacement of fossil fuels with ‘clean’ alternatives such as wind energy.
Reasons why a business would choose the VCM
In today’s world, going green has become a priority for many organisations. Carbon credits are one way that businesses can compensate for their impact on the environment. As consumers become more aware of the commitment businesses and brands around them are making to protecting the planet, businesses should consider implementing a more stringent sustainability policy if they are to remain competitive.
The VCM offers a number of benefits to a businesses and is practical for a range of reasons:
- Climate contribution is in the best interests of any business looking to continue trading in the future. Climate change is a real and genuine threat to the planet and will have major repercussions on particular industries if action is not taken now. In order to survive in the future, businesses should be encouraging proactive solutions that help us to hit our short, mid and long-term goals, which the VCM allows them to do.
- Companies have a duty to reduce their entire carbon footprint as much as possible. Achieving this takes careful consideration and time so as not to disrupt your business or customer experience. The challenge that we have is indeed a lack of time, and the VCM allows businesses the ability to compensate for their emissions and take positive action today, as they continue to look for emission reduction solutions across their supply chain. Demonstrating your willingness and proactiveness can have a great effect on brand reputation and recognition. In order to stay prominent in today’s fast-paced society, brands need to be offering solutions that meet the customers needs.
- The VCM supports climate impact projects around the world, meaning the impact you can have can be great. Your business can deliver true value to underserved communities all over the world and to those that are most affected by the current impacts of climate change.
- This one may come as a slight surprise, but demonstrating your climate goals has also been shown to help improve employee retention!
Research completed in 202 found that employees enjoyed playing a part within a company that holds social responsibility values. As time ticks on, Millennials (those born between 1981 to 1996) will make up 75% of the workforce. According to Inc.com, these millennials are on the hunt for socially responsible employers. Therefore, by establishing a sustainability policy and utilising carbon offsetting projects, a company can align itself with the thoughts and feelings of young working professionals.
