Originally published on Pambianco News
Pambianco Editorial Staff
The exceptional situations of recent years have made the climate alarm a topic of unquestionable importance. It is, in fact, now well established that corporate climate action is needed to remedy a situation that is becoming increasingly critical and in the face of which governmental and policy plans are currently proving insufficient to keep global warming within +1.5 degrees of pre-industrial levels, as indicated by the Paris Agreement.
Fashion has a strong interest in this topic because due to very complex supply chains and the sourcing of raw materials, the sector has a strong impact on the climate. Therefore, there is a need for an active response also from the private sector, including fashion, in order to accelerate the step towards net-zero in the medium to long term, passing through carbon neutrality, which is achievable today. All this within a solid climate strategy that starts with the measurement of emissions, the definition of reduction targets and the effective implementation of measures to reduce climate impacts.
Carbonsink, from January 2022 part of South Pole with which it forms the world’s largest group for climate solutions and mitigation projects, is a leading strategy consulting company in Italy in the development of climate strategies and mitigation project development capable of generating certified carbon credits.
CARBON CREDITS
But what are carbon credits? It is a financial unit that represents the reduction or removal of one tonne of CO2 equivalent from the atmosphere. It is generated through the development of mitigation projects that follow precise methodologies and international standards and is certified by an external accreditation programme (e.g. Verified Carbon Standard or, Gold Standard).
Carbon credits can be used within carbon-neutral and net-zero business strategies as a means to offset unavoidable emissions and contribute to mitigation actions outside the value chain through investment in climate change mitigation projects. In this panorama, however, not all credits are equal: only high-quality credits, i.e. those generated by projects that fulfil fundamental criteria, guarantee a high environmental and social impact. One of these is additionality, which ensures that mitigation activities can only be certified if they are implemented through the incentives of climate finance, i.e. investment in carbon credits. Another criterion is permanence, which means that where carbon removals from the atmosphere are concerned, it is necessary to ensure the non-reversibility of storage through continuous monitoring over time, from a minimum of 20 years up to a century. Traceability is also important: the data collected in the field and the calculations made to quantify the impact of the project must be fully traceable, making them comparable, replicable and verifiable.
The focus now is to increase the integrity and quality of carbon credits and the carbon market itself through the evolution of shared guidelines and methodologies, recognising the importance of this instrument internationally. Over the past 10 years, 836 million tonnes of CO2 equivalent have been reduced, removed or avoided through the voluntary carbon market (source: South Pole).
CLIMATE NEUTRALITY & MITIGATION
The focus now is to increase the integrity and quality of carbon credits and the carbon market itself through the evolution of shared guidelines and methodologies, recognising the importance of this instrument internationally. Over the past 10 years, 836 million tonnes of CO2 equivalent have been reduced, removed or avoided through the voluntary carbon market (source: South Pole).
For companies, carbon neutrality through investment in mitigation projects can be an important means of communicating its commitment to climate change through action aligned with the company’s own values and the issues it cares about. It also amplifies the company’s alignment with the United Nations Sustainable Development Goals (SDGs), as projects combat climate change, protect natural ecosystems and support local communities with a view to sustainable development.
Integrating sustainability into brand architecture has significant benefits, including boosting brand positioning, bringing companies closer to the demands of increasingly aware consumers and investors as well as employees. It can also trigger a domino reaction by incentivising other brands and supply chains to engage and amplifying the impact.
Examples of Carbonsink and South Pole mitigation projects include the distribution of efficient domestic stoves to local communities in the urban area of Maputo, Mozambique, which has a strong positive impact on the living conditions of communities and, in particular, on the most vulnerable such as women and children, and the AGRI-SMART climate smart agriculture project in Zambezia, which improves community resilience and reduces biodiversity loss.
