The science is clear: in addition to reducing their own impact, companies have a key role in the global transition to net-zero emissions. By investing in ‘verified climate contributions’ through the carbon credit financial instrument, companies can finance critical climate projects around the world that would otherwise not be funded. Such projects can range from tree planting and forest conservation to the introduction of improved cooking stoves and building renewable energy infrastructure. They not only reduce, prevent or remove emissions, but also offer a range of socio-economic benefits, including improved health, better education and the building of sustainable communities.
The benefits for companies
Funding climate action through support for certified projects means that a company is doing its utmost for the climate, aligning itself with international best practices. This is recognised by the Paris Agreement and by the Science-Based Targets initiative (SBTi), which recommends that companies “take immediate action… to help achieve zero-net global emissions through mitigation actions that extend beyond the value chain.”
Taking action for the climate today, even beyond the supply chain, means gaining a significant advantage over competitors and a better reputation with consumers, investors and other stakeholders. Finally, supporting climate action projects allows companies to align their business with the United Nations Sustainable Development Goals (climate, biodiversity and sustainable development).