Companies such as Hello Fresh, Nespresso and Leon are amongst the many focusing their attention on carbon offsetting as a way of reducing carbon dioxide (CO2) emissions. Carbon offsetting is a process in which companies can invest in environmental projects anywhere in the world to reduce overall CO2 emissions. By calculating CO2 emissions produced by your company you can offset the same amount, to become carbon neutral or even carbon negative. This approach to reducing net carbon emissions covered 53.9million more tonnes of CO2e in just over 10 years. But is offsetting a credible option, contributing towards net zero targets or is it a green-washed approach?
The main ways of offsetting carbon are: planting trees and funding reforestation projects, investing in renewable energy and purchasing VER (verified emission reduction) credits. These methods, along with many other ways to offset, have positive and negative connotations. Carbon offsetting has created a lot of controversy, especially with the current push towards Net Zero 2050. On the positive side, these methods have contributed towards slowing down global warming, promoting the implementation of low-carbon and carbon sequestration methods. It has also created a push towards investment in environmental projects that may not have secured funding. Furthermore, carbon offsetting has provided an opportunity to companies who are unable to or would struggle to lower their carbon emissions further, to reduce their carbon footprint. At District Eating we can provide a great option for a carbon reduction project. Our growing projects use waste CO2 and power so not only are we utilising waste carbon but will be using it for horticulture projects that will sequester carbon too.
Carbon offsetting, however, has also received some criticism. Some experts believe that carbon offsetting is a distraction to the internal changes that need to be addressed within companies. And, instead of making practical changes to minimise or reduce emissions, companies are focusing more on mitigating carbon emissions by investing in external environmental projects, in the manner of a CO2 “sticking plaster”. Moreover, it has been found that companies are financing non-verified carbon credits and investing in projects that may not provide long-term solutions (such as financing planting trees in a forest to later find that it has not been managed effectively or cleared before significant carbon sequestration can occur). An example of this occurring was in 2014, before the World Cup in Brazil, FIFA invested in credits to fulfill a sustainability pledge. Their project focused on reducing deforestation in highly logged areas and sold 250,000 credits. In 2018, this project was suspended after loggers destroyed more trees than all the credits sold.
Some methods are also hard to measure exactly how much CO2e is being removed from the atmosphere, especially if based on estimates of the future of the project. There are a variety of methods, standards and labels currently for offsetting that are transparent and externally verified.
As a business, it is important to focus on a sustained goal to reduce scope 1,2 and 3 emissions (which you can read about here) as well as taking carbon offsetting into consideration. As a company you should focus on minimising emissions which are within your scope of activities first i.e cradle to gate or cradle to grave. Carbon offsetting can also be a great short-term solution if your company are wanting to reduce emissions quickly as part of a comprehensive carbon management plan whilst preparing for carbon emission projects that take longer to mobilise. Carbon offsetting shouldn’t be a solution to reducing greenhouse gas emissions instead of implementing internal improvements but, when done correctly can be a great way to reduce your companies carbon footprint further. Investing in legitimate, long-term projects and consistently assessing their progress can be an effective way of reducing the net emissions produced by your company. It can also create positive press for your company, especially when disclosing the type of offsets that are being used and your science-based emission targets.
Follow our journey:
