You may assume that businesses invest in carbon credits only to avoid taking actions that will directly decrease their operations’ emissions. Data suggests the opposite.
It turns out that investing in carbon offsets might be an indication of a commitment to broader emission action – a way for companies to jumpstart their climate strategy while developing longer-term, perhaps more complicated emission efforts.
Carbon Credit Investors Are the Environment’s Biggest Helpers
According to a recent Sylvera study, companies that bought carbon offsets are cutting their Scope 1 and Scope 2 emissions by 6.2% per year. Those who did not use carbon offsets in their sustainability strategy cut their emissions by only 3.4% annually – about half.
Why? Because companies that buy carbon offsets are likely committed to reducing their own emissions quicker than their peers.
Companies either care about emissions or they don’t. And Sylvera’s study clearly suggests that companies see offsets as low-hanging fruit. For these companies, an investment into the carbon market is likely running alongside a plethora of sustainability initiatives. According to a 2023 study by Forest Trends’ Ecosystem Marketplace, companies engaging in the voluntary carbon market (VCM) are 1.8 times more likely to reduce emissions year-over-year.
Carbon Offsets Are Just One Piece of the Puzzle
In order to reach their science-based climate goals, environmentally-engaged companies must first measure their carbon footprint and set science-based targets aligned with global climate goals. Though reducing emissions from company-owned sources is a critical long-term goal, carbon offsets can help bridge the gap to achieve short-term sustainability goals.
They can also fill in future reduction gaps a company might worry will be impossible to close in the near- or mid-term. They can even address Scope 3 (supply chain and indirect) emissions by investing in nature-based or technological carbon removal projects to help compensate for indirect emissions.
A Quicker Road to a More Sustainable Future
More often than not, companies that invest in carbon offset projects are already on the path to reducing emissions. But with the help of these projects, they’re able to speed their pace and progress – and prove themselves to be some of the most dedicated players in the fight against climate change.
That’s why we’re happy to partner with companies to help meet their sustainability targets and cut emissions immediately and permanently. Our projects drive climate-forward businesses closer to their environmental goals and drive our world toward a cleaner future.
