Melanie Eddis’ Post

These are the key takeaways from the Harvard Business Review article about carbon credits. 🔍Understanding Carbon Credits ◾Carbon credits are crucial for businesses to offset their carbon emissions. ◾They represent a quantified reduction in greenhouse gas emissions, usually equivalent to one metric ton of carbon dioxide. 💼Business Impact ◾Carbon credits enable companies to take accountability for their environmental footprint. ◾Purchasing credits allow businesses to balance out their emissions, showcasing a commitment to sustainability. 🔄Mechanism of Action ◾Companies invest in emission reduction projects like renewable energy or forest conservation. ◾In return, they receive credits corresponding to the emissions reduced by these projects. ◾Credits can be traded on carbon markets, providing financial incentives for emission reduction initiatives. 📈 Importance for Leadership ◾Integrating carbon credits into business strategies is essential for competitiveness in a changing global market. ◾It demonstrates dedication to environmental stewardship, enhancing brand reputation and attracting eco-conscious consumers and investors. 🌲Action Steps ◾Explore opportunities to incorporate carbon credits into sustainability initiatives. ◾Partner with projects aligned with company values and objectives. ◾Lead the charge towards a greener future while driving positive social and environmental impact. Read the full article here ⬇ https://lnkd.in/eVwZsBbE

Could SBTI's shift to allow environmental attribute certificates for scope 3 abatement be the catalyst for carbon market growth? Here are insights from a recent survey on how companies perceive climate investment, particularly regarding carbon credits: 🌍 More than 70% of companies surveyed reported that engaging in Voluntary Carbon Markets (VCMs) allowed them to increase climate action, surpassing what they would do without purchasing carbon credits. This aligns with our previous research with Ecosystem Marketplace in 2023, indicating that companies involved in these markets decarbonize at double the pace of those not participating. 🌿 The voluntary carbon market plays a crucial role in addressing urgent and underfunded climate priorities, such as preserving and replenishing natural ecosystems and channeling funds to climate initiatives in the Global South. 🔍 While decarbonization technologies evolve, procuring high-integrity carbon credits empowers companies to address emissions they cannot yet mitigate. Participation in the VCM accelerates progress, but it must complement efforts to reduce emissions across the entire value chain. 💡 Over 60% of companies purchasing credits note that high-integrity, high-value credits serve as incentives for investing in decarbonization efforts. 🚧 Companies participating in the VCM encounter various challenges, including insufficient recognition from standard setters, ambiguity regarding risks and claims, and a lack of transparency. #decarbonisation #sustainability #voluntarycarbonmarkets #carboncredits

Following on from the series of ACT assessments of companies that have submitted a Say on Climate, resulting from work carried out by FIR - Forum pour l'Investissement Responsable (Sustainable Investment Forum) the World Benchmarking Alliance, Fondation Ethos and ADEME, a new assessment has been published: Pennon rated 8C+ and 35% alignement with FIR recommendations 🔍 What do you need to know ? Pennon Group Plc is a British water treatment company, listed on the London Stock Exchange. The company will submit its climate plan to a shareholder vote at its annual general meeting on July 24. Although Pennon has announced its ambition to be carbon neutral by 2030, this only relates to scopes 1 & 2 and concerns only part of its business. Similarly, most of scope 3 is not included in the medium-term emissions reduction targets. In addition, more than 90% of emissions are excluded from the short-term targets (2025), which calls into question the ambition of the targets before 2032. At the same time, the company is announcing an ambition of carbon neutrality by 2045 for its subsidiary South West Water (45% of the business), including all scopes. The company does not disclose any information on investments after 2025, which does not allow investors to fully assess the company's determination to achieve its objectives. Finally, at the level of its action plan, we encourage the company to provide more information on the decarbonisation levers identified, specifying the associated investment expenditure and the contribution of each of them to the decarbonisation objectives. Key areas of improvements:        🔎 An ambition to be carbon neutral by 2030, covering only scopes 1 & 2 of its activities.      🎯 Over 90% of the Group's emissions are excluded from short-term targets (2025), which raises questions about the ambition of targets before 2032.          📑 A lack of information on investments after 2025, preventing investors from fully assessing the company's determination to achieve its targets.   To read further on the analysis 👉   - English version : https://lnkd.in/ebUwVdNP - French version: https://lnkd.in/eeKu-n3s

📣 SBTI's Declaration on Carbon Credits and Scope 3 Emissions: 
 A historic shift? The Science Based Targets initiative (SBTi) made headlines on April 9th with a pivotal announcement on using carbon credits to address Scope 3 emissions. This sparked widespread discussion across social platforms. Does this signify a historic shift? The SBTi's statement touches a critical methodological nerve in climate science and decarbonization, particularly regarding the use of carbon credits. For years, frameworks such as the GHG Protocol, GRI, the European CSRD, and SBTi's guidelines under the "Beyond Value Chain Mitigation" have advocated for a clear separation between reducing Scope 3 emissions and purchasing carbon credits. However, the recent SBTi statement introduces a nuanced perspective: "While recognizing that there is an ongoing healthy debate on the subject matter, SBTi recognizes that, when properly supported by policies, standards, and procedures based on scientific evidence, the use of environmental attribute certificates (and carbon credits) for abatement purposes on Scope 3 emissions could function as an additional tool to tackle climate change." This statement suggests a possible reopening of discussions previously settled with their initial net-zero standard in 2021. While the announcement lacks detailed specifics and warrants cautious interpretation, it may significantly influence future corporate sustainability strategies. We will closely monitor these changes and their impact on environmental reporting, keeping you informed on key developments. #Climat #ScienceBasedTargets #CarbonCredits #Scope3

New U.S. Policy Unveiled to Boost Confidence and Investment in Carbon Markets! Big news for sustainability advocates! The U.S. government has just introduced new policy aimed at ensuring integrity and enhancing confidence in the voluntary carbon market. This initiative promises to bolster environmental accountability, drive meaningful climate action, and unlock the potential for private markets to reduce global emissions. Here are some key facts about the new U.S. policy: ✅ Enhanced Verification Standards: The policy introduces stricter verification processes to ensure that carbon reductions are accurately measured. ✅ Increased Transparency: New regulations will require detailed public reporting of carbon credit projects, making it easier for stakeholders to verify the impact of their investments. ✅ Support for High-Quality Offsets: The policy aims to promote carbon credits that provide real, additional, and permanent reductions in greenhouse gas emissions. 🔗 Read the full story on Reuters: https://lnkd.in/gArPsdd3 This new policy aligns strongly with the principles of the Integrity Council for the Voluntary Carbon Market or ICVCM, the global leader in carbon credit project governance. Quality has always been paramount at Terrapass. That's why ICVCM is already a core part of our quality standards. #ClimateAction #Sustainability #CarbonOffsets #GreenInitiative #EnvironmentalPolicy

Comparable findings from 30 CSRD-inspired reports categorized by core elements of sustainability statements 👩🏫 This report is particularly useful for those interested in researching how different companies disclose information on DMA, IROs, VC, climate risks and transitions, emissions, and various other CSRD topics. 💡 However, the report lacks a clear explanation of best and worst practices in specific areas. 🤔 For detailed guidance on these practices, I recommend reviewing our case studies, which provide clear examples and insights. Credit: We Mean Business Coalition

The Science Based Targets initiative's "Aligning Corporate Value Chains to Global Climate Goals: Scope 3 Discussion Paper," one of four documents released today, explores the complexities of setting and achieving Scope 3 targets, representing the indirect emissions within a company's value chain. This paper highlights the significance of these targets in driving corporate transformation towards net-zero emissions, as Scope 3 often constitutes the majority of a company's carbon footprint. It addresses the challenges and potential improvements in current practices, advocating for a more nuanced approach to prioritising emissions reductions, leveraging influence over value chain emissions, and considering the role of environmental attribute certificates. The paper also examines the role of carbon credits and the Voluntary Carbon Market (VCM), pointing out both the risks and opportunities associated with their use in corporate climate strategies. This discussion paper serves as an informative guide and seeks feedback from various stakeholders to refine these concepts further. The discourse surrounding the SBTi's stance on carbon credits, particularly in the context of the VCM, raises pivotal questions about the intersection of corporate accountability and environmental stewardship. While the VCM has undeniably served as a critical mechanism for channelling funds into nature-based solutions—especially in the Global South—there is an underlying risk in presuming that limiting these markets will inherently drive deeper emission reductions within corporations. The VCM not only facilitates crucial projects like reforestation and clean energy initiatives but also represents an essential financial lifeline for regions often overlooked in global climate finance. As we refine our strategies for climate action, it is imperative to balance stringent corporate emissions reductions with the pragmatic support of carbon offset projects that deliver genuine environmental and social co-benefits. The nuanced approach must consider the full spectrum of impacts and recognise the role of diverse pathways in achieving a just and sustainable global transition. #ClimateAction #NetZero #SustainableBusiness #CorporateResponsibility #CarbonCredits #VoluntaryCarbonMarket #Sustainability #EnvironmentalStewardship #Scope3Emissions #ClimateFinance #NatureBasedSolutions #Decarbonisation #GlobalSouth #ClimateJustice

A few days ago, the EU published its Industrial Carbon Management Strategy (#ICM) alongside its #2040ClimateTarget Communication. ➡ #ICM Strategy sets out a plan for the development of the right regulatory and investment framework for the development of #carboncapture for storage and utilization (#CCUS), with a focus on #innovation, #infrastructure and #InternationalCooperation . (Press release: https://shorturl.at/otS07) ➡ #2040ClimateTarget Communication launches the process to enshrine net 90% GHG emission reduction by 2040 into law and highlights the need for a significant increase in climate investment. #EnergyEfficiency of #Buildings and #decarbonisation of industry will be key pillars to reach this target. (Press release: https://shorturl.at/gDKN3) 🌿 The continued focus on a low-carbon economy creates significant opportunities for #growth and #SustainableInnovation towards a sustainable #builtenvironment. 📧 Reach out at [email protected] if you want to hear more about how we see the impact of EU climate policies for Asian investors and built environment! Alexander Bent Ariel Shtarkman Tim Forman

Harvard Business Review — What Every Leader Needs to Know About Carbon Offsets Perhaps my best review article on #vcm, its players, standards, quality, and risks as well as their mitigations. Despite challenges around #carboncredits or #carbonoffsets — if done correctly, have potential to help companies reach their #netzero goals by 2050. But this never happens easily as #carbonmarketplaces are a maze of many things including a plethora of standards and regulations. Corporate leaders are urged to at least know basics of #carbonoffsets such as: 🌴 What projects create carbon credits — e.g., #nbs 👩👩👧👧 Who are the players — e.g., Verra, Oxford Net Zero, DNV, Terrapass, and CarbonPlan ✅ What makes for a high-quality carbon credit — e.g., additionality, quantification, leakage, permanence, vintage, and co-benefits. So there is quite a lot for Corporate Leaders to consider before investing in #carboncredits to offset their #ghgemissions. It is important to understand what the #vcm entails in terms of the carbon credit quality, verifiers, raters, and the co-benefits that come with carbon offset initiatives. My hat goes off to Varsha Ramesh Walsh, and Mike Toffel for putting together this best-in-class piece of writing for Corporate Leaders leveraging carbon credit marketplaces to transitioning to 2050 net zero emission economy. #vcm #carbonmarkets #carboncredits #carbonoffsets #nbs #ccs #netzero #netzero2050 #netzerotransition #netzeroemissions #netzerocarbon #ghgemissions #ghgaccounting #harvardbusinessreview

The Governing Board of The Integrity Council for the Voluntary Carbon Market (ICVCM) welcomes the statement by the Science Based Targets initiative’s Board of Trustees regarding the organisation’s decision to extend the use of environmental attribute certificates, including, but not limited to, #VoluntaryCarbonMarkets, for the purpose of abatement of Scope 3 related emissions, when properly supported by policies, standards and procedures based on scientific evidence. As the independent market body working on validating carbon credit quality, ICVCM is delivering its global threshold for high integrity carbon credits through its ongoing assessment of carbon crediting programs and types of carbon credit for their adherence to the 10 Core Carbon Principles (CCPs). The Governing Board’s recent decisions approved the first “CCP-Eligible” Programs. Over the next months, the future decisions of the Governing Board will identify programs and categories of carbon credits approved to use the CCP label, helping buyers identify carbon credits that meet standards for high integrity, based on the best available science and methods. By rapidly reducing reliance on fossil fuels and reducing deforestation within their value chains and with respect for the mitigation hierarchy, alongside investments in the high-integrity voluntary carbon market, companies can accelerate the just transition to net-zero. If the world’s top 1,700 emitters compensated for just 10% of their annual unabated value chain emissions, it could preserve more than 10% of the remaining 1.5°C carbon budget. It could also raise up to $1 trillion in finance for nature protection by 2030. We look forward to continued collaboration with the Science Based Targets initiative recognising that investing in CCP-labelled carbon credits will be an important and complementary tool for companies with science-based targets, as they strive to transform their businesses as fast as possible in line with climate science. #SustainabilityLeadership