With entire nations concerned about reducing their carbon footprint, global emissions, and protecting the environment, businesses have started making similar strides.
Several organisations have started to realise the advantages of a carbon credit scheme and are leveraging it to make their business carbon neutral.
The natural response for other businesses is to comply. But it can be quite tasking to embrace systems change, new technologies, and the right partners for a carbon offset scheme.
Even when a business checks the carbon neutrality box. It’s quite natural for some to take a step back without realising that the advantages are beyond carbon neutrality.
The benefits of adopting a carbon offset scheme and by extension–purchasing carbon credit to make your business carbon neutral are stupendous for the business as well.
So, take the next step to offset your business emissions, so you can reap the endless rewards that come with it.
Carbon Offset Scheme Explained
As popular as it may seem, not every business owner knows how to reduce CO2 emissions in the industry
A carbon offset scheme is one that indirectly reduces GHG emissions for a business, through–reforestation; planting of trees, or decarbonising mini-grids using renewable technology.
The emissions offset in these locations are used to compensate for the emissions of the business. However, this does not mean the business will not take steps to reduce its emissions directly.
There are some unavoidable emissions a business will produce, called residual emissions, that will be retained despite the energy-efficient practices in place. Or the transfer to renewable energy.
This category of emissions is perfectly suited for a carbon offset scheme indefinitely.
This idea of offsetting lends itself to Carbon Credit, which is a tradeable permit that represents the right to emit one ton of carbon dioxide.
It is also defined as a certificate that shows that a certain company has paid to have tons of carbon dioxide removed from the environment.
The carbon stored from reforestation or renewable energy projects can also be used to generate carbon credit. Which can then be sold to other businesses or traded on the market.
Carbon offset schemes and carbon credit have taken centre stage the world over for business to eliminate their carbon footprint and achieve carbon neutrality.
Especially when such business is down to unavoidable emissions. Some of the immediate advantages include;
Advantages Of A Carbon Credit Scheme
#1 It Increases The Business Brand Appeal
Today everyone is looking for carbon-neutral businesses to patronize and support.
Once you can openly claim your business is “carbon neutral”, it can distinguish your business in the marketplace and give you an edge over several competitors.
#2 It Increases Business Revenue And Reduces Operating Cost
If more customers are willing to work with you and purchase your products your business revenue is going to rise as well.
Studies have shown that more and more customers will choose brands and businesses that are environmentally friendly and carbon-neutral over those that aren’t.
Also, if you’ve adopted a carbon credit scheme, it means you are actively trying to reduce your business’s carbon footprint. And have started implementing energy-efficient practices, switching to cleaner fuel sources, or deploying renewable energy sources.
All of which will cut down operating business costs.
#3 It Helps Businesses Reduce Their Carbon Footprint
Some businesses will have residual emissions no matter how efficient they are or how many renewable energy sources they deploy.
Carbon credit directly helps businesses reduce these emissions and their carbon footprint.
While some other businesses already have a small footprint but want to reduce more because of the nature of their business.
A carbon offset credit scheme gives them that chance.
#4 It Provides Funds For Low Carbon Projects
Carbon Credit provides a mutually beneficial opportunity for any business that wants to fund environmentally friendly projects and offset its carbon footprint.
More importantly, it provides funds for low carbon projects in ravaged economies, creating improved living conditions, and a higher quality of life in the process.
How To Make Your Business Carbon Neutral
Businesses like yours, that have chosen to adopt a carbon offset credit scheme recognise the benefits of reducing greenhouse gas emissions. Now Let’s show you how to make the most impact by making your business carbon neutral.
#1 Calculate Your Existing Greenhouse Gas Emissions
The first step to take is to audit your business’s GHG emissions. This will create a clear picture of your business’s carbon footprint–and will help you nail every single ton of GHG emitted to the nearest whole number.
You will have to take note of every kind of emission including direct and indirect emissions.
Direct emissions from owned or controlled sources from daily activities and Indirect emissions you have no control over. Including emissions per ton of electricity consumed in your facility.
#2 Set Your Emissions Reduction Targets
Once you have a final number, you can set a reasonable emissions goal that is S.M.A.R.T (Specific, Measurable, Achievable, Realistic, and Timely).
Reducing emissions can take years or quickly be a costly endeavour if you are deploying new technology and replacing entire operations with energy-efficient ones.
So, you should pick a target that you can break down and achieve on a month-to-month and year-by-year basis.
#3 Deploy Instruments To Reduce GHG Emissions
In setting emissions reduction targets, you would have also outlined the instrument and technology you intend to use to reduce emissions. Some instruments you can deploy include;
- Variable renewable energy sources (wind, solar, Hydro, TIDAL)
- Fuel Switching (replacing inefficient fuels with cleaner and more sustainable OPTIONS egg from coal to natural gas)
- Energy Efficient practices; examples include shared riding, solar heaters, less travel,
- Recycling; water waste and energy recycling
- Carbon credit
#4 Offset Residual Emissions
Residual emissions refer to unavoidable emissions that are necessary for your business to operate.
Or emissions that are left after you have made all reasonable efforts to reduce the business GHG emissions.
This is where carbon offsetting schemes play a vital role. Be sure to pick the right offsetting partner to offset with.
In Conclusion: After Carbon Neutrality What’s Next?
Congratulations on taking advantage of carbon credit schemes and achieving carbon neutrality. But what’s next?
Carbon Neutrality is a target that many businesses struggle to achieve so it’s a commendable business milestone. But it’s not the end.
Don’t take a break on the emission reduction train, as you could easily fall off again.
Instead, strategise and double your efforts and your business is sure to win the hearts of stakeholders and customers. Meaning more revenue and increased ease of operation for the duration.