Carbon Offsetting and Your Small Business
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The world faces the most significant problem today, the climate crisis. And according to the Intergovernmental Panel on Climate Change (IPCC), we will experience climate catastrophe where the effects of climate change are irreversible if we don't halve our Greenhouse Gas (GHG) emissions by 2030. That is why multiple green initiatives are being introduced to corporations, big or small, as they are the major contributors to this crisis.
In the maritime industry, they measure the carbon intensity of vessels. And after learning about the calculations, they counter it with 'carbon offsetting.' This process is also being practiced in other industries, as it offers a practical and convenient way of climate change mitigation. In this article, we'll discuss its concept and why small business owners should know about it—let's start by understanding the definition of carbon offsetting.
What Is Carbon Offsetting?
Carbon offsetting is the process of compensating your organization's GHG emissions with investments in climate action projects. It helps a company balance its carbon footprint or the total amount of GHG caused by our actions, even without reducing its emissions. So, how does it work?
Your business will first measure the amount of carbon it produces—the process is known as carbon accounting. Then, you will buy carbon credits to offset it, which you can only earn by investing in emission-reduction projects. The cost of carbon credits may vary depending on the nature of the project, location, and the social co-benefits generated alongside the carbon reduction.
Reasons Why Your Business Should Do It:
Carbon offsetting can help minimize an organization's negative impacts on the environment. And if you think a small business won't need it, you're mistaken. So, if you're a small business owner and still don't know why you should practice it on your business, here are some things you need to consider:
1. Carbon Offsetting Will Decrease Your Company’s Carbon Footprint
No company is free from any environmental impact, as previously mentioned. However, your business doesn't have to take any specific measures to be eligible for a program regarding carbon offsets. Just buy some credits, and you are done.
In other words, you don't have to put in extra effort to ensure that your company's operations are as environmentally-friendly as possible. All you have to do is buy the credits needed to offset your company's emissions completely. You do not need to worry about finding more ways to go green, especially if you're just starting your small business and can't control your carbon emissions.
2. Carbon Offsetting Helps Non-Profit Organizations That Mitigate Climate Change
The carbon offsetting process works by buying credits from non-profit organizations mitigating climate change. In other words, you help these charitable groups by investing in their causes. The donations they receive from business owners like yourself will go into developing cleaner energy sources, adopting sustainable farming practices, and promoting renewable means of transportation.
Here are some of the carbon offsetting companies that you can connect with:
3Degrees - With its collaboration with numerous businesses, this company is one of the largest providers of voluntary carbon offsets in the US. On a larger scale, 3Degrees is active in renewable energy projects, and its carbon offset initiatives primarily focus on industrial energy efficiency and methane combustion.
ClimatePartner - This organization provides hydropower investments in Africa, Asia, and South America and reforestation initiatives. Since its launch in 2006, ClimatePartner has provided clients with a trackable ID number on the packaging to track the particular carbon offsets associated with their purchase.
3. Carbon Offsetting Will Help Improve Your Brand's Reputation
Now that people are becoming more aware of environmental issues, they tend to support companies with sustainable initiatives more. If your target customers see that you are committed to mitigating climate change, even by carbon offsetting, they sure will give their trust and patronize your products.
Nevertheless, whether you're trying to increase customer loyalty, it's always a good idea to show your concern for the environment. Since everyone is impacted by climate change, we must all contribute to the effort to stop it.
4. Carbon Offsetting Will Increase The Morale Of Your Employees
Employees may feel that what they do doesn't significantly impact the world, especially in small companies. By incorporating carbon offsetting in your business, your employees will feel more empowered because they're a part of a company that contributes to helping the environment thrive. It would feel like the efforts they do would not just be for your company's benefits but a more significant cause, a change for the world.
The Bottom Line
Any kind of business, even the small ones, has an environmental impact. And while it is true that larger corporations emit more carbon, small business owners joining the cause to mitigate climate change will make us achieve the goal of sustainability much faster and easier. There are several ways to reduce your carbon footprint, but carbon offsetting offers more convenience. By practicing it in your business, we can look forward to having a more sustainable future.
