6 alternatives to carbon credits for the environmentally conscious company

Attempting to be environmentally conscious as a business isn’t as clear-cut as it may seem. There are stringent guidelines that you must follow, and many you must set yourself according to your unique business processes. With well-known instances of overpromising and underperforming, people are more attuned to greenwashing.

Sustainable business practices are attainable with mindful planning and many companies choose to use carbon offsets in an attempt to balance their environmental impact. However, it’s crucial to understand the nuances of carbon offsets to implement them — or their alternatives — correctly.

The goal of carbon offset credits

Carbon offsets refer to any efforts to reduce greenhouse gas emissions externally. In other words, you compensate for emissions produced by your company. Offset credits can be purchased to decrease your carbon footprint. This is how many companies claim that they are carbon-neutral — the amount of emissions created is equal to the amount of offset credits they have bought.

This can be advantageous as a way to have tangible measurements to verify your environmental impact. However, these claims only hold weight when they adhere to rigorous guidelines.

Potential problems with carbon credit schemes

Purchasing carbon credits seems like an easy way to “cancel out” your business processes’ negative impact on the environment. Suddenly, it doesn’t matter if you are using extra fossil fuels for frequent travel or heavy machinery. In reality, it’s not that straightforward. When deciding whether to buy carbon offsets, it’s important to analyze their quality.

A typical offset credit is equal to one metric ton of carbon dioxide that would have been released into the atmosphere. The type of offset activity varies. The most common carbon credit program is reforestation. You’ve likely seen at least one initiative that promises to plant a tree for every donation. Not all activities, though, are created equal — and some may exist to scam purchasers.

Some issues that can make carbon offset purchasing fraudulent — or, at the very least, not very helpful — include:

• Negating a carbon offset, such as the sale of a plot of land being used for planting trees but also for logging, canceling out the good that is purportedly being done;
• Giving the false permission to continue or ramp up pollution and abandon efforts to reduce emissions;
• Double-counting carbon credits, or purchasing a carbon credit to offset their emissions and reselling it as if it has not already been used;
• Overestimating emission reductions, which may lead to false claims by the carbon offset seller and, thus, the company purchasing the credits;
• Selling credits using blockchain technology, which leads to further complications with the addition of blockchain’s environmental footprint.

Ultimately, all of these activities lead purchasers to believe they are helping the environment when they aren’t. These carbon offset schemes are avoidable, but you must understand the actual impact of carbon emissions and how to vet these companies that are selling credits. This isn’t to say that you can’t buy carbon offset credits, but they shouldn’t be your first line of defense.

Other options besides purchasing credits

Carbon offset credits aren’t the only way to reduce your organization’s carbon footprint. Measure your sustainability periodically to see how you are stacking up with your environmental goals, and consider adding some of the following alternatives to carbon credits to your plan along the way.

Work toward supply chain sustainability

One of the biggest contributors to climate change is supply chains. Supply chain emissions often make up over 90% of a company’s total creation of greenhouse gases. This makes your supply chain a smart place to start when coming up with your organization’s environmental improvement plan.

Your supply chain includes everything from a product’s inception to its arrival at the doorstep of your consumers. This process transfers many different hands, including a network of suppliers, manufacturers, wholesalers, shipment partners, and any other organization that helps your end product come to life. This entire process has room for improvement when it comes to reducing environmental impact. This will vary depending on your unique industry and processes, but there are tips you can follow to improve your supply chain sustainability:

• Source responsibly, including energy, water, and materials from local and ethical suppliers.
• Find places in your processes that can cut back on energy use or emissions.
• Reduce, reuse, and recycle as much as possible.
• Use alternative fuel and modes of transportation, whether through your entire fleet or partnering with a shipping company that prioritizes fuel efficiency.
• Switch to sustainable packaging, using recycled and biodegradable materials.

These smaller initiatives to make your products greener will make it easier to manage, track, and report findings. Be transparent about these efforts to your audience of potential and current partners and consumers. Doing so will give them confidence that you aren’t waiting around and biding time by buying carbon credits — you’re being proactive about your impact on the environment.