Companies that buy carbon credits are doing more to tackle their climate footprints than companies that don’t, a new report finds.
The report, released Tuesday by Ecosystem Marketplace, an environmental finance nonprofit, is the most detailed snapshot yet of how companies are confronting climate change in their operations, including through carbon credits.
By buying carbon credits, companies and individuals can reduce their carbon footprint by preventing emissions elsewhere. For example, credits can generate funds to pay for the protection of a specified area of natural forests, which remove and store climate-warming carbon from the atmosphere. Yet critics have called out carbon credits as a license for companies to pollute.
The new report dispels that notion. It analyzed the voluntary carbon market transactions and corporate climate change disclosures of more than 7,400 companies with a combined US$ 110 trillion in assets and found that not only are companies that invest in the carbon market nearly twice as likely to be reducing their carbon emissions year over year, they are also outperforming their competitors in addressing climate change in their supply and value chains. Read more.