Offsets for Businesses

Across the globe, companies are voluntarily taking action to address their impact on the environment. Toward these efforts, carbon offset mechanisms have emerged as a way of counteracting GHG-emitting activities that cannot currently be avoided.

Companies can do many things to reduce fossil-fueled energy use. But certain activities will remain that will emit greenhouse gases on a daily basis. Offsetting is an opportunity to first understand and then manage targeted greenhouse gas emissions - often referred to collectively as “carbon”. Offsetting helps address the unavoidable impacts that we currently have on the earth’s climate.

There is a clear market advantage to achieving “carbon neutral” or “low carbon” status. It is a clear mark that a business is serious about its commitment to the environment, and is taking action to quantify and lessen the impacts of all or part of its operations. Businesses are essential in addressing the issue of climate change and staff members often take pride in participating in carbon reduction programs offered by their employer. Also, educated customers are becoming more and more selective about their purchasing practices, making environmental initiatives with strong carbon management targets key to remaining competitive in many sectors.

How Are Business Operations Offset?

Every business will require a customized approach to offsetting the overall impact of their operations; however, there are a number of key steps commonly taken:

1. Take an inventory of all greenhouse gas-producing business activities from heating an office building to shipping product
2. Calculate the total in carbon dioxide equivalent tonnes (CO2e) emitted on a monthly basis
3. Develop solutions to reduce emissions through energy efficiency and renewable energy initiatives, where possible, and “offset” the balance
4. Voluntarily purchase offsets by investing in environmental projects that either reduce the amount of GHG emissions being created (e.g. renewable energy projects) or store carbon that has already been released (e.g. forestry projects), eventually balancing carbon emissions with reductions
5. Communicate achievements internally and externally to inform staff and customers or clients of carbon reductions.