What is offsetting carbon cost?
When initially taking up the challenge of offsetting your businesses carbon costs, of any kind, it is important to consider the two processes through which it is done. The two carbon offsetting methods include:
- Carbon capture – Where carbon is captured from the atmosphere to make up for emissions. The most common type of carbon capture is planting trees. Companies in industries such as aviation offer customers with additional purchasing options as a means of offsetting the carbon footprint of their flights. Offsetting schemes hold a standard rate of £8-£12 per tonne of CO2 emissions.
- Carbon reduction – Reduction is focused on improving energy efficiency and creating alternative ways to produce energy, such as using solar panels or wind turbines
Carbon capture can be achieved by two primary means, either domestic offsetting or offsetting worldwide. Companies in the UK choosing to capture their emissions domestically need to abide by two validation codes, the woodland carbon code and the peatland code.
The Peatland Code
This code is supported by the IUCN (International union for conservation of nature). The code focuses on peatland restoration to allow companies to demonstrate a tangible difference they are making with their operations.
The Woodlands Carbon Code
This code is supported by the ICROA (International carbon reduction of offset alliance). Similarly, to the previous code this enables companies to restore woodlands within the UK making a real difference in terms of carbon reduction.
The problem with offsetting emissions
Although offsetting carbon emissions does assist in battling climate change, the practice in itself cannot completely neutralise a company’s emissions. Carbon offsetting fails to manage this due to there only being a certain amount of carbon a plant can absorb. The process of carbon capture requires far greater time commitment than advertised with trees needing around 20 years to capture the amount of carbon an offsetting scheme promises.
Taking this into consideration, the way companies should focus on limiting their carbon footprint is carbon reduction. Carbon reduction can take form in many different ways within a company’s distribution, from adoption of sustainable packaging to modes of transport which are powered sustainably such electric HGV’s.
Customers care about sustainability
In recent times sustainability and customer behaviour have become closely interlinked. Customers are showing much more environmentally conscious habits such as adopting low meat diets or buying electric cars. Further exemplifying this, a report by Deliotte found customers are 49% likely to be willing to pay a price premium for sustainable goods and services.
Taking this further, even internal stakeholders can be positively affected by sustainable practice. A study by Forbes found that 83% of workers think their business is not doing enough to reduce their emissions whereas 63% said they are more likely to work for a company which is environmentally friendly. Considering this, taking an environmentally conscious approach can assist in improving human resource operation therefore, showcasing the multifaceted positive of offsetting carbon emissions.
For more information on how Welch’s Transport can improve your logistical efficiency and environmentally conscious operations, please get in contact with us today on +44 (0)1223 843011, or email us at [email protected]