January 2023

Investor Insights

Carbon offset a click away

We are all aware that decarbonization is not a single person’s job. To substantially reduce greenhouse gas emissions in the environment, it is the responsibility of every organization to create a framework to offset their carbon footprint.

With this agenda in hand, a company is working with clients across the globe to ensure its customers top quality and high impact climate action goals with dedicated strategies and net zero programmes.

It develops a unique framework to select its projects that is aligned with industry best-practices, ensuring its projects can withstand the highest level of scrutiny. As part of this, all projects undergo rigorous due diligence and auditing that may range from airlines to e-commerce.

What precisely is a carbon offset? A carbon offset is a credit that a person or organization can buy to decrease its carbon footprint. When the number of carbon offset credits obtained is equal to an individual’s or organization’s carbon footprint, that person or organization is carbon-neutral. Revenue generated from the purchase of carbon offsets is often invested in environmentally friendly projects, like investments in green computing technologies. More generally, carbon offsetting is any reduction of greenhouse gas (GHG) emissions to make up for emissions that occur elsewhere. Carbon offset credits show that an organization or person has reduced its emissions. The term “carbon offset” is used to describe both the credit and the act of carbon offsetting.

Aviation

According to the Air Transport Action Group, the global aviation industry produces 2.1% of all human induced carbon dioxide emissions.

Today, the aviation industry is taking huge strides towards reducing its carbon footprint with initiatives such as sustainable aviation fuel (SAF) and encouraging climate-friendly travellers. At the 77th IATA Annual General Meeting in Boston, USA, on October 4, 2021, a resolution was passed by member airlines committing them to achieving net-zero carbon emissions from their operations by 2050. This pledge brings air transport in line with the objectives of the Paris agreement to limit global warming to 1.5°C.

The enviro-tech company’s solutions are trusted by global airlines such as Etihad Airways, Air Tahiti Nui, London Stansted Airport, and Lima Airport. This is also leading the way in providing next-generation solutions that include incorporating voluntary carbon offsetting into loyalty and reward schemes, corporate carbon offsetting, and carbon offsetting for cargo aviation.

E-Commerce

The rising popularity of online purchases and faster order fulfillment is adding to CO2 emissions globally due to increased transportation. At least 1.5 billion people consume products and services through e-commerce platforms, and global e-commerce sales reached US$26.7 trillion in 2019, according to a recent UN Conference on Trade and Development (UNCTAD) report.

A 2020 study by Globescan found that seven out of 10 consumers want to become more sustainable. However, only three out of 10 have been able to change their lifestyles. Here, e-commerce providers, with the help of the right technologies, can help close this gap.

The Climate Friendly Cart initiated by this firm on partner websites provides customers with carbon-offsetting options at checkout that are simple, meaningful, and transparent. The purchases are thoughtful, and the transportation is sustainable. The brand has managed to offset 50 million kilos of CO2 to date with intrinsic solutions and visionary partnerships.

Track and Trace

Creating clever solutions that help people offset the carbon emissions of their purchases. It removes the need for businesses to build their offsetting program by providing everything they need to offer carbon offsets to customers. Their unique, defining feature has not been replicated by any other carbon offsetting platform. This technology provides a unique communication opportunity that builds loyalty and brand value, generating positive impacts that clients can directly trace to the projects they support.

Ethical Accreditation

 

The global enviro-tech company has been certified as a B Corporation. This recognition means that a business is meeting high standards of verified performance, accountability, and transparency on factors ranging from employee benefits and charitable giving to supply chain practices and input materials. Thus, demonstrating high social and environmental performance and commitment.

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Business Model

Like every organization, the company must ensure that its model is sustainable and employee friendly. When a consumer purchases on partner websites, the brand takes a 20% margin on carbon credits and charges varies SaaS fees (subscription model) like monthly Freemium. For international carbon offsets, it purchases from global voluntary offset market platforms like the UNFCCC, Carbon Trade Exchange, and brokers like Umwelt-Projekt-Management GmbH and CarbonBay. This ensures that the projects are transparent and achieve world-class standards.

Creating A Net-Zero Future

Climate change is the greatest challenge of our lives. However, not all emissions can be eliminated today. This is where offset comes in. Carbon offsetting, if done right, is a powerful way to create a positive impact as it reduces or removes carbon from the atmosphere.

Expertly vetted by their team of carbon analysts, the firm delivers results that are aligned with the United Nations Sustainable Development Goals. While helping its clients achieve zero-carbon goals, it also directs every contribution toward a balance of reforestation and high-impact clean energy projects.

This blended approach ensures that every offset delivers the biggest climate impact. Scaling up carbon markets faster—and getting them right—will be essential to reducing emissions in the near term and funding the low-carbon future we need.

Source: Net zero future, The Fintech Times/https://thefintechtimes.com

Ensuring a healthy future for our planet is, of course, always worth it. But there is also opportunity for businesses to widen their profit margins while reducing their carbon footprint. The price tag on such an investment may seem high upfront, but emission reduction efforts pay for themselves quickly due to the operational efficiency that often results from such projects. Given the scope of their worldwide operations, many companies have the potential to scale the impact of carbon offset solutions—if executed correctly. For carbon offsets to be a viable business solution for the planet, companies must also invest in ways to reduce their production of carbon emissions.

Business Prospects

The discussion on carbon offsets is definitely going forward, as many see sustainability as a business opportunity that should be tapped with digital innovation and increased investment.

Aside from being beneficial for the environment, offsetting can provide advantages for your business, such as strengthening your brand or improving your triple bottom line. A vast majority of publicly traded corporations across the energy, banking, insurance, mining, and technology sectors have adopted climate goals, the latest Commodity Insights surveys show. Now, as business travel returns, not all firms are going back to business as usual, and some are using the restart to revaluate existing travel practices by tracking travel emissions data, as a Forbes report explains.

Even so, the shift in consumer behaviour will influence the travel industry, with tourists increasingly seeking escapes that create a more meaningful impact on nature and society. The travel network Virtuoso has found in its research for 2022 that younger generations are willing to pay more money for “travel brands and experiences that focus on environmentally-friendly philosophies, those that contribute to local people, and those that also preserve natural and cultural heritage.” “Regenerative tourism,” a term dubbed for a kind of experience where travellers are given the opportunity to leave a place in better condition than it was before, will become more popular among globetrotters. Likewise, travellers will demand that tourism operators be accountable for their own impact, seeking carbon-neutral credentials when booking stays.

This is where this company comes in, which offers guests the option to select from a list of carbon offset projects at checkout. It has already received seed fund investment and is now seeking Series A capital to bring its technology to market to sustain growth and expansion. If you want to know more, contact us.