Carbon Offsetting

Carbon offsetting is a carbon trading mechanism that allows companies to compensate for their emissions by investing in external projects that remove or avoid carbon — like reforestation, renewable energy, or methane capture. It’s not a replacement for reducing emissions but can be used for unavoidable ones. The credibility of offsets depends on whether they are verified, additional, and permanent. Standards include e.g. Gold Standard and Verra’s VCS. Examples of schemes: -> Renewable Energy Projects -> Forestry and Land Use Projects -> Energy Efficiency Projects -> Methane Capture and Utilization -> Waste Management and Recycling Initiatives -> Carbon Capture and Storage (CCS) -> Household and Community-Based Projects

Legislation

This legislation aims to ensure that environmental claims made by companies are verifiable, reliable, and substantiated to prevent greenwashing and misleading consumers.

The EU Taxonomy Regulation (Regulation (EU) 2020/852) establishes a classification system to identify environmentally sustainable economic activities, aiming to direct investments toward the EU's environmental objectives. It defines six environmental objectives: -> Climate change mitigation -> Climate change adaptation -> Sustainable use and protection of water and marine resources -> Transition to a circular economy -> Pollution prevention and control -> Protection and restoration of biodiversity and ecosystems 1/ EU Taxonomy Regulation (EU) 2020/852 is the Regulation that sets the overall framework and objectives for what constitutes "environmentally sustainable" activities in the EU. 2/ The Delegated Acts are the detailed technical regulations that provide the specific criteria and thresholds for various environmental objectives (climate mitigation, water protection, biodiversity, etc.). These Delegated Acts support the implementation of the Taxonomy Regulation. The EU Taxonomy is an essential part of the EU's sustainable finance framework. It serves as a classification system to define environmentally sustainable economic activities based on science-based criteria. Its primary goals are to help investors, companies, and financial institutions identify and finance projects and activities that align with the EU's environmental objectives, such as climate change mitigation and adaptation, circular economy promotion, and biodiversity protection​ The EU Taxonomy is not a mandatory list for investors to invest in. It does not set mandatory requirements on environmental performance for companies or for financial products. Investors are free to choose what to invest in. However, it is expected that over time, the EU Taxonomy will encourage a transition towards sustainability in order to achieve the EU’s climate and environmental goals. The Taxonomy sets performance thresholds (referred to as ‘technical screening criteria’) for economic activities which: -> make a substantive contribution to one of the above six environmental objectives; -> do no significant harm (DNSH) to the other five, where relevant; -> meet minimum safeguards (e.g., OECD Guidelines on Multinational Enterprises and the UN Guiding Principles on Business and Human Rights) 🔗 European Commission

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Inspiration

Guide

Businesses, in general, rely heavily on numerous ecosystem services while simultaneously exerting significant pressure on natural capital, contributing to biodiversity loss. To ensure long-term resilience and responsible growth, a shift towards a sustainable strategy is crucial – with biodiversity serving as a key component of such a strategy.

What is Biodiversity?

To begin, it’s important to remind the concept of biodiversity. According to the definition presented in the United Nations Convention on Biological Diversity, it is "the variability among living organisms from all sources, including, inter alia, terrestrial, marine and other aquatic ecosystems and the ecological complexes of which they are part: this includes diversity within species, between species and of ecosystems". But what does it actually mean?

  • Within species diversity – this level of diversity covers genetic variety found within species; this ability allows the population or species to adapt and evolve in response to changing environments and natural selection pressures
  • Between species diversity – species diversity refers to the number, types, and distribution of different organisms present in a specific area, encompassing all groups of fauna, flora, fungi, and bacteria. Beyond the large organisms we typically associate with biodiversity – such as birds, mammals, fish, or trees – this aspect of diversity also includes an innumerable array of microscopic organisms. These often play key roles in the ecosystem, performing essential functions that enable ecosystems to fulfill their vital processes.
  • Ecosystem diversity – encompasses the full range of habitats and the plant, animal, and fungal communities found within a specific geographic area. The value of this diversity is not determined solely by the number and area of habitats, but rather by their degree of naturalness and alignment with distinct physical and geographical conditions.

These definitions highlight the complexity of biodiversity, which should always be considered when evaluating potential and actual impacts of businesses. Biodiversity means far more than the number of species and habitats’ area. It is an essential and integral characteristic of nature that enables ecosystems to be productive, resilient and able to adapt.

What is Not Considered Biodiversity?

Equally important issue is to distinguish what is not biodiversity. Ecosystems dominated by alien and invasive species that have appeared due to human activity do not contribute to biodiversity as it is commonly understood. These species often disrupt native ecosystems by outcompeting native species, lacking natural predators, or causing the decline of indigenous species. This results in the formation of new ecosystems with altered networks of dependencies, which often lack the complexity and balance of natural biodiversity. Nevertheless, it is always worth considering whether a native ecosystem dominated by alien species has a potential to be restored to better condition.

We also should not include common habitats created through human intervention, consisting predominantly of synanthropic species – those thriving in human-dominated environments in vast numbers – among the valuable elements of biodiversity. Likewise, gardens, squares, parks, and other green spaces established and maintained by humans are not typically regarded as integral elements of natural biodiversity. While they may offer ecosystem services, they do not represent the complexity and ecological integrity of natural habitats.

When a Company May Need to Assess Its Impact on Biodiversity?

Businesses may need to evaluate their impact on biodiversity for a variety of reasons, including:

  • Fulfillment of EU Taxonomy objectives
  • Meeting standards for B Corp Certification
  • ESG (Environmental, Social, Governance) reporting
  • Conducting double materiality assessments (DMA)
  • Carrying out environmental impact assessments (EIA)
  • Executing environmental due diligence (EDD) procedures
  • Applying for funding and meeting requirements specified in international performance standards (e.g., Performance standard 1 or 6)

Each of these drivers will require consideration of environmental factors, including biodiversity, at different scales and within different contexts, both spatially and temporally.

However, the process should always begin with identifying business dependencies on biodiversity and the impacts on biodiversity – the latter generated by the company at different stages of its operations. Without the recognition of impacts, even the most innovative ideas to enhance sustainability can be perceived as greenwashing. It is essential to understand where the company’s strengths lie and where critical improvements are needed. The second stage involves enhancing the business strategy through measures focused on avoidance, mitigation, and compensation with respect to biodiversity. Both stages should incorporate a science-based approach to ensure credibility and effectiveness.

Prioritizing Impact Detection and Mitigation for Effective Biodiversity Strategy

When integrating biodiversity into a corporate strategy, the first and most crucial step for businesses is to identify dependencies on biodiversity as well as potential and actual impacts on biodiversity resulting from their operations, supply chains, or projects. This detection process ensures that companies understand the extent and nature of their influence on local or global ecosystems and species. The recognition of dependencies and impacts also enables to provide a basis for determining the scope of the biodiversity strategy the company will ultimately adopt. Since every company is unique, biodiversity strategies must be customized to fit the specific needs and context of each organization. The scope of a strategy should be viewed as dynamic, evolving over time and revisited iteratively as the company develops. Therefore, a deep understanding of business-biodiversity interactions is essential for effective strategy formulation.

Increasing Conversions Of A Climate Tech By 55%
Green Future Project
Professional Experience

Problem: A company designed a new technology that tapped into 3D models, satellites, and blockchain to track the impact of carbon offset projects more efficiently and accurately, thus improving the quality of the credits generated. However, despite getting a high incoming traffic, their landing page was not converting. Action: Breaking down the technical lingo, I turned the landing page into an easy-to-understand sales pitch for visitors. In particular, I explained more clearly how subscribers would have benefitted from their service. Also, I added a few testimonials and a more engaging call-to-action (CTA). Result: Subscription rate increased by 55% over 6 months.

Founder and Managing Director
Zenaga Foundation gGmbH
Professional Experience

 Operational and strategic corporate management and budget planning  Creation and implementation of communication campaigns  Development and implementation of CSR coaching, Co2 offsets and other services  International understanding, including the organisation and implementation of delegation trips  National and international networks, including participation in and input to the UN Climate Change Conference  Planning, management and implementation of projects in developing countries Results: Honoured with Vigor Award - 2018 - Leadership category, Honoured with the German Award for Sustainability Projects - 2023, Conception and successful implementation of numerous projects

Kai Zimmermann
ESG & Sustainability Manager
Germany, Sinsheim
As Sustainability Manager, I built up the sustainability department at Wund Holding and, in addition to documentation (carbon footprint, CSRD, etc.), promoted the implementation of improvements by involving and informing employees as well as campaigns and projects. I am the founder of the Zenaga Foundation gGmbH (www.zenaga.de) and a passionate climate and environmentalist. As a skilled mechanical engineer and banker, i combine technical and economic expertise. Through my membership in various organizations, I have a wealth of experience. By operating several PV systems, my energy surplus house and other measures, i am completely carbon neutral with my family since 2016. Sustainability is for my private and business the basis of my actions. In my lectures, workshops, CSR Coaching, Actions and Projects, i show in an impressive way how climate protection and economic action are in harmony and brings added value to all those involved. I share the knowledge, I have gained in more than 20 years, in voluntary functions as EU Climate Pact Ambassadors, Climate Reality Leader and as a board member of the African Centre for Environment, Agriculture and Rural Development. core message: "Economics and ecology are not competitors, but two aspects of sustainability. "
Tawanda Bwerudza
Circular Economy Consultant
United Kingdom, Coventry
Tawanda is a technically oriented sustainability professional with over 8 years experience working within research & development. Tawanda combines his deep knowledge of science, product development, value chains to deliver innovative, circular and sustainable business solutions built upon data and systems thinking.
EcoAct
Your Partner for Sustainable Transformation
France, Paris
EcoAct is an international sustainability consultancy headquartered in Paris, with 360 employees across six countries. EcoAct delivers comprehensive solutions to help businesses reduce carbon emissions and enhance commercial performance. They have executed carbon reduction projects for leading brands and develop carbon offset, biodiversity, and economic development programs globally. EcoAct is a CDP gold partner and an ICROA founding member.  
Norway, Oslo
  CEMAsys, a Nordic consulting firm, is an accredited CDP provider and Silver Partner, supporting CDP reporting since 2009. Recognized as an accredited Science-Based Target partner, CEMAsys offers comprehensive ESG solutions, such as: • Carbon Footprint data management • ESG reporting • ESG surveys • GRI reporting • CDP reporting • Setting Science-based targets • Compliance with EU Taxonomy • Carbon offsetting to Net-Zero • Sustainable strategy development
South Africa, Johannesburg
Envision Advisory Services (EAS) is a South Africa-based management consulting firm headquartered in Johannesburg, with a presence across Africa, the Middle East, and Europe. We specialize in Strategy, M&A, and Operational/Procurement consulting within our General Advisory division. Our expertise extends to ESG and Sustainability, where we deliver comprehensive solutions that include ESG strategy development and implementation, digital maturity assessments, GHG calculations, ESG training, carbon offset strategies, and our proprietary ESG SaaS platform, Ethica. Ethica is designed to align with major frameworks such as ESRS, IFRS S1 and S2, and the JSE, and can be customized to meet local standards and specific business needs.

Circular Ecology, headquartered in the UK, partners with organizations globally to enhance sustainability. Their services encompass carbon offsetting, resource efficiency, life cycle assessment (LCA), carbon and water footprinting, circular economy, and overall environmental sustainability. Their expertise extends to diverse sectors, including materials, products, buildings, food, services, textiles, organizations, and supply chains.

Established in 2005 due to climate change concerns, Clear provides certified carbon offsets. Despite challenges, they empower individuals and businesses to offset emissions, focusing on customer service and innovation. Clear aims to swiftly fund effective decarbonization through scientifically validated projects, covering unavoidable emissions to combat climate change effectively.

Agricarbon offers extensive, cost-effective soil carbon testing services across the UK and Europe. They excel in assessing soil organic carbon across vast agricultural areas, employing a globally recognized scientific methodology. Leveraging mechanization, automation, and economies of scale, they achieve this at a remarkably low cost. Their processing facility analyzes thousands of samples weekly, furnishing businesses, farmers, and landowners with valuable insights into soil carbon stocks.

Climate Impact X (CIX) is a global marketplace, auctions house and exchange for trusted carbon credits. Our vision is to drive environmental impact at scale. We build resilient platforms, collaborate with innovative partners and foster ecosystems that help companies take practical climate mitigation action through trusted carbon credits.

MIKOKO PAMOJA is a small-scale carbon offset initiative centered around mangrove conservation. They encourage community involvement in preserving mangroves by engaging in conservation efforts, raising awareness, and selling carbon credits. The revenue from these credits is reinvested in local development initiatives covering water, education, health, and environmental conservation, showcasing a win-win-win model for climate, community, and biodiversity preservation.

 
 

Planted supports companies holistically and individually in the implementation of their sustainability goals. To do this, they combine local climate protection with technological software solutions, enabling companies to actively manage emissions together with their employees: Starting with the calculation of CO₂ emissions, the identification of savings potential, and ending with the offsetting of unavoidable emissions. In addition, they plant mixed forests in Germany for companies with our own climate forester or enable the protection of local forests.

CarbonTrack provides an online platform for measuring embodied carbon emissions throughout each project’s lifecycle including materials, transportation and machinery.

Data collected can be shared with project stakeholders, aiding in emission reduction strategies and fostering greater carbon accountability. Embodied carbon emitted can be offset with verified carbon credits, enabling chargebacks to the supply chain to fund global emission reduction projects worldwide.

VistaTrack offers a streamlined solution for tracking operational carbon emissions from digital signage displays from the moment they’re installed and powered.

By monitoring power consumption and energy sources for each display, VistaTrack provides invaluable data for decision-making and cost reduction. Operational carbon emitted can be offset through Gold Standard Certified carbon credits, supporting global emission reduction projects worldwide.

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