The terms “net zero” and “carbon neutral” are often used interchangeably but have different implications for companies. Both concepts involve the use of carbon offsetting to compensate for emissions that cannot be eliminated within a company’s own operations. However, carbon offset markets have faced criticism for their lack of transparency, accessibility, and quality.
As a result, some companies in the food industry, such as Nestlé and fast food chain Leon, are moving away from investing in carbon offsets and instead focusing on reducing greenhouse gas emissions within their own supply chains and operations. This shift is driven by a desire to achieve net zero emissions by 2050 and to have a more direct impact on reducing emissions.
In response to concerns about the quality of carbon credits on the market, the Integrity Council for the Voluntary Carbon Market (ICVCM) has developed a global benchmark for carbon offset projects. This benchmark includes quality standards to help suppliers choose high-quality carbon credits. The ICVCM aims to increase confidence and purchases of carbon credits by providing an independent mark of quality assurance through its Core Carbon Principles (CCP) label.
To further promote transparency and credibility in the voluntary carbon market, the Voluntary Carbon Markets Integrity Initiative (VCMI) has unveiled a code of practice for making credible environmental claims based on the use of carbon credits. The VCMI recommends that businesses purchase high-quality credits from the ICVCM to ensure the credibility of their claims.
One key recommendation from these initiatives is to use carbon credits as a contribution to global climate change mitigation efforts rather than as a means to claim carbon neutrality. The term “carbon neutral” can be confusing and open to interpretation, and there are differing perspectives on whether it can be used credibly. Some argue that it can facilitate increased action on emissions reduction, while others believe it downplays the remaining climate impact of businesses that have not fully decarbonized.
The confusion surrounding carbon credits and the fear of greenwashing accusations have led some companies to hesitate in investing in carbon offsets. However, the development of industry frameworks and initiatives like the ICVCM and VCMI aim to address these concerns and provide clarity and transparency in the voluntary carbon market. The hope is that these efforts will encourage companies to take responsibility for their emissions and contribute to meaningful climate solutions.
