Today, scientists around the world agree that anthropogenic factors are primarily responsible for ongoing climate change. Indeed, human activities-such as burning fossil fuels or deforestation-release greenhouse gases into the atmosphere that trap heat and cause global temperatures to rise. Some CO2 emissions are unavoidable, but it is possible to offset them by supporting environmental projects that absorb or avoid at least as much CO2 as is emitted. This process, known as carbon offsetting, counteracts the carbon footprint of individuals and entities by investing in sustainable initiatives with the goal of an overall reduction in greenhouse gas emissions.
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Mitigating the carbon footprint: how the carbon credit system works
Let us delve into this process together starting with best practices that companies can refer to in order to provide for the minimization of their carbon footprint. Schematically, we can divide the process into three main steps ranging from measuring emissions, setting up an overall corporate sustainability strategy, and selecting and funding specific offset projects and the associated carbon credit. Let’s look at them in more detail.
- Step 1: Measurement of carbon footprint, e.g., by adopting the standards proposed by the GHG Protocol (an international reference system).
- Step 2: Define corporate sustainability strategies, such as significantly increasing the share of renewable energy in the energy mix as suggested by the Science Based Target Initiative (or SBTi).
- Step 3: Selection of the project to offset CO2 emissions through the purchase of carbon credits. One credit is equivalent to one ton of CO2 equivalent avoided or absorbed attributable to initiatives such as – to name the most common – renewable energy development, energy efficiency, green space conservation, afforestation or reforestation, and carbon farming.
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Critical issues in the system: carbon offsetting between opacity and greenwashing risk
The benefits of offsetting practices-both for member companies and the environment-are undoubted, yet the system is not without its critical issues. As revealed by a Guardian investigation, transparency about the effectiveness of offset projects is not always guaranteed. In fact, the British news outlet reports that among the rainforest protection initiatives approved by one of the leading companies promoting offsetting projects, only a small number were able to show evidence of actual declines in deforestation. Additional analyses suggest that 94 percent of the credits obtained had no benefit to the climate environment. In addition, a 2022 Cambridge University study found that threats to forests in the specific projects examined were overstated by about 400 percent. Such opacity can only be a wake-up call for member companies, potentially exposing them to the risk of greenwashing.
Positive impact: a transparent and locally oriented alternative
Precisely to address issues of transparency in compensation mechanisms we at Recuperiamo launched Impatto Positivo, a pioneering initiative that offers companies the opportunity to join projects that integrate the environmental dimension of sustainability with social impact in the Italian territory.
By purchasing our Impact Tokens, digital assets registered and tracked on blockchain, you can provide carbon offsets and contribute to sustainable development in a concrete and tangible way.
By joining our project, you will support the largest active circular ecosystem throughout Italy, avert the risk of greenwashing and enjoy exclusive benefits such as:
- transparency and traceability thanks to our blockchain platform, which can ensure with certainty that your contribution achieves its goals;
- useful data for your sustainability report;
- Differentiation and enhancement of your brand through Impact Tokens, which can be associated with all your products and services.
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