ACCELERATING
SUSTAINABLE GROWTH

Forest carbon credit considered as a non visible forest product” that can be a viable alternative source of income for forest landowners. It’s a metric ton of carbon dioxide equivalent (CO2e), of whichthe emission is newly sequestered and is purchased by GHG emitters as a cost-control measure to make up for emissions occurring elsewhere.

Managing forests for carbon emission offsetting gives the world the opportunity to reverse or at least sequestered the emissions that they have already made or they are about to make into the atmosphere. The total GHG emissions are increasing rapidly. Most of the GHG emissions of all time have been done in the last 40 years of our existence. More GHG emission mean climatic shifts which leads to intensive droughts somewhere and acute floods in other areas of the world. Because of those blindly done deforestation which hampers the smooth functioning of the forest and gets in the middle of the process of habitats having their share of biodiversity.

Researches around the world point to a fact that forests can play a vital role in mitigating the inimical effects of climate change and can help in putting a shackle on this ever-increasing global warming. Quality and Quantity of herbs, restoring the disbalances caused by humans in nature, water as a resource in quantity & quality, providing wildlife a habitat to call home and protecting biodiversity in that habitat.

Forest & Carbon Offset

To get an understanding of the carbon offset markets, we need to know how CO2 is measured and traded for various purposes. CO2 being the major contributor as the GHGs in the atmosphere, promoting global warming. All other gases are not actually come that much into consideration because CO2 is more easily measurable that others. The carbon unit in which it is measured is “metric tons of CO2 Equivalent” often seen written as MtCO2e or tCO2e & also called as “Carbon Credit or Carbon offset”. Currently sellers of carbon offsets are majorly forest landowners who are looking to opening up different forest-based revenue streams by helping out the GHG emitters in exchange of a handsome payday.

Carbon Marketplaces

There are two distinct types of carbon markets; voluntary and compliance markets

Carbon markets are divided into two subdivisions – voluntary &compliance markets.

Voluntary markets exist where companies or individuals buy carbon credits for purely a voluntary basis. Many companies voluntarily purchase carbon credits to demonstrate their commitment to protecting the environment and to demonstrate corporate social responsibility.

Voluntary markets are there for the individuals and companies so that they buy the credits for the sole purpose of showcasing their concern towards the environment, its well-being and their willingness to go above and beyond to correct it. It fulfils their commitment to live up to the corporate social responsibility they owe to the society.

Prices for the carbon offset in voluntary market, globally, can fall anywhere between a wide range.Forest authorities & land usage projects are somewhat larger voluntary carbon project categories than any other kind. There are numerous factors that influence the price determination of carbon credits at the very point in time for e.g.,the type & location of project that is put up against asking for the credits, additional deemed project benefits that will play out to be an influencing factor, marketing efforts & many others.

The emission stays within limit as it is cancelled out by the very nature of the deal and there is no margin left to betray the environment in any case.

Compliance Carbon Market

Compliance carbon markets are such marketplaces through which “regulated by the cap & trade” entities obtain & surrender emissions allowances or better known as ‘offsets’ in order to meet predetermined regulatory targets.

In case of cap & trade programs; participants i.e., both emitters and intermediaries such as financial institutions; both are allowed to trade allowances to make profit from the unused allowances or for meeting regulatory requirements.

Creating a climate strategy for your company has to make it to the top 10 list of priorities while devising a cost-revenue model. That’s right; the decision you make regarding your company’s climate strategy may directly affect your cost & revenue model as you might have to pay a surplus amount if the collective damage to the environment goes up the allowed.

The credit is only due if you fall short of the limit & can come up having an actual breathable margin. So, without explaining the obvious; let's dive into how to create a climate strategy for your company.

1. Bring down the carbon emissions

Keep in check the greenhouse gases and bring the carbon emissions of the entire company. This will go a long way in helping you with minimizing the climatic impact your company is making. Usually, the corporates hire professionals on advising them to create a compensation strategy; when all this while their first action should have been to bring down the levels to an optimal minimum and then instate a compensation strategy for the damage done.

2. Bring the Scope Assessments in force

Once you have exhausted the possibility of damage reduction; bring out the big guns! Scope assessments are these big guns which help corporates in digging deep into what is making their count shoot up high. Run your organization through the fine teeth comb with these assessments & then make a decision on what kind of a strategy you need.

3. Choose power over the volume

While causing the strategy to change the face of desired results altogether: try taking powerful actions which can trigger big changes. Choosing from the heap of moves, that one which can drastically bring down the carbon footprint of your company should be your first effective power move.

Choosing a power move over a handful of small changes can really cut through the mountain of damage that your company causes to the environment. At this point, you have to drive the analysis forward with the graphical presentation & make use of past present and future timelines to extract trends & build your strategy.

4. Quantify the goals

In search of the pain points don’t get lost in the details to completely lose the grip over what’s necessary & required of you. Keep your goals quantified & let them be the flag bearer of your research & strategy building. Make the best of everything else to achieve those goals because the number will always show you the mirror against your efforts.

5. Make it large

It’s not something you should do in a private safe space & don’t let anyone know. Go all out with it & make it an initiative of the masses. Not literally, but the idea is to involve as many entities which are directly and indirectly related to the company as you can; i.e. all kinds of stakeholders. Make them an important part of your initiative as you move forward to make an impact. When they can be the part of the problems the organization causes; they will happily be the part of the solution as the organization goes on to make a huge impact through heavy CSR activities & Strategic Corporate Climatic Strategies.

We have seen a structured approach towards how to approach the agenda of making a climate strategy for an organization all the way to making it a motive to do good involving everyone directly or indirectly in question. These steps; when followed in this exact same order, will show you the ripple impact of a structured approach towards an initiative this sensitive. Apply these in order and consult us if you get stuck while dealing with it.

All the best!

Climate Change is a threat that is posing great danger to all of us. And Carbon Emission is one of the main reasons behind climate change. As of now, India finds itself in the top five carbon emitters along with China, the US, Russia & Japan (Source - https://bit.ly/3BMK0sn). It's a collective responsibility to fight against Climate Change and Companies can play an important role in this regard.

We will tell you about the exact course of action companies can take to fight climate change at an organizational level.

1. Measure and analyze the emissions

It's crucial to know for a company that how much Greenhouse gas emissions are happening at their watch & how are their existence is affecting the climate. For this, many private agencies calculate the carbon footprint and measure the organization's various emissions. Upon analyzing the situation measures can be taken to reduce the overall impact.

2. Reduce energy consumption

Reducing what is already being spent is wise than waiting it out & chasing the after-effects while watching the damage being done in real-time.

Turning off the lights in the office when not in use, Turning off the ACs when not in use. Not engage live sockets when they are not needed, etc can be some of the daily routine actions companies can take to reduce energy consumption at their end to minimize the daily addition of impact on climate.

3. Opt for renewable sources

Renewable sources of energy are again one of the best options; the organization should switch on to. Renewable sources like Solar power, Hydro Power, Wind energy, etc can be used instead of oil, coal, natural gas, etc which are exhaustible & creates an inhabitable environment for all kinds of life forms.

4. Control & Reduce waste generation

Reducing waste generation can be the most effective first-hand job for any company which will directly add value to their initiative against climate change. What it can do is; avoid using disposable cups, the number of paper prints, reusing printed papers as drafts, adopt ways for recycling correctly so that it is properly neutralized, etc can be some of the steps that can be taken.

5. Optimize employees’ transportation

As we know transportation is one of the largest sectors of greenhouse gas emissions but we don't usually consider it as an organization's problem. Well, it counts, everyday travel can bring about successively collective damage which can not be put to rest factoring the comfortability of commute. Nevertheless, introduce new ways to minimize this big chunk of your carbon emission quota. Green Vehicles which runs on CNG can be introduced to cut the emission happening from this part

6. Raise awareness

Being a crucial part of this earth, we are also accountable & responsible for how this planet has come to be. As an individual or an organization; raise awareness amongst peers, friends, colleagues, superiors, and all the stakeholders, so that the ball sets rolling everywhere.

These are some of the best ways which companies can adopt to fight climate change and turn our planet into something much better than what it already is. Continuous efforts will help us get closer and closer to win over the adversities we were doomed to face in the future.

Connect with us if you want to make a change and reduce your carbon emissions as a company/organization.