1. DGB Group Knowledge Center
  2. Corporate sustainability strategies

What role does carbon compensation play in enhancing corporate social responsibility (CSR)?

Carbon compensation is vital in enhancing corporate social responsibility (CSR). By implementing carbon offset initiatives, companies can effectively address their hard-to-abate and past carbon emissions and contribute to environmental sustainability. This proactive approach aligns with CSR principles, demonstrating a commitment to minimising ecological impact and supporting conservation projects. It enables companies to improve their carbon footprint and reporting, aligning with investor mandates. It also elevates a company's reputation and fosters positive stakeholder perception by actively participating in global environmental efforts. Overall, integrating carbon compensation into CSR strategies reflects a business's dedication to being a responsible and conscientious corporate citizen.