LATEST ARTICLE Our journey to a greener future: DGB Group's strategic expansion into the French market Read Article

Companies investing in carbon credits through VCM show a greater sustainability commitment

Companies that purchase carbon credits are making greater strides in reducing their actual emissions compared to those that do not, according to a report released by rating agency Sylvera on Wednesday. The study analysed approximately 50 major companies across various industries that bought credits and an equal number that did not. The report reveals that involvement in the voluntary carbon market (VCM) fosters higher ambitions instead of serving as a mere façade for inaction regarding sustainability.

investing in carbon credits through VCM show a greater sustainability commitment_pupils planting a seedling at school as a part of Hongera Reforestation Project on Kenya_visyal 1Two pupils planting a seedling, at a school in Kenya, Kutus area - Hongera Reforestation Project, Kenya, DGB.

Contrary to concerns raised in media reports, the report found that companies purchasing offsets also tend to have more robust policies and targets for carbon reduction. On average, companies buying carbon credits reduce their Scope 1 and 2 emissions by 6.2% annually, while non-users achieve only a 3.4% reduction, according to Sylvera.

Measure your environmental impact 

Notably, the reductions mentioned reflect actual emissions rather than net emissions, meaning that a company's use of carbon credits does not directly impact these emission reduction metrics. Manufacturing and technology companies, facing substantial costs associated with transitioning to cleaner techniques and equipment, exhibited the slowest progress in emissions reduction. Conversely, financial services firms showcased significant cuts, with airlines also performing well due to reduced air traffic and the retirement of less energy-efficient aircraft, driven mainly by the COVID-19 pandemic.

While sectors like oil and gas demonstrated favourable decarbonisation rates, this could be attributed to their high baseline emissions. On the other hand, technology companies reported slower decarbonisation rates due to their lower starting points in emission reductions.

Read more: Report: Growing carbon credit market will increase to $4.4 trillion

Sylvera emphasises that carbon credits play a crucial role in corporate climate strategies and should be considered assets in the transition to a greener future. The report underlines the urgent need for mandatory and standardised climate disclosures, addressing the significant problem posed by insufficient climate data, and disclosures for investors and consumers.

DGB Group firmly advocates for the power of nature-based solutions as the most effective approach for safeguarding and revitalising our natural environment. Our core focus lies in developing and overseeing extensive initiatives centred around reforestation and afforestation, fostering biodiversity restoration, and revitalising degraded lands. In addition, we strive to empower local communities by promoting sustainable development. Through our diverse range of solutions, businesses, investors, and individuals alike can actively contribute to preserving nature in an easy and transparent manner.

Contact our experts to start making a change for the better

Before you go...

As DGB Group, our sole purpose is to rebuild trust and serve the public by making the right information available to everyone. By subscribing to our mailing newsletter, you can get the latest tips and trends from DGB Group's expert team in your inbox. Sign up now and never miss the insights.

Read other news

The Voluntary Carbon Market Integrity Initiative (VCMI) has declared Bain & Company as the pioneerin..

Microsoft is to acquire 350,000 carbon credits (carbon units) from a Kenyan agroforestry project. Th..

In a groundbreaking development, California's carbon allowance auction has captured the market's att..

Rio Tinto, the global mining powerhouse, announced its plan to significantly increase its retirement..

Let’s get to know you

Let's talk about how we can create value together for your sustainability journey.