Six net zero and carbon offset myths busted

By Vaughan Lindsay for Ethos magazine: issue 15| October 2021

Carbon offsetting is a robust, immediate and measurable way for businesses to take responsibility for their current carbon footprint now, whilst on a journey to net zero. Yet many businesses — no matter how progressive — are still reluctant to offset their carbon emissions. Why? Largely because of the many misconceptions around offsetting. Let’s take a look.

1. Offsetting won’t tackle climate change

Certainly, offsetting alone will not tackle climate change. However, experts globally agree it’s an essential part of our journey to net zero. Most companies won’t be able to reach net zero without it, as there will always be some stubborn or hard-to-address residual emissions.

We need to move to a low-carbon world as quickly as possible. But — even in the best-case scenario — this takes time. While we work on reducing our emissions (often involving long term systemic changes to decarbonise existing business models), we need to do something about carbon emissions today. Funding an equivalent amount of carbon emissionsreductions through voluntary carbon offsetting is an effective way to take responsibility for this carbon footprint and buys us time while we develop new processes and technology to reduce it.

2. Offsetting is just a guilt free way to carry on emitting

Companies have set and deliver against carbon reduction targets, as well as offsetting emissions. It’s not either/ or, it’s both/ and. Businesses who offset emissions are putting a voluntary tax on their carbon pollution that will only increase over time. This focuses the business on reducing this cost through reduction and initiates behaviour change from the top. Research shows that the typical offset buyer cut almost 17% of their scope 1 (direct) emissions, while the typical non-offset buyer reduced scope 1 emissions by less than 5% in the same year.

3. Working from home means our footprint is low

Our digital footprint is a growing problem, especially in light of the pandemic. The carbon footprint of our gadgets, the internet and the systems supporting them accounts for 3.7% of global greenhouse emissions, similar to that of the airline industry. These emissions are predicted to double by 2025, too.

4. Going climate neutral is just for CSR

Increasing public awareness of climate change and changing consumer behaviour has catalysed a shift in how businesses think about their climate impact. Combined with pressure from investors and government, this has driven increasing climate ambition and action. Companies that had engaged with climate change mitigation mainly due to corporate social responsibility (CSR) are beginning to see it as business critical. Going climate neutral brings a range of business benefits — from demonstrating environmental credentials and building customer confidence and improving staff engagement with your broader sustainability programmes. It can even deliver growth opportunities — building resilience in supply chains, supporting growth in key markets andhelping to launch new products and services.

5. We’re too small to offset

It’s not the size of your business, but the size of your carbon footprint. Any business can make a difference in tackling the climate crisis and work towards becoming net zero. Climate change is the single biggest issue that the world faces today, and we all have to play our part. Multiple companies have pledged to achieve net zero by 2030 and are considering how they can influence their customers and supply chains to reduce emissions, too.

6. Going climate neutral is the same as net zero

Going climate neutral is a way for companies to take immediate action whilst setting the course to meet a longer-term net zero target. Going climate neutral by offsetting emissions through high quality, independently verified carbon reduction (avoidance and removal) projects is the only way to take full responsibility for your current carbon footprint. Going climate neutral today compensates for your existing carbon footprint immediately, whilst you take steps to reduce emissions as close to zero as possible, in line with a science-based target. You’ll become net zero when you reach your science-based carbon reduction target,compensating for remaining emissions through carbon removals projects.

Vaughan Lindsay is the CEO of ClimateCare, which helps organisations meet their climate responsibilities. He Chairs both New Philanthropy Capital and Big Issue Invest.