Month: July 2024

AI (Artificial Intelligence) has rapidly grown to dominate the headlines over the past 12 months, proving one of the most topical evolving technologies. From generative AI, where chatbots such as ChatGPT respond to customer queries, to limited memory AI, where self-driving vehicles attempt to navigate the world around them, AI is big business, amounting to around 200 billion U.S. dollars in 2023 alone, and expected to grow to over 1.8 trillion U.S. dollars by 2030[1].

Artificial intelligence is far from limited to responding to questions or creating customer artwork – it’s ideal for sifting through and making sense of big data. Put simply, AI can help to turn data into actionable insights, helping people and organisations to make more informed choices about business operations. As such, it’s a useful technology when it comes to identifying and driving sustainability initiatives.

AI’s contribution to environmental applications

Without major changes to the way we treat our planet, it will suffer unrepairable damage, but AI can be a powerful tool when it comes to tackling climate change, biodiversity loss, and pollution, helping to create a brighter, more sustainable future.

According to PwC, using AI for environmental applications could contribute up to $5.2 trillion USD to the global economy in 2030[2]. The same report estimates that the application of AI solutions could reduce worldwide greenhouse gas (GHG) emissions by 4% in 2030, an amount equivalent to 2.4 Gt CO2e – equivalent to the 2030 annual emissions of Australia, Canada and Japan combined.

Insights specialists EY explains that AI can play an accelerated role in resource stewardship, highlighting its ability to help enable circular and equitable supply chains, reduce resource consumption, decarbonise energy and mobility, accelerate sustainable product and service innovation, shape materials science, and protect and enhance biodiversity.

It can be used to help create smarter, more efficient energy grids, for example, managing the supply and demand of renewable energy using deep learning and predictive capabilities. As such, it can support decarbonisation, contributing to the UN’s Sustainable Development Goals by ensuring a supply of affordable, reliable, and clean energy.

Its ability to trawl through huge amounts of data, picking out patterns and creating more accurate models, can support precision agriculture, with improved monitoring of environmental conditions and crop yields.

The technology can contribute to a reduction in traffic congestion, through more intelligent and reactive mapping, with real-time journey planning helping logistics industries to pick the least congested routes. This has huge potential when it comes to organisations optimising their logistics, and real-time mapping will also play a large role in the introduction of autonomous vehicles.

AI can be applied in water resource prediction as well, where management and monitoring can help to improve the global water crisis by reducing or eliminating waste, as well as lowering costs and lessening environmental impacts.

EY adds: “AI can catalyse the acceleration of needed sustainability responses across complex natural, economic and social systems. It can help us act at the necessary pace and scale by augmenting the human ability to learn, analyse, innovate, predict and decide – exponentially.”

Of course, AI isn’t a catch-all solution to the challenges we face when it comes to sustainability. It needs to be interwoven with other approaches, complimenting existing solutions. Far from modern fears of AI taking our jobs, it can actually help people to do their jobs more effectively, with the ability to understand data to make better decisions and affect broader sustainability changes.

Introducing Lenovo’s own AI

With this in mind, we’ve been working on our own AI-powered Sustainability engine at Lenovo, called L.I.S.S.A. (Lenovo Intelligent Sustainability Solutions Advisor).

We already offer our customers a 360-degree approach to sustainability, from energy-efficient technology to sustainable packaging, efficient mode of transport, asset recovery, as-a-service models and CO2 Offset Services. Now, with our in-house capability L.I.S.S.A., we can help customers make more informed choices when it comes to meeting their IT sustainability goals.

Alongside our consultative approach to sustainability, L.I.S.S.A. helps evaluate the estimated carbon emissions impact of different Lenovo IT solutions and offers recommendations to potential IT solutions that can optimise your budget and design pathways to support the decarbonisation of your IT environment.

This encourages data-driven decision making in sustainability and enables customers to plan proactively and choose the right mix of IT solutions that align with their sustainability strategies.

Embracing AI for a more sustainable future

Whether we’re looking at AI with regard to sustainability, or across other industries, it’s clear we’re very much at the start of an exciting journey. It’s a journey which has the potential to change the world as we know it. AI has come a long way in a relatively short space of time, but it’s only going to get smarter, and it can help us drive efficiencies faster.

As PwC explains: “There is enormous potential for AI to be an important tool in the effort to decouple economic growth from rising carbon emissions. In other words, there is a path towards a prosperous, just, and more sustainable future with advanced technologies.”

[1]Statista – Artificial intelligence (AI) worldwide – statistics & facts

[2]PwC – How AI can enable a sustainable future

AI (Artificial Intelligence) has rapidly grown to dominate the headlines over the past 12 months, proving one of the most topical evolving technologies. From generative AI, where chatbots such as ChatGPT respond to customer queries, to limited memory AI, where self-driving vehicles attempt to navigate the world around them, AI is big business, amounting to around 200 billion U.S. dollars in 2023 alone, and expected to grow to over 1.8 trillion U.S. dollars by 2030[1].

Artificial intelligence is far from limited to responding to questions or creating customer artwork – it’s ideal for sifting through and making sense of big data. Put simply, AI can help to turn data into actionable insights, helping people and organisations to make more informed choices about business operations. As such, it’s a useful technology when it comes to identifying and driving sustainability initiatives.

AI’s contribution to environmental applications

Without major changes to the way we treat our planet, it will suffer unrepairable damage, but AI can be a powerful tool when it comes to tackling climate change, biodiversity loss, and pollution, helping to create a brighter, more sustainable future.

According to PwC, using AI for environmental applications could contribute up to $5.2 trillion USD to the global economy in 2030[2]. The same report estimates that the application of AI solutions could reduce worldwide greenhouse gas (GHG) emissions by 4% in 2030, an amount equivalent to 2.4 Gt CO2e – equivalent to the 2030 annual emissions of Australia, Canada and Japan combined.

Insights specialists EY explains that AI can play an accelerated role in resource stewardship, highlighting its ability to help enable circular and equitable supply chains, reduce resource consumption, decarbonise energy and mobility, accelerate sustainable product and service innovation, shape materials science, and protect and enhance biodiversity.

It can be used to help create smarter, more efficient energy grids, for example, managing the supply and demand of renewable energy using deep learning and predictive capabilities. As such, it can support decarbonisation, contributing to the UN’s Sustainable Development Goals by ensuring a supply of affordable, reliable, and clean energy.

Its ability to trawl through huge amounts of data, picking out patterns and creating more accurate models, can support precision agriculture, with improved monitoring of environmental conditions and crop yields.

The technology can contribute to a reduction in traffic congestion, through more intelligent and reactive mapping, with real-time journey planning helping logistics industries to pick the least congested routes. This has huge potential when it comes to organisations optimising their logistics, and real-time mapping will also play a large role in the introduction of autonomous vehicles.

AI can be applied in water resource prediction as well, where management and monitoring can help to improve the global water crisis by reducing or eliminating waste, as well as lowering costs and lessening environmental impacts.

EY adds: “AI can catalyse the acceleration of needed sustainability responses across complex natural, economic and social systems. It can help us act at the necessary pace and scale by augmenting the human ability to learn, analyse, innovate, predict and decide – exponentially.”

Of course, AI isn’t a catch-all solution to the challenges we face when it comes to sustainability. It needs to be interwoven with other approaches, complimenting existing solutions. Far from modern fears of AI taking our jobs, it can actually help people to do their jobs more effectively, with the ability to understand data to make better decisions and affect broader sustainability changes.

Introducing Lenovo’s own AI

With this in mind, we’ve been working on our own AI-powered Sustainability engine at Lenovo, called L.I.S.S.A. (Lenovo Intelligent Sustainability Solutions Advisor).

We already offer our customers a 360-degree approach to sustainability, from energy-efficient technology to sustainable packaging, efficient mode of transport, asset recovery, as-a-service models and CO2 Offset Services. Now, with our in-house capability L.I.S.S.A., we can help customers make more informed choices when it comes to meeting their IT sustainability goals.

Alongside our consultative approach to sustainability, L.I.S.S.A. helps evaluate the estimated carbon emissions impact of different Lenovo IT solutions and offers recommendations to potential IT solutions that can optimise your budget and design pathways to support the decarbonisation of your IT environment.

This encourages data-driven decision making in sustainability and enables customers to plan proactively and choose the right mix of IT solutions that align with their sustainability strategies.

Embracing AI for a more sustainable future

Whether we’re looking at AI with regard to sustainability, or across other industries, it’s clear we’re very much at the start of an exciting journey. It’s a journey which has the potential to change the world as we know it. AI has come a long way in a relatively short space of time, but it’s only going to get smarter, and it can help us drive efficiencies faster.

As PwC explains: “There is enormous potential for AI to be an important tool in the effort to decouple economic growth from rising carbon emissions. In other words, there is a path towards a prosperous, just, and more sustainable future with advanced technologies.”

[1]Statista – Artificial intelligence (AI) worldwide – statistics & facts

[2]PwC – How AI can enable a sustainable future

ALSIP, Ill., July 17, 2024 /3BL/ – Griffith Foods, a family-owned product development company guided by their Purpose of “We Blend Care and Creativity to Nourish the World”, has released its 2023 Sustainability Report, detailing the company’s significant achievements in four crucial areas including Climate Action & Environmental Management; Sustainable Sourcing; Wellbeing & Fulfillment; and Health & Nutrition.

“We are propelled today more than ever to innovate and lead in sustainability as a catalyst for positive change,” said Griffith Foods CEO TC Chatterjee. “This year marks a pivotal point for us as we advance our purpose-driven strategy, built on our sustainability platform, to reach even higher goals as we transform our business.”

Notable achievements in the 2023 Sustainability Report include:

Climate Action & Environmental Management

Nine facilities are now operating with renewably sourced energy and five have on-site generation. 50% of Griffith Foods facilities have achieved an ISO 14001 certification, the highest standard for environmental management.

Sustainable Sourcing

Griffith Foods reached 2,403 small-scale farmers, providing them with sustainability practice education, advanced technology, access to finance, and supporting living incomes.

Wellbeing & Fulfillment

Provided $1.2 million in financial assistance to food banks, community healthcare and educational initiatives.43% of management positions are held by women.

Health & Nutrition

Achieved goal of 50% of products meeting or exceeding external global nutrition standards.Developed the Nutrition IQ training for the workforce to be knowledgeable about nutrition and working toward a target of 100% employee completion.

“As we reflect on the last year, we celebrate our progress in our key areas of focus, which lay the foundation for our ambitious 2030 Aspirations,” said Chatterjee.

The company is demonstrating progress on Foundational Goals while now striving for 2030 Aspirations that push Griffith Foods further to redefine as a regenerative leader.

“At Griffith Foods, we have always been on a journey to nourish the world. By 2030, we are dedicated to significantly improving the future through a transformative approach and a regenerative mindset. Our 2030 Aspirations serve as our action plan to nourish the world, guiding us towards greater sustainability and reinforcing the importance of our Purpose, ‘We Blend Care & Creativity to Nourish the World,’” said Executive Chairman Brian Griffith.

To learn more about Griffith Foods and its current sustainability efforts, visit them online and download the 2023 Sustainability Report.

###

About Griffith Foods 
Griffith Foods is the caring, creative product development partner helping food companies meet the evolving needs of consumers while sustaining the planet. As a family business founded in 1919 and headquartered in Alsip, Illinois USA, Griffith Foods is known for true, collaborative innovation guided by their Purpose of “We Blend Care and Creativity to Nourish the World”. The company’s product capabilities range from seasonings and breading to marinades and sauces that are better for people and better for the planet. For more information, visit www.griffithfoods.com.

ALSIP, Ill., July 17, 2024 /3BL/ – Griffith Foods, a family-owned product development company guided by their Purpose of “We Blend Care and Creativity to Nourish the World”, has released its 2023 Sustainability Report, detailing the company’s significant achievements in four crucial areas including Climate Action & Environmental Management; Sustainable Sourcing; Wellbeing & Fulfillment; and Health & Nutrition.

“We are propelled today more than ever to innovate and lead in sustainability as a catalyst for positive change,” said Griffith Foods CEO TC Chatterjee. “This year marks a pivotal point for us as we advance our purpose-driven strategy, built on our sustainability platform, to reach even higher goals as we transform our business.”

Notable achievements in the 2023 Sustainability Report include:

Climate Action & Environmental Management

Nine facilities are now operating with renewably sourced energy and five have on-site generation. 50% of Griffith Foods facilities have achieved an ISO 14001 certification, the highest standard for environmental management.

Sustainable Sourcing

Griffith Foods reached 2,403 small-scale farmers, providing them with sustainability practice education, advanced technology, access to finance, and supporting living incomes.

Wellbeing & Fulfillment

Provided $1.2 million in financial assistance to food banks, community healthcare and educational initiatives.43% of management positions are held by women.

Health & Nutrition

Achieved goal of 50% of products meeting or exceeding external global nutrition standards.Developed the Nutrition IQ training for the workforce to be knowledgeable about nutrition and working toward a target of 100% employee completion.

“As we reflect on the last year, we celebrate our progress in our key areas of focus, which lay the foundation for our ambitious 2030 Aspirations,” said Chatterjee.

The company is demonstrating progress on Foundational Goals while now striving for 2030 Aspirations that push Griffith Foods further to redefine as a regenerative leader.

“At Griffith Foods, we have always been on a journey to nourish the world. By 2030, we are dedicated to significantly improving the future through a transformative approach and a regenerative mindset. Our 2030 Aspirations serve as our action plan to nourish the world, guiding us towards greater sustainability and reinforcing the importance of our Purpose, ‘We Blend Care & Creativity to Nourish the World,’” said Executive Chairman Brian Griffith.

To learn more about Griffith Foods and its current sustainability efforts, visit them online and download the 2023 Sustainability Report.

###

About Griffith Foods 
Griffith Foods is the caring, creative product development partner helping food companies meet the evolving needs of consumers while sustaining the planet. As a family business founded in 1919 and headquartered in Alsip, Illinois USA, Griffith Foods is known for true, collaborative innovation guided by their Purpose of “We Blend Care and Creativity to Nourish the World”. The company’s product capabilities range from seasonings and breading to marinades and sauces that are better for people and better for the planet. For more information, visit www.griffithfoods.com.

Now, more than ever, your climate commitments are watched and noted by everyone from the workforce to investors to customers. As a result, your organization may be considering programs for its carbon reduction strategy or even full carbon neutrality. Yet the carbon market landscape is wide and varied, with its own vernacular to boot. Deciding where and when to jump in are daunting propositions, even for sustainability pros. Compounding the complexity is the fact that the compliance carbon markets (CCMs) and voluntary carbon markets (VCMs) are not equivalent entities. Each market offers different value propositions—the traditional VCM expansive options, accessibility, and a free market approach, and the CCM scale, accountability, verifiability, and reliability. It’s the characteristics of the latter that make compliance carbon markets the secret weapon against climate change.

Not all carbon markets are created equal 
It’s like if you have a choice between a $5 Canadian bill and a $5 US bill: while both bills have the same denomination, they hold different values in different contexts, and which you’ll choose depends on your circumstances.

This is how we think of the two main categories of carbon markets. Both VCMs and CCMs offer carbon reduction solutions, but in different ways (and with different levels of certainty and credibility). For an example of how this happens, check out this clip from John Oliver, or this one from later in the same program

Markets can be a powerful force for good when it comes to combating climate change. At Climate Vault, we turn to the CCMs to knock out carbon because of the credibility and guaranteed additionality of locking up carbon allowances. The elegance of CCMs is their simplicity: when you purchase one allowance, you prevent a regulated polluter from emitting one ton of CO2.

Compliance Carbon Markets 
CCMs are an integral component of cap-and-trade programs in locations that regulate the emissions from certain industries, such as energy production and oil & gas. Participants in those industries are legally compelled to purchase emission allowances that grant them the legal right to emit carbon dioxide and other greenhouse gasses. Steep financial penalties incentivize participants to remain within the limit of their purchased allowances. Governmental regulations cap the number of allowances available in a given year and generally reduce that number each year in an effort to reduce greenhouse gas emissions over time.

This cap serves as a catalyst for decarbonization, so that regulated participants either strive to avoid purchasing additional allowances or ultimately pay increased prices for securing them. While CCMs are intended for participants in regulated industries, other parties may also trade emission allowances. Companies that complete the requisite bureaucratic processes are able to buy and sell these allowances (like Climate Vault), however, individuals are largely gated from directly participating.

There are a dozen significant CCMs globally. These include markets created and overseen by:

Regional Greenhouse Gas Initiative (RGGI) in the northeastern United StatesCalifornia Air Resources Board (CARB)EU Emissions Trading System (EU ETS)Canada Federal Output-Based Pricing System (OBPS)The linked yet independent Tokyo Cap-and-Trade (C&T) and Saitama Target-Setting Emissions Trading (TSET) programs

Non-regulated voluntary decarbonizers are drawn to emission allowances as a vehicle for reducing carbon emissions: they purchase allowances (directly from the CCMs or, more commonly, through a secondary market provider) in order to prevent those emissions from occurring. CCMs offer these voluntary decarbonizers a great deal of certainty. Governments generally mandate precise emissions accounting and monitoring systems for regulated participants. Reported data is publicly available, enhancing the transparency and accountability of the CCMs. Furthermore, many CCMs bake social benefits into their programs, creating economic and environmental benefits for their regional communities.

Voluntary Carbon Market 
The VCM supplies carbon credits for both organizations and individuals. It was designed with the goal of each credit representing the removal or prevention of one ton of carbon dioxide equivalents (CO2e), a unit of measurement that compares the global warming potential of any greenhouse gas to that of carbon dioxide.

The VCM is a decentralized entity. Developing countries generate most of the supply of carbon credits, while developed countries drive the greatest demand. These credits can be sold directly by project developers or governments, or through intermediaries who market them to end users.

VCM offerings primarily include:

OffsetsRenewable energy certificates (RECs)Carbon dioxide removal (CDR) projects

The VCM expanded in the late 2000s and through the 2010s to meet escalating demand for carbon offset solutions. Its growth has escalated since 2016, as the demand for carbon credits by private actors outside of regulated regimes continues to rise. Yet as the VCM has grown, quality issues with their offerings and questions of efficacy have increased as well.

The VCM suffers from a lack of standardization and opaque pricing. Even when the net carbon impact of the VCM program is smaller than the tonnage of carbon credits issued, these purchasers can still claim credit for the full amount of carbon credits. This disconnect between offsetting and real-world impact has led to many organizations receiving PR blowback, accusations of greenwashing, and even lawsuits for achieving less carbon impact than they report. Yet the VCM offering will likely remain a significant portion of the carbon reduction landscape, due to their ease of purchase and general availability. Organizations looking to make quantifiable, verified impact, however, may be better served by other solutions.

Verification matters 
Carbon programs aim to reduce or offset footprints in various ways, with varying levels of verifiability—proof that they accomplish the carbon impact they claim. That is, if they make any actual impact at all: a European Parliament report found that 85% of VCM offsets fail to reduce emissions. Of course, there are valid programs in the VCM. The onus falls on the participant, to learn how a program tracks and measures its offsets and to ask for verification of a program’s additionality. Verification is significantly more standardized when participating in the CCM. Emission allowances are serialized so they can only be used once, are fully auditable, and are definitively quantified.

Price does not always reflect value 
What is the cost of a ton of carbon? It depends: in the VCM, prices can vary from $10 to nearly $1200. Offsets in the VCM that cost more are generally more sound in their impact and long-term benefit to the environment, but this is not a perfect correlation. Factors other than cost-per-ton affect offset prices, such as broker percentages and registry fees.

Whatever the cost of offsetting a ton of carbon, the value of an offset factors in whether you actually get the tonnage you’re paying for—and what ripple effects it has. For instance, some offset projects actually harm the communities they set out to help. And depending on fees and commissions, much of your investment may never make it to a project developer.

Prices vary in the CCM, driven solely by market conditions (supply and demand) rather than commissions and fees. The price for a metric ton of carbon in the compliance market fluctuates less and is often more affordable than in the voluntary market. This affordability reflects the higher quality and reliability of the impacts achieved, ensuring that investments in the CCM lead to genuine environmental benefits rather than unsubstantiated claims.

One size does not fit all 
Considering the diverse landscape of carbon offsets and permits, each organization must determine its own best course for tackling its carbon footprint. But one thing is for certain: action is imperative, both for businesses and for the planet.

Top talent, customers, investors, other stakeholders: they all increasingly require environmental and social responsibility from companies. Staying competitive means showing a serious commitment to those responsibilities. Understanding the carbon markets helps you resolve the best course for your sustainability needs, according to your own specific circumstances.

The carbon landscape is complicated. Climate Vault’s team of experts have compiled your comprehensive guide to carbon credits, offsets, and more in the new Carbon Landscape eBook. Download your copy today for detailed insight into carbon markets, emission allowances, carbon offsets, RECs, and CDR, as well as reporting frameworks and standards.

Now, more than ever, your climate commitments are watched and noted by everyone from the workforce to investors to customers. As a result, your organization may be considering programs for its carbon reduction strategy or even full carbon neutrality. Yet the carbon market landscape is wide and varied, with its own vernacular to boot. Deciding where and when to jump in are daunting propositions, even for sustainability pros. Compounding the complexity is the fact that the compliance carbon markets (CCMs) and voluntary carbon markets (VCMs) are not equivalent entities. Each market offers different value propositions—the traditional VCM expansive options, accessibility, and a free market approach, and the CCM scale, accountability, verifiability, and reliability. It’s the characteristics of the latter that make compliance carbon markets the secret weapon against climate change.

Not all carbon markets are created equal 
It’s like if you have a choice between a $5 Canadian bill and a $5 US bill: while both bills have the same denomination, they hold different values in different contexts, and which you’ll choose depends on your circumstances.

This is how we think of the two main categories of carbon markets. Both VCMs and CCMs offer carbon reduction solutions, but in different ways (and with different levels of certainty and credibility). For an example of how this happens, check out this clip from John Oliver, or this one from later in the same program

Markets can be a powerful force for good when it comes to combating climate change. At Climate Vault, we turn to the CCMs to knock out carbon because of the credibility and guaranteed additionality of locking up carbon allowances. The elegance of CCMs is their simplicity: when you purchase one allowance, you prevent a regulated polluter from emitting one ton of CO2.

Compliance Carbon Markets 
CCMs are an integral component of cap-and-trade programs in locations that regulate the emissions from certain industries, such as energy production and oil & gas. Participants in those industries are legally compelled to purchase emission allowances that grant them the legal right to emit carbon dioxide and other greenhouse gasses. Steep financial penalties incentivize participants to remain within the limit of their purchased allowances. Governmental regulations cap the number of allowances available in a given year and generally reduce that number each year in an effort to reduce greenhouse gas emissions over time.

This cap serves as a catalyst for decarbonization, so that regulated participants either strive to avoid purchasing additional allowances or ultimately pay increased prices for securing them. While CCMs are intended for participants in regulated industries, other parties may also trade emission allowances. Companies that complete the requisite bureaucratic processes are able to buy and sell these allowances (like Climate Vault), however, individuals are largely gated from directly participating.

There are a dozen significant CCMs globally. These include markets created and overseen by:

Regional Greenhouse Gas Initiative (RGGI) in the northeastern United StatesCalifornia Air Resources Board (CARB)EU Emissions Trading System (EU ETS)Canada Federal Output-Based Pricing System (OBPS)The linked yet independent Tokyo Cap-and-Trade (C&T) and Saitama Target-Setting Emissions Trading (TSET) programs

Non-regulated voluntary decarbonizers are drawn to emission allowances as a vehicle for reducing carbon emissions: they purchase allowances (directly from the CCMs or, more commonly, through a secondary market provider) in order to prevent those emissions from occurring. CCMs offer these voluntary decarbonizers a great deal of certainty. Governments generally mandate precise emissions accounting and monitoring systems for regulated participants. Reported data is publicly available, enhancing the transparency and accountability of the CCMs. Furthermore, many CCMs bake social benefits into their programs, creating economic and environmental benefits for their regional communities.

Voluntary Carbon Market 
The VCM supplies carbon credits for both organizations and individuals. It was designed with the goal of each credit representing the removal or prevention of one ton of carbon dioxide equivalents (CO2e), a unit of measurement that compares the global warming potential of any greenhouse gas to that of carbon dioxide.

The VCM is a decentralized entity. Developing countries generate most of the supply of carbon credits, while developed countries drive the greatest demand. These credits can be sold directly by project developers or governments, or through intermediaries who market them to end users.

VCM offerings primarily include:

OffsetsRenewable energy certificates (RECs)Carbon dioxide removal (CDR) projects

The VCM expanded in the late 2000s and through the 2010s to meet escalating demand for carbon offset solutions. Its growth has escalated since 2016, as the demand for carbon credits by private actors outside of regulated regimes continues to rise. Yet as the VCM has grown, quality issues with their offerings and questions of efficacy have increased as well.

The VCM suffers from a lack of standardization and opaque pricing. Even when the net carbon impact of the VCM program is smaller than the tonnage of carbon credits issued, these purchasers can still claim credit for the full amount of carbon credits. This disconnect between offsetting and real-world impact has led to many organizations receiving PR blowback, accusations of greenwashing, and even lawsuits for achieving less carbon impact than they report. Yet the VCM offering will likely remain a significant portion of the carbon reduction landscape, due to their ease of purchase and general availability. Organizations looking to make quantifiable, verified impact, however, may be better served by other solutions.

Verification matters 
Carbon programs aim to reduce or offset footprints in various ways, with varying levels of verifiability—proof that they accomplish the carbon impact they claim. That is, if they make any actual impact at all: a European Parliament report found that 85% of VCM offsets fail to reduce emissions. Of course, there are valid programs in the VCM. The onus falls on the participant, to learn how a program tracks and measures its offsets and to ask for verification of a program’s additionality. Verification is significantly more standardized when participating in the CCM. Emission allowances are serialized so they can only be used once, are fully auditable, and are definitively quantified.

Price does not always reflect value 
What is the cost of a ton of carbon? It depends: in the VCM, prices can vary from $10 to nearly $1200. Offsets in the VCM that cost more are generally more sound in their impact and long-term benefit to the environment, but this is not a perfect correlation. Factors other than cost-per-ton affect offset prices, such as broker percentages and registry fees.

Whatever the cost of offsetting a ton of carbon, the value of an offset factors in whether you actually get the tonnage you’re paying for—and what ripple effects it has. For instance, some offset projects actually harm the communities they set out to help. And depending on fees and commissions, much of your investment may never make it to a project developer.

Prices vary in the CCM, driven solely by market conditions (supply and demand) rather than commissions and fees. The price for a metric ton of carbon in the compliance market fluctuates less and is often more affordable than in the voluntary market. This affordability reflects the higher quality and reliability of the impacts achieved, ensuring that investments in the CCM lead to genuine environmental benefits rather than unsubstantiated claims.

One size does not fit all 
Considering the diverse landscape of carbon offsets and permits, each organization must determine its own best course for tackling its carbon footprint. But one thing is for certain: action is imperative, both for businesses and for the planet.

Top talent, customers, investors, other stakeholders: they all increasingly require environmental and social responsibility from companies. Staying competitive means showing a serious commitment to those responsibilities. Understanding the carbon markets helps you resolve the best course for your sustainability needs, according to your own specific circumstances.

The carbon landscape is complicated. Climate Vault’s team of experts have compiled your comprehensive guide to carbon credits, offsets, and more in the new Carbon Landscape eBook. Download your copy today for detailed insight into carbon markets, emission allowances, carbon offsets, RECs, and CDR, as well as reporting frameworks and standards.

Originally published by Jazz Pharmaceuticals

Last month, in celebration of AAPI Heritage Month, our Pan-Asian Affinity Forum hosted an enlightening discussion centered on overcoming barriers to high performance and innovation within the healthcare industry. With a commitment to diversity and inclusion, team members from around the globe shared their thoughts on trust within teams, accountability, and effective ways of working.

We greatly appreciate this opportunity our team had to recognize and honor the invaluable contributions of the AAPI community within healthcare and beyond.

Originally published by Jazz Pharmaceuticals

Last month, in celebration of AAPI Heritage Month, our Pan-Asian Affinity Forum hosted an enlightening discussion centered on overcoming barriers to high performance and innovation within the healthcare industry. With a commitment to diversity and inclusion, team members from around the globe shared their thoughts on trust within teams, accountability, and effective ways of working.

We greatly appreciate this opportunity our team had to recognize and honor the invaluable contributions of the AAPI community within healthcare and beyond.