Stephen Donofrio, Ecosystem Marketplace's managing director, said the company's chief executive, Stephen Donofrio.
Businesses engaged in voluntary carbon markets are already addressing climate change in their direct operations and throughout their value chains, and thus reducing emissions more quickly than peers, according to the report released by Ecosystem Marketplace on Tuesday.
Companies buying credits to offset their carbon footprint are more likely to report lower emissions and invest more in their reduction compared to businesses not taking part in voluntary carbon markets, according to a report by data compiler Ecosystem Marketplace.
The report analyzed voluntary carbon market transactions, and corporate climate disclosures made by 7,415 groups on behalf of 590 institution investor signatories with a combined total of US$110 trillion in assets and more than 200 major purchasers with more than US$5.5 trillion in procurement spending.
Companies taking part involuntarily carbon markets were 1.8 times more likely to be decarbonizing on a year-on-year basis than those not.
In global carbon credit markets, there's a need for greater integrity.
The buyers of voluntary carbon credits were also three times more likely to include them in their climate targets, or those attributable to the companies'customers or suppliers and along their value chain. The report also found that Scope 3 emissions account for about 91 percent of carbon buyers' emissions.
However, carbon credits represent a very small portion of the overall action needed to reduce emissions. The research shows that the credits companies are buying represent on average just over 2 percent of their total emissions.
Maria Mendiluce, CEO of the We Mean Business Coalition, said in a statement.
Swire Pacific said it released its 2022 sustainable development report in April.
Under the current policy, all Swire Pacific's subsidiaries must address the emissions associated with staff business air travel. At a minimum, offsets must meet the Verified Carbon Standard or gold standard, according to the report. In 2022, the organisation bought more than 154 tonnes of carbon offsets from the Fly Greener programme.
However, some firms aren't talking about their carbon credits transactions, fearing they'll be accused of greenwashing.
Talking their walk' about carbon market strategies for fear of being type-cast as greenwashers, I hope this report will help dispel mistrust and encourage more CEOs to invest and disclose more about their carbon credit investments, said Mark Kenber, CEO of the Voluntary Carbon Markets Integrity Initiative.