How Companies Can Use Carbon Credits to Achieve Net-Zero

Mar 18

Understanding Net-Zero and Carbon Credits

What is Net-Zero?

Net-zero means balancing the amount of greenhouse gases (GHGs) emitted with an equivalent amount removed from the atmosphere. Companies achieve this by reducing emissions and offsetting unavoidable emissions through carbon credits.

What Are Carbon Credits?

Carbon credits are tradable permits representing one metric ton of CO₂ removed or prevented from entering the atmosphere. Businesses buy these credits to offset their emissions from industries like manufacturing, transportation, and energy.

Steps for Companies to Use Carbon Credits for Net-Zero

1. Measure Your Carbon Footprint

Before purchasing carbon credits, businesses must measure their total emissions. This includes:

Direct emissions (Scope 1): From company-owned assets like factories and vehicles.
Indirect emissions (Scope 2): From purchased electricity, steam, heating, and cooling.
Value chain emissions (Scope 3): From suppliers, product use, and employee commuting.

Using carbon accounting tools like the Greenhouse Gas (GHG) Protocol or software like Sphera, Persefoni, or Watershed helps in accurate measurement.

2. Reduce Emissions Internally

Carbon credits should not replace internal sustainability efforts. Companies must first reduce emissions at the source by:

Switching to renewable energy (solar, wind, hydro)
Improving energy efficiency (LED lighting, smart thermostats)
Optimizing supply chain operations
Encouraging sustainable commuting and remote work

3. Purchase High-Quality Carbon Credits

Once companies have reduced emissions as much as possible, they can offset the remaining footprint by purchasing carbon credits. To ensure credibility, businesses should look for:

Verified Carbon Standard (VCS) credits
Gold Standard-certified projects
Projects aligned with UN Sustainable Development Goals (SDGs)

Types of carbon credit projects include:

Forestation & Reforestation (Planting trees to absorb CO₂)
Renewable Energy (Solar, wind, and hydro power projects)
Methane Capture (Preventing methane leaks from landfills and agriculture)
Direct Air Capture (DAC) (Removing CO₂ from the air using technology)

4. Integrate Carbon Credits into Sustainability Strategy

For long-term impact, companies should:

Set science-based carbon reduction targets
Partner with carbon credit providers like South Pole, Climate Impact Partners, or Verra
Publicly disclose carbon offset purchases in sustainability reports

5. Communicate Transparency & Impact

Consumers and stakeholders demand authentic sustainability efforts. Companies should:

Publish annual ESG (Environmental, Social, and Governance) reports
Use third-party audits to verify carbon neutrality claims
Share impact stories through marketing campaigns

Case Studies: Companies Successfully Using Carbon Credits

1. Microsoft

Microsoft aims to be carbon negative by 2030 by reducing emissions and buying high-quality carbon removal credits from reforestation and DAC projects.

2. Tesla

Tesla generates revenue by selling carbon credits to automakers that need to meet emissions standards, proving that sustainability can be profitable.

3. Google

Google has been carbon neutral since 2007 and purchases carbon credits to offset emissions while developing carbon-free energy solutions.

Conclusion

Carbon credits are a powerful tool in helping businesses achieve net-zero emissions. By measuring emissions, reducing carbon output, purchasing high-quality credits, and maintaining transparency, companies can successfully offset their footprint while contributing to global sustainability efforts.

Take Action Today!

If your company is looking to buy verified carbon credits, explore the options available at Hestiya Marketplace Now! to support a greener future.

Ayush Kandwal