FEATURE
CARBON NEUTRALITY:
MYTH OR REALITY
he idea of corporate carbon
T
Lisa Ashford, Head of
neutrality dates back to the mid
1990s, but it wasn’t until
Commercialisation Europe, EcoSecurities,
relatively recently that a critical
mass of companies began
making often high profile commitments to as easy as it sounds. It also carries their expected environmental
neutrality. significant risks, both financial and to the benefits.
A claim of carbon neutrality should company’s reputation. A large company Additionality: Yahoo! wanted to
indicate three things. First; that an entity that is serious about its commitment might ensure that their investments
has taken the step of estimating its interview a dozen or more offset providers supported projects that go beyond
“footprint”, second; that it is committed to and review scores of investment the business as usual scenario,
reducing that footprint through introducing alternatives before settling on the structure and help to develop the use of
greater efficiency in its operations, and and provider that best suits its needs. In clean energy in regions where
third; that it has acted to offset whatever the process, companies that approach this coal and diesel are the standard
components of that footprint it can’t the right way will learn a great deal about approach to providing power.
reduce directly at once. This will likely be what makes a ‘quality’ VER. High quality: Yahoo! looked for
through an investment in Verified Emission There is a cartoon in wide circulation projects with strong environmental
Reductions (VERs) that are generated from depicting a character behind a stand returns and also helped other
greenhouse gas emission reduction where he has set up shop selling ‘carbon businesses and consumers build
projects throughout the world, and can be credits’. He is telling a customer, “I don’t faith in this new and emerging
used to ‘offset’ a footprint because, just as know what they are, but all the cool kids offset market.
emissions from any source on earth are buying them”. This raises an important After reviewing over 100 projects and
contribute to the average global point - the cool kids have the resources to undertaking much due diligence, Yahoo!
concentration in the atmosphere, think through the offsetting options and decided to offset part of its 250 thousand
reductions from anywhere also decrease the rest of us should not only be paying metric ton carbon footprint from 2006
the average global concentration. As long attention to the fact that the cool kids are using pre-registration VERs from
as the reduction is real, verifiable and offsetting, but paying attention to what EcoSecurities’ Primavera hydropower
permanent, the positive impact on the exactly the cool kids are buying. Most project, located near Catorce de Abril, a
environment will be the same. companies that have gone about small village in the state of Rondonia,
Often the first two steps of neutrality neutrality thoughtfully would be proud to 1,400 miles northwest of Sao Paulo.
are overlooked because it is the offset think that others were buying what they Primavera is a small run-of-river dam,
purchase part of the process that is the bought and effectively multiplying the which means it uses natural flow and
most visible. But the first two steps are effect of the good decisions they had elevation drop to generate electricity.
critical as they provide the framework for made. Although hydropower is common in Brazil
working towards carbon neutrality. A In April 2007, Yahoo! announced its as a whole, much of this region receives
company’s footprint is not at all intuitive decision to become a carbon neutral its power from state-subsidized diesel
and the process of calculating it is an organisation. In order to achieve this, they plants so investing in a clean power
important step in a company’s education are changing their internal energy project here seemed to be a critical and
about what activities contribute to GHG consumption practices alongside investing timely decision for Yahoo!. Yahoo! has
emissions in general, and how much in greenhouse gas emission reduction used internal and external blogs to
impact its particular operations have. With projects. Yahoo! wanted to support educate both employees and customers
soaring global energy prices, footprints projects that met their criteria and about their offsetting programme.
can highlight undiscovered opportunities provided the best fit for Yahoo!’s overall Carbon neutrality is not a myth so
not only to reduce emissions but also to objectives – this included investing in long as it is part of a long-term carbon
increase efficiency and cut costs. Even if a projects located in areas of the world strategy with a commitment to reduce
company hasn’t explicitly taken these steps where Yahoo! has a presence. emissions, and real and permanent offsets
towards direct abatement of emissions, the are used. To avoid the accusations of
fact that it has committed to pay for offsets Yahoo!’s other criteria for investing in ‘greenwashing’, companies must fully
will presumably lead to a search for the emission reduction projects included: engage from CEO to humble employee
less expensive long-run alternatives that Measurable results: They level, in order to create real change.
are available internally. wanted to see real, measurable, Carbon neutrality is not just about offsets,
The fact that the carbon markets make direct emissions reductions. it’s about changing a mindset and the
the third part of the carbon neutrality Verification: Yahoo! wanted their way we do business. Ultimately, all of
equation relatively easy exposes the entire projects to be screened through a these elements will help to define the
idea of neutrality to unfair criticism. The third-party verification process to future of business in a low-carbon
truth is that the offsetting part is often not ensure they are actually delivering economy. www.ecosecurities.com
SUSTAINABLE FM | APRIL 2008
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