By Denis Creighton, CEO and Co-Founder of IMPT
In a decade marked by extreme weather events, rising global temperatures, and ever-growing ecological concerns, climate change is now an issue facing all regions of the world. New reports are emerging every day with environmental scientists sharing words of warning. Unfortunately, these conditions will inevitably continue if we carry on releasing large amounts of greenhouse gases into the Earth's atmosphere. Recent research suggests that global emissions are the catalyst fueling climate change including recent extreme weather disasters. With more disasters occurring more frequently across the globe, it probes the question, how do we combat this global challenge, and who is responsible for doing so?
Sustainable development, socially conscious decision-making, and possible creative solutions such as carbon credit offsetting have been the center of many hot debates over the past decade. However, we have yet to make any long-term improvements in this area or figure out who will lead the way. So the question stands, should this movement begin with the individual or the corporation?
Corporate Accountability vs Individual Responsibility
Against the disheartening backdrop of oil giants attaining record profits, with one giant reported to be emitting close to China’s annual emissions by 2050, it is clear that many corporations are prioritizing short-term wins over long-term sustainable development and success. The magnitude of alarming carbon emission rates and waste generated by the collective force of corporations worldwide makes them a significant contributor to the deterioration of the Earth’s environment. For instance, ‘Carbon Majors’ research found that 100 active fossil fuel producers including ExxonMobil, Shell, BHP Billiton and Gazprom are linked to 71% of industrial greenhouse gas emissions since 1988. In comparison, the carbon emissions of individuals do not hold a candle to those of massive organizations and tech and oil giants.
Of course, we all play a part in tackling climate change, but we are not all equally responsible, and change must start somewhere, so why not start here? Corporations wield a considerable amount of social, economic, and political power. By leading the charge toward sustainable development these corporations have the power to influence individual consumer behaviors and global policies and regulations, producing positive momentum and expectations for other corporations to do the same. If the corporation can adopt and opt for more sustainable practices, and begin to become accountable for the carbon they emit, it can lead by example and begin to drive systemic change across all industries.
Corporate Sustainability and Carbon Offsetting
While profitability is important for any organization fighting to survive the global economy, the world we live in must also be a priority, and sustainable practices have never been easier for corporations. Environmental business strategies and energy efficiency measures such as prioritizing greener supply chains and identifying greener offerings such as carbon credit offsetting, which allows companies to remove a portion of the carbon dioxide they have emitted from the atmosphere can help businesses make this transition seamlessly. This is an easily adaptable solution for corporations that are unsure where to begin in building more sustainable practices.
Like any new market, carbon credit offsetting has its skeptics and has suffered its fair share of global criticisms, including questions surrounding transparency, fraud, and the double counting of carbon credits, which has stunted its progress and adoption from corporations. But with the help of new emerging technologies, such as blockchain, we hold the power to revolutionize this space and introduce solutions to these problems, offering corporations a new tool in the fight against climate change. Humanity has a responsibility to facilitate simple eco-friendly practices and to allow novel technologies the opportunity to demonstrate their potential.
Blockchain offers the carbon credit market heightened transparency and security, one example being the introduction of an immutable ledger that can be used to track and record all carbon credits issued, an efficient way of solving the common challenge of double counting within the carbon market. As corporations are one of the largest emitters of carbon and consumers of energy and water, they have the potential - and arguably the moral obligation - to make significant improvements in how they choose to navigate this landscape. It is time we all collectively take actionable efforts to lower our carbon footprint and conserve resources for generations to come - and this begins with the corporation.
By adopting more sustainable business objectives, not only will the environment see the benefit but these corporations will appeal to a whole new market of eco-friendly consumers. This is reinforced by a recent joint study from McKinsey and Company and NielsenIQ revealing a link between ESG-related claims and consumer spending in multiple categories, proving that today’s consumers are seeking to become more socially responsible.
The Forefront of Environment Change
Looking forward, what’s next? With the climate crisis well underway, it is no surprise that consumer attention has been redirected toward a cleaner, greener focus.If we can empower corporations to spearhead the effort and make real changes to their everyday actions, and begin to become accountable for the carbon they emit into our atmosphere, we will begin to see this spread around the globe. Through the integration of eco-friendly practices and small adaptable changes to our everyday lives, and setting ambitious goals and sustainable expectations, corporations can find themselves at the forefront of substantial change.
However, to achieve this, corporations must first acknowledge the problem, commit to actionable efforts against climate change, and begin to actively practice this change on a global scale, and daily basis.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.