28.05.2021
Carbon Accounting and Your Business Footprint
Our approach to business carbon accounting …
Every year on April 22nd,
serves as a global reminder of our shared responsibility towards the planet. It’s a day for reflection, education and, most importantly, action. For 2025, the theme of
“Our power, our planet”
- which centres on
clean energy
- resonates powerfully within the business community as companies navigate the transition towards a sustainable, low-carbon future.
For businesses committed to climate leadership and achieving net zero targets, the transition to clean energy is not just environmentally motivated; it's increasingly a strategic one. But decarbonisation is a complex journey. While embracing renewable energy sources and enhancing energy efficiency are fundamental pillars of any credible emissions reduction strategy, they often represent only part of a full climate strategy needed to reach companies’ ambitious goals.
In line with ‘Our power, our planet’ we’re looking at how combining clean energy initiatives with investment in high-integrity, nature-based carbon credits provides a robust pathway for businesses to accelerate their progress towards net zero.
The scientific consensus, articulated by the
, underscores the urgent need to drastically reduce greenhouse gas emissions to limit global warming. For businesses, this translates into a mandate to decarbonise operations across their value chains (Scope 1, 2, and 3 emissions).
Switching to clean energy sources – such as solar, wind, geothermal and sustainable hydropower – directly addresses significant portions of a company's carbon footprint, particularly Scope 2 emissions related to purchased electricity. Furthermore, investing in energy efficiency measures reduces overall energy demand, lowering costs and emissions simultaneously. These actions are foundational:
Mitigating climate risk:
Reducing reliance on volatile fossil fuel markets and aligning with global climate targets.
Enhancing reputation:
Demonstrating commitment to sustainability attracts customers, investors, and talent.
Driving innovation:
Fostering new technologies and operational efficiencies.
Meeting regulatory requirements:
Staying ahead of evolving climate policies and reporting mandates, such as those emerging from the
.
Implementing a clean energy strategy is a critical first step. However, even the most ambitious reduction plans often face a practical reality:
residual emissions.
Business making use of flat roofs with photovoltaic (solar) panels.
Complete decarbonisation overnight is unfeasible. Certain emissions are technologically difficult or prohibitively expensive to eliminate immediately – often termed
'hard-to-abate' emissions
. These might stem from specific industrial processes, essential transport, or complex supply chains. This is where carbon offsetting, when implemented correctly, plays a crucial, complementary role.
It is vital to emphasise that offsetting should
never
be a substitute for direct emissions reduction. The widely accepted mitigation hierarchy dictates that organisations must prioritise avoiding and reducing their own emissions first. Offsetting should only be considered for those residual emissions that genuinely cannot yet be eliminated.
(NbS) offer a powerful means of generating high-quality carbon credits to counterbalance these unavoidable emissions. Defined by the
as “actions to protect, sustainably manage, and restore natural or modified ecosystems”, NbS also address societal challenges providing human well-being
and economic benefits.
In the context of climate change, examples of nature-based project types include:
Afforestation and reforestation:
Planting trees to capture atmospheric CO2.
Avoided deforestation:
Protecting existing forests from being cleared, preserving vast carbon sinks.
Peatland restoration:
Rewetting drained peatlands to halt carbon release and restart sequestration.
Blue carbon projects:
Restoring mangrove forests, salt marshes, and seagrass meadows, which are highly effective at storing carbon.
These projects generate carbon credits where each credit represents a verified tonne of carbon dioxide equivalent (tCO2e) removed from or prevented from entering the atmosphere. At Earthly, we champion
because they fight climate change, reverse diversity loss and help communities thrive around the world.
The voluntary carbon market has faced scrutiny, making the integrity of
paramount. For offsetting to be a credible component of a net zero strategy, businesses must invest only in projects that meet rigorous quality standards. Key principles of high-integrity credits, as increasingly codified by bodies like the
, include:
Additionality:
The project and its climate benefits would not have happened without the finance from carbon credit sales.
Permanence:
The carbon stored or avoided must be kept out of the atmosphere for the long term, with mechanisms to manage reversals.
Robust measurement and verification:
Emissions reductions or removals must be accurately measured, independently verified, and conservatively estimated.
Double counting:
The climate impact must only be claimed once.
Addressing leakage:
The project should not simply displace emissions-causing activities elsewhere.
Co-benefits:
High-quality projects often deliver significant positive impacts for biodiversity and local communities.
Partnering with trusted providers who prioritise projects verified under leading standards (e.g., Verra, Gold Standard) and do their own,
, ensures that investments contribute genuinely to climate mitigation and broader sustainable development goals.
Saplings planted to improve native species diversity at a reforestation project.
Earth Day 2025’s focus on clean energy highlights a critical pathway for corporate decarbonisation. However, achieving net zero requires a holistic strategy. By coupling ambitious efforts to reduce emissions through clean energy adoption and efficiency improvements with strategic investments in high-integrity, nature-based carbon credits to address residual emissions, businesses can:
Accelerate their net zero journey:
Make demonstrable progress even while working on harder-to-abate sources.
Provide vital finance for nature:
Channel funding towards protecting and restoring critical ecosystems that underpin planetary health.
Build resilience:
Support ecosystems that provide essential services, including climate regulation and biodiversity habitats.
Enhance corporate credibility:
Demonstrate a comprehensive and scientifically aligned approach to climate action.
This Earth Day, let the call for effective emissions reduction and clean energy inspire ambitious business action. Simultaneously, we hope it promotes the complementary power of high-quality, nature-based solutions in addressing the full scope of the climate challenge. Together, these approaches forge a credible, impactful path towards a sustainable, net zero future for businesses and the planet.
if you’d like to speak to an expert about incorporating nature into your business’ net zero strategy.
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