What does corporate emission compensation mean and how to get started?

Carbon dioxide emission compensation as a means of mitigating climate change is on the rise, and going forward businesses are increasingly investing in offsetting emissions. The basic sentiment of ​​corporate emission compensation is that companies invest in emission reduction projects elsewhere, thereby offsetting GHG emissions caused by their operations. Companies do not always know the amount of emissions caused by different business areas, whereupon different compensation methods are useful, such as compensation based on sales volume or engaging in one-off campaigns. 

Companies’ role in mitigating climate change 

Businesses play an important role in curbing climate change, and many have already set emission reduction targets. Low-carbon requirements for products and services are becoming more common also in public procurement processes.This might cause some otherwise potential service providers to be excluded from a bidding process. This is one of the reasons why developing corporate responsibility is important. Compensation can be a part of the responsibility strategy of the business, but without genuine emission reduction targets, the message about engaging in environmental issues can seem superficial. 

Offsetting emissions is an efficient and quick way to tackle climate change. In addition, it sends a strong message to the stakeholders about the need to defy climate change and about how the business wants to participate in climate work. Planting trees is the most tangible way to offset the carbon dioxide emissions of a business. This method resonates also with stakeholders. Trees and other plants absorb carbon dioxide from the atmosphere, and that is exactly where the tree planting compensation scheme is based. We at Istutapuita.fi reforest areas that have been retired from peat production. These areas continuously release greenhouse gases into the atmosphere when they are kept bare. According to a report by the Natural Resources Institute Finland (LUKE), the calculated amount of carbon dioxide absorbed by one tree planted on peatlands during its life cycle is approximately 594 kg (0.594tn). 

Besides, an increasing number of consumers are concerned about climate change. The role of companies in reducing emissions on a global scale is a guiding factor in purchasing decisions. As a result, many consumers spend time comparing how companies reduce their carbon dioxide emissions and are willing to pay more for products or services that are associated with climate change solutions or whose carbon footprint is offset. 

Calculating the corporate carbon footprint is the first step in comprehending the impact of emissions. The corporate carbon footprint is the total amount of carbon dioxide released into the atmosphere as a result of business operations during a certain reporting period. The calculation helps determine the current carbon footprint of your business, and when you’ve understood what your carbon footprint consists of, it’s easier to draw up a plan to reduce emissions. Besides the reduction plan, short-term solutions enabled by compensation can be used.

How to get started with business emission compensation? 

There are diverse ways to reduce the corporate carbon footprint, from switching over to renewable energy to exploiting more ecological packaging materials. With help from us at istutapuita.fi, you can offset the emissions of your business by planting new trees in peatlands retired from peat production. 

Here are some examples to get you started with emission compensation:

  • Planting trees based on sales volume: This is a simple scheme and easily understandable for end-customers. We plant as many trees as you sell your products. That’s for example one planted tree per product sold.
     
  • Compensation based on known emissions: To achieve your emission goals it’s possible to compensate emissions according to your calculated carbon footprint. The calculated amount of carbon dioxide absorbed by one tree planted on peatlands during its life cycle is approximately 594 kg (0.594tn). When we divide the amount of compensable emissions (tn) by the number 0.594, we get the number of seedlings required. This is the way your business or one of its departments can achieve a carbon-neutral or even a carbon-negative level.
     
  • Seedling greeting: This is an ecological way to keep in touch with your stakeholders. It’s a digital postcard with a seedling planting to go along with your own message. A seedling greeting is a distinctive, symbolic message that starts the journey into a fully-grown tree that will be a part of a carbon sink. 

Contact us

Do you want to find out how your company can offset its carbon dioxide emissions and participate in our carbon sink project? Send us a message and we'll get back to you as soon as possible or call Timo on +358 40 485 6607.

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