Understanding the Use of Carbon Credits by Companies: A review of the defining elements of corporate climate claims
February 25, 2023 | Global challenges | Source |
Introduction: Researchers from The Netherlands, Germany, and Finland evaluate corporate climate claims related to carbon neutrality and net-zero emissions, highlighting the risks of greenwashing and the lack of transparency in how companies engage with carbon markets.
Key findings: By reviewing literature, the researchers identified three crucial dimensions of corporate climate claims related to carbon credits: the intended use of these credits (offsetting versus non-offsetting), the framing of headline terms like net-zero and carbon neutral, and the status of the claim (aspirational commitments versus actual achievements). Through this analysis, the paper aims to categorize corporate climate claims and discuss the associated risks and governance implications. It emphasizes the need for transparency and robust governance to ensure that these claims genuinely contribute to global climate mitigation efforts.
Figure | Proposed categorization of corporate climate claims and their defining elements.
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