Corporate climate action may be headed towards a “paradigm shift”, said SEI US Senior Scientist Derik Broekhoff in an article by Disruption Banking. While companies’ carbon-neutral claims historically have meant offsetting emissions, they are now looking to cut emissions across their value chains before turning to carbon credits.
Carbon neutrality claims can often conceal more than they reveal about voluntary climate action, and carbon credits are subject to inherent uncertainties about their true mitigation value.
Broekhoff says the world cannot “offset its way out of climate change.” As an alternative to offsetting, companies should turn their efforts toward high-value technology investments and advancing green policy.
Could carbon neutrality be replaced by the notion of contributing to global net-zero? Read Disruption Banking’s examination of the topic with SEI US Senior Scientist Derik Broekhoff here.
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