What are the business benefits of carbon offsets?

Companies are exploring carbon offsets in response to regulatory requirements as well as voluntary commitments.

On the regulatory side, offsets help companies cost-effectively achieve GHG reduction targets such as those which are required in the European Union Emissions Trading Scheme.

Australian companies may also have reduction targets in the future as part of an Australian Emissions Trading Scheme.

Offsets may be purchased voluntarily for a range of reasons, including:

• meeting business goals to reduce greenhouse footprint as part of a carbon management strategy.
• preparing for an emissions trading scheme or other regulatory mechanisms, including gaining market experience.
• enhancing brands and/or differentiating products and/or services in the market
• attracting investors particularly in light of increasing awareness of risks associated with GHG emissions in carbon constrained future.
• engaging employees on environment issues.

For more detailed discussion of the business benefits of a robust carbon management strategy, refer to where do offsets fit in a carbon management strategy?

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