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Which carbon credits can you really trust? What you need to know.

Businesses on their sustainability journey need to focus on two key areas: primarily reducing their direct emissions within their own operations, and secondly, funding high-quality climate action alongside reduction efforts. 
But what does high-quality climate action look like? And how can a business ensure their carbon credits fall into this category? In this blog we&#8217;ll unpack how you can spot the good from the bad and make sure you&#8217;re funding climate action projects that genuinely support the restoration of our planet.

<h2>What is a carbon credit? </h2>
Carbon credits work by providing funding (‘carbon finance’) to projects in exchange for activities which avoid or remove emissions from our atmosphere referred to as ‘Carbon Avoidance’ and ‘Carbon Removal’ credits.
Each carbon credit represents the avoidance or removal of one metric tonne of greenhouse gas emissions. However, not all carbon credits are created equal. Some are much higher-quality than others.

<h2>Are carbon credits worthless?</h2>
The voluntary carbon market has been criticised in recent months due to concerns over some projects failing to achieve their stated carbon avoidance or removal aims, or project developers engaging in bad practices on the ground.
Does this mean that all carbon credits are worthless? 
No, not at all. 
Like all markets, there are carbon credits that are low quality, but there are also high-quality carbon credits that finance real, verifiable emissions avoidance and reductions. 
The increased public and media scrutiny of carbon credits has also led to much-needed reform and regulation. The Integrity Council for Voluntary Carbon Market (ICVCM) recently released a long-awaited framework that provides guidance on defining what makes carbon credits of high quality:

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<h2>Which carbon standard should you choose?</h2>
Carbon credits are issued to projects by carbon standards, which are organisations that set criteria for how projects can earn credits. There are several carbon standards, and each one has its own set of criteria.
At Ecologi, we work with three carbon standards: 
<ul>
<li><a href="https://verra.org/programs/verified-carbon-standard/">Verified Carbon Standard</a></li>
<li><a href="https://www.goldstandard.org/">Gold Standard</a></li>
<li><a href="https://puro.earth/puro-standard-carbon-removal-credits/">Puro Standard</a></li>
</ul>

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Each of these standards has its own criteria for issuing carbon credits, which are based on their own proprietary methodologies:
Gold Standard certification assesses projects based on their contributions to <a href="https://www.undp.org/sustainable-development-goals/no-poverty?gclid=CjwKCAjwt52mBhB5EiwA05YKoy7Pa0XlSZU_xtRkM6u32Wz-w7vB9mOSV9_LToNVZrl6dSfR1agkpBoCzLgQAvD_BwE">the UN Sustainable Development Goals (SDGs)</a>, as well as emissions avoidance or removal. These certified SDG co-benefits are part of the Gold Standard credit issuance process. 
Verified Carbon Standard (VCS) in contrast to Gold Standard certification, does not certify SDG co-benefits &#8211; but there are additional certifications by Verra which verify these. These certifications include the Climate, Community and Biodiversity Standard (CCBS) and the Sustainable Development Verified Impact Standard (SDVista) certifications. 
Puro Standard is a dedicated standard for carbon removal credits &#8211; that is, those credits which actively absorb existing emissions out of the atmosphere through natural or technological processes. To date, there are only a few active methodologies under Puro, because carbon removal is a relatively new field.

<h2>How do carbon credit methodologies work?</h2>
Each carbon standard has its own set of certification criteria. This means that carbon credits issued to Gold Standard (called ‘VERs’ &#8211; ‘verified emissions reductions’) and those issued to the Verified Carbon Standard (‘VCUs’ &#8211; ‘verified carbon units’) are nominally equivalent, but not actually identical.
The good news is that carbon standards are very transparent about their criteria. They publish all the important material on their websites, so you can easily compare the different standards and methodologies so you can choose the one that is right for you.
<ul>
<li style="font-weight: 400;" aria-level="1"><a href="https://www.goldstandard.org/project-developers/standard-documents">Gold Standard methodologies</a></li>
<li style="font-weight: 400;" aria-level="1"><a href="https://verra.org/methodologies-main/">Verified Carbon Standard methodologies</a></li>
<li style="font-weight: 400;" aria-level="1"><a href="https://puro.earth/carbon-removal-methods/">Puro Standard methodologies</a></li>
</ul>

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<h2>How is quality assessed? </h2>
The usual criteria for assessing carbon credit quality are:
<ul>
<li style="font-weight: 400;" aria-level="1">Baseline: How the project was assessed for a background level of emissions, against which avoidance or removal can be measured.</li>
<li style="font-weight: 400;" aria-level="1">Additionality: The project activity is &#8220;additional,&#8221; meaning that the emissions avoidance or removal would not have happened otherwise. </li>
<li style="font-weight: 400;" aria-level="1">Leakage: The project does not cause excess emissions elsewhere. This means that the project does not lead to an increase in emissions in another part of the world.</li>
<li style="font-weight: 400;" aria-level="1">Permanence: The emissions avoidance or removal is permanent. This means that the emissions prevention or removal should be sustained over time. </li>
<li style="font-weight: 400;" aria-level="1">Co-benefits: The project contributes other co-benefits, such as contributing toward the UN Sustainable Development Goals. This means that the project should have positive impacts on other areas, such as social or environmental factors.</li>
</ul>

<h2>Going ‘beyond’ the standards</h2>
The usual criteria above for assessing carbon credit quality are a great starting point, but there are plenty of other ways that Ecologi assesses the quality of carbon credits. 
For us the three main standards are just the start.  
We also ask 6 key questions:
1. Where is the credit coming from? The ideal life cycle of a carbon credit is as short as possible, with a direct journey from the project developer to the buyer who wants to retire it. If a carbon credit has been traded repeatedly without being retired, then it is likely that there have been many middlemen who have profited from these trades. In this case, the project developer (the ones doing the hard work on the ground) will have only seen a small percentage of the final purchase price.
2. Is the project strategically beneficial? We maintain regionalised strategies for both carbon avoidance and carbon removal projects. These strategies consider which types of project can have the most impact in different locations around the world, as well as where there is currently a lack of project funding. The intersection between a high potential benefit and current lack of funding is the sweet spot where the opportunity for impact is greatest.

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3. How old is the vintage? The “vintage” of a carbon credit refers to when the emissions avoidance or removal took place. Credit methodologies improve over time, so newer vintages of carbon credits are likely to represent more strictly measured, higher-quality credits. At Ecologi, we aim to buy credits that are less than 5 years old, as we believe that this ensures that we are supporting the highest-quality projects.
4. Are there project-specific concerns? Renewable energy projects can have challenges with additionality, since governments often legislate for new renewable energy capacity. This means that the project may not actually reduce emissions, as it would have been built anyway. To avoid this, we check the energy mixes and political conditions locally before funding renewable energy projects. This helps us to understand whether the project is likely to be additional or not.
5. Are there location-specific concerns? We also consider the location of a project to understand the natural and man-made risks that could affect it. For example, we use the <a href="https://drmkc.jrc.ec.europa.eu/inform-index/INFORM-Risk/Results-and-data/moduleId/1782/id/453/controller/Admin/action/Results">INFORM Risk Index</a>, an open-source risk assessment project from the European Commission, to assess national-level risks and coping capacities for all UN states. Projects in countries with lower risk scores are likely to be safer from these kinds of risks, which include natural hazards like earthquakes, human hazards like war and conflict, and coping capacity challenges like poor infrastructure and weak institutions.
6. Is the project highly ranked by independent third parties? We use the carbon intelligence platform, Sylvera, to assess the progress of projects and whether they are achieving their stated aims. This is particularly useful for nature-based projects, where we use Sylvera&#8217;s geospatial data to view estimates of deforestation rates and carbon storage within the project boundary. Sylvera has three tiers of project rankings, and we only fund projects that are ranked in the top tier. This gives us an even deeper insight into how projects are performing and helps us to ensure that we are supporting the highest-quality projects.

<h2>Who can you trust?</h2>
Ecologi understands that the carbon markets can be complex. It’s very hard for even knowledgeable businesses to navigate. While it is impossible to guarantee the success of all projects, there are concrete steps all businesses can take to maximise the selection of high-quality projects. 
Ecologi helps businesses take these steps to make good, informed choices about which projects to support. We will only ever support high-quality projects that meet our strict criteria. We are committed to transparency, which is why we never re-trade carbon credits (we only retire them ourselves) and publish all carbon credit retirements on our <a href="https://lookerstudio.google.com/u/0/reporting/adfb141d-4153-4c22-b6b4-976f7f3930b2/page/p_9zis9oxt3c">Public Impact Ledger</a>.

<h3>Read Our guide to funding high-quality carbon credits</h3>
<div class="ecologi-video-full-width"><iframe src="https://cms-assets.offset.earth/app/uploads/20230914115954/Document_Ad_Funding_Carbon_Credits_01-1.pdf" width="960" height="1080" frameborder="0" allowfullscreen="allowfullscreen"></iframe></div>
 📁 Download the guide <a href="https://cms-assets.offset.earth/app/uploads/20230914115954/Document_Ad_Funding_Carbon_Credits_01-1.pdf" target="_blank" rel="noopener">here</a>

Complete the form below to schedule a call with our team to start your climate journey and create a solution to suit your business. Alternatively if you already know what you need then visit our Impact Shop <a href="https://ecologi.com/business/impact-shop">here</a>, or if you&#8217;re an enterprise request a carbon quote <a href="https://info.ecologi.com/climate-action-quotes" target="_blank" rel="noopener">here</a>.

Let us help your business invest in high-quality carbon credits

Case studies

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Case Study: Solo Service Group

<h2>About Solo Service Group</h2>
Solo Service Group is a national provider of commercial cleaning services, boasting a workforce of over 3,000 employees and a diverse range of clients. It’s one of the largest independent cleaning companies in the UK, with over three decades of experience in the industry.
Solo Service Group embraces innovation and prides itself on developing solutions for every challenge it encounters. This applies just as much to taking climate action as it does delivering excellence to clients.

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<h2>Issue</h2>
Solo Service Group is acutely aware of the potential impact its business operations could have on the environment. Driven by this awareness, the team are resolute in their mission to mitigate and, where possible, eliminate these effects. This commitment has led the team to adopt environmentally-friendly materials, embrace innovative technologies, and even reshape their daily operations. 
Their approach to safeguarding the environment revolves around proactively curbing their carbon footprint. They know that to reduce you need to measure first, so this approach requires a robust baseline to work from. 
Solo Service Group began calculating their emissions in accordance with the Greenhouse Gas Protocol guidance in 2022, and this process required a complete review of their footprinting methodology to accurately account for Scopes 1,2 and 3 emissions. 
Solo Service Group can be running a fleet of around 100 vehicles at any one time through the course of its operations, resulting in the emissions associated with this fleet being identified as the primary source of direct emissions. 
Solo Service Group took the decision to work with Ecologi to balance the unavoidable direct emissions from their fleet as it works towards an ambitious and commendable emissions reduction strategy, with the bold goal of reaching net-zero emissions by 2030 (a full two decades ahead of the government target).

<h2>Challenges</h2>
When the decision was made to support climate action, the team at Solo Service Group were adamant that any investments made must be transparent and backed by accreditation to international standards. 
The team were reassured by Ecologi’s commitment to trust and transparency, and in particular the fact that all carbon credits for purchase are easy to view and understand, with clear evidence of their certification by carbon standards.

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<h2>Solution </h2>
Sustainability is at the core of how Solo Service Group runs its business. As they work to reduce their carbon footprint and reach net-zero by 2030, the team has initiated a raft of measures including QR codes replacing paper documents, investing in hybrid and electric vehicles, and using plastic waste-free cleaning products that hold FSC/PEFC approval, are vegan-friendly, and cruelty-free. 
They are continuously researching and trialling new products and ways to reduce their impact, and their dedication to a better future led them to working with Ecologi. The decision to join Ecologi was unanimous at board level, as the platform offered a way to clearly and simply mitigate the unavoidable emissions from their fleet, through the funding of accredited carbon avoidance credits.
Working with Ecologi is already having a positive impact for Solo Service Group from both an environmental and commercial perspective, through improved brand reputation and competitive advantage. The team are quick to leverage the impact across internal and external communications, and share their good work across their social media channels and regular newsletters using Ecologi’s badges and Toolkit.

<h2>Outcome</h2>
Since 2022, Solo Service Group has funded 875 tonnes of CO2e avoidance credits by funding three different projects. That’s the equivalent of 671 long haul flights.

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The global projects supported include generating solar power in Indonesia, producing energy from captured methane in India, and preserving over 70,000 hectares of Amazon rainforest in Brazil.
Joseph Julian Blackmore, Environmental Manager at Solo Service Group, said:

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<h2>Is your business ready to take climate action?</h2>
If this article has inspired your business to start its climate journey, talk to our team today.

Schedule a call with our team

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Case study: Midcounties Co-operative

<h2>About Midcounties Co-operative</h2>
<a href="https://ecologi.com/yourcoop" target="_blank" rel="noopener">The Midcounties Co-operative</a>, publically known as Your Co-op, is a thriving co-operative with businesses in Food, Travel, Childcare, Energy, Telecoms, Post Offices and Flexible Benefits. With a model that’s based around the core values of democracy, openness, equality and social Responsibility, the profits they make allow them to support the communities they serve. The Midcounties Co-operative’s purpose is all about building a fairer, more sustainable, and ethical future, so they’re very much our perfect climate partner.

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<h2>Issue </h2>
Prior to starting funding climate action with Ecologi, as a large and multi-faceted organisation,The Midcounties Co-operative already had a relatively complex climate strategy and carbon footprint which varied considerably between trading divisions. When the team decided to get to grips with their footprint in 2022, they partnered with EcoAct and carried out a detailed analysis of scopes 1, 2 and 3 emissions.
Using the robust and externally-verified data provided, the team set clear reduction goals based on sustainability-linked finance targets and a public pledge to reduce direct GHG emissions by 50%. They also set near-term Science-Based Targets for scopes 1, 2 and 3, which were validated by the SBTi.
They got off to a great start, smashing their 2023/24 goal of reducing GHG emissions by 25% compared to 2019, and actually achieving a highly impressive 32%. This was mainly done through investment in energy-efficiency measures in stores, including refrigeration upgrades, automation and LED lighting. In parallel they also worked with Younity and Octopus Energy on an amazing initiative to provide funding for community renewable energy projects. 
Meeting the expectations of their community was a key factor in the team’s decision to partner with Ecologi. As a member-owned co-operative society, they frequently conduct research which shows time and time again that climate change and the environment are top priorities for their members. 
The team saw a not-to-be-missed opportunity to bundle climate impact and tree planting into their products, and to use Ecologi’s sub-forest feature to enable their customers to see the carbon footprint of their wider product range while also showing customers how it can be mitigated.

<h2>Challenge</h2>
The Midcounties Co-operative were prioritising finding a high-quality climate action partner and were impressed and reassured by Ecologi’s commitment to <a href="https://ecologi.com/transparency" target="_blank" rel="noopener">trust and transparency</a>. By providing certified evidence of impact after Midcounties scoped the emissions of broadband and mobile products, we allowed them to offer members climate action solutions with full confidence.

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<h2>Solution </h2>
The Midcounties Co-operative is committed to building a fairer, more sustainable, and ethical future, so the Ecologi partnership was a natural step on their journey. A key part of our work together was building climate impact into their proposition for their broadband and mobile products to help customers give back to the planet.
They do this by funding monthly carbon avoidance, including nature-based, renewables and community-based projects, which is greater than the emissions produced by their products and services (calculated and inclusive of a significant margin of error), while also contributing to reforestation through tree planting. Their travel business also plants a tree for every Co-op Holiday booking, and The Midcounties Co-operative  signed up to the Million Tree Pledge in December 2022.
Sharing success is important to The Midcounties Co-operative, and they use our detailed climate impact project pages to create their own online project spotlights, showcasing the impact of the projects they support. Customers and members are regularly encouraged to explore their collective impact on the Ecologi profile pages, with sub-forests created for different trading divisions.

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<blockquote>Colleagues are regularly updated on the progress of our tree-planting and climate impact through Ecologi, and it’s cited as a key example of how our colleagues and members are doing good together, and making an impact on communities experiencing climate change around the world.</blockquote>

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<h2>Outcome</h2>
Since 2021, The Midcounties Co-operative has funded the planting of 157,046 trees, avoided 4,721 tonnes of CO2e and supported 50 projects.
This is an outstanding achievement, which is why we’ve recognised them as a “Gold Award Winner” in our most recent For our Planet Awards.

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Improved brand reputation and an increased ability to attract new customers are among the key benefits of the Ecologi partnership. The Utilities trading group in particular has seen a notable change in the demographic of customers taking up their mobile and broadband services for the first time, and they have enjoyed real success in recruiting younger customers.
Building climate impact into broadband and mobile products has also proven useful in retaining existing customers. Not only can they save money by extending their mobile and broadband products, but they can also contribute towards climate impact. This unbeatable offer has helped the Utilities division to maintain extremely low churn rates for their industry. 
Clearly, including climate impact in products and creating a straightforward customer offer to evidence their long-standing environmental aspirations has really helped The Midcounties Co-operative rally their community and engage both new and existing customers alike. 
Stuart Newman, Head of Utilities at Your Co-op, said:
<blockquote>Ecologi provides us with a range of simple, transparent and extremely powerful solutions for incorporating environmental impact into our businesses. Their expertise and innovation has given us the confidence to put climate impact at the heart of our Utilities offerings, and the engaging and technical tools they provide like business forests and sub-forests, or the impact purchase APIs, make funding and celebrating climate impact really easy.</blockquote>

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<h2>Is your business ready to take climate action?</h2>
If this article has inspired your business to start its climate journey, talk to our team today.

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Case study: Mulberry

<h2>About Mulberry</h2>
Established in Somerset in 1971, Mulberry has grown to become the largest maker of luxury leather goods in the United Kingdom. With a contemporary take on British heritage and a focus on responsible craft, the brand’s ambition is to create progressive luxury which is made to last.

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<h2>Issue </h2>
From its beginning in 1971, sustainability has been fundamental to the Mulberry ethos. In 2021, Mulberry celebrated its 50-year anniversary, and used that milestone to affirm its commitment to keeping these values at the heart of the brand, with the launch of the Made to Last Manifesto. The Manifesto laid out an ambitious commitment to transform the business to a regenerative and circular model by 2030, encompassing the entire supply chain from field to wardrobe. 
The manifesto is also underpinned by a bold commitment to achieve net-zero greenhouse gas emissions by 2035, across scopes 1, 2 and 3. All emissions associated with Mulberry’s UK operations and purchased leather are balanced through verified carbon credits from the World Land Trust, but the team at Mulberry knows that this alone is not a long-term solution. 
So for the last three years, the team has worked closely with the Carbon Trust to analyse and assess data from across the business and supply chain to establish a rigorous baseline to underpin their carbon reduction strategy. 
Mulberry has aligned their approach with the new Forestry, Land Use and Agriculture (FLAG) sector guidance published by the Science Based Target Initiative (SBTi) in 2022. They submitted proposed reduction targets to the SBTI in February 2023 and hope to have them approved and announced in 2024.  
Mulberry is already seeing some amazing success by investing in renewable energy. They achieved a 9.5% reduction in UK greenhouse gas emissions across scope 1 &amp; 2 over the last year (to April 2024). And a 360kW solar photovoltaic array installed at its Somerset factory will generate ten times more renewable electricity than the outgoing system &#8211; around 60% of the electricity needed to power the site each year. As raw materials sourcing represents 32% of Mulberry’s emissions, the brand is also committed to pioneering a hyper-local, hyper-transparent regenerative leather supply chain.
These commitments demand a reimagining of how the business operates, which requires each and every employee globally to engage with and share the brand vision. Fostering a culture of sustainability, where each employee understands how their day-to-day work contributes to the success of Mulberry’s net zero target, will be necessary to achieve these goals.

<h2>Solution </h2>
Mulberry was already well on top of its climate obligations, but in working with Ecologi it aimed to go beyond mitigating its business and leather footprint, ensuring that sustainability is part of every employee’s journey. The partnership helps develop deeper understanding, ownership and commitment around Mulberry’s 2035 net-zero target, among employees right across the business. 
For example, every new employee is welcomed and introduced to the topic of climate change and the businesses’ net-zero 2035 goal with the planting of one extra tree in Mulberry’s virtual “Welcome” forest.

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Additionally, every quarter the team calculates the carbon impact from all flights taken across the business and balances this amount by investing in carbon avoidance projects with Ecologi. This works alongside a new travel policy, which asks all business travellers to examine their environmental impact when planning work trips.
Mulberry also commits to ongoing reforestation by funding tree planting to mark significant internal milestones, celebrations and events, including their annual Festive Advent Calendar and retail training days.
Each of these initiatives is used as an internal communications opportunity to educate employees on Mulberry’s climate journey. Both the Ecologi virtual forest and Mulberry’s internal communication platform are used to share information across the business. The team regularly shares sustainability communications covering various topics to help broaden colleagues&#8217; knowledge.
Our very own Head of Commercial Operations, Charli Adamson, was also invited into Mulberry’s London office in early 2024 to present to the Made to Last Ambassadors &#8211; Mulberry’s internal network of sustainability champions. Charli showcased Ecologi’s suite of products and explained how the partnership is supporting Mulberry’s climate journey.

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<h2>Outcome</h2>
Since 2022, Mulberry has funded the planting of 1,300 trees and avoided 568 tonnes of CO2e &#8211; equivalent to 436 long haul flights.

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Mulberry’s work with Ecologi has allowed the team to further support internal communications for their Made to Last strategy, as part of a net-zero future. Fundamentally the partnership has helped to develop better employee understanding around net-zero and drive engagement in Mulberry’s net-zero 2035 target. 
Data from the HR department shows that almost every candidate who Mulberry interviews for a role mentions sustainability as part of the interview process.

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Head of Sustainability, Rosie Wollacott Phillips, said: “Our Made to Last Manifesto lays out our ambitious commitment to transform the business to a regenerative and circular model, and to become net-zero by 2035. We’re working closely with our partners on meaningful environmental and social projects to offset our carbon impact, while implementing our radical reduction strategy. Our partnership with Ecologi has supported employee understanding of our net-zero journey, from the first day employees join Mulberry with our tree planting scheme for new starters, to internal celebrations and travel.”

Which carbon credits can you really trust? Here’s what you need to know.

More posts

Case Study: How Solo Service Group is embracing sustainability while gaining competitive advantage

Case study: How Midcounties Co-operative is rallying a community around climate impact

Case study: How Mulberry is driving deeper employee engagement around its net-zero journey

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