UK corporate sustainability standards explained

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<p>In the guide we compare the strengths, weaknesses and approach to target setting, reporting and carbon offsets of the most commonly used sustainability frameworks.</p>
<p><strong>In this guide we’ll cover;</strong></p>
<ul>
<li>What are Corporate Sustainability Standards</li>
<li>Which Corporate Sustainability Standards should UK businesses know</li>
<li>Requirements of PAS 2060</li>
<li>Requirements of ISO 14068-1:2023</li>
<li>Requirements of ISO 14064-1</li>
<li>Principles of BSI Flex 3030</li>
<li>What are EightVersa’s Natural Carbon Solutions</li>
<li>SBTi Corporate Net-Zero Standards</li>
<li>How Ecologi can support your business in navigating the complexities of Corporate Sustainability Standards</li>
</ul>


<h2>What are Corporate Sustainability Standards</h2>
<p>Many organisations worldwide have pledged to meet net-zero Emissions, aiming to help keep global warming below 1.5°C as agreed at COP15. These pledges are important, but they need clear guidelines and frameworks to ensure that sustainability strategies lead to real and measurable progress.</p>
<h3>Why are there Corporate Sustainability Standards?</h3>
<p>A variety of frameworks have been developed to support organisations on their journey to reducing carbon emissions. They help align companies with global climate goals, offering guidance on topics such as resource management, goal setting and reporting. Following these guidelines ensures that organisations act responsibly, and take accountability for their impact contributing to global efforts to combat climate change.</p>
<p>To reach net zero, these sustainability standards must be widely adopted to minimise the risk of organisations participating in greenwashing and contribute to collective global action to minimise the impacts of global warming.</p>
<h2>Which Corporate Sustainability Standards should my business know about</h2>


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<h2>What is PAS 2060?</h2>
<p>PAS 2060 was first published in 2010, it aimed to provide the requirements for achieving carbon neutrality for products and organisations alike. After 15 years in operation, PAS 2060 will be retired at the end of 2025, and superseded by ISO 14068- 1:2023.</p>
<p>The standard provides organisations with a methodology for measuring and reducing greenhouse gas emissions and allows for the purchasing of carbon credits to offset any emissions that can’t be reduced.</p>
<h2>What are the requirements of PAS 2060</h2>
<h3>Measure</h3>
<p>PAS 2060 requires organisations to first measure their carbon footprint, accounting for all Scope 1 and 2 emissions, as well as any Scope 3 emissions that constitute more than 1% of the organisation&#8217;s overall emissions.</p>
<h3>Reduce</h3>
<p>Organisations must then create and implement a carbon reduction plan (CRP). This plan should clearly outline specific actions and targets for reducing emissions over time.</p>
<h3>Offset</h3>
<p>After reducing emissions, organisations can then offset remaining emissions using third-party verified carbon credits, these can be carbon avoidance or carbon removal credits.</p>
<h3>Document</h3>
<p>Organisations must document their carbon neutrality initiatives in a Qualifying Explanatory Statement (QES). This should be a public document that includes key information such as the carbon footprint calculation, reduction measures and offsetting activities.</p>
<h3>Drawbacks</h3>
<p>PAS 2060 does not require evidence of continual improvement to the organisation&#8217;s carbon footprint, which can lead to an over-reliance on carbon offsets, as opposed to meaningful reductions in carbon emissions. Additionally, a PAS 2060 application must be accompanied by at least one year’s worth of supporting data therefore, PAS 2060 should not be considered for new clients/projects after December 2024.</p>


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<h2>What is ISO 14068-1:2023</h2>
<p>ISO 14068-1:2023 is a new standard under development by the British Standards Institute (BSI). As mentioned above, ISO 14068-1 replaces PAS 2060.</p>
<p>The standard aims to provide the requirements and guidance for achieving and demonstrating carbon neutrality. Unlike PAS 2060, the standard applies to organisations only and does not apply to products.</p>
<p>ISO 14068-1:2023 is a full international standard that prioritises carbon reduction initiatives. This standard requires evidence that reduction initiatives have taken place before any carbon offsetting is allowed.</p>
<h2>What are the requirements of ISO 14068-1:2023</h2>
<h3>Measure</h3>
<p>Organisations will need to measure their Scope 1, 2 and 3 emissions under this standard.</p>
<h3>Reduce</h3>
<p>They will then need to set clear and ambitious targets to reduce their emissions. Whilst purchasing carbon credits to offset emissions is allowed under this standard, organisations must be able to justify why offsets were purchased instead of undertaking further emission reductions.</p>
<h3>Offset</h3>
<p>Carbon removal offsets are approved to offset any ‘hard to remove’ emissions, providing they are less than 5 years old. This standard does not allow for the purchasing of carbon avoidance credits.</p>
<h3>Document</h3>
<p>ISO 14068-1:2023 also requires a carbon reduction plan, which documents the resources necessary to successfully deliver the plan, and the individuals responsible. The continuous improvement of the subject’s carbon footprint is required to maintain a carbon-neutral status unlike PAS 2060.</p>
<h3>Drawbacks</h3>
<p>It could be argued that ISO 14068-1:2023 requires a deep understanding of carbon accounting, emission reduction strategies and value chain emissions. Many organisations don&#8217;t have this expertise in-house and would therefore have to appoint an external third party to support them through the process, this could result in high costs to implement this standard which new and/or small companies may not have.</p>


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<h2>What is ISO 14064-1</h2>
<p>ISO 14064 guides organisations in reporting their GHG emissions and removals. The primary objectives of the standard are to help organisations manage and report emissions, and set and achieve reduction targets. It is a part of the 3 part ISO 14064 standard and applies to any organisation of any size.</p>
<h2>What are the requirements of ISO 14064-1</h2>
<p>ISO 14064-1 is the first part of the 3-part standard, it aims to provide organisations with an approach to measure, report and verify their emissions and offsets.</p>
<h3>Measure</h3>
<p>Organisations must outline which emission sources and activities are included in their reporting however ISO 14064-1 does not require the reporting of Scope 3 emissions.</p>
<h3>Reduce</h3>
<p>ISO 14064-1 does not explicitly require organisations to reduce emissions before engaging in offsetting however it does emphasise the importance of regularly reporting GHG emissions including prioritising emission reductions.</p>
<h3>Offset</h3>
<p>ISO 14064-1 recognises the use of carbon offsets as a legitimate tool for managing GHG emissions however places a strong emphasis on transparency and accurate reporting. ISO 14064-1 allows for both avoidance and removal credits providing they are credible, verifiable and meet recognised standards for offset projects such as additionality and permanence.</p>
<h3>Document</h3>
<p>ISO 14064-1 requires an inventory management plan that outlines data collection and reporting, and regular review of the GHG inventory. Additionally, a comprehensive GHG report should be prepared to detail the organisation&#8217;s emissions and purchased offsets.</p>
<h3>Drawbacks</h3>
<p>ISO 14064-1 also requires a comprehensive understanding of GHG accounting. This standard is largely focused on reporting, as opposed to action. There is no mandated emission reduction meaning organisations can meet emission targets through purchasing offsets alone, limiting the overall impact on global climate change mitigation.</p>


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<h2>What is BSI Flex 3030</h2>
<p>BSI Flex 3030 is a set of principles that can support organisations in meeting the requirements of other initiatives such as the Science Based Targets Initiative (SBTi), the Task Force on Climate-Related Financial Disclosures (TCFD) and the Carbon Disclosure Project (CDP). BSI Flex was developed with small businesses in mind and is primarily for use by SMEs with between 5-250 employees.</p>
<p>BSI Flex 3030 is also designed to work alongside formal management systems such as ISO 14001 (Environmental Management) or BS EN ISO 50001 (Energy Management). It provides high-level principles and a framework for an organisation to deliver a transition to net zero. It covers how organisations can measure their GHG baseline, set reduction targets and create a credible pathway to net zero, it does not, however, cover how to develop and maintain a formal carbon or net-zero management system which highlights its position as a high-level framework to support organisations at the start of the carbon management journey.</p>


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<h2>Natural Carbon Solutions, Eight Versa</h2>
<p>The purpose of Natural Carbon Solutions (NCS) is to provide businesses with a transparent way to measure, verify and evidence carbon reduction efforts. This standard covers organisations, products and events.</p>
<h2>What are the requirements of Natural Carbon Solutions (NCS)</h2>
<h3>Measure</h3>
<p>Under the NCS accreditation, organisations must complete a detailed assessment of all GHG emissions associated with the organisation/product/event being measured.</p>
<h3>Reduce</h3>
<p>NSC prioritises the reduction of emissions before any offsetting activities. The framework includes setting specific and measurable carbon reduction targets.</p>
<h3>Offset</h3>
<p>Offsetting emissions is considered a valid step in the journey to net-zero but only after all efforts to reduce emissions have been made. Currently, both avoidance and removal credits can be purchased to compensate for any unavoidable emissions; however looking to the future, it is likely only removal credits will be approved under this accreditation.</p>
<h3>Document</h3>
<p>Organisations must implement a carbon reduction plan outlining the strategies and actions required to reduce their carbon footprint. If the organisation is using carbon offsets detailed documentation must be provided evidencing the chosen project is of high quality and environmental integrity.</p>
<h3>Drawbacks</h3>
<p>Although this accreditation emphasises the importance of carbon reduction, there are no mandatory reduction targets in place, this could result in some organisations relying on offsets to reach net-zero.</p>


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<h2>SBTi Corporate Net-Zero Standard</h2>
<p>The purpose of the SBTi Corporate net-zero Standard is to guide companies in setting credible and measurable targets to achieve net-zero emissions. The Corporate net-zero Standard is suitable for any organisation but is particularly useful for those with large, complex operations and significant carbon emissions to ensure they commit to credible, science-based emission reduction targets.</p>
<h2>What are the requirements of the SBTi CZS</h2>
<h3>Measure</h3>
<p>Under the SBTi standard, companies are required to measure and record their Scope 1, 2 and 3 emissions.</p>
<h3>Reduce</h3>
<p>The standard requires organisations to reduce their greenhouse gas emissions by 90-95% by 2050 or earlier across Scopes 1, 2 and 3.<br />
Offset The STBi emphasises that companies must prioritise real emissions reductions and offsetting is only permitted for unavoidable emissions. The SBTi only allows for carbon removal offsets providing they do not form part of any near-term carbon reduction targets for organisations.</p>
<h3>Document</h3>
<p>Organisations are to document near-term (5-10 years) emission reduction targets including the percentage reduction and target years in addition to long term targets for reaching net-zero by 2050 with detailed plans for reducing emissions 90-95% across all scopes. This documentation will be formally submitted to the SBTi for validation will ensure they are aligned with the science based criteria for limiting global warming emissions.</p>
<p>Organisations must report annually on their emissions and progress towards meeting their targets, they are also required to publicly disclose their targets, progress and emission data.</p>
<h3>Drawbacks</h3>
<p>The SBTi corporate net-zero standard is a detailed initiative that requires a lot of time and resources. The standard also requires organisations to only purchase permanent carbon removal credits, which are typically more costly, and less widely available making this route less desirable and achievable for smaller businesses.</p>


An overview of Corporate Sustainability Standards: 

<h2>Benefits to Corporate Sustainability Standards for your business</h2>
<p>Navigating corporate sustainability standards can be a daunting process, with so many to choose from it’s difficult to know which is going to be right for your business. Understanding and adhering to these frameworks can be of great benefit to your organisation, driving greater transparency, economic benefits and the opportunity to contribute to global decarbonisation efforts.</p>


<h2>Are you ready to take climate action?</h2>
<p>Our team of experts can help your business tackle the hurdles of corporate sustainability standards in the UK. If this guide has inspired your business to start funding climate action, talk to our team today.</p>


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What to expect at COP29

<p><span style="font-weight: 400;">The annual Conference of the Parties (COP) under the United Nations Framework Convention on Climate Change (UNFCCC) continues to serve as a pivotal platform for global climate negotiations; This year is the 29th Conference of the Parties (COP29), hosted in Baku, Azerbaijan.</span></p>
<p><b>In this guide we’ll be covering:</b></p>
<ul>
<li><span style="font-weight: 400;">What, where and when is COP29?</span></li>
<li><span style="font-weight: 400;">The key talking points in the run up to COP29.</span></li>
<li><span style="font-weight: 400;">Who is attending COP29.</span></li>
<li><span style="font-weight: 400;">What to expect during COP29.</span></li>
</ul>


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<p><span style="font-weight: 400;">The two-week conference, scheduled for November 11th-22nd will bring together representatives from all countries that have agreed to be bound by the UNFCCC. The conference takes place annually to negotiate new measures, develop policy and review progress against the goal of limiting climate change. Below is an overview of the two-week agenda;</span></p>


COP29 agenda

<p><span style="font-weight: 400;">Azerbaijan, the host nation, has received its fair share of criticism for becoming this year’s COP president. Oil and Gas make up 92.5% of the country’s GDP per capita, and President Ilham Aliyev has stated his support for oil and gas producing nations to continue investing in the sector, clashing with last year’s COP28 outcome in which all nations called for accelerating the transition away from fossil fuels.</span></p>


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<h2><strong>The key talking points and priorities in the run up to COP29</strong></h2>
<p><span style="font-weight: 400;">This year, priorities are focused on climate finance, with COP29 being coined the </span><i><span style="font-weight: 400;">Finance COP</span></i><span style="font-weight: 400;">, this is reiterated by the programme of scheduling with Finance, Investment and Trade taking priority spot on the first day of discussions.</span></p>
<p>Energy and Science are also high on the agenda, while Nature and Biodiversity and Oceans and Coastal Zones take more of a back seat, only being scheduled for the final day before negotiations; naturally, this comes as a disappointment as this signals these areas of discussion are considered lower priority when compared with energy and finance.</p>
<p>It is likely momentum and attendance will decrease by the end of week two and could undermine the urgency needed to address the implications of climate change on nature globally and reduce their integration into wider climate strategies.</p>
<p>The following key priorities are expected to lead discussions at COP29;</p>
<h3><strong>New Collective Quantified Goal (NCQG)</strong></h3>
<p><span style="font-weight: 400;">Developing countries, particularly those most vulnerable to climate change, require substantial financial support to transition to green economies and adapt to climate impacts. COP29 aims to agree on a new commitment to provide annual climate finance to developing countries, replacing a goal of $100 billion per annum set in 2009 at COP15. The World Economic Forum states that ‘</span><i><span style="font-weight: 400;">the NCQG must be ambitious yet realistic, balancing the financial capacities of developed countries with the urgent needs of developing nations’.</span></i></p>
<h3><strong>Growing the loss and damage fund</strong></h3>
<p>Established and operationalised at COP27 in Sharm El-Sheikh, the loss and damage fund acknowledges the disproportionate burden that climate change places on vulnerable nations. It is a financial mechanism that helps countries cope with the loss and damages they face due to climate change &#8211; this includes loss of life, damage to infrastructure and displacement.</p>
<p>At COP29, there is hope to see significant progress in the fund&#8217;s operationalisation and funding. Countries are expected to make substantial pledges to the fund to ensure it can meet the needs of developing countries. To date, major contributors include the UAE, Germany and the United States. Other big-emitting countries such as China and Saudi Arabia are yet to announce their intention to contribute to the fund.</p>
<h3><strong>Nationally Determined Contributions (NDCs)</strong></h3>
<p><span style="font-weight: 400;">At COP29, nations will be encouraged to commit to more ambitious and robust Nationally Determined Contributions; these are climate action commitments made by countries to reduce their greenhouse gas emissions and contribute to climate change mitigation, aligning with the goal of limiting global warming to 1.5 degrees Celsius.</span></p>
<p><span style="font-weight: 400;">NDCs are submitted every 5 years to the UNFCCC, and with the next global stocktake approaching NDCs are to be put forward by February 2025, demonstrating increased ambition and concrete action plans. At COP29, there is likely to be a push to provide financial and technical support to developing countries to enable them to outline and implement NDCs of their own.</span></p>
<h3><strong>Article 6 of the Paris Agreement</strong></h3>
<p>Article 6 of the Paris Agreement aims to promote the use of carbon markets to achieve their climate targets. At COP29 we can expect discussions with regards to how a robust and well-regulated international carbon market can be developed and maintained. A key goal of COP29 is to finalise the rulebook for Article 6, which will provide clear guidelines for its implementation, and address concerns with regards to the quality of carbon credits, double counting and sustainable development.</p>


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<h2><b>Who is attending COP29</b></h2>
<p><span style="font-weight: 400;">With just 2 months to go until COP29 kicks off, there has been minimal discussion with regards to which World Leaders we can expect at the event.</span></p>
<p><span style="font-weight: 400;">From the UK, Ed Miliband, the newly appointed Secretary of State for Energy and Net Zero, is confirmed to be leading UK negotiations for COP29. However, with the USA election taking place just 5 days before COP29 begins, it is unlikely that the President will be in attendance. As the event draws closer, we can expect more countries to confirm which delegates will attend. </span></p>


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<h2><strong>What to expect during COP29</strong></h2>
<p><span style="font-weight: 400;">An anticipated 40,000 participants are heading to COP29, almost half the number of attendees than at </span><a href="https://ecologi.com/articles/blog/whats-happening-at-cop28" target="_blank" rel="noopener"><span style="font-weight: 400;">COP28</span></a><span style="font-weight: 400;"> in Dubai last year; this poses the question of if bigger is necessarily better, fewer attendees reduce the environmental impact of the conferences, with the UN Climate Chief Simon Stiell </span><a href="https://www.climatechangenews.com/2024/04/24/peak-cop-un-looks-to-shrink-baku-and-belem-climate-summits/" target="_blank" rel="noopener"><span style="font-weight: 400;">saying he hopes to see fewer people attending COPs </span></a><span style="font-weight: 400;">as size does not necessarily translate to the quality of outcomes. </span></p>
<p><span style="font-weight: 400;">COP29 still presents a crucial opportunity to make significant strides in climate action, by focusing on climate finance and reaffirming climate goals, countries can collectively work together to provide the funding and tools necessary to shape the trajectory of global climate efforts. </span></p>


<h2><strong>Partner with us for COP29 and beyond</strong></h2>
<p><span style="font-weight: 400;">Over the next 12 months we want to support as many businesses as possible to tackle climate change.</span></p>
<p><span style="font-weight: 400;">If your business is interested in a partnership to help scale climate action or starting its climate journey during COP2 or beyond, get in touch. </span></p>


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Carbon Compensation vs. Contribution - What’s the difference?

<p><span style="font-weight: 400;">Climate change is a topic that many of us are discussing at work each day. You may have heard terms such as ‘carbon compensation’ or ‘contribution’ being used in conversations about how to take meaningful action against climate change, but what do they actually mean, and how do they differ from one another? </span></p>
<p><span style="font-weight: 400;">We regularly speak to businesses who have similar questions and in this guide, we’ll break it all down. Here’s a quick run-through of what we will cover:</span></p>
<ul>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">What are the definitions of carbon compensation and contribution?</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">What is the purpose of each approach?</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">What mechanisms do both approaches utilise? </span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">What types of projects do they involve?</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">What types of certification are associated with each approach?</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">What kind of costs are associated with each approach?</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">What role do they play in achieving net zero?</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">What are examples of each?</span></li>
</ul>


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<h2><span style="font-weight: 600;">Definitions of carbon compensation and contribution</span></h2>
<p><strong><br />
Carbon Compensation</strong></p>
<p><span style="font-weight: 400;">Carbon compensation refers to the idea of balancing out a certain amount of carbon emissions by investing in projects that prevent or remove an equivalent amount of carbon dioxide elsewhere. This tonne-for-tonne ‘balancing’ or ‘offsetting’ is </span><i><span style="font-weight: 400;">compensatory</span></i><span style="font-weight: 400;">.</span></p>
<p><span style="font-weight: 600;"><br />
Contribution</span></p>
<p><span style="font-weight: 400;">This approach focuses on separating financial contributions from any compensatory claims. Instead, it involves directing funding to projects that will support global net-zero and nature restoration – but crucially without making compensatory claims. </span><a href="https://www.onepercentfortheplanet.org/join?utm_feeditemid=&amp;utm_device=c&amp;utm_term=one%20percent%20for%20the%20planet&amp;utm_source=google&amp;utm_medium=ppc&amp;utm_campaign=&amp;hsa_cam=20766754741&amp;hsa_grp=155667469859&amp;hsa_mt=b&amp;hsa_src=g&amp;hsa_ad=680329727495&amp;hsa_acc=%7B8900384824%7D&amp;hsa_net=adwords&amp;hsa_kw=one%20percent%20for%20the%20planet&amp;hsa_tgt=kwd-299092657918&amp;hsa_ver=3&amp;gad_source=1&amp;gclid=CjwKCAjwooq3BhB3EiwAYqYoEs0haU6oWnJZze5_b4QrYSQvdqPvXRSRdMCOrjloCv_URVN-RaIXIBoChu8QAvD_BwE" target="_blank" rel="noopener"><span style="font-weight: 400;">1% Percent For the Planet </span></a><span style="font-weight: 400;">is an example of this kind of scheme.</span></p>


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<h2>What is the purpose of carbon compensation and contribution</h2>
<p><strong><br />
Carbon Compensation</strong></p>
<p><span style="font-weight: 400;">Compensation is aimed at achieving a ‘carbon-neutral’ status by offsetting specific emissions through equivalent carbon reduction elsewhere.</span></p>
<p><strong><br />
Contribution</strong></p>
<p><span style="font-weight: 400;">Contribution focuses on supporting and financing sustainability projects and initiatives to encourage environmental stewardship, without associating this with compensation for emissions.</span></p>


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<h2>What mechanisms do carbon compensation and contribution utilise?</h2>
<p><strong>Carbon Compensation</strong></p>
<p><span style="font-weight: 400;">Compensation is carbon-centric and relies on detailed measurement and verification processes to ensure that the projects avoid or remove the claimed amount of CO<sub>2</sub></span><span style="font-weight: 400;">. Whilst projects may have ‘co-benefits’, project quality and credit utility is predicated on whether the carbon dioxide benefit is being delivered.</span></p>
<p><strong><br />
Contribution</strong></p>
<p><span style="font-weight: 400;">Contribution is not predicated on carbon dioxide. It involves making donations to strategic funds which are designed to produce a range of benefits for net-zero and nature restoration – but may not require rigorous CO<sub>2</sub></span><span style="font-weight: 400;"> measurement or verification, but other kinds of monitoring and reporting are essential to ensure benefits are being realised. </span></p>


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<h2>What types of projects do carbon compensation and contribution involve?</h2>
<p><strong><br />
Carbon Compensation</strong></p>
<p><span style="font-weight: 400;">Compensation is limited to projects which generate carbon credits,  typically those that are issued to an ICROA-endorsed carbon standard like Verra, Gold Standard or Puro. It includes projects such as afforestation, blue carbon removal, landfill gas, cleaner water systems and enhanced rock weathering.</span></p>
<p><strong><br />
Contribution</strong></p>
<p><span style="font-weight: 400;">Contribution can include carbon credit-issuing projects but is not limited to them. Other projects that can be financed include funding for environmental research, habitat restoration, conservation programs, reforestation projects, educational initiatives, and donations to NGOs working on climate action.</span></p>


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<h2><span style="font-weight: 600;">What type of certification is associated with carbon compensation and contribution?</span></h2>
<p><span style="font-weight: 500;"><strong><br />
Carbon Compensation:</strong> </span></p>
<p><span style="font-weight: 400;">Carbon compensation requires third-party verification and certification by bodies such as the Gold Standard, Verified Carbon Standard (VCS) and Puro to ensure the credibility of carbon credits. </span></p>
<p><strong><br />
Contribution:</strong></p>
<p><span style="font-weight: 400;">Contribution typically does not require certification as it is focused on voluntary financial support for environmental causes. However, reputable organisations receiving contributions may provide transparency reports or impact statements.</span></p>


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<h2>What kind of costs are associated with carbon compensation and contribution?</h2>
<p><span style="font-weight: 500;"><br />
<strong>Carbon Compensation: </strong></span></p>
<p><span style="font-weight: 400;">Costs for carbon compensation vary depending on the project type and verification costs. The price per tonne of CO<sub>2</sub></span><span style="font-weight: 400;"> offset can differ significantly with some being much more expensive than others.</span></p>
<p><strong><br />
Contribution: </strong></p>
<p><span style="font-weight: 400;">Contribution is usually more flexible when it comes to costs. This is because the focus is on voluntary contributions towards environmental outcomes,  rather than compensating for a specific amount of emissions.</span></p>


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<h2>What role do carbon compensation and contribution play in achieving net zero?</h2>
<p><span style="font-weight: 500;"><br />
<strong>Carbon Compensation:</strong></span></p>
<p><span style="font-weight: 400;">The </span><a href="https://sciencebasedtargets.org/net-zero" target="_blank" rel="noopener"><span style="font-weight: 400;">SBTi’s Net-Zero Standard</span></a><span style="font-weight: 400;"> specifies that businesses must achieve a minimum 90% reduction in emissions on their path to net-zero &#8211; at which point a compensatory approach can be applied for the remaining &lt;10% of emissions which cannot be reduced directly. In this case, compensation is limited to carbon removals only, not carbon avoidance credits. To understand the difference between carbon avoidance and removal credits, </span><a href="https://ecologi.com/articles/blog/carbon-removals-vs-carbon-avoidance" target="_blank" rel="noopener"><span style="font-weight: 400;">read our blog post here.</span></a></p>
<p><strong><br />
Contribution:</strong></p>
<p><span style="font-weight: 400;">The SBTi also promotes ‘beyond value chain mitigation’ known as BVCM. This involves a company funding climate action to support global net-zero efforts. BVCM does not count towards the organisation’s own corporate net-zero goals, however, the SBTi considers it “urgent and essential” that businesses contribute to global climate action outside of their value chain.</span></p>


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<h2><span style="font-weight: 600;">Examples of carbon compensation and contribution</span></h2>
<p><strong><br />
Carbon Compensation:</strong></p>
<p><span style="font-weight: 400;">A company offsets its annual carbon emissions by investing in carbon credits from a landfill methane capture project that prevents an equivalent volume of emissions.</span></p>
<p><strong>Contribution: </strong></p>
<p><span style="font-weight: 400;">A company contributes to an environmental project that works on biodiversity conservation, without claiming an offset of its own emissions. Instead, the company reports on how much it contributed, and the outcomes intended, and monitors the project’s progress over time.</span></p>


<h2><strong>Conclusion</strong></h2>
<p><span style="font-weight: 400;">In summary, </span><b>Carbon Compensation </b><span style="font-weight: 400;">focuses on the idea of ‘balancing’ or ‘offsetting’ emissions through purchasing carbon credits. The credits purchased are often used to offset emissions generated by businesses.  </span><b>Contribution </b><span style="font-weight: 400;">focuses on funding projects that support global net-zero goals without compensatory claims. Through supporting a contribution model, you can support a wide range of projects all offering crucial co-benefits, and in some cases, credit-issuing projects too. </span></p>
<p><span style="font-weight: 400;">Both approaches play a critical role in supporting climate action. The Oxford Principles for Aligned Net Zero recommend a combination of carbon compensation (durable removals only)  and contribution to help maximise impact. At Ecologi, we believe that while both have their merits, prioritising high-quality, holistic climate action through a contribution-based approach is the best way to support global net-zero efforts and future-proof your sustainability strategy. </span><b>This is why we created <a href="https://ecologi.com/business/ecologi-impact-funds" target="_blank" rel="noopener">Impact Funds</a> &#8211; to allow our customers to support a wide range of projects that contribute to a particular climate goal.</b></p>


<h2><b>Why did you create Impact Funds?</b></h2>
<p><span style="font-weight: 400;">Our industry is moving and evolving all the time in an effort to reach global Net Zero goals and at Ecologi we witnessed the challenges firsthand through our Impact Partners, below is a quote from our Impact Partnerships Manager, Katie; </span></p>
<blockquote><p><span style="font-weight: 400;">At Ecologi, our partners were extracting tree-planting costs from a wider landscape restoration project because that’s what the market wanted. We need to change this &#8211; and educate the market on the solutions our planet needs.</span></p></blockquote>
<p><span style="font-weight: 400;">Contribution models are increasingly focused on outcomes rather than inputs and go beyond metrics such as carbon credits purchased, or the number of trees planted. These projects produce a host of diverse impacts that aren’t being captured by single metrics. Supporting projects such as landscape restoration focused on the wider strategy &#8211; in addition to tree planting, landscape restoration captures co-benefits such as increased biodiversity, improved soil health, and reduced pollution.</span></p>
<p><span style="font-weight: 400;"><b>Interested to learn more? </b><b><a href="https://info.ecologi.com/ecologi-impact-funds/get-started" target="_blank" rel="noopener">Get in touch to find out more about our Impact Funds</a>. </b> </span></p>


Case studies

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Case Study: BioPak UK

<h2><b>About BioPak UK</b></h2>
<p><span style="font-weight: 400;">A world without waste. That’s the mission of BioPak, and they’re working hard to achieve it. By disrupting the current take, make, waste model, BioPak’s sustainable food packaging solutions are leading the way to a truly circular economy.</span></p>
<p><span style="font-weight: 400;">Founded in 2006, BioPak has become a globally recognised brand, loved by businesses and consumers across Australia, New Zealand, the UK, the US, Hong Kong and Singapore.</span></p>
<p><span style="font-weight: 400;">BioPak’s packaging solutions are designed to be better for our planet. They use renewable plant-based materials that are sourced responsibly. To promote responsible disposal of their packaging, BioPak encourages composting through their Compost Connect scheme—a not-for-profit initiative that connects customers to compost pick-up services.</span></p>


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<p><span style="font-weight: 400;">BioPak is better for people too. The company is B Corp certified and donates 5% of all profits to positive change via their Give Back Fund. BioPak is a business that’s truly committed to the principles of the Triple Bottom Line: People, Planet, and Profit.</span></p>


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<h2><b>Issue</b></h2>
<p><span style="font-weight: 400;">BioPak’s commitment to combating climate change is unwavering. Having been carbon neutral certified for over a decade, in 2022 the team took the strategic decision to shift away from carbon-neutrality, and instead focus on emissions reduction.</span></p>
<p><span style="font-weight: 400;">This decision wasn’t taken lightly, but they recognised the need to move beyond mere carbon offsetting. They view it as a leap forward rather than a step back, and a move to create a more substantial positive influence on the planet. </span></p>
<p><span style="font-weight: 400;">The team believes that understanding their total carbon footprint is vital. They are dedicated to clarifying the sources of their emissions, which span the entire product lifecycle, encompassing offices, product transportation, packaging production, raw material extraction, and end-of-life emissions.</span></p>
<p><span style="font-weight: 400;">BioPak uses an independent third party to measure their carbon footprint, cost to the environment (including impact on biodiversity, human health, climate change and material scarcity) and lifecycle phases of their products. This is done to enhance transparency, accountability and demonstrate their commitment to combating greenwashing.</span></p>
<p><span style="font-weight: 400;">BioPak is serious about combating climate change, with reducing carbon emissions being crucial in achieving this goal. A key part of this goal is supporting industrial composting through the Compost Connect scheme. The team is committed to diverting food waste and compostable packaging from landfill and incineration by making compost facilities more accessible across Australia, New Zealand and the UK.</span></p>
<p><span style="font-weight: 400;">Working together with customers, BioPak truly believes it can pave the way for a more sustainable world for future generations.</span></p>


<h2><b>Challenges</b></h2>
<p><span style="font-weight: 400;">As a B Corp and leader in sustainable food packaging, the team at BioPak feels a keen obligation for environmental stewardship. They describe BioPak as a “profit for purpose business”, and as such are driven to preserve and protect the environment while giving back to the communities in which they operate. </span></p>
<p><span style="font-weight: 400;">To honour this obligation, BioPak set up its Give Back Fund in 2012, and since then have dedicated their time and energy to partnering with leading environmental and social charities to bring about positive change. So far they have donated a total of £2,495,352.</span></p>
<p><span style="font-weight: 400;">In the last decade, BioPak’s commitment to Australian environmental conservation has flourished through a partnership with Rainforest Rescue, which has planted and safeguarded 95,720 trees and reclaimed eight hectares of endangered Daintree Rainforest.</span></p>


<h2><b>Solution </b></h2>
<p><span style="font-weight: 400;">BioPak donates 1% of all profits to community and environmental projects, and here in the UK we’re proud that Ecologi has been chosen to support that commitment through tree planting. The team firmly believes that tree planting is a powerful solution that produces oxygen, stores carbon, and helps tackle climate change.</span></p>
<p><span style="font-weight: 400;">BioPak’s reforestation work with Ecologi underpins a global commitment to ecological restoration. This ambitious initiative is a cornerstone of BioPak’s corporate responsibility ethos, aiming to not only mitigate the impacts of climate change but also foster local biodiversity, enhance soil health, and support local communities in achieving sustainable development goals.</span></p>
<p><span style="font-weight: 400;">Working with Ecologi proves BioPak’s cast iron commitment to the environment, and in turn boosts its credibility, enhances its brand reputation and helps its customers make a positive impact. The team regularly communicates their sustainability milestones with customers and colleagues alike, through impact certificate, emails and internal communications.</span></p>


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<h2><b>Outcome</b></h2>
<p><b>Since 2021 BioPak has planted 102,479 trees with Ecologi, </b><span style="font-weight: 400;">and the team plans to continue to regularly donate to increase this figure as much as they can. </span></p>
<p><span style="font-weight: 400;">As a profit-for-purpose business, BioPak’s commitment to protecting the environment is vital in retaining current customers and attracting new customers, who are looking to make a positive impact through their supply chain. The Give Back Fund, and the work with partners like Ecologi, remains a fundamental part of BioPak’s brand messaging and ethos.</span></p>
<p>Sam Walker, Technical Director at BioPak UK, said:</p>
<blockquote><p><span style="font-weight: 400;">It&#8217;s great to partner with Ecologi and support both the large scale reforestation projects they do and the more grass roots initiatives which really make a difference locally&#8230; Reforestation and habitat restoration are the foundations of reversing biodiversity loss and critical in the fight against climate change. We&#8217;re proud to work with Ecologi and share the impact data with our customers.</span></p></blockquote>


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<h2><b>Is your business ready to take climate action?</b></h2>
<p><span style="font-weight: 400;">If this article has inspired your business to start its climate journey, talk to our team today.</span></p>


	Requires Scope 1, 2 and 3 reporting	Supports the use of carbon offsets	Offsets restricted to residual emissions	Third-party verified	Requires ongoing reporting of progress against targets
PAS 2060	Scope 1, 2 and some scope 3	Yes - avoidance and removal credits	Yes	No	No
ISO 14086-1: 2023	Yes, all scopes required	Yes - removal credits only	No	No	Yes - ongoing reporting is required to maintain carbon neutral status
ISO14064-1	No, only requires the reporting of Scope 1 and 2	Yes - avoidance and removal credits	No	No	No
NCS	Yes, all scopes required	Yes - avoidance and removal credits	Yes	Yes	Yes
SBTi	Yes, all scopes	Yes - removal	Yes	Yes	Yes

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Case study: How BioPak UK is engaging customers and leading the way to a world without waste

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