New study shows carbon credits play key role in corporate climate strategies

New research from Ecosystem Marketplace reveals that companies purchasing voluntary carbon credits are outperforming those that do not engage in the voluntary carbon market (VCM) in terms of climate action, accountability, and ambition.

Voluntary buyers, compared to non-buyers, are:

• Reporting lower gross emissions year on year.
• Spending three times more on decarbonization activities.
• Three times more likely to include in their climate targets Scope 3 (or value chain) emissions, which can make up 80-90% of a company’s footprint.
• 1.2 times more likely to have board oversight of their climate transition plans.
• More likely to have an independent and accredited third-party entity perform a verification of their emissions data.

Climate Impact Partners' fifth annual report on the climate commitments of the world’s largest companies further demonstrates how climate leadership can yield both profitability and sustainability. Companies that reduced reported emissions year over year earned on average nearly $1 billion more in profit per company than their Fortune Global 500 peers.