Why Private Companies Need to Do More About Offsetting Carbon Emissions

As the climate change crisis develops, all good corporate citizens need to play their part in mitigating the damage emissions have caused and help to limit future damage before it is too late. To meet the goal of the UN Paris Agreement, to limit the rise in global temperature to 1.5°C, the world needs to reach net-zero carbon emissions by 2050.

Such a massive existential challenge cannot be solved solely by the actions of governments and the scientific community. Private companies must also act responsibly and consider how to reduce the impact their operations have on the environment and offset any residual carbon emissions that cannot be avoided.

As many companies across the world pledge to become net-zero emitters, they need to consider how to meet their ambitious commitments and be transparent about their progress in the transition to a low-carbon future.

Opportunities to offset

One option is carbon offsetting. This allows companies to tackle their current emissions quickly and cost-effectively. It acknowledges the implicit difficulty of quickly shifting to a low or no-emissions model; a company can purchase offsets while engaging in a longer-term carbon reduction journey.

This method supports projects that help to conserve the planet and its resources, for example, local renewable energy solutions and better household energy efficiency technology.

Many companies are already making big changes to their operations. For example, some hotels are lowering their impact by using 100% renewable electricity, while businesses are offsetting carbon emissions every time an employee travels for business.  

However, critics warn about the dangers of greenwashing. A study last year by the NewClimate Institute and Carbon Market Watch found very low integrity to some of the world’s biggest companies’ net-zero targets, meaning their climate actions were exaggerated. While their net-zero goals state they plan to reduce their absolute carbon emissions by 100%, in reality these targets equate to 40% on average.

It is critical that firms are transparent about their progress in transitioning to a lower-carbon future and seek independent accreditation when offsetting.

The Apex Group Approach

Apex Group has reached carbon neutrality in its operations, offsetting all lifetime emissions since the business was established in 2003.

We have independently calculated our carbon emissions for the last four years using real-time data from the following areas across the group: energy, financial and travel data; the number and size of offices; employee numbers by region; and facilities management data to cover Scopes 1, 2 and 3 under the GHG Protocol. For the years before 2017, we have used a combination of real data and extrapolated data to model the lifetime emissions since inception in 2003 – this has accounted for variables such as changes in electricity grid intensity by region over time.

We use an independent accreditation firm to purchase verified carbon credits from in order to offset our historic emissions, and offsetting is achieved through renewable energy systems in Brazil, Turkey and China, domestic energy projects in Malawi and Nigeria, and an ecosystem conservation project in Cambodia.

We are proud of achieving carbon neutrality and urge other companies to consider offsetting to play their part in rectifying the climate crisis and preserving our planet for future generations.

It is important to choose a provider that has significant ESG expertise and a good track record as a responsible corporation, committed to playing its part in solving the climate change crisis.

As part of our commitment to being a force for good, Apex Group has fostered a culture of transparency, and promotes ethical stewardship across the business and beyond.

We have advanced insights into the environmental, social and governance (ESG) impacts across private markets and provide a range of ESG services including compliance advisory and data gathering on carbon footprint.  

Find out more about our ESG advisory services by contacting us.