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Why tracking carbon emissions is suddenly a billion dollar opportunity

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Across the world, more and more companies are committing to net zero. Also, the tools and technology for measuring emissions are becoming more sophisticated and integrated, increasing carbon footprint transparency.

If you're not already convinced, below are five reasons companies, large and small, should commit to becoming net-zero:

Climate Change: The most significant reason for a company to become net zero is to contribute to the global effort to mitigate climate change. By reducing its greenhouse gas emissions, a company can help limit the rise in global temperatures and prevent the worst impacts of climate change.

Stakeholder Expectations: Customers, employees, investors, and other stakeholders increasingly expect companies to take action on climate change. Committing to becoming net zero can help companies meet these expectations and demonstrate their commitment to sustainability and social responsibility.

Regulatory Requirements: As governments worldwide implement policies to address climate change, companies may be subject to regulations requiring them to reduce their greenhouse gas emissions. Committing to becoming net zero can help companies prepare for and comply with these regulations.

Cost Savings: Companies can often save money on energy costs and other operating expenses by becoming more energy-efficient and reducing their reliance on fossil fuels.

Competitive Advantage: Companies that commit to becoming net zero may also gain a competitive advantage by differentiating themselves from competitors and appealing to environmentally conscious customers.

Offsets: The Good and The Bad

One of the main ways companies reach net-zero status is through carbon offsets. While accountability and carbon measurement instruments have improved over the last decade, knowing the difference between effective and non-effective carbon offsets is important.

Carbon offsets are a way for individuals and organizations to balance their carbon emissions by investing in projects that reduce or remove carbon dioxide from the atmosphere. The effectiveness of a carbon offset depends on whether the project is truly additional, meaning it would not have happened without the offset funding, and whether it has a measurable and verifiable impact on reducing emissions. Effective carbon offsets meet these criteria and have been independently verified by a third party.

Ineffective carbon offsets, on the other hand, may not have a verifiable impact on reducing emissions, may not be additional, or may have unintended negative consequences. It's important for individuals and organizations to carefully research and choose effective carbon offsets to ensure that their efforts to mitigate their carbon footprint are making a real impact in the fight against climate change.

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