| Many companies are creating targets to achieve net-zero carbon emissions. Sustainability plans are becoming more aggressive as companies realize the benefit of these goals. Not only will greenhouse gas reductions help the environment, carbon reduction goals show customers and other stakeholders that they are environmentally responsible. Carbon reduction goals also combine well with broader ESG goals. Currently carbon reduction is voluntary in Ontario. Most likely there will soon be a time where carbon reduction will be mandatory similar to many other jurisdictions. Some organizations voluntarily commit to become carbon neutral or ‘net-zero’. This means they commit to reduce their emissions through energy efficiency and reduction, and compensate for any remaining emissions with carbon offsets or RECs. Carbon offsets and Renewable Energy Certificates (RECs) can be used to achieve sustainability goals, but should not be the only steps taken to reduce a company’s carbon footprint. To achieve net zero, carbon offset products should be considered for quick success while other projects are pursued. Carbon offsets are created from projects that lower, remove or avoid emissions. RECs are achieved from projects that generate electricity from renewable sources. Typically carbon offsets are used as the ‘last mile’ for a company to ‘offset’ its use of fossil fuels such as natural gas, diesel, and propane. RECs can be paired with electricity purchases to achieve carbon neutrality for all electricity usage. |
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