5 tips on how to build your own compensation portfolio
Climate action is pyramidal. Millions of consumers at the base are looking up to governments and regulators as they pledge to maintain global warming below 1.5 degrees. Meanwhile, the sustainable revolution is actually taking place right in between with the private sector busy translating these public pledges into innovations, disruptions and concrete actions to provide us all with radically more sustainable solutions and options to choose from.
Pressured by time, sustainable transition plans are put in motion everywhere, always following the same model:
- Acknowledging and understanding GHG emissions
- Taking actions to reduce and avoid those emission immediately and exponentially
- Compensating for the remaining unavoidable ones (ppssstt… see here our article to understand the role of compensation in shaping sustainable travel)
When carbon intelligence is relatively easy to access today, and while each supply chain has full control and expertise to transform towards less emission-intensive models; participating the voluntary carbon market on the other hand can be intimidating and confusing.
Worry not! We are here for you.
Here are some tools and tips to help you make informed decisions for your compensation strategy , and to provide you with the right tools to build your own portfolio of climate projects.
1. Be curious
Look around! You are about to add sustainability to our offering, for your clients and other stakeholders. As for any product improvement, you might want to start by getting a good sense of what is out there already. Start by scanning your direct ecosystem: Who is already participating in the voluntary carbon market? What climate projects are often or rarely supported? How is it shown and explained on your competitor’s website? What seems to be praised by your end-consumer? At the same time, spend some time getting familiar with the diversity of existing climate project types: nature-based, technology-based, reforestation, clean energies (e.g. Sustainable Aviation Fuels), DAC (Direct Air Capture)…
2. Be knowledgeable
Ever heard of the Oxford Principles for Net Zero Aligned Carbon Offsetting? Designed after the Paris Agreement, they are now globally acknowledged as the criteria to assess the level of impact of carbon offsets. It takes into account the source of the offset, as well as its carbon storage component, and rank from type 1 to 5. (5 being the best and most often quite high priced)
Most companies leveraging compensation as part of their sustainability plans opt for a portfolio made of diverse climate projects. Doing so will allow you to support projects all across the above spectrum while keeping a price level within your own budget line or matching our client’s willingness to pay.
3. Be picky
Once you are in touch with your compensation partner, ask them to provide you with information to better assess that the proposed climate projects supply matches the main offset requirements of:
- Measurable results — to track actual impact
- Leakage preventability — to ensure net reduction
- Additionality — to prove the reduction would have not happened if it wasn’t for the purchase of that very credit
- Permanence — to ensure that carbon captured will be for a long enough period of time
- Protocols obedience — to leverage segment specific norms
- Validation and verification (or even better certification!)
Bonus, doing so will also give you the opportunity to discover much more about the realness of the climate projects you will choose to support!
4. Be you
As you are about to choose the climate projects you wish to support, keep in mind your company’s vision, mission and values. What matters to you? We all wish we could support all projects but this is just unrealistic (or a waste of effort). What project is the closest to the vision of the world you believe in for the future? Choose something your clients can afford, a mix of expensive technology innovation (e.g. sustainable aviation fuels) and more affordable nature-based projects will allow you to reach better impact efficiency. Also, don’t forget to communicate your choice to your clients (as you would do for any other product launch, refresh, improvement…) it will help raise awareness and create a space to make it a market wide conversation.
5. Stay up to date
You have decided on the climate partners you wish to support and have started compensating for your own emissions or on behalf of your clients? Well done! And this is just the beginning… make sure to catch up regularly with your compensation partner to evolve your portfolio with the latest technological developments or to make sure that your efforts goes where the biggest need is.
You are now equipped to make informed decision for yourself, for your clients and, above all, for the environment on your journey to sustainable offering!
Still looking for your sustainable travel or transport partner? Reach out! https://www.squake.earth/contact-us
