What We’ve Learned About the Business of Fighting Climate Change
It’s no understatement to say that the world has changed quite a bit since Cool Effect stepped on the stage during COP 21 in 2015. There have been twists and turns since we shared a new way to look at Carbon Done Correctly, but we’ve remained focused on our primary goal: helping people take measurable action against climate change in a transparent, meaningful way.
On this journey we’ve worked with individuals, organizations, non-profits, and companies of all sizes to reduce their carbon footprint and have a sizable effect on global emissions — and we learned a lot in the process. Which is why now, five years later, with over 2,000,000 tonnes of CO2 reduced, a growing community of 500,000+ members, and dozens of companies we’re proud to call our partners in the fight against climate change, we’d like to share a bit of what we’ve learned when it comes to the business of fighting for our planet’s future.
Cool Effect may have started with an emphasis on individuals, but at the end of the day, we’ve always been about the power of collective action — and with over 70% of Americans demanding that corporations do more to fight climate change, it’s obvious that society as a whole is finally realizing the tremendous power that businesses and corporations can have in reducing our global carbon emissions.
When we debuted our business offering last year, we were honored and impressed by the overwhelming response from companies looking to make a difference. And now, even when faced with the uncertainty of a global pandemic and recovering economy, it’s truly inspiring to see businesses and organizations of all sizes continue to step up and lead the way in the reduction of the harmful greenhouse gases that are causing emissions to rise. .
At first, businesses were simply looking for tools to make the process of calculating their carbon footprint simple, easy to explain to colleagues, and inclusive of price. They sought direction on where to start, guidelines for what to include, tips on how to reduce their organization’s carbon footprint, guidance on how to engage their employees in these activations, and advice on establishing programs that could assist them in communicating their carbon-fighting efforts.
Businesses have a lot of questions, and we have a lot of answers.
While organizations of all shapes and sizes still reach out to us every single day with questions of all types, they all most often start at the same place: “How can I help my business become carbon neutral?”
There’s no one size fits all solution when it comes to the process of making your business sustainable — but we’ve found that the answers to some of our most frequently asked questions give business owners and organizational decision makers a great place to get started.
First off, what does “carbon neutral” even mean for a business?
There is an ongoing discussion between scientists of the exact meaning. Put simply, it means that any carbon emissions generated by your organization’s operations are balanced globally by anthropogenic CO2 removal (like carbon offsets) over a specified period of time .
Got it. So what exactly are carbon offsets, and how do businesses and organizations use them?
High quality carbon offsets, also known as carbon credits, are an immediate, measureable and cost-effective tool for reducing climate impact. They fit well within a portfolio of other emission-reducing programs, which is why so many businesses and organizations are starting to understand their impact.
Carbon credits counter, or “offset,” the impact of greenhouse gas emissions caused by everyday activities. They are measured in metric tons (tonnes) of carbon dioxide equivalents (mtCO₂e). Each tonne emitted can be offset by buying one carbon credit, since a carbon credit represents one tonne of emissions that was reduced somewhere else in the world. Laboratory and field testing with third party verification (like you’ll find on every single Cool Effect project featured on our platform) and actual site visits help us ensure successful and accurate calculations of greenhouse gas reductions.
But not all carbon credits are created equal — it’s why we ensure that all carbon offsets on our platform adhere to a strict additionality policy.
What’s additionality and why is it so important?
Additionality is a concept that states a project would not even exist without income from carbon credits. You’re not just tacking credits onto an existing project here. Quality, additional carbon credits are not just byproducts that would have occurred regardless — they’re real, permanent, correctly calculated, independently verified, and beyond a business-as-usual scenario.
For example, a project can only be considered to be additional if:
- it is not already legally required to do what it is doing
- it is not profitable without revenue from carbon offsets
- there are barriers that prevent its implementation regardless of profitability
- it does not employ technologies that are already in common use
To ensure additionality — part of what we call Carbon Done Correctly — every single Cool Effect project is extensively reviewed by experts in carbon project verification prior to its admission to our platform. We also even make site visits to our projects to confirm the details listed in project documentation.
So how do businesses and organizations like mine use these “additional” offsets to become carbon neutral?
Businesses and organizations use carbon offsets to cancel out the portion of their emissions that cannot otherwise be reduced, which then helps them become carbon neutral. It’s important to note that carbon offsets are not some kind of magic pill or shortcut — they are a tool and should only be purchased after other steps have been taken.to reduce carbon emissions. At Cool Effect, to ensure proper application of carbon credits, we take a three step approach when working with our partners to help make their businesses and organizations carbon neutral:
- Mitigate: Cool Effect provides basic education and advice on how to minimize the impact of your operations.
- Measure: We then use our tools to help calculate the footprint that remains, then advise your purchase on carbon credits from projects that eliminate that impact while meeting your specific project criteria — whether it’s for mission driven impact, geographical importance, budget, or some combination of all three.
- Communicate: Cool Effect offers free tools that help businesses communicate their commitment to carbon neutrality to employees, customers and investors.
Cool Effect isn’t the only carbon offset provider out there — what makes you different than other carbon offset suppliers?
Aside from being classified as a 501(c)3 (Tax ID: 47–5068496), our founders have over two decades of experience in the carbon market. No project makes it to our platform unless we can verify that it is doing what it claims to be doing. As such, each project on our platform has been triple-verified to ensure its science, real world application, and financial statements are rock solid.
And speaking of solid financials, the Cool Effect pricing structure is unique in the world of carbon offsets in that we don’t just offer full pricing transparency, no hidden fees, and no proprietary trading — we make it mandatory (and legally binding) for all projects on our platform via The Seller’s Pledge.
Still have a question? We love to chat. Write to us at business@cooleffect.org and let us help your organization get down to business in the fight against climate change.
