Carbon Offsets in Question: Business vs. the FTC
The FTC's inquiry into corporate carbon offset claims may have consequences the reach far beyond the marketing department, says climate expert and SLM commentator Will Sarni.
As recent press coverage indicates, companies eager to flaunt carbon neutral programs are on a collision course with NGOs, the Federal Trade Commission, and a public increasingly skeptical on the value of carbon offsets.
As the FTC continues its probe into carbon offset claims, corporations that count on renewable energy credits to burnish their green image will have no choice but to audit and publicly report on the quality of these investments. Many companies may ultimately decide that offsets are not worth the effort or the risk. Perhaps companies will shift their focus to reducing their carbon footprint (read: actual emissions reductions) as well as that of their supply chain. Some multinationals, quick to put a finger to the wind, are already leading the way.
Dont count out the influence of the FTCs marketing guidelines on the way companies actually do business. The effect of the commissions final ruling on this issue will almost certainly trump any business-led effort toward voluntary offset standards. Once carbon-offset verification becomes an essential requirement for protecting brand value, I think well see a lot more companies focus on reducing operational emissions (which most are already reporting on anyway) over planting trees.
__________
Will Sarni is CEO of sustainability consulting firm DOMANI. He is also SLM's expert-in-residence on climate strategy and the host of Climate Management Weekly.
- Login or register to post comments
- Send to Friend