ROI on Progressive Carbon Offsetting

economic impact of reducing carbon emissions

In the fast-moving corporate environment, business leaders are often looking for a quick return on their investment (ROI). Every dollar spent has to show a financial impact on the current year’s accounts.

But spending on sustainability projects doesn’t always show immediate savings or an upturn in profitability. So how can organizations measure and report the ROI on progressive carbon offsetting?

Why Is ROI Important?

Few CFOs are willing to commit significant investment to schemes that result in financial losses, no matter how worthy they may be in environmental or sustainability terms. ROI is often a deciding factor in whether a project gets the go ahead.

For businesses just starting out on the sustainability road, reducing carbon emissions by improving energy efficiency is easy to sell to a CFO, because better efficiency cuts costs, improves profit margins and the project quickly pays for itself.

Further down the line, however, when the most cost-effective efficiency savings have all been made, businesses must take a longer term view of investment to guarantee the sustainability of their own organization.

Climate change, population growth, global politics and other factors are changing the way businesses will operate in the future. Availability of raw materials, labour and other resources may be restricted, or more difficult to access, so the cost of doing business will increase.

By building sustainability into its business model and brand, a company can increase its resilience in the face of future disruption and reap multiple financial benefits.

How Can Progressive Carbon Offsetting Impact ROI?

Investing in carbon offsets helps mitigate the impacts of future climate change, which helps lessen the negative effects on the global supply chain that might impact your business operations.

Progressive carbon offsets offer much more, though. By supporting projects that directly improve the sustainability of your suppliers, you can help increase your own business resilience and prevent costly supply chain disruption.

Increasingly, customers are looking to buy from companies that share their values. Simply having a sustainability plan is no longer enough; carbon neutrality is demanded and responsible behaviour towards the environment, employees and suppliers is expected.

A great progressive carbon offset project can demonstrate your company’s contribution towards alleviating poverty, improving the health of communities, conserving areas of natural habitat, creating employment opportunities and more. Communicating these social impacts can build your brand and increase customer engagement, which also contributes to the overall ROI.

Improving your company’s reputation through progressive carbon offsetting also helps attract and retain talent. Employees increasingly want to work for businesses with strong social programs. The boost to your ROI comes from attracting the best candidates, engaging your workforce, and cutting recruitment and retention costs.

Choose a Progressive Carbon Offset Program to Maximize Your ROI

Buying carbon offsets is chiefly done to reduce your greenhouse gas emissions and lessen your impact on climate change.

Choosing a provider such as NativeEnergy means your offsets are always fully verified by an accredited third party, so you get exactly what you pay for: guaranteed genuine and permanent carbon reductions.

In addition, NativeEnergy’s progressive offset projects deliver social and environmental benefits that can help you achieve your corporate social responsibility goals and give you a measurable ROI.

To find out how progressive carbon offsets can boost your financial returns, contact us at [email protected] today.