Three biggest challenges to meeting net-zero goals are all related to data
Lack of uniformity in carbon credit certification methods raises doubts
on accuracy and comparability of sustainability measurement
Global cross-sector survey interviewed senior sustainability decision-
makers from over 500 medium-to-large firms
What might cause a business decision-maker to avoid investing in the very tool that
would bring about the most immediate results? This is a question that a recent
survey commissioned by AiDash – a leading provider of solutions that help core
industries become more resilient, efficient, and sustainable through the power of
satellites and AI – provides answers for. In the case of businesses striving to reduce
their global emissions, a significant number confess to avoiding carbon credits.
The place for carbon credits
The ‘Carbon offsetting in 2023’ study asked over 500 mid-level and senior
executives questions about sustainability and carbon management. Responses
show that these are now mainstream concerns, with 79% of CSO’s already
accountable to their boards or the public, 98% doing more than legally required to
reduce emissions, and 56% of businesses committed to net-zero targets on or
before 2030.
Despite this, over half of businesses (56%) do not have direct control over the
greater part of their greenhouse gas (GHG) emissions and nearly half (43%) depend
on carbon offsets for hard-to-reduce GHG emissions alongside direct measures. It is
evident that, without using carbon credits, many businesses cannot meet their net-
zero targets.
Nevertheless, the survey exposes a significant distrust in carbon offsetting, with 41%
of CSOs stating they do not use carbon credits as they do not adequately trust them.
This comes at a time when many carbon offsetting projects are being shown to be
inconsistently measured, inadequately monitored, and frequently failing to prove they
are based on additional carbon captured.
Why are carbon credits failing to instill confidence?
The key stumbling block with carbon credits concerns data. This is visible in the
survey as respondents identified the following challenges as the most difficult in
reaching their net-zero targets:
- Collating reference data such as regional electricity and airline
emissions factors (26%) - Lack of common reporting frameworks (19%)
- Difficulty collating internal information (18%)
The varied practices across different businesses ultimately undermine the
confidence of both decision-makers and those they are reporting to. “The intent and
action is there,” says Abhishek Vinod Singh, CEO, AiDash. “But what these
businesses desperately need is an organizational tool they can trust to accurately
measure, monitor, track and validate the progress of their sustainability plans on
their journey to net-zero.”
With 89% of CSOs confirming they use KPI metrics to track the progress of their
sustainability plans, it is essential that those metrics are watertight. Technological
advances in satellites and AI give businesses fresh options to solve sustainability
data issues and trust their carbon credits.
“Our carbon solution not only provides measurements that meet carbon credit
standards, but also continuous evidence to prove that credits are based on additional
carbon captured and that carbon remains permanently in the ground, which is crucial
for credible ESG reporting,” continues Singh. “By supporting how businesses apply
carbon offsetting to their own land, we can save them up to 90% when compared
with buying the equivalent from an escalating carbon credit market.”
How can biodiversity reporting learn from carbon credit issues?
In addition to carbon offsetting, the survey also revealed that biodiversity is
beginning to appear higher up the agenda for CSOs. While only 24% currently
include biodiversity impact in their sustainability strategies, 66% already have a role
dedicated to biodiversity, and others intend to introduce one in the next two years.
It is not enough to merely create roles, however; legacy approaches to measuring
biodiversity threaten to blunt this progress if they go unaddressed.
For biodiversity, AiDash’s Intelligent Sustainability Management System (ISMS) can
measure a host of complex environmental assets, allowing businesses to enhance
natural capital metrics such as pollination, recreational benefits, and the value of
food production. By analyzing thousands of sites in a matter of weeks, and utilizing
one ecologist to verify the data captured, the AiDash solution can reduce biodiversity
management operational expenditure by up to 75%, helping businesses adhere to
impending legislation in the US, Europe, and UK.
