CO₂ offsetting for businesses: What is important in 2024?

What does CO₂ offsetting mean to a business?

In order to keep human-made global warming in check, the EU has defined climate protection targets. The European Parliament has decided that the EU should be climate-neutral by 2050.

To achieve these climate protection goals, there are several sub-targets for industry. Put simply, the carbon footprint of companies needs to improve. Since 2023, large corporations are obliged to publish a sustainability report. This obligation is also referred to as the CSR-directive.

Many businesses have therefore already started to reduce their CO₂ emissions. In those areas where they are not yet able to reduce completely, CO₂ offsetting is an option.

Other companies simply want to make a financial contribution to climate protection and choose to take advantage of the possibility of CO₂ offsetting.

For which businesses is CO₂ offsetting a suitable choice?

When companies have already explored all options of reducing CO₂ emissions as much as possible and would like to offset their remaining emissions, CO₂ offsetting is a good option.

CO₂ offsetting is also an option for businesses that would like to make a meaningful contribution to climate protection.

A CO₂ offset for companies means that excess carbon emissions are offset by supporting a CO₂ offsetting project that removes exactly the desired amount of carbon from the atmosphere.

How does CO₂ offsetting for businesses work?

CO₂ offsetting for businesses works by supporting a climate protection project in the amount of CO₂ emissions to be offset. The project then removes this CO₂ from the atmosphere for you.

For example, if you would like to offset 100 tonnes of CO₂, you donate a certain amount to ForTomorrow. For this amount, we will then plant 250 trees as part of a forest in Germany and decommission 50 EU emission rights.

Since we take CO₂ from the atmosphere and reduce CO₂ emissions in the EU by the same amount as you produce, you are cancelling your CO₂ emissions with us.

Is it even possible to make businesses CO₂-neutral?

In 2023, the EU banned companies from advertising CO₂-neutral products. The reason for this is that businesses are usually not CO₂-neutral, just like most products.

If you are offsetting your CO₂ emissions for your company, you must always bear in mind that these CO₂ emissions are offset with a time delay.

We work very fast at ForTomorrow. So far, we can say that we have planted a mixed forest for you, for example, no later than one year after your donation. We know that many projects need a lot longer to do this. And yet we cannot say that we have immediately made your business or product CO₂-neutral.

Every product generates CO₂ during production. Subsequently, these emissions can be effectively offset. Nevertheless, the product is probably not CO₂-neutral at the time of sale. Even wood is not CO₂-neutral. When you burn it, CO₂ is released. It takes many years for a tree to grow back. At the moment of burning, the wood heats up the climate.

Also the mixed forest that we plant needs to grow first. And it needs time to do so. We calculate that over 80 years, five trees can remove one tonne of CO₂ from the air.

It’s quicker with emission rights. As soon as they have been decommissioned, the climate protection effect is immediate.

In summary: advertising with “CO₂-neutral” labels

We cannot recommend CO₂-neutral labels for carbon offsetting at companies. Since CO₂ offsetting takes time, products are never immediately CO₂-neutral. We therefore recommend that you are honest in your claims. It is better to talk about your commitment to climate protection and state the specific amount of CO₂ that you are offsetting for your company or product.

Which CO₂ offsetting projects are suitable for businesses?

It is important to be very strict when selecting a climate protection project for your company’s CO₂ offsets. Effectiveness is key. A climate protection organisation must always be able to prove the effectiveness of their projects.

We can recommend the following basic checklist:

How does a business communicate its CO₂ offsets in a credible manner?

First of all, support carbon offset projects that are effective. Pay attention to additionality when offsetting CO₂. The rule here is: better to do it right the first time, than risk being accused of greenwashing later on. No matter how good your marketing is, you will not be able to communicate away poor climate protection.

Transparency is the be-all and end-all when it comes to CO₂ offsetting as a company. Be open about how you offset CO₂, show your certificate and engage in dialogue with your customers.

Create a central point of contact for those visiting your website. You could, for example, set up a landing page where you present your commitment to climate protection.

Do not use empty phrases like “CO₂-neutral”, but communicate honestly how many tonnes you have offset for a product. Publicise the CO₂ emissions generated during production.

Don’t worry. As long as you are honest and authentic, your climate protection approach does not need to be perfect. Just show that you are serious and want to improve.