As the world observes Earth Day 2024, it’s an opportune moment to recognize the positive strides we’re making in combating climate change. Celebrated every year on April 22, Earth Day offers an opportunity for collective action by individuals, communities, and organizations to restore and protect our planet. One crucial tool in the effort is corporate use of carbon credits. Carbon credits offer companies a way to take climate action now while reducing emissions in parallel. They also provide a practical means for aligning decarbonization objectives with positive environmental and social outcomes, as well as business advantages. In this article, we’ll delve into the role of carbon credits in corporate climate action. We’ll also examine Cloverly’s own decarbonization path and share how the team is celebrating Earth Day.
Ready to take climate action now? Whether you’re a company, community, or individual, sign up for an account today to start.
The evolution of Earth Day
Earth Day, launched on April 22, 1970, is an annual global event promoting environmental stewardship and sustainable practices. Founded by U.S. Senator Gaylord Nelson following the 1969 Santa Barbara oil spill, it aimed to harness the grassroots energy of the student anti-war movement to raise environmental awareness. The first celebration mobilized 20 million Americans, spurring eco-friendly legislation in the US including the Clean Air Act and establishment of the Environmental Protection Agency. Throughout the 1990s, Earth Day gained international traction under the leadership of Dennis Hayes, engaging more than one billion people by its 50th anniversary. Its growing influence on environmental policy was highlighted in 2016 when 175 countries signed the Paris Agreement on Earth Day, affirming its importance as a platform for serious climate action. As Earth Day 2024 marks the 54th anniversary of this important event, it continues to inspire worldwide efforts toward a sustainable, net-zero future.
The role of corporate climate action and carbon credits
Why businesses must lead the way
As significant contributors to global greenhouse gas (GHG) emissions, businesses must be part of the collective efforts to address climate change. This is particularly true for emissions intensive sectors like energy. One report found that 71% of all global GHG emissions come from just 100 fossil fuel companies. Another study confirmed this trend – it showed that 91% of global carbon emissions in 2022 stemmed from fossil fuels. These trends underscore the crucial role of businesses in reducing their GHG footprints and investing in climate action now to hasten progress toward an emissions-free future. It also presents a unique opportunity for companies to demonstrate climate leadership to their stakeholders while contributing to global efforts to curb climate change impacts.
The expanding role of carbon credits in corporate climate action strategies
Carbon credits are an integral part of effective corporate climate action. They finance essential carbon removal initiatives and deliver important additional environmental, social, and economic benefits. These projects often support United Nations Sustainable Development Goals (UN SDGs), enhancing their overall impact. Notable examples like the Trees for Global Benefits, Biochar Life Africa & Asia, and Project Hummingbird Direct Air Capture contribute to multiple SDGs.
Business use cases for buying carbon credits
Beyond contributing to the UN SDGs, businesses buy carbon credits to achieve various goals such as:
- Take climate action now while reducing emissions in parallel via science-backed pathways.
- Offset residual, value chain, and/or historical emissions.
- Achieve net zero.
- Demonstrate climate leadership by going beyond net zero toward carbon negative or climate positive.
- Offer climate action solutions to their customers and partners.
- Comply with regulatory requirements.
- Achieve business benefits such as revenue growth, cost reduction, and stakeholder engagement.
By adopting carbon credits, companies not only foster better business outcomes but also accelerate progress toward a sustainable future. Moreover, studies have shown that companies who are leveraging carbon credits in parallel with emissions reductions are decarbonizing 1.8x faster than their peers.
Cloverly and its clients: A positive force in climate action
Cloverly, recently recognized as the Carbon Market Platform of the Year, stands as a testament to the power of technology and innovation in scaling climate action. Trusted by more than 300 enterprises, Cloverly is the most advanced digital infrastructure powering the voluntary carbon markets. Companies and individuals can take immediate climate action through a comprehensive suite of solutions to purchase carbon credits. All carbon credits on Cloverly’s platform have passed through a rigorous assessment framework that evaluates impact, risk, and quality, ensuring they meet the highest standards of integrity. So, buyers can trust that their carbon credit investment is delivering real climate action.
Our clients report not just sustainability benefits but also enhanced brand value, revenue growth, and more, proving that taking climate action now is also a smart business strategy. For example,
- HKS: Global architecture and design firm, HKS, achieved a critical milestone on its journey to net zero with a high-quality carbon credit portfolio that aligns with its values and goals.
- Redwood Logistics: Redwood, a logistics technology company, built a comprehensive sustainability solution, powered by Cloverly, that allows their customers to measure and offset their freight emissions in a single platform.
- Freightzy: After implementing carbon-neutral shipping through Cloverly’s API, this logistics company experienced 400% in growth.
Cloverly’s decarbonization journey
Like our clients and partners, Cloverly is prioritizing impactful climate action. For 2022-2023, we estimated our carbon footprint to be 287.10 metric tons (mt) of CO₂e as follows:
- Scope 1/2 (leased office space heating and electricity): 17.5 mt CO₂e (6.1%)
- Scope 3 (web-based tools, employee commuting and work from home, business travel): 269.6 mt CO₂e (93.9%)
For the same time period, we invested in a portfolio of high-quality carbon credits to offset our emissions. To achieve this goal, we set a carbon budget before completing our emissions calculations of approximately 180 mt CO₂e per year, or 360 mt CO₂e for the two years. This helped ensure that we would have enough budget to not only mitigate our footprint but also make positive climate contributions. These efforts are part of a broader strategy that we plan to expand in the coming years as we continue our decarbonization journey.
Earth Day 2024 at Cloverly: Empowering action
Engaging employees with climate action grants
Individual actions can have a profound impact on our planet’s health, and at Cloverly, we recognize the power of each employee in driving meaningful climate outcomes. This Earth Day, Cloverly has taken a significant step in empowering its team by offering each employee a climate action grant. With this grant, employees can invest in projects such as Advanced Refrigeration, Reforestation, and Biochar to help offset their own footprint or make positive climate contributions. This initiative not only demonstrates Cloverly’s commitment to environmental stewardship but also actively involves employees in our climate journey.
To learn how you can set up climate action grants for your employees, reach out to Cloverly today.
Cloverly employees celebrate Earth Day
Our team’s personal commitment to the planet shines through in this slideshow titled “Celebrating Earth Day at Cloverly.” Employees have shared their personal stories and actions through answers to questions about their Earth Day activities and sustainable practices. Whether local clean-ups, sustainable lifestyle changes, enhancing recycling efforts, or offsetting our family footprint, our collective actions reflect our team’s dedication to environmental stewardship.
Earth Day 2024: A call to sustained action
Achieving a net zero future demands unified action by governments, organizations, and individuals. Cloverly’s journey, alongside our clients, partners, and employees, exemplifies the power of collaboration to scale climate action. By integrating high-quality carbon credits into individual and corporate sustainability initiatives, we help turn the tide on climate change. Partner with Cloverly today to implement impactful climate action solutions that resonate with your clients, partners, and employees. Join us in making every day Earth Day, for our planet and future generations.
Sign up for an account to make every day Earth Day by taking climate action now.
FAQs
Earth Day is an annual event celebrated on April 22nd, dedicated to raising awareness and mobilizing action for environmental protection and sustainability. It serves as a reminder of the importance of preserving our planet’s natural resources, reducing pollution, and combating climate change. Established in 1970, Earth Day has grown into a global movement, engaging millions of people in various climate action activities. For example, tree planting, clean-up campaigns, educational events, and advocacy for policy changes. It symbolizes a collective commitment to safeguarding the Earth for current and future generations.
For Earth Day 2024, the theme is “Planet vs Plastics,” with a focus on significantly reducing plastic production to improve both human and planetary health. Specifically, there is a goal to achieve a 60% reduction in all plastic production by the year 2040.
Climate action encompasses a broad spectrum of efforts by policy makers, organizations, and individuals aimed at mitigating the effects of climate change and adapting to its impacts. This includes reducing greenhouse gas (GHG) emissions through initiatives such as transitioning to renewable energy, improving energy efficiency, and protecting natural carbon sinks. Additionally, climate action involves building resilience to climate risks through adaption measures, as well as advocacy, driving policy change, and fostering the development and adoption of sustainable solutions. Financial instruments such as carbon credits have a crucial role to play in facilitating the necessary funding for many of these initiatives.
Emissions reduction and climate action are two interconnected aspects of the global response to climate change.
Emissions reduction refers to efforts to decrease the amount of GHGs emitted into the atmosphere, primarily carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O), which are major contributors to climate change. Emissions reduction strategies focus on decreasing emissions from various Scope 1, 2, and 3 sources such as energy production, transportation, industry, agriculture, and land use. These strategies may include transitioning to renewable energy sources, improving energy efficiency, implementing carbon capture and storage technologies, and more.
On the other hand, climate action encompasses a broader range of initiatives focused on addressing climate change comprehensively. It includes emissions reduction, as well as adaption measures, advocacy for policy change, education and awareness-raising efforts, technology innovation, and more. Climate action seeks to tackle the root causes of climate change and foster a global transition to a low-carbon, resilient, and sustainable future.
Carbon credits are transferable financial instruments that represent one metric ton of carbon dioxide (or other greenhouse gas equivalent) that is reduced/avoided or removed from the atmosphere. Carbon credits are generated by projects that are certified by carbon standards, and they can be sold, bought, and traded in carbon markets. Because reduction and removal activities have different roles to play in decarbonization, there’s a growing trend to distinguish between carbon reduction credits and carbon removal credits.
While the terms are sometimes used interchangeably, they have different meanings. Carbon credits can be purchased by organizations to compensate for their emissions of carbon dioxide or equivalent gases. When a credit is used for this purpose, ideally only to address residual or beyond value chain emissions, it becomes a carbon offset. It’s moved to a registry for retired credits (making it unavailable for future sale) and is no longer tradeable. Companies can participate in the voluntary carbon market (VCM) individually or as part of an industry consortium such as the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). As companies begin to move to more ambitious climate action that focuses on positive climate contribution as opposed to emissions compensation, the term carbon offset is used less frequently.
Taking climate action now is critical due to the urgent need to mitigate the impacts of climate change. Rising temperatures and increasingly severe weather events are already affecting lives everywhere, as well as disrupting natural ecosystems and economies. Delaying action will only exacerbate these challenges and make adaption more difficult and costly. Scientists have warned that swift and substantial reductions in GHG emissions are necessary to limit global warming to manageable levels and avoid catastrophic consequences. Moreover, taking climate action now presents opportunities for economic growth, business advantages, and technological innovation, while fostering collective action on this pressing global issue. Ultimately, taking climate action now is a practical necessity for safeguarding the planet and ensuring a sustainable future for generations to come.
There are numerous ways to celebrate Earth Day. Here are a few:
1. Organize or participate in community clean-ups: Gather friends, family, and neighbors to clean up local parks, beaches, rivers, or streets. Removing litter and debris helps protect wildlife and ecosystems while promoting community engagement. The Great Global Cleanup is a good place to start.
2. Plant trees or start a garden: Trees play a crucial role in sequestering carbon dioxide and mitigating climate change. Consider planting trees in your neighborhood or starting a community garden to promote biodiversity, provide habitats for wildlife, and enhance green spaces.
3. Reduce, reuse, recycle: Practice waste reduction by minimizing single-use plastics, recycling materials such as paper, glass, and metal, and composting organic waste. Encourage others to adopt sustainable waste management practices to reduce the environmental footprint.
4. Support local businesses and sustainable products: Choose products with minimal packaging, made from renewable or recycled materials, and produced using environmentally friendly practices. Support local farmers markets, artisans, and businesses that prioritize sustainability and contribute to the local economy.
5. Advocate for climate action: Write to elected officials, participate in peaceful demonstrations, and support organizations advocating for policies that address climate change, promote renewable energy, and protect the environment. Use your voice to raise awareness and demand action from leaders at all levels.
6. Educate yourself and others: Learn about climate change, its impacts, and potential solutions through books, documentaries, online resources, and educational events. Share your knowledge with others and engage in discussions about the importance of climate action and environmental conservation. One way to do this is to join a Climate Reality Project training.
7. Adopt sustainable habits: Make everyday choices that reduce your carbon footprint, such as conserving energy and water, using public transportation or carpooling, choosing sustainable products and food options, and supporting renewable energy.
8. Calculate, track, reduce your carbon footprint: Calculate and track your carbon footprint to better understand your environmental impact. Take actions to reduce your emissions and buy carbon credits to offset remaining and/or past emissions. Free calculators and tracking apps are available online and as mobile apps.
9. Support climate change research: Use apps such as the Global Earth Challenge to contribute data for climate change research on local air and water quality, insect populations, plastic pollution, and more.
For more inspiration, see the list of ideas for climate action activities from Cloverly below.
35 Earth Day ideas for climate action from Cloverly:
1. Set up Climate Action Grants for your employees.
2. Shop locally and eat seasonally.
3. Be a friend to farmer’s markets.
4. Support local businesses.
5. Minimize single use plastics.
6. Reduce meat consumption.
7. Shop second hand.
8. Go car free by biking, walking, or using public transport.
9. Switch to electric vehicles.
10. Reduce waste and recycle.
11. Prioritize plant-based meals.
12. Buy sustainable goods.
13. Plant trees and gardens.
14. Create an environmental nonprofit fund.
15. Donate to environmental nonprofits.
16. Purchase carbon credits via Cloverly to offset your footprint.
17. Use eco-friendly cleaning supplies.
18. Join a beach cleanup.
19. Become a vegetarian.
20. Avoid one-use packaging.
21. Remove invasive species.
22. Plant vegetables you can eat.
23. Use organic fertilizers and pesticides.
24. Contribute monthly via American Express to offset your footprint.
25. Pick up litter in parks.
26. Bake an Earth Day cake.
27. Participate in local Earth Day events.
28. Invest in composting.
29. Invest in solar energy for your home.
30. Start a shared garden.
31. Raise your kids to be vegetarian.
32. Track the emissions impact of your purchases.
33. Divert organic waste from the landfill.
34. Participate in a community composting program.
35. Plant native species.
You can also check out these resources: the Earth Day 2024 website, Action Toolkit, and Take Action section; the UN’s 8 ways, 10 ways, and 16 ways to take climate action; The Climate Reality Project Act section; WWF’s 60 Actions for the Planet guide; and Green Citizen.
