Natural Capital Credits are certificates that represent a combination of positive environmental impacts achieved through implementation of REDD+ projects.
3 integral elements characterise Natural Capital Credits:
Each NCC represents verified certification that 1 tonne of CO2e has been prevented from being emitted or has been removed from the atmosphere.
NCCs are also an indication that socio-economic enhancements have occurred for the inhabitants of the project areas, in order to foster local community prosperity.
NCCs have at their core, the implementation of a biodiversity and ecosystem protection system as part of the project design and management plan, to conserve the natural capital.
Companies with climate change strategies, on average, see double the returns than those without
(PWC: Global 500 Report, 2011)
Why buy Natural Capital Credits?
In recent years, a wide range of global corporations and international events have become increasingly aware of the importance of reducing their carbon impact and the benefits this entails.
Key events taking positive actions include the 2012 Olympic Games, the FIFA World Cup and the introduction of Formula E in 2014, whilst a number of leading companies such as M&S, Puma and Disney have announced their achievement, or intention to achieve net zero carbon emissions.
Cultivating corporate sustainability and extending its practices makes very good business sense. It directly influences bottom lines by strengthening skills, increasing efficiency, attracting talent and making new revenue streams available. Attention to CSR also elevates corporate profiles, helping to guarantee future competitiveness within the marketplace and increase employee and stakeholder engagement with the organisation.
Ernst and Young report “that research from the Carbon Trust suggests that over half of those surveyed… would be more loyal to a brand if they could see that it was taking steps to reduce its carbon footprint”.
There are also a range of intrinsic business advantages available from carbon offsetting such as brand positioning, providing a competitive advantage and creating a sustainability platform. Despite the initial outlay, companies are realising an increase in revenue generation.