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Climate Emergency

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2020 was the joint hottest year on record despite a 7% drop in greenhouse gas emissions. Why? 

The average temperature across the world in 2020 was <a href="https://climate.copernicus.eu/2020-warmest-year-record-europe-globally-2020-ties-2016-warmest-year-recorded" target="_blank" rel="noopener">1.25°C higher than pre-industrial times</a>. This is dangerously close to the 1.5°C limit set by the world nations to avoid the worst impacts of climate change, and made 2020 the <a href="https://climate.copernicus.eu/2020-warmest-year-record-europe-globally-2020-ties-2016-warmest-year-recorded" target="_blank" rel="noopener">joint hottest year on record</a>.  This means the last six years have been the six hottest years on record and that the period from 2011-2020 was the <a href="https://climate.copernicus.eu/2020-warmest-year-record-europe-globally-2020-ties-2016-warmest-year-recorded" target="_blank" rel="noopener">hottest decade ever recorded</a>.
Only 2016 matched the heat recorded in 2020, however in 2016 there was a natural <a href="https://oceanservice.noaa.gov/facts/ninonina.html" target="_blank" rel="noopener">El Niño climate event</a> that boosts temperatures. Without the added factor of this natural event in 2016, <a href="https://climate.copernicus.eu/2020-warmest-year-record-europe-globally-2020-ties-2016-warmest-year-recorded" target="_blank" rel="noopener">scientists predict that 2020</a> would have been the outright hottest year. 
Meanwhile, Europe saw its warmest year on record at <a href="https://climate.copernicus.eu/2020-warmest-year-record-europe-globally-2020-ties-2016-warmest-year-recorded" target="_blank" rel="noopener">0.4°C warmer than 2019</a>, the previous hottest year on record. The Arctic and northern Siberia also saw particularly <a href="https://www.theguardian.com/environment/2021/jan/08/climate-crisis-experts-2020-joint-hottest-year-ever-recorded" target="_blank" rel="noopener">extreme average temperatures in 2020</a>, with a large region 3°C warmer than the long-term average, and some locations more than 6°C warmer. This led Arctic sea ice to shrink to its <a href="http://nsidc.org/arcticseaicenews/2020/09/arctic-sea-ice-decline-stalls-out-at-second-lowest-minimum/" target="_blank" rel="noopener">second-lowest extent</a> on record in september 2020. 
All this occurred in the year that we saw a <a href="https://essd.copernicus.org/articles/12/3269/2020/" target="_blank" rel="noopener">7% drop in worldwide greenhouse gas emissions</a> due to the global shutdown caused by the COVID-19 pandemic. Globally the burning of fossil fuels released <a href="https://www.globalcarbonproject.org/carbonbudget/" target="_blank" rel="noopener">34.1 billion tonnes</a> of carbon dioxide in 2020, down 2.3 billion tonnes from the previous year. The most<a href="https://www.globalcarbonproject.org/carbonbudget/" target="_blank" rel="noopener"> dramatic reduction</a> in emissions was seen in the transport sector, especially road traffic, with a steep dive in April when countries across the world had imposed strict limits on travel. Emissions from aviation were also reduced drastically, with a reduction of <a href="https://www.carbonbrief.org/global-carbon-project-coronavirus-causes-record-fall-in-fossil-fuel-emissions-in-2020" target="_blank" rel="noopener">75%</a> seen during the peak of COVID-19 lockdowns. At the start of December 2020, emissions from road transport and aviation were still lower than their December 2019 levels, by <a href="https://www.carbonbrief.org/global-carbon-project-coronavirus-causes-record-fall-in-fossil-fuel-emissions-in-2020" target="_blank" rel="noopener">10% and 40% respectively</a>. 
Why is it that in the year in which the coronavirus pandemic drove one of the largest, most dramatic drops in human CO2 emissions ever recorded, did we see an increase in warming? It&#8217;s all to do with how long CO2 remains in our atmosphere.

Throughout human history, the Earth&#8217;s climate has been changing. But the changes we are seeing now are happening much faster than they would do naturally. This is because of humans emitting carbon dioxide (CO2) and other greenhouse gases into the atmosphere. 
Greenhouse gases are gases that trap heat in a process called the greenhouse effect. When the sun’s energy reaches the Earth, some of it is absorbed by the Earth&#8217;s surface, and the rest is reflected back outwards. Most of this goes back into space, but some is absorbed by greenhouse gases and re-radiated back towards the Earth, causing further warming. The greenhouse effect is a natural process, without which the average temperature on the Earth would be <a href="https://public.wmo.int/en/our-mandate/focus-areas/environment/greenhouse%20gases#:~:text=The%20natural%20greenhouse%20effect%20is,approximately%2033%20degrees%20Celsius%20cooler." target="_blank" rel="noopener">-18°C</a>. 
However, human activities are accelerating this process by putting more greenhouse gases into the atmosphere, meaning that more heat is re-radiated back towards the Earth and leading to increased levels of warming. CO2 is the single most important greenhouse gas directly released by human activity. It is produced in high quantities by human sources and it stays in the atmosphere for a long time. This CO2 builds up in the atmosphere and continues to cause warming year after year.

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The difference between emissions and concentrations

The carbon dioxide that we release into the atmosphere through the burning of fossil fuels, industry processes, and deforestation is referred to as emissions. These are measured by the amount of greenhouse gas that we release into the atmosphere each year. 
The carbon dioxide that we release stays in the atmosphere for a very long time. This means that when we release more CO2 it adds to the big store of CO2 that is already there. The amount of CO2 that is actually in the atmosphere is called the CO2 concentration. It&#8217;s this store of carbon dioxide in the atmosphere that traps the Earth&#8217;s heat, leading to climate change. The atmospheric CO2 concentration has increased dramatically in recent decades due to human emissions. Currently it is about <a href="https://climate.nasa.gov/vital-signs/carbon-dioxide/" target="_blank" rel="noopener">415 parts per million</a> (ppm).

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Each year as we emit more and more, the concentration of CO2 in the atmosphere gets higher and higher. But even if we stopped emitting any greenhouse gases right now, the emissions we have already released over the past 200 years would still be there to cause warming. This is because CO2 has such a long lifetime. It is estimated that <a href="https://www.oxfordmartin.ox.ac.uk/downloads/briefings/Short_Lived_Promise.pdf" target="_blank" rel="noopener">15-40% </a>of the increase in CO2 due to fossil fuels is expected to remain in the atmosphere for over 1000 years. 
One analogy, used by the <a href="https://www.carbonbrief.org/analysis-what-impact-will-the-coronavirus-pandemic-have-on-atmospheric-co2" target="_blank" rel="noopener">carbon brief</a>, is the filling up of a bath from a tap. If the tap represents CO2 emissions and the water level in the bath is the CO2 concentrations in the atmosphere, then reducing emissions slightly is the same as slightly turning the tap down. Water is still flowing into the bath and so the level is still rising, just a bit slower. In the same way reducing emissions slightly does not immediately reduce concentrations of CO2, it only slows down the rate of increase. The carbon dioxide humans have already emitted can remain in the atmosphere for a hundred years; some of it could last <a href="https://blogs.ei.columbia.edu/2020/06/25/covid-19-impacts-climate-change/" target="_blank" rel="noopener">tens of thousands of years</a>.

What effect has the COVID-19 pandemic had? 

This explains why we didn&#8217;t immediately see an effect of the drop in emissions caused by the coronavirus pandemic. Although less CO2 was emitted in 2020 than in previous years, the CO2 that was emitted still added to the ongoing-build up in the atmosphere. 
One study predicted that across the whole of 2020, CO2 levels in the atmosphere would rise by <a href="https://www.carbonbrief.org/analysis-what-impact-will-the-coronavirus-pandemic-have-on-atmospheric-co2" target="_blank" rel="noopener">2.48ppm</a> (parts per million). This increase is <a href="https://www.carbonbrief.org/analysis-what-impact-will-the-coronavirus-pandemic-have-on-atmospheric-co2" target="_blank" rel="noopener">0.32ppm smaller</a> than if there had been no lockdown, but it is still an increase in the total atmospheric concentration, and since warming is related to cumulative emissions, the overall amount of avoided warming will be minimal. Until net global emissions reduce to zero, CO2 will continue to accumulate in the atmosphere and drive further change.

Hopefully this article has made it a bit clearer why the drop in emissions caused by lockdowns hasn&#8217;t perhaps had the impact on the climate that we may have hoped for. We need to see a continued reduction in emissions year after year, before this will start to impact significantly on the concentrations of greenhouse gases in the atmosphere.
The UK Met Office has issued a forecast that the CO2 levels in the atmosphere will pass a new milestone in 2021 &#8211; being <a href="https://www.metoffice.gov.uk/about-us/press-office/news/weather-and-climate/2021/2021-carbon-dioxide-forecast" target="_blank" rel="noopener">50% higher than before the industrial revolution</a>. This not only means that we have released a massive amount of carbon dioxide into the atmosphere, but also the rate at which we have done so has increased significantly. It took over 200 years for the levels to increase by 25%, but now at just 30 years later we are approaching a 50% increase. 
Even if we reduce emissions now, it can take a while for these to have an effect on temperatures. This can seem demoralising, but it is why it is so important to act now. Our actions will take a while to impact on temperatures and there&#8217;s a certain amount of warming already baked in. We can’t allow any more warming to happen.
It is estimated that emissions need to decrease by <a href="https://www.unep.org/interactive/emissions-gap-report/2019/#:~:text=Today%2C%20we%20need%20to%20reduce,are%20ambitious%2C%20but%20still%20possible." target="_blank" rel="noopener">7.6% each year between 2020 and 2030 </a>to be on track to achieve the 1.5°C goal. Last year we roughly achieved the 7% reduction needed. This year we need to decrease 7.6% again from last year&#8217;s emissions, and then 7.6% below this in 2022 and so on. Each year must have a reduction of 7.6% on the year before that. 
So, last year showed a good start if you just look at emissions. But think about what it took for us to get there. Over 2.5 million people have now died from coronavirus, millions were out of work, car traffic in April was almost half of what it normally is, and air traffic virtually stopped completely. We need policies and action now to reduce emissions in a more stable and sustainable way.

How might we achieve the emissions reductions needed? 

We need rapid decarbonisation of the energy sector. Sadly <a href="https://ourworldindata.org/energy-mix" target="_blank" rel="noopener">84.3% of our energy</a> still comes from fossil fuels, which release CO2 into the atmosphere. We need to rapidly transition away from these polluting energy sources and towards clean renewable energy technologies such as wind, solar and hydro energy. 
We also need a global shift towards sustainable and climate-smart agriculture. <a href="https://ourworldindata.org/food-ghg-emissions" target="_blank" rel="noopener">26% of worldwide emissions </a>come from the agricultural sector, but by employing methods such as agroforestry, crop rotations, crop diversification, precision agriculture and many more we can ensure that enough food can be made on the same land indefinitely, without depleting our natural resources and minimising emissions. We also need policies and action to reduce deforestation and land clearance, particularly from the agricultural sector. 
Investments in industrial innovations are also needed to decarbonise more difficult sectors &#8211; such as the steel industry, and to tackle some of the open problems such as the need for better energy storage for wind and solar energy and improved electric batteries.

We all have a role to play if we are to achieve the emissions reductions needed. Bill Gates in his book <a href="https://www.gatesnotes.com/Energy/My-new-climate-book-is-finally-here" target="_blank" rel="noopener">‘How to avoid a climate disaster’</a> wisely highlighted three key things that ordinary people can do. 
&nbsp;
<ul>
<li aria-level="1">Use your political voice &#8211; Vote for parties that put climate change on the agenda. Parties can disagree on tactics to help get to zero but it needs to be a primary goal. You can also use your voice to talk to people that you know about climate change, and bring them around to the cause, even if their general political opinions are different to yours. Maximise the power of your voice by engaging in activism and joining groups such as <a href="https://www.greenpeace.org.uk/" target="_blank" rel="noopener">Greenpeace</a>, <a href="https://friendsoftheearth.uk/" target="_blank" rel="noopener">Friends of the Earth</a>, <a href="https://fridaysforfuture.org/" target="_blank" rel="noopener">Fridays for Future</a> and <a href="https://extinctionrebellion.uk/" target="_blank" rel="noopener">Extinction Rebellion</a>.</li>
</ul>
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<ul>
<li aria-level="1">As a consumer, make the right choices &#8211; The old saying ‘vote with your wallet’ really applies here. It&#8217;s important to buy less, and to buy well. Only buy what you really need and when you do buy, choose the most sustainable option wherever possible. As a consumer you have power. If you buy an electric car, or buy artificial meat, it drives the rate of innovation up and makes a statement that more of this is needed.</li>
</ul>
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<ul>
<li aria-level="1">As an employee, ask your company to take action &#8211; Engage the company you work with to take more action on sustainability within the organisation and their supply chain. One specific thing you can do is investigate your pension fund, and make sure that your money is supporting green funds. Learn about our <a href="https://x.ecologi.com/business">carbon offset programs for businesses.</a></li>
</ul>

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Achieving the emissions reductions needed to reach net zero by 2050 and to limit warming to 1.5°C isn&#8217;t going to be easy. It will need everyone to engage with the climate crisis and get involved in solving it. But we believe that we can do it. <a href="https://x.ecologi.com/plan">Sign up</a> to Ecologi today to help fund the world&#8217;s best climate solutions. Together we have the power to change the world.

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Hopescrolling: The good news timeline

It’s not all bad. While there’s a lot of negative news about the climate, let’s not forget the good stuff. Find climate wins, reasons to be hopeful and plenty of positivity in our good news timeline.

The good news timeline

Ready to make a difference for our planet? Get in touch, and let’s chat about how we can help you on your climate journey. 

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Ecologi Impact Funds: A new way to support climate action

We’ve just launched our much anticipated product, <a href="https://x.ecologi.com/solutions/impact-funds" target="_blank" rel="noopener">Ecologi Impact Funds</a>, a new way to maximise your business climate impact by funding multiple high-quality projects in one go whilst also spreading residual risk.
In this deep-dive, we’ll explore:
<ul>
<li style="font-weight: 400;" aria-level="1">What is an Impact Fund; </li>
<li style="font-weight: 400;" aria-level="1">Why they are best for our planet and how they fit into your net-zero journey;</li>
<li style="font-weight: 400;" aria-level="1">The difference between carbon compensation and contribution approaches;</li>
<li style="font-weight: 400;" aria-level="1">Why your business should start contributing to Impact Funds today.</li>
</ul>

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<h2>What is an Impact Fund?</h2>
Our new Ecologi Impact Funds maximise your business climate impact by funding multiple high-quality projects in one go while also spreading residual risk. 
 
The Ecologi Impact funds are carefully curated project cohorts centred around a particular theme or climate intervention. Each of our Impact Funds is carefully designed to drive progress against our three key pillars of impact: 

<ol>
<li style="font-weight: 400;" aria-level="1">Climate: Reducing the concentration of greenhouse gases in the atmosphere</li>
<li style="font-weight: 400;" aria-level="1">Nature: Conserving and restoring nature and natural systems</li>
<li style="font-weight: 400;" aria-level="1">People: Transforming society and improving lives</li>
</ol>
When you contribute towards an Impact Fund, you’re not just funding a single project in a single location. You’ll be funding a cohort of multiple different projects which might be based all over the world – but all centred around driving transformative action for our climate, nature, and people.
The cohort of projects we support within each Ecologi Impact Fund is dynamic, meaning that some projects will receive support from the Fund over an extended period, and others will receive individual grants. All projects contribute to the Fund’s core aims, and all projects are carefully vetted and selected by our expert team.

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<h2>Why are Impact Funds best for our planet?</h2>
When we think about the existing models of financing climate and nature projects, the focus is usually on one of two things: either inputs (like paying to plant trees), or certification (like carbon credits). Both of these are critical vehicles for channelling funding to incredible projects, but they don’t tell the whole story.
Take tree-planting, for example. To establish and maintain an impactful forest restoration or agroforestry project takes so much more than just planting the trees. Any one of Ecologi’s partner reforestation projects is actually doing far more than simply planting trees – and all of this costs money, which has to fit into the project’s budget. For example, project designs and associated budgets might include all of this (and more):
<ul>
<li style="font-weight: 400;" aria-level="1">Securing land tenure;</li>
<li style="font-weight: 400;" aria-level="1">Communications and campaigns;</li>
<li style="font-weight: 400;" aria-level="1">Logistics, vehicles and transport; </li>
<li style="font-weight: 400;" aria-level="1">Seed collection or acquisition;</li>
<li style="font-weight: 400;" aria-level="1">Tree nurseries and infrastructure;</li>
<li style="font-weight: 400;" aria-level="1">Staff salaries and technical training;</li>
<li style="font-weight: 400;" aria-level="1">Community services and outreach;</li>
<li style="font-weight: 400;" aria-level="1">Energy provision;</li>
<li style="font-weight: 400;" aria-level="1">Tools and safety equipment;</li>
<li style="font-weight: 400;" aria-level="1">Leadership training and capacity building;</li>
<li style="font-weight: 400;" aria-level="1">Reinvestment into the local community;</li>
<li style="font-weight: 400;" aria-level="1">Fencing and other critical infrastructure;</li>
<li style="font-weight: 400;" aria-level="1">Water and irrigation;</li>
<li style="font-weight: 400;" aria-level="1">Project monitoring and evaluation;</li>
<li style="font-weight: 400;" aria-level="1">Outplanting of trees;</li>
</ul>
If, when we support these projects, we as funders are only thinking about this last bullet point – thinking about our role as simply “paying to plant trees” – then we are neglecting to recognise the incredible effort that goes into the truly holistic programme required to restore nature sustainably and at scale. At best, this is simple tunnel vision. But at worst, this means funders risk thinking that the only thing that’s important is how many trees were planted within the project boundary.
Our Impact Funds help to transform this mindset: decoupling funding from inputs and instead centring our thinking around strategic, thematic and carefully-curated project cohorts means that implementation partners receiving the funding are able to focus on producing restorative outcomes for ecosystems and communities. They also help our customers to understand that what we are doing in supporting restorative projects is not tit-for-tat – it’s us playing our part to restore our planet by supporting a blended range of projects which we acknowledge will have a holistic impact.
So through Ecologi’s first new Impact Funds, we’re not focusing on ‘paying to plant trees’. We’re focusing on restoring forests and landscapes.
<h3>Leading climate science is already taking this approach</h3>
Recent publications from the Science-Based Targets initiative in <a href="https://sciencebasedtargets.org/resources/files/Above-and-Beyond-Report-on-BVCM.pdf" target="_blank" rel="noopener">their beyond value chain mitigation (‘BVCM’) report</a>, as well as <a href="https://www.smithschool.ox.ac.uk/sites/default/files/2024-02/Oxford-Principles-for-Net-Zero-Aligned-Carbon-Offsetting-revised-2024.pdf" target="_blank" rel="noopener">the newly-updated Oxford Principles</a> from the University of Oxford, have supported the innovative contributory approach which is exemplified in our Impact Funds. Many of our restoration partners, including <a href="https://www.internationaltreefoundation.org/news/beyond-offsets-an-alternative-approach" target="_blank" rel="noopener">International Tree Foundation</a>, <a href="https://www.eden-plus.org/stories/its-time-to-go-beyond-tree-planting" target="_blank" rel="noopener">Eden: People + Planet</a>, <a href="https://www.youtube.com/watch?v=RfBVBHNpR30" target="_blank" rel="noopener">Acción Andina</a> and <a href="https://www.weforest.org/what-we-do/our-restoration-principles/" target="_blank" rel="noopener">WeForest</a> have taken similar stances.
Global Forest Generation noted that:
<blockquote>In some cases reforestation may only form a small part of an ecosystem restoration project. Our activities and budgets have always reflected a holistic program with many components that we have identified as essential to effective, long-term ecosystem restoration.</blockquote>
With our new Impact Funds, Ecologi is proudly joining our friends and partners to raise our voices in a call for holistic restoration for people and our planet. <a href="https://x.ecologi.com/solutions/impact-funds" target="_blank" rel="noopener">Schedule a call</a> with our experts to see how your business can start contributing to the Impact Funds, or continue reading for more of a deep-dive.

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On your business’s road to net-zero, you have two central objectives:
<ol>
<li style="font-weight: 400;" aria-level="1">First: measure your business’s emissions, set ambitious reduction targets, and reduce your emissions across all scopes as much as possible, as quickly as possible.</li>
<li style="font-weight: 400;" aria-level="1">Then: support the global transition to net-zero and the restoration of nature by contributing to climate and nature projects around the world. </li>
</ol>
Ecologi’s Impact Funds can help you with step (2), by enabling you to <a href="https://x.ecologi.com/business/ecologi-impact-funds" target="_blank" rel="noopener">support a diverse range of projects</a> which will help to safeguard and restore nature, and scale-up carbon removal technologies. This is an alternative to traditional carbon offsetting, which is where you’d buy carbon credits equal to the emissions you produce. 
Specifically, our Impact Funds can help you align your project funding strategy to Goal #2 of the Science-Based Targets initiative’s <a href="https://sciencebasedtargets.org/resources/files/Above-and-Beyond-Report-on-BVCM.pdf" target="_blank" rel="noopener">BVCM best practice</a>, as well as centring all four of the SBTi’s core principles for BVCM: scalability, financing need, co-benefits and climate justice.

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Since 2020, at Ecologi we have also been aligning our work with the Oxford Principles, which as well as providing guidance for blended carbon credit-based portfolios which increasingly lean towards carbon removal with permanent storage, also stress the vital importance of businesses contributing to nature restoration beyond simply the purchasing of carbon credits. The Revised Oxford Principles (2024), states:
<blockquote>It is necessary to protect and restore ecosystems to achieve net zero globally and to support adaptation to climate change impacts, irrespective of whether such projects generate credits that are retired as offsets.</blockquote>
Making a contribution to Ecologi’s Impact Funds won’t reduce your emissions for you, and it won’t allow you to make compensatory green claims such as carbon neutrality. But what it will do is enable your business to do its part to support the global transition to net-zero, holistically protect and restore ecosystems, and empower people and communities – whilst you’re working on reducing your emissions.
Doing so will help you meet the BVCM criteria set out by the SBTi and Oxford Net Zero today, and we believe these contributory approaches will form the backbone of project funding obligations under new and updated standards in the future too – such as the revised SBTi Corporate Standard and the ISO Net-Zero Standard (both expected to be published in Q4 of 2025).
We can also help you if you’re looking for <a href="https://x.ecologi.com/page/schedule-a-call" target="_blank" rel="noopener">high-quality carbon removal or avoidance credits</a> for your business. And if you’re a little earlier on in your net-zero journey and you need support measuring your business’s emissions, <a href="https://zero.ecologi.com/signup" target="_blank" rel="noopener">we can help with that too</a>!

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<h2>Why should my business contribute to Impact Funds?</h2>
Best for our planet. Our first company value is Planet First — and nowhere in our work is this more prominent than in our Impact Funds. We know that this strategic, holistic way of providing funding to the world’s flagship restoration projects is the right way to support projects that address climate change, restore nature and support livelihoods. This approach is innovative, transformational, and the world’s leading restoration experts support it.
Centralise your portfolio. Through our Impact Funds, you can fund a wide range of different climate and nature projects, all in one place. All of the hard work – from project selection to outcomes reporting – is done by us. You’ll have a centralised Ecologi profile where you can visualise your impact across the Funds you’ve contributed to, and deep dive on the projects supported within them.
High-integrity, high-quality projects. Our expert in-house team selects all projects and implementation partners with great care. We’ve designed state of the art methodologies that get right to the heart of a project’s potential effectiveness, and we work tirelessly with each of our implementation partners to uphold restoration best practices and exchange knowledge. That way, you know that if a project is featured in one of our Impact Funds, it’s been carefully vetted and selected as one of the leading restoration projects anywhere.
Spread funding risk. When you support projects individually, there’s always a risk that if the project you supported doesn’t achieve its goals, you’ll feel that your contribution was wasted. Through Impact Funds, the funding you contribute is spread across a range of different projects within the Fund, meaning that even in the unlikely event that an individual project doesn’t work out, your funding will still have contributed to many projects which met or even exceeded their restorative aims.
Boost your brand. Contributing to Ecologi’s Impact Funds is an excellent way to enhance your brand’s sustainability credentials. Businesses today are increasingly expected to take action on environmental challenges, and supporting impactful projects is a powerful demonstration of your commitment to the planet. In fact, improved brand reputation is the number one driver for businesses, with over <a href="https://x.ecologi.com/articles/blog/climate-comittments-report-2024" target="_blank" rel="noopener">34% of Ecologi respondents</a> seeing their brand elevated as a result of climate action. By aligning with large-scale, verified restoration efforts, you not only meet consumer expectations but also stand out in a competitive marketplace, leaving a lasting impression on customers.
Engage and motivate your team. Supporting Ecologi’s Impact Funds aligns with the values of today&#8217;s workforce of sustainability and social responsibility; increasing satisfaction and loyalty. According to our survey, <a href="https://x.ecologi.com/articles/blog/climate-comittments-report-2024" target="_blank" rel="noopener">28% of companies</a> saw improved employee retention through prioritising climate action. By contributing to impactful projects, your business will foster a purpose-driven workplace and strengthen a culture of shared environmental values.

<h2>How to support Impact Funds today</h2>
Schedule a call with our exports today, <a href="https://x.ecologi.com/page/schedule-a-call" target="_blank" rel="noopener">here</a>. In a 30 minute discovery call they can answer any questions you may have and help find a suitable solution to suit your goals and what matters most to your business. 
<h2>Our Impact Funds</h2>
We currently offer two Impact Funds, both funding a range of incredible projects with two distinct climate goals:
<ul>
<li style="font-weight: 400;" aria-level="1">UK Climate &amp; Nature Fund &#8211; Exclusively supports restoration and carbon removal efforts in the UK, such as reforestation, habitat restoration and biochar production. 
</li>
<li style="font-weight: 400;" aria-level="1">Forests &amp; Landscapes Fund &#8211; Focused on preserving and restoring natural landscapes globally, including forest restoration, agroforestry, and coastal wetland restoration.</li>
</ul>

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UK corporate sustainability standards explained

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In the guide we compare the strengths, weaknesses and approach to target setting, reporting and carbon offsets of the most commonly used sustainability frameworks.
In this guide we’ll cover;
<ul>
<li>What are Corporate Sustainability Standards</li>
<li>Which Corporate Sustainability Standards should UK businesses know</li>
<li>Requirements of PAS 2060</li>
<li>Requirements of ISO 14068-1:2023</li>
<li>Requirements of ISO 14064-1</li>
<li>Principles of BSI Flex 3030</li>
<li>What are EightVersa’s Natural Carbon Solutions</li>
<li>SBTi Corporate Net-Zero Standards</li>
<li>How Ecologi can support your business in navigating the complexities of Corporate Sustainability Standards</li>
</ul>

<h2>What are Corporate Sustainability Standards</h2>
Many organisations worldwide have pledged to meet net-zero Emissions, aiming to help keep global warming below 1.5°C as agreed at COP15. These pledges are important, but they need clear guidelines and frameworks to ensure that sustainability strategies lead to real and measurable progress.
<h3>Why are there Corporate Sustainability Standards?</h3>
A variety of frameworks have been developed to support organisations on their journey to reducing carbon emissions. They help align companies with global climate goals, offering guidance on topics such as resource management, goal setting and reporting. Following these guidelines ensures that organisations act responsibly, and take accountability for their impact contributing to global efforts to combat climate change.
To reach net zero, these sustainability standards must be widely adopted to minimise the risk of organisations participating in greenwashing and contribute to collective global action to minimise the impacts of global warming.
<h2>Which Corporate Sustainability Standards should my business know about</h2>

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<h2>What is PAS 2060?</h2>
PAS 2060 was first published in 2010, it aimed to provide the requirements for achieving carbon neutrality for products and organisations alike. After 15 years in operation, PAS 2060 will be retired at the end of 2025, and superseded by ISO 14068- 1:2023.
The standard provides organisations with a methodology for measuring and reducing greenhouse gas emissions and allows for the purchasing of carbon credits to offset any emissions that can’t be reduced.
<h2>What are the requirements of PAS 2060</h2>
<h3>Measure</h3>
PAS 2060 requires organisations to first measure their carbon footprint, accounting for all Scope 1 and 2 emissions, as well as any Scope 3 emissions that constitute more than 1% of the organisation&#8217;s overall emissions.
<h3>Reduce</h3>
Organisations must then create and implement a carbon reduction plan (CRP). This plan should clearly outline specific actions and targets for reducing emissions over time.
<h3>Offset</h3>
After reducing emissions, organisations can then offset remaining emissions using third-party verified carbon credits, these can be carbon avoidance or carbon removal credits.
<h3>Document</h3>
Organisations must document their carbon neutrality initiatives in a Qualifying Explanatory Statement (QES). This should be a public document that includes key information such as the carbon footprint calculation, reduction measures and offsetting activities.
<h3>Drawbacks</h3>
PAS 2060 does not require evidence of continual improvement to the organisation&#8217;s carbon footprint, which can lead to an over-reliance on carbon offsets, as opposed to meaningful reductions in carbon emissions. Additionally, a PAS 2060 application must be accompanied by at least one year’s worth of supporting data therefore, PAS 2060 should not be considered for new clients/projects after December 2024.

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<h2>What is ISO 14068-1:2023</h2>
ISO 14068-1:2023 is a new standard under development by the British Standards Institute (BSI). As mentioned above, ISO 14068-1 replaces PAS 2060.
The standard aims to provide the requirements and guidance for achieving and demonstrating carbon neutrality. Unlike PAS 2060, the standard applies to organisations only and does not apply to products.
ISO 14068-1:2023 is a full international standard that prioritises carbon reduction initiatives. This standard requires evidence that reduction initiatives have taken place before any carbon offsetting is allowed.
<h2>What are the requirements of ISO 14068-1:2023</h2>
<h3>Measure</h3>
Organisations will need to measure their Scope 1, 2 and 3 emissions under this standard.
<h3>Reduce</h3>
They will then need to set clear and ambitious targets to reduce their emissions. Whilst purchasing carbon credits to offset emissions is allowed under this standard, organisations must be able to justify why offsets were purchased instead of undertaking further emission reductions.
<h3>Offset</h3>
Carbon removal offsets are approved to offset any ‘hard to remove’ emissions, providing they are less than 5 years old. This standard does not allow for the purchasing of carbon avoidance credits.
<h3>Document</h3>
ISO 14068-1:2023 also requires a carbon reduction plan, which documents the resources necessary to successfully deliver the plan, and the individuals responsible. The continuous improvement of the subject’s carbon footprint is required to maintain a carbon-neutral status unlike PAS 2060.
<h3>Drawbacks</h3>
It could be argued that ISO 14068-1:2023 requires a deep understanding of carbon accounting, emission reduction strategies and value chain emissions. Many organisations don&#8217;t have this expertise in-house and would therefore have to appoint an external third party to support them through the process, this could result in high costs to implement this standard which new and/or small companies may not have.

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<h2>What is ISO 14064-1</h2>
ISO 14064 guides organisations in reporting their GHG emissions and removals. The primary objectives of the standard are to help organisations manage and report emissions, and set and achieve reduction targets. It is a part of the 3 part ISO 14064 standard and applies to any organisation of any size.
<h2>What are the requirements of ISO 14064-1</h2>
ISO 14064-1 is the first part of the 3-part standard, it aims to provide organisations with an approach to measure, report and verify their emissions and offsets.
<h3>Measure</h3>
Organisations must outline which emission sources and activities are included in their reporting however ISO 14064-1 does not require the reporting of Scope 3 emissions.
<h3>Reduce</h3>
ISO 14064-1 does not explicitly require organisations to reduce emissions before engaging in offsetting however it does emphasise the importance of regularly reporting GHG emissions including prioritising emission reductions.
<h3>Offset</h3>
ISO 14064-1 recognises the use of carbon offsets as a legitimate tool for managing GHG emissions however places a strong emphasis on transparency and accurate reporting. ISO 14064-1 allows for both avoidance and removal credits providing they are credible, verifiable and meet recognised standards for offset projects such as additionality and permanence.
<h3>Document</h3>
ISO 14064-1 requires an inventory management plan that outlines data collection and reporting, and regular review of the GHG inventory. Additionally, a comprehensive GHG report should be prepared to detail the organisation&#8217;s emissions and purchased offsets.
<h3>Drawbacks</h3>
ISO 14064-1 also requires a comprehensive understanding of GHG accounting. This standard is largely focused on reporting, as opposed to action. There is no mandated emission reduction meaning organisations can meet emission targets through purchasing offsets alone, limiting the overall impact on global climate change mitigation.

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<h2>What is BSI Flex 3030</h2>
BSI Flex 3030 is a set of principles that can support organisations in meeting the requirements of other initiatives such as the Science Based Targets Initiative (SBTi), the Task Force on Climate-Related Financial Disclosures (TCFD) and the Carbon Disclosure Project (CDP). BSI Flex was developed with small businesses in mind and is primarily for use by SMEs with between 5-250 employees.
BSI Flex 3030 is also designed to work alongside formal management systems such as ISO 14001 (Environmental Management) or BS EN ISO 50001 (Energy Management). It provides high-level principles and a framework for an organisation to deliver a transition to net zero. It covers how organisations can measure their GHG baseline, set reduction targets and create a credible pathway to net zero, it does not, however, cover how to develop and maintain a formal carbon or net-zero management system which highlights its position as a high-level framework to support organisations at the start of the carbon management journey.

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<h2>Natural Carbon Solutions, Eight Versa</h2>
The purpose of Natural Carbon Solutions (NCS) is to provide businesses with a transparent way to measure, verify and evidence carbon reduction efforts. This standard covers organisations, products and events.
<h2>What are the requirements of Natural Carbon Solutions (NCS)</h2>
<h3>Measure</h3>
Under the NCS accreditation, organisations must complete a detailed assessment of all GHG emissions associated with the organisation/product/event being measured.
<h3>Reduce</h3>
NSC prioritises the reduction of emissions before any offsetting activities. The framework includes setting specific and measurable carbon reduction targets.
<h3>Offset</h3>
Offsetting emissions is considered a valid step in the journey to net-zero but only after all efforts to reduce emissions have been made. Currently, both avoidance and removal credits can be purchased to compensate for any unavoidable emissions; however looking to the future, it is likely only removal credits will be approved under this accreditation.
<h3>Document</h3>
Organisations must implement a carbon reduction plan outlining the strategies and actions required to reduce their carbon footprint. If the organisation is using carbon offsets detailed documentation must be provided evidencing the chosen project is of high quality and environmental integrity.
<h3>Drawbacks</h3>
Although this accreditation emphasises the importance of carbon reduction, there are no mandatory reduction targets in place, this could result in some organisations relying on offsets to reach net-zero.

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<h2>SBTi Corporate Net-Zero Standard</h2>
The purpose of the SBTi Corporate net-zero Standard is to guide companies in setting credible and measurable targets to achieve net-zero emissions. The Corporate net-zero Standard is suitable for any organisation but is particularly useful for those with large, complex operations and significant carbon emissions to ensure they commit to credible, science-based emission reduction targets.
<h2>What are the requirements of the SBTi CZS</h2>
<h3>Measure</h3>
Under the SBTi standard, companies are required to measure and record their Scope 1, 2 and 3 emissions.
<h3>Reduce</h3>
The standard requires organisations to reduce their greenhouse gas emissions by 90-95% by 2050 or earlier across Scopes 1, 2 and 3.
<h3>Offset</h3>
The STBi emphasises that companies must prioritise real emissions reductions and offsetting is only permitted for unavoidable emissions. The SBTi only allows for carbon removal offsets providing they do not form part of any near-term carbon reduction targets for organisations.
<h3>Document</h3>
Organisations are to document near-term (5-10 years) emission reduction targets including the percentage reduction and target years in addition to long term targets for reaching net-zero by 2050 with detailed plans for reducing emissions 90-95% across all scopes. This documentation will be formally submitted to the SBTi for validation will ensure they are aligned with the science based criteria for limiting global warming emissions.
Organisations must report annually on their emissions and progress towards meeting their targets, they are also required to publicly disclose their targets, progress and emission data.
<h3>Drawbacks</h3>
The SBTi corporate net-zero standard is a detailed initiative that requires a lot of time and resources. The standard also requires organisations to only purchase permanent carbon removal credits, which are typically more costly, and less widely available making this route less desirable and achievable for smaller businesses.

An overview of Corporate Sustainability Standards: 

<h2>Benefits to Corporate Sustainability Standards for your business</h2>
Navigating corporate sustainability standards can be a daunting process, with so many to choose from it’s difficult to know which is going to be right for your business. Understanding and adhering to these frameworks can be of great benefit to your organisation, driving greater transparency, economic benefits and the opportunity to contribute to global decarbonisation efforts.

<h2>Are you ready to take climate action?</h2>
Our team of experts can help your business tackle the hurdles of corporate sustainability standards in the UK. If this guide has inspired your business to start funding climate action, talk to our team today.

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