Individual companies, global responsibilities

How you can optimise your company’s sustainability strategy in line with Gold Standard’s new report.?

Greenhouse gas emissions are at an all-time high, and scientists say we are highly likely to breach the 1.5C threshold of global heating. (1) In light of this alarming prognosis, it is more clear than ever that rapid action is needed across all sectors. The new report by Gold Standard (2) has proposed a new model for corporate sustainability that can help companies adapt to the extremity of the global situation. Their new report asks companies to look beyond their own emissions, and instead to think of their sustainability commitments as contributions to the global fight against climate change. This article will explain the new Gold Standard report, and the guidance it offers to companies on how to optimise their sustainability strategy.?

This article in brief:?

• The new Gold Standard report proposes a fundamental shift in focus, from a company’s own emissions, to the global fight against climate change. This marks a step forward from corporate sustainability that focuses only on the company’s own tally of emissions and how to reduce or offset them.?
• The Gold Standard criteria for a robust mitigation strategy are: firstly, working toward organisational net zero, secondly, taking responsibility for historic and ongoing emissions (for example through the voluntary carbon market or other meaningful contributions) and thirdly, non-target related strategies.?
• To work towards this new best practice, companies should contribute to global net zero proportionately to their profits and environmental impact, and focus on contributing to meaningful projects that have benefits beyond their own emission reduction.?

What exactly does the new Gold Standard document say about corporate responsibility??

In May 2023, Gold Standard published a document of “considerations for credible claims”. In this document, they announced a new “paradigm” of “responsibly contributing, at a fair scale, to global Net Zero efforts and beyond.” (3)

The new document outlines best practices for making claims about a company’s environmental commitments. The claims should be measured, transparent, and verifiable, and all varieties of greenwashing should be avoided. The report gives detailed advice on the wording, and how to avoid confusing or misleading consumers. The full report can be accessed here .??

Perhaps most importantly, the document outlines the necessary components of a robust climate mitigation strategy:??

1. Organisational Net Zero status, through value chain abatement (both in the near and long term)?
2. Taking responsibility for historical and ongoing emissions, by financing further climate action. This could include mitigation funds, voluntary carbon markets, or investment in research and development, or advocacy campaigns.?
3. Non-target related strategies, such as:?

• Cessation of any lobbying against positive climate regulation or policy
• Divestment from fossil fuel assets
• Zero deforestation and land conversion in value chains (4)

What has changed??

Legally and financially, nothing has changed overnight for your company with the publication of this document. Gold Standard is a foundation that, among other things, advocates for best practice, and the document only provides discussion, ideas, and ‘how to’ considerations. (5)?

However, the document nonetheless marks a significant step in the progression of corporate sustainability. The new paradigm is crucial to raising the standard, since it increases the expectation of what corporations are expected to take responsibility for. Companies should see the guidance as an opportunity to create broad, diversified, and impactful sustainability strategies.?

Of course, Gold Standard specifies “at a fair scale”, meaning that smaller companies are not expected to make the same level of contributions as large, multinational firms. The contribution should be proportionate to the profits a company makes, and to the impact it has on the environment. The principle was referred to on a panel hosted by Gold Standard as “profit per tonne”. (6)??

The diagram below shows how the Gold Standard guidelines promote a wide-reaching and comprehensive strategy for companies. As illustrated, sustainability efforts were previously focussed on either offsetting emissions, in order to achieve neutrality or “net-zero”, or on reducing emissions. Now, however, a company’s individual impact is only part of the story. Reducing carbon emissions within a company should be done in conjunction with globally-minded climate action.?

How can companies work towards this new standard for best practice??

Since climate action is a decisive concern for consumers, investors, and employees, it is undoubtedly in a company’s best interest to pursue this new standard of best practice. (7), (8), (9)

The Gold Standard report is clear that companies need a holistic strategy, tackling climate change on all fronts, and looking beyond the simple maths of individual “net zero”. To make a start with this, companies can:?

• Cease any lobbying against positive climate regulation, and contribute to advocacy or research campaigns.??
• Review their value chains, understand, and then reduce the biggest sources of emissions.?
• Invest in high quality carbon removal or reduction, and in other environmental projects. This is part of taking responsibility for emissions that cannot be reduced, and historical emissions that the company has emitted. Supporting charities, or buying contributions or credits through the voluntary carbon markets are some ways to achieve this.?
• Companies should prioritise contribution to environmental projects that bring other co-benefits - for example social benefits such as improved access to sanitation, food, water or education, or protection of wildlife and biodiversity.?
• The amount contributed should be scaled according to both emissions and profits.

Klim’s offer to help bring your company in line with the new standard?

Klim can help both food and non-food companies invest in meaningful environmental protection that uses nature-based solutions. Through Klim’s digital platform for farmers, we scale regenerative agriculture, thereby reducing greenhouse gas emissions, and removing carbon dioxide. Regenerative agriculture protects and restores soil - one of the most important carbon sinks on the planet, as well as delivering a range of co-benefits such as improved food security and biodiversity.?

All companies can enhance their sustainability strategy through Klim credits: proof of high quality emission reductions and removals that can be purchased by companies to take responsibility for their unavoidable on-going emissions, or to make a wider contribution to climate action. The credits are verified, and Klim also supports companies with their communication of the benefits to the environment, and the additional co-benefits.?

Food companies can work with Klim to reduce their emissions along their supply chain (instead of, or in addition to, buying credits). Klim works directly with farmers to support food companies that want to tackle the biggest source of emissions: their supply chain.?

Therefore, Klim can help companies achieve several steps towards a Gold Standard climate strategy:

1. Reduce greenhouse gas emissions and remove carbon dioxide from the atmosphere?
2. Reduce your supply chain emissions (food companies only)?
3. Create positive co-benefits, such as improved food-security, food-quality, and protecting biodiversity?

Working with Klim can be part of a comprehensive, responsible, and respectable sustainability strategy with high quality offsetting, and impactful insetting. Learn more about Klim credits here , and more about insetting here .??

Sources: (1 ), (2 ), (3 ), (4 ), (5 ), (6 ), (7 ), (8 ), (9 )