A recent study conducted by Influence Map reveals that 80% of the global CO2 emissions are produced by 57 big companies.​

Industries (energy, agriculture, technology, etc.) are the main emitters of greenhouse gases (GHG), which cause climate change and global warming.

As a consequence of their involvement and in response to international agreements and local laws, industries in some countries (including Mexico) must implement protocols to reduce their carbon footprint in order to continue operations.  

However, when these companies have reduced their emissions as much as technologically possible, they can and should continue to compensate by supporting carbon capture projects such as reforestation, marine protection, or biodiversity conservation. This can be achieved by investing in the so-called carbon credits, which finance such projects. 

What are the carbon offsets?

In the current climate emergency, natural disasters, droughts, floods, rising temperatures, and biodiversity loss threaten the development of society and life on the planet, making it a priority to act against climate change. 

In Mexico, the carbon offset market was established in 2013 as an innovative way to help companies compensate for their emissions.  

These carbon offsets finance carbon dioxide capture projects, such as the protection and reforestation of forests, jungles, and mangroves within the national territory. They can be purchased by companies, organizations, or individuals to comply with their environmental responsibilities. 

What types of companies purchase carbon credits?

In Mexico, the General Law of Climate Change, Article 26, defines environmental responsibility as: 

“Anyone who conducts works or activities that affect or may affect the environments obligated to prevent, minimize, mitigate, repair, restore and, ultimately, compensate for the damages caused…” 

Currently, the carbon credits market is voluntary, meaning their purchase is driven by obligations to shareholders, social commitment, or the economic interest of each company.

So, what types of companies choose to invest in protecting and conserving the environment if they are not required to do so? 

• Multinational Corporations:

Transnational corporations invest in carbon offsets to meet the expectations of their international shareholders. These companies may operate in sectors such as fossil energy, aviation, technology, or telecommunications.

• Small and medium-sized enterprises (SMEs):

Small and medium-sized enterprises (SMEs) are also entering the carbon offset market to reduce their environmental impact or enhance their image as environmentally responsible businesses.  

For SMEs, carbon credits represent an investment, as customers prefer to purchase from “green” companies. 

Acquiring carbon offsets can represent opportunities to attract investors, secure better credit rates and obtain international certifications.  

• Technology Companies:

The technology industry is a key player in the carbon offset market. For instance, the two largest companies in this sector, Microsoft and Google, have made ambitious commitments to reduce their emissionsand have made historic purchases. 

However, their emissions continue to rise significantly; in the case of Microsoft alone, they increased by 29% over three years.  

• High Emission Industries:

Industries such as energy, transportation, and manufacturing emit large amounts of carbon dioxide (CO2) into the atmosphere, prompting them to purchase carbon credits to mitigate their emissions. 

What are the benefits of purchasing carbon offsets for your company?

• Economic Benefits:

In many countries, governments offer tax incentives to companies that participate in emission reduction projects or purchase carbon offsets. These incentives may include tax deductions, tax credits, or reduced income taxes.

In some countries, companies face strict regulations of carbon emissions and must pay fines if they exceed allowable limits. By investing in carbon offsets, they can avoid these fines and reduce the costs associated with compliance with environmental regulations.

In Mexico, six states impose carbon taxes, with the proceeds designated for environmental projects and climate change mitigation and adaptation activities.

Querétaro has the highest carbon tax, levying 580 pesos per ton of CO², while the State of Mexico and Guanajuato charge only 43 and 45 pesos per ton, respectively.  

• Social Benefits:

In addition to the tax breaks, investing in carbon offset can enhance a company’s reputation, positioning it as socially and environmentally responsible in the public eye.  

This can attract both investors and customers seeking companies with sustainable practices, potentially leading to long-term financial benefits.

• Environmental benefits:

Undoubtedly, the most important benefit of the carbon offset is their environmental impact. In a world where the effects of global warming and climate change are increasingly contributing to biodiversity loss, extreme temperatures, and natural disasters, companies have a responsibility to present and future generations. 

Financing environmental projects through the investment in carbon offsets is one way to ensure carbon mitigation that companies cannot achieve alone. In doing so, they directly support the environmental as well as the rural and indigenous communities that have historically protected their territories. 

Sustainable future, a universal responsibility. 

If a company’s profits negatively impact the environment, it is an ethical, moral, and legal responsibility to address this impact. Achieving this will require legislation and public pressure that demand sustainability as a fundamental requirement for corporate operations.