What is the air quality index, how does it work, why is it important in today’s society as climate change progresses, and how can air quality index be improved?

What is the Air Quality Index?

Many people may not realize that some of the most harmful pollutants there are in the world exist in the atmosphere, better known as air pollution which is calculated by air quality index – or AQI for short. 

Air quality index is becoming an important tool to help measure the quality of the air and the harmful effects that air pollution poses, given many wildfires and subsequent wildfire smoke have been occurring as a result of global warming and increased human activity. 

What is the air quality index, how does air quality data work, why is it important in today’s society as climate change progresses, and how can air quality index be improved?

What is the air quality index and how does it work?

The air quality index is a method to report the daily air quality to communicate how polluted it is in a certain area. Ultimately, the air quality index is beneficial because it can help prevent people with increased health risks from exposing themselves to poor air quality and suffering from the consequences of air pollution.

The AQI, or Air Quality Index, works by determining the health effects someone may have after a few hours to a few days of being exposed to excessively polluted air. In addition to this, the Environmental Protection Agency (EPA) helps to calculate the Air Quality Index (AQI) with the help of the five major  pollutants regulated in the Clean Air Act: 

The EPA has established various air quality standards for each pollutant to encourage the country to improve malicious exposure to the public. 

👉 Ground-level ozone and airborne particles are the two pollution which are most detrimental to human health and safety in the United States – as these two major pollutants can elicit more serious health effects and can easily raise a health concern for sensitive groups.

A description of what the AQI scale means for the air we breathe.

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The AQI Explained

Air Quality Index (AQI) is measured with the help of the EPA on a numerical scale ranging from 0 to 500 – with lower numbers demonstrating better air quality and higher numbers correlating to worse air quality.

💡 The lower the number is, the more there is little or no risk to experiencing the negative health effects of pollutants such as sulfur dioxide, carbon monoxide, and more. 

<table>
  <thead>
    <tr>
      <th>AQI Range</th>
      <th>Air Quality Category</th>
      <th>Health Implications</th>
    </tr>
  </thead>
  <tbody>
    <tr>
      <td>0-50</td>
      <td>Green = Good</td>
      <td>Air quality is fine and does not pose a health risk.</td>
    </tr>
    <tr>
      <td>51-100</td>
      <td>Yellow = Moderate</td>
      <td>Air quality is fair, but there could be some pollutants that could prove sensitive for some people.</td>
    </tr>
    <tr>
      <td>101-150</td>
      <td>Orange = Unhealthy for Certain or Susceptible People</td>
      <td>Those sensitive or susceptible to air pollution may have side effects, but the general public isn’t as likely to be affected.</td>
    </tr>
    <tr>
      <td>151-200</td>
      <td>Red = Unhealthy</td>
      <td>People in good health may feel the effects of the current air quality; sensitive people may have serious effects.</td>
    </tr>
    <tr>
      <td>201-300</td>
      <td>Purple = Very Unhealthy</td>
      <td>Emergency health warnings may be necessary as air quality starts to affect the majority of the population.</td>
    </tr>
    <tr>
      <td>301-500</td>
      <td>Maroon = Hazardous</td>
      <td>Health alerts are crucial as everyone is prone to experience severe health side effects.</td>
    </tr>
  </tbody>
</table>


👉 Think of the air quality monitoring like the stadiometers used at the amusement park for people to measure their height. The taller someone is, the higher they stand on the stadiometer – just like the Air Quality Index. The higher the number on the “ruler” or scale for AQI value, the worse the current air pollution is and the more cause for concern in terms of public health.

An Air Quality Index (AQI) of 50 or below is generally representative of good air quality, whereas an AQI of over 300 is worrisome and represents a dangerous Air Quality Index.

Air Quality Index levels that are above 100 are concerning to the general public – as it starts to have a serious impact on vulnerable groups of people: such as those who are pregnant, children, those with pre-existing health conditions, and the elderly. 

👉 The Air Quality Index (AQI) is split into six, color coded categories to help make it easier for people to recognize Air Quality Index faster and take the necessary precautions to protect themselves from poor air quality.

The Air Quality Index (AQI) is important because it is the primary method used to communicate the current air quality to ensure the public remains informed of the current levels of air pollution. 

However, there are more reasons besides being a means of communication why the Air Quality Index is important. For instance, the Air Quality Index can help people to understand why they have developed new allergies or health circumstances by learning about the concentration of pollutants in the atmosphere where they live. This can help people learn which medications and precautions to take to protect themselves from poor air quality in the future. 

 💡As a result, the Air Quality Index can help raise awareness on the importance of seeking to improve the air quality in the United States. 

How does air quality data help in the fight against climate change?

Unbeknownst to most, the Air Quality Index can also serve as a tool to understand the impact of our daily human activities on pollution. This is because a high Air Quality Index is often a result of rising greenhouse gas emissions. Therefore, the Air Quality Index can encourage us to become more sustainable and develop innovative ways to reduce our carbon footprint.

Lastly, the Air Quality Index can serve as numerical data to persuade policymakers and public health agencies to develop new, up-to-date environmental policies. In other words, old environmental legislation will not be effective in a world where 70,000 wildfires occur every year. Documented proof of poor air quality may help to send government and other officials to the edge to pass legislation that could actually work to help improve poor air quality.

💡 Air Quality Index (AQI) can help to prevent people susceptible to lung or cardiovascular health problems from being exposed in poor air quality for too long. 

Think of air quality index in a similar way to people with diabetes that measure their blood sugar before deciding to eat something or not – air quality index works in a similar way as it can help people to monitor their intake of polluted or toxic substances in the air. Just like someone with diabetes and sugar, someone vulnerable to poor air quality doesn’t have to limit their exposure outside entirely – but the air quality index can help them to avoid being outside when air pollution is at its worst.

👉 Ultimately, the Air Quality Index is imperative to spread awareness, encourage governments to create stronger environmental legislation to improve the current air quality, and to protect the health of Americans.

Why was the Air Quality Index (AQI) in New York City alarming?

In June 2023, wildfire smoke took over the New York City skyline as a result of wildfires in Canada that same year. This led to record-breaking air pollution, with New York City recording some of the worst air quality across the world during its smoggy week in summer 2023.

Here are some reasons why the Air Quality Index in New York City was concerning:

Amount of Fine Particles in the Air –  A smoky NYC skyline saw an AQI that exceeded 400, which is far beyond the "healthy" air quality data – meaning that the air was filled with numerous fine particles which could cause people to experience health effects.

Health Effects of Long-Term Exposure – These conditions lasted in NYC for several days, making the city (home to around 8 million people) unhealthy for sensitive groups as it made them more susceptible to effects such as chest pain, difficulty breathing, throat irritation, and even heart disease. Furthermore, residents of the city reported other respiratory issues – such as eye irritation and increased risk to asthma.

Impact to Groups Unusually Sensitive – The air quality forecast in NYC during June 2023 made almost everyone sensitive to air pollution, as emergency conditions were sent out to millions of New Yorkers to advise that outdoor activities, such as school sports and public events – were canceled or postponed. This demonstrated how even young, healthy resdients of a vibrant city such as New York can remain vulnerable to the effects of climate change – as it can have an impact on your personal life.

"Wildfires are likely to become more common with climate change, so it is critical that we examine public health impacts and risks associated with these events." – Dr. James McDonald, State Health Commissioner.

The New York State Department and New York City officials advised all residents to use masks and stay indoors as much as possible, which then inspired public awareness campaigns which highlighted the negative impacts of remaining exposed to wildfire smoke for too long. 

👉 Furthermore, the New York State Department released a study in June 2023 after the wildfire smoke on its impact on people with asthma to pinpoint the dangerous effects of climate-change induced weather. 

 💡 Ultimately, the wildfire smoke in a location as reputable as NYC illustrated the need to further dedicate ourselves to environmental conservation – as the event demonstrates the growing frequency of weather-related impacts as a result of climate change. 

What are some places in the world with the best and worst air quality index?

Unfortunately, mass production and the spike of the industrial revolution have resulted in most major cities across the globe falling subject to a poor rating on the Air Quality Index. However, that being said – there are some cities that have exceptionally poor air quality.

Places with the worst air quality (Worst AQI)

Here are a few of the world’s cities with the worst Air Quality Index:

With the population of the metro area of this bustling Asian city totaling to almost 33 million people, Delhi has some of the worst air quality in the world – with an Air Quality Index of 202. This puts Delhi in the purple (or very unhealthy) range for the Air Quality Index.

Ranking 125, or orange (unhealthy for vulnerable people) on the Air Quality Index, this South American city has relatively low air quality according to the Air Quality Index.

Home to new architecture and a melting pot of cultures, this middle eastern city ranks 117, also orange (unhealthy for vulnerable people) on the Air Quality Index – large in part from excessive vehicle emissions.

Places with the best air quality (Best AQI)

However, not all cities struggle to prevent toxic particles and pollutants from making a home in their sky. 

Here's a list of cities with some of the best air quality in the world:

It isn’t just all the fresh mountain air that makes Switzerland smell so crisp, and though it certainly doesn't hurt – Zurich and Switzerland as a whole have some of the best air quality in the world in part due to the city's strong efforts to reduce pollution from vehicles. This has been done by ensuring public transportation such as trams are always provided.

👉 Did you know that all tourists staying in hotels in Switzerland are always offered a complimentary public transportation pass? This is how the country encourages even travelers to reduce their carbon footprint and improve air quality.

Secluded in between mainland North America and Europe, this city often makes use of its own geothermal energy to prevent the need to use finite resources such as fossil fuel – giving Reykjavik an Air Quality Index of 15.

South of Sydney and east of Canberra, this Australian city has an Air Quality Index of 50, making it one of the least polluted cities in the world with good air quality.

Is there a way that cities like Dubai, Delhi, and Santiago can improve their Air Quality Index?

Besides with stricter environmental legislation and national programs such as the Clean Air Act – there are many things that people can do in their daily lives to help improve the Air Quality Index in their area.

For starters, one of the best things that people can do is to drive their cars less – opting to bike, walk, or use public transportation can make a big difference. If this isn’t feasible where you live, investing in an electric car or other kinds of electric vehicles may be worthwhile – and under Biden’s Inflation Reduction Act of 2022, you’ll be subject to a tax reduction. This can also help to reduce gas consumption, which is another culprit of a poor rating on the Air Quality Index.

Making sure your car remains in top condition is another way to ensure that excess emissions are being prevented, in a similar way it’s important to rinse your razor for a cleaner shave or empty your backpack from heavy items so you can walk faster. 

👉 A poor rating on the Air Quality Index is often a result of excessively using vehicles that make use of gasoline.

Small things like aiming to recycle and prevent the use of plastic can also help to improve the Air Quality Index. This is because plastic can cause greenhouse gas emissions which pollute the air.

Ultimately, the Air Quality Index serves as a great tool to tell us the current quality of the air outside and to protect people from getting sick – but how we move forward with that data and strive to improve the Air Quality Index for current and future generations is the most useful thing we could all do with that data.

If reading this article the Air Quality Index (AQI) has made you interested in reducing your carbon emissions to further fight against climate change – Greenly can help you!

The Air Quality Index (AQI) U.S. is just one of the many environmental policies, methods, and tools being developed to take control of climate change. Check out our legislation tracker here to see which rules your company has to adhere to.

Greenly can help you make an environmental change for the better, starting with a carbon footprint assessment to know how much carbon emissions your company produces.

In this article, we'll explore the insights from the Greenly Scientific Council's Annual Review on carbon accounting, sustainability, and ESG strategies, highlighting the evolving trends and practices in sustainable business.

The 2024 Review of Greenly's Scientific Council

The Greenly Scientific Council's Annual Review is a gathering of experts, offering insights and discussions in the fields of carbon accounting, sustainability, and ESG strategies. In this article, we delve into the key topics raised: from carbon accounting methodology to the evolving role of corporate social responsibility, the learnings shared by the Council's professionals offer a clear view of the current and future state of sustainable practices in business. 

Greenly's Scientific Council: A blend of experience and expertise 

Greenly has assembled a diverse team of professionals comprising experts, economists, and influential figures from civil society. Their expertise ranges across a variety of areas such as carbon accounting, environmental policy, and the advancement of new technologies. 

Greenly’s Scientific Council will progressively perform  a number of crucial functions: 

Sharing of research topics to inspire Greenly’s product developments

The Scientific Council plays a supportive role in Greenly’s product development by providing insights from recent academic research. This collaboration helps inform Greenly's approach, contributing to the ongoing evolution and refinement of its products. 

Enhancement of Greenly’s methods and results

Greenly's Scientific Council brings together a diverse range of expertise to offer valuable advice and insights. We plan to make sure this contributes to the enhancement of Greenly’s methods and results, ensuring the company stays informed and aligned with relevant scientific perspectives.

Discussion of possible research opportunities using Greenly’s operational insights

The Scientific Council engages in discussions about potential research opportunities using Greenly’s operational data. This initiative aims to identify areas where Greenly's extensive data might contribute to advancements in environmental science. While still in the early stages, these efforts have the potential to provide valuable, data-driven insights to both Greenly and its clients.

This year, the Greenly Scientific Council had the pleasure of welcoming speakers and annual review participants, each a leader in their respective domains. Attendees were as follows:

François Cluzel - Professor at Centrale Supelec, design engineering and sustainable systems expert

Loic Umbricht - Head of Research and Methodology at Greenly

Marine Kohler - Carbon Accounting Engineer at Greenly

Michel Bauer - Author, sociologist and economist

Natalia Costa i Coromina - Associate at Energy Impact Partners

Paul De Kerret - Engineering Manager and Technical Lead at Greenly

Peter Foxpenner - Partner and Chief Impact Officer at Energy Impact Partners

Philippe Ciblat - Professor at Telecom Paris

Rodolphe Durand - Strategy and Business Policy Professor at HEC

Yann Leroy - Professor at Centrale Supelec, sustainable industrial systems and innovation engineering expert

These experts offer a wide variety of insights and advice, addressing pressing ESG issues and emerging developments. Their varied backgrounds enable the council to provide well-rounded, forward-thinking guidance, crucial for navigating the complex landscape of carbon accounting and environmental, social, and governance challenges.

Transcript
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Greenly - The go-to carbon accounting platform for your business!

Every year, Greenly's Scientific Council holds an annual review to evaluate Greenly's progress and present the latest research in carbon accounting and ESG. 

💡 Complementing this key annual event, Greenly is also planning to conduct monthly events on specific topics, bringing in diverse presenters to explore various facets of environmental sustainability. This approach not only highlights Greenly's ongoing commitment to progress but also fosters continual learning and discussion throughout the year.

As we explore the key findings of this year's Annual Review, we uncover what industry experts identify as the most critical issues. These observations not only illuminate the main challenges currently facing the sector but also offer perspectives on potential future developments within the industry. Let’s delve deeper into the primary topics discussed.

The need for more granular emission factors

Accurate carbon assessments hinge on the granularity of emissions factors, with the most detailed being those directly linked to specific companies and their products, calculated through comprehensive life cycle analysis. This level of detail is crucial for clients making environmentally responsible decisions, such as choosing sustainable suppliers or products. Relying solely on average emissions factors means that clients risk selecting suboptimal or even harmful options.

💡 For clients intent on implementing impactful environmental action plans, the use of average emissions factors can impede the realization of meaningful change in total emissions. In contrast, highly granular emissions factors offer a more precise approach.

The complexity of supplier-level emissions factors

Acquiring granular emissions data at the supplier level can be challenging. Few suppliers disclose their greenhouse gas emissions, and even fewer provide comprehensive life cycle assessments. Moreover, data quality varies significantly due to the use of different software and data formats, posing a challenge for comparison.

One potential solution to this issue lies in the adoption of a common framework, such as the Partnership for Carbon Transparency, applicable to life cycle assessments (LCAs). Such standardized frameworks provide data-sharing guidelines, directing companies on the type of data that they should be collecting and helping to ensure that data is published in a certain format. This facilitates the sharing of emissions factors in a consistent and comparable manner. 

👉 Although the Partnership for Carbon Transparency establishes foundational guidelines for collecting comparable data, Greenly recognizes that this framework alone may not be sufficient. To address this gap, Greenly takes additional measures, going beyond the standards to enhance data comparability and accuracy, ensuring a more robust and reliable approach to environmental reporting.

Greenly's supplier-specific emissions factors collection methods

Data collection and emissions factor accuracy are always hot topics in the world of carbon accounting, and at Greenly, it’s not something we take lightly. We strive to achieve the most accurate carbon footprint calculations through rigorous and scientifically informed methodology. 

When it comes to supplier emissions factors, at Greenly we collect data in two ways: 

Monetary emission factors (spend-based method) - Calculating emissions based on a supplier's greenhouse gas (GHG) inventory divided by their revenue. Greenly adheres to strict criteria to ensure the reliability of monetary emissions factors by employing minimum criteria. This includes assessing whether the supplier's GHG assessment is complete, assessing the revenue disclosures, and also conducting a benchmark check to ensure that the data provided meets certain minimum standards. 

Activity-based emission factors - The second method used by Greenly is the activity method, which involves detailed product life cycle assessments. This method is more complex, as comprehensive LCAs are not always available. As is the case with monetary emission factors, Greenly validates such data against benchmark values to ensure accuracy.

Although spend-based emissions factors are not as precise as activity-based emissions factors, they do have their advantages. They are more scalable, making them a more accessible option for companies calculating their Scope 3 emissions. Encouraging businesses to engage in this calculation is beneficial. However, it’s important to note that activity-based data is superior in accuracy and should be preferred whenever feasible. Greenly not only recognizes the importance of monetary emissions factors but also strongly advocates for and assists clients in conducting activity-based studies, aiming to make their use as accurate as possible through rigorous methodology.

Emissions factors are integral to Greenly and its clients. Our goal is to ensure these factors are of the highest quality for the most accurate carbon footprint calculations. We strive for our computations to be auditable, regulation-compliant, and of verified quality while being easily shareable with clients and suppliers.

Greenly delves deep into data collection, starting with spend-based factors and progressing to activity-based and individual supplier data analysis. We’re committed to attaining the most precise and reliable data possible, reflecting our dedication to environmental accuracy and accountability.

The Transformative Impact of CSR Initiatives: Insights from Rodolphe Durand

Rodolphe Durand, a distinguished Professor at HEC, delved into the evolving role of Corporate Social Responsibility (CSR) in modern businesses. His highly informative presentation highlighted a shift within the business sector from a sole focus on shareholder value maximization to a broader consideration of all stakeholders, including communities and the environment. This approach is not just ethically sound, but is also a catalyst for long-term value creation.

Shareholder perception and the value of CSR  

Durand's research revealed a growing recognition among shareholders of the intrinsic value of CSR, albeit with certain caveats. Long-term investors, in particular, are increasingly conscious of climate risks and seek to safeguard their investments accordingly. Asset managers are also responding by developing new categories, such as funds focused on ESG investments.

An analysis of companies listed on the Dow Jones Sustainability Index (DJSI) indicated that announcements of CSR initiatives don't necessarily lead to immediate stock value changes, suggesting that the market often preemptively prices in these factors. However, the study also found that long-term investors are more likely to invest in these companies upon the release of such indices. This behavior indicates growing investor interest in companies that actively engage in CSR, recognizing their potential for long-term value.

Shareholder activism and CSR transparency

Another interesting learning focused on shareholder activism, which intensifies with an increase in a company's CSR initiatives. Activists often target vague or superficial CSR efforts, highlighting the importance of transparency and authentic commitment. Companies that clearly communicate and sincerely implement their CSR strategies are more resilient to such activism, emphasizing the need for genuine and impactful communication strategies to effectively dispel any perceptions of 'greenwashing'. 

Further studies underscore the multitude of benefits associated with robust CSR practices. These include enhancing operational efficiency, spurring innovation, maintaining competitiveness during crises, and unlocking financing opportunities like green bonds and loans which are often contingent on achieving specific CSR objectives.

CSR is also hugely beneficial for companies when it comes to employee satisfaction. Studies show that a vast majority of employees value a purpose-driven workplace (82%), with many placing this above profit (72%). This sentiment translates into enhanced job performance, as employees feel more motivated and aligned with their company's values and CSR commitments.

Advancing circular economy and eco-design: Insights from François Cluzel 

François Cluzel, a renowned Mechanical Engineer and leader of the Design Engineering Research Group at Laboratoire de Génie Industriel (LGI) from the French engineering school CentraleSupélec, shared insights into the circular economy and eco-design. His research offers valuable strategies for integrating eco-design into the early stages of a product's lifecycle.

Integrating eco-design in the product lifecycle

Cluzel's discussion emphasized the complexities of incorporating eco-design in production processes. Achieving sustainability in both materials and manufacturing methods is challenging, requiring the integration of eco-design at the beginning, or upstream phase, of a product's lifecycle. This stage, often intricate and lengthy, plays a crucial role in shaping the product's overall environmental impact. It's not just about selecting sustainable materials; it involves embedding eco-conscious practices into every step of the production process.

This is why developing an eco-friendly design for the entire system presents significant challenges. Often, the complexity and scope of these processes make conducting a full life cycle assessment impractical. However, the emphasis remains on the importance of incorporating these sustainable practices as early as possible in the product's development to ensure a more environmentally responsible end product.

Environmental risk as an alternative to life cycle assessment

When full life cycle assessments are impractical, Cluzel suggests environmental risk assessment as an effective alternative. This approach is considered to be more accessible and understandable, focusing on assessing potential environmental risks rather than the environmental impacts. These assessments typically draw from high-level analyses of previous life cycle assessments, offering a pragmatic way to gauge environmental footprints.

Another area of discussion was on how small and medium-sized enterprises (SMEs) can adopt and maintain a circular economy model. The proposed methodology involves identifying key areas of impact (such as activities, materials, and processes), and formulating short, medium, and long-term strategies, accompanied by continuous monitoring to assess effectiveness. This approach provides SMEs with a practical roadmap to embrace circular economy principles.

Eco-design in electronics and space systems

The discussion also touched upon two additional areas of interest:

Electronics repair and usage - The challenges in this sector include dismantling processes, the compatibility of reused components, and the availability of spare parts, all crucial for the effective recycling and reuse of electronic devices.


Circular space and terrestrial systems - François Cluzel highlighted the intriguing aspect of life support systems used in space missions. These systems, which recycle essentials like waste water and air for space crews, offer innovative solutions that can be applied here on Earth - for example, advanced wastewater recycling systems are highly relevant to our Earth-bound society. Moreover, the models developed for these systems can be adapted to monitor Earth's life systems, showcasing the potential of space technology in enhancing terrestrial sustainability.

Evaluating investment impact and advancing net zero goals: Insights from Peter Foxpenner

Peter Foxpenner, Partner and Chief Impact Officer at Energy Impact Partners, led a discussion on aligning investment strategies with net zero initiatives. His insights shed light on the critical role of investments in driving the clean energy transition.

Broad spectrum investment in clean energy

Energy Impact Partners stands out for its extensive investment across the entire clean energy spectrum, including support for several pre-revenue companies - ie. those yet to commence product sales. Their latest ESG report, the "Impact & ESG Performance Report" of 2023, is a testament to their commitment to transparency, offering a detailed analysis of emerging ESG trends and key observations.

Measuring ESG benefits through carbon savings

One of the key metrics used by the firm to assess the ESG impact of companies in their decarbonization portfolio is carbon savings. This measure reflects the extent to which investments contribute to emission reductions. Notably, these savings have shown significant yearly increases, underscoring the effectiveness of ESG investments in promoting environmental sustainability.

For companies in the pre-commercial phase, ie. those not yet generating revenue, a key metric is the projection of carbon savings. This involves estimating potential sales over a set period - Energy Impact Partners Use a five-year projection period for example - and consequently calculating the projected carbon savings during this time. It's important to recognize that while these figures are based on detailed and complex calculations for the initial five years of commercial operation, they are projections and not absolute certainties.

❗️When relying on such a metric, attention must be paid to the timeframe of the projection. A shorter span, like a five-year period, typically offers more accuracy compared to longer projections, such as those spanning thirty years. Careful consideration of the projection period is crucial to ensure the reliability and relevance of the estimated carbon savings.

The challenge of methodological consistency

A significant challenge in the ESG investment sector is the lack of a standardized methodology for impact calculations. Various firms employ different emissions factors and methodologies, leading to inconsistencies in assessments. Adopting uniform emissions factors and data sources could enhance comparability across the sector, but achieving full standardization remains a challenge. 

The Greenly Scientific Council Annual Review provides a unique opportunity to gain wisdom from leading experts in the fields of carbon accounting, sustainability, and Environmental, Social, and Governance (ESG) issues. This event not only showcases the depth of knowledge and experience possessed by these esteemed professionals but also serves as a testament to Greenly's commitment to staying at the forefront of the rapidly evolving ESG landscape.

Through the gatherings of the Scientific Council, Greenly facilitates the sharing of cutting-edge research, innovative strategies, and critical insights, all of which are essential for navigating the complexities of today's environmental challenges.

In this year's Annual Review, we had the privilege of gaining insights from leading experts in various domains. Rodolphe Durand, a distinguished Professor at HEC, enlightened us on the evolving role of Corporate Social Responsibility (CSR) in modern businesses, emphasizing the shift towards considering all stakeholders. His presentation highlighted the ethical and long-term value aspects of this shift. 

François Cluzel, a renowned Mechanical Engineer and leader of the Design Engineering Research Group at Laboratoire de Génie Industriel (LGI) shared valuable strategies for integrating eco-design into product life cycles. His insights underscored the challenges and importance of early-stage sustainability. 

Peter Foxpenner, Partner and Chief Impact Officer at Energy Impact Partners, discussed aligning investments with net zero initiatives, emphasizing the role of investments in promoting environmental sustainability. Together, these diverse perspectives provide a comprehensive understanding of the current landscape and future directions in ESG practices, reflecting the dynamic and forward-thinking discussions at the Greenly Scientific Council Annual Review.

💡 As Greenly continues to harness the collective intelligence of its Scientific Council, it reinforces its position as an authority in the ESG domain. By bringing together the brightest minds in the field, Greenly is not only contributing to the ongoing discourse on sustainability but is also shaping the future of environmental stewardship.

At Greenly we can help you to assess your company’s carbon footprint, and then give you the tools you need to cut down on emissions. Why not request a free demo with one of our experts - no obligation or commitment required. 

If reading this article has inspired you to consider your company’s own carbon footprint, Greenly can help. Learn more about Greenly’s carbon management platform here. 

What are carbon offsets? How do they contribute to the fight against climate change? And should your company be investing in them?

Top 5 Carbon Offset Projects

In today's world, increasingly focused on environmental responsibility, carbon offsetting is seen as a useful strategy for both individuals and organizations who want to reduce their carbon footprint. This strategy involves a commitment to projects specifically designed to reduce or eliminate carbon emissions, helping to create a greener future.

With an ever-expanding carbon offset market, the initiatives are increasingly diverse and impactful, ranging from reforestation efforts to advanced renewable energy technologies. Join us as we explore the top five carbon offset projects that are not only leading the charge in ecological preservation but are also reshaping our approach to sustainable living.

First up, let's define what the term 'carbon offset' actually means. In a nutshell, a carbon offset is a way to compensate for emissions by funding an equivalent carbon dioxide saving elsewhere. 

It's a method used by individuals and businesses to balance out their carbon footprints. This involves investing in environmental projects around the world that reduce future emissions or absorb carbon dioxide already in the atmosphere. These projects can range from renewable energy initiatives to reforestation efforts. The goal is to create a net zero carbon footprint by offsetting the amount of carbon dioxide (or carbon dioxide equivalent) one produces with an equal amount of reduction or removal elsewhere. 

Learn more about carbon offsets in our blog.

A carbon offset credit represents an emission reduction of 1 metric ton of carbon dioxide. The goal of carbon offsetting is to reduce all or a portion of a carbon footprint. They are typically used in regulatory or compliance markets, where governments or regulatory bodies set a cap on the amount of carbon dioxide that can be emitted. Companies are allocated or can purchase a certain number of credits, each representing the right to emit a specific amount of carbon dioxide. If a company emits less than its allowance, it can sell its excess credits to another company that is over its limit. 

Find out more about carbon credits in our dedicated article. 

On the other hand, a carbon offset more broadly refers to a reduction in greenhouse gas (GHG) emissions – or an increase in carbon storage – that is used to compensate for emissions that occur elsewhere. Carbon offsets are more commonly associated with the voluntary carbon market. Individuals or companies purchase offsets to mitigate their own carbon emissions, often as part of their sustainability goals. 

While both mechanisms aim to reduce overall carbon emissions, carbon credits are often part of a mandatory, regulated system, whereas carbon offsets are typically voluntary actions taken to achieve carbon neutrality or positive environmental impact.

This short explainer video by SOS Ecological explains what Carbon Offsetting is. You may have heard of a 'Carbon Footprint', or 'Climate Change' but what exactly is Carbon Offsetting and how can it help the environment?

What is Carbon Offsetting?

The principle of carbon offsetting lies in the idea of balancing out greenhouse gas emissions by funding projects that reduce or remove an equivalent amount of carbon from the atmosphere. The process begins with the measurement of the amount of carbon emissions produced by an individual or an organization. Once this carbon footprint is quantified, the equivalent amount of emissions can be offset through various environmental projects.

These projects might include renewable energy initiatives like wind or solar power, reforestation efforts, or even investing in technology that captures carbon directly from the air. The key is that for every ton of carbon emitted, an equivalent ton must be removed or prevented elsewhere. This approach allows individuals and companies to take responsibility for their environmental impact in a proactive manner, while also helping to reduce global emissions.

By investing in these carbon offset credits, not only do you compensate for your own emissions, but you also support sustainable practices and innovations that contribute to a broader environmental benefit. 

While carbon offsetting is a valuable tool in the fight against climate change, it's important to remember it complements, rather than replaces, the need for direct emission reductions.

To learn more about how carbon offsetting and removal works why not read our article. 

Does carbon offsetting reduce carbon emissions? 

The role of carbon offsetting in reducing carbon emissions is complex. Carbon offsets work by counterbalancing emissions that have already occurred. They are a reactive measure, allowing individuals and organizations to invest in environmental projects that reduce or absorb carbon dioxide, effectively balancing out their own emissions. However, it's crucial to note that while offsets can compensate for emissions, they don't directly prevent them.

The effectiveness of carbon offsetting in reducing overall carbon emissions depends largely on the nature and execution of the projects funded. For example, investing in renewable energy projects or reforestation can have a long-term positive impact on the environment. These projects can contribute to a decrease in future emissions or increase carbon sequestration, which is beneficial for the environment.

However, it's important to recognize that carbon offsetting is not a cure-all solution. The ideal approach to tackling climate change is a combination of reducing emissions at the source and offsetting the remaining, unavoidable, emissions. In other words, while carbon offsets are valuable, they are most effective when used as part of a broader strategy that includes direct actions to reduce emissions. This might involve adopting cleaner technologies, enhancing energy efficiency, or changing business practices and lifestyles to be more sustainable.

Carbon offsets are a meaningful step towards mitigating climate change, but they should be viewed as part of a larger, multi-pronged approach to environmental sustainability. True progress requires both preventive measures to reduce emissions and reactive measures like carbon offsetting to deal with emissions that are unavoidable.

Undoubtedly, carbon offsets can have a positive impact on the environment and society. They fund projects that aim to reduce greenhouse gas emissions, like renewable energy initiatives, reforestation, and efforts to improve energy efficiency - especially in underprivileged communities. These projects not only help to balance carbon emissions but also often bring additional benefits like biodiversity conservation, improved air quality, and socio-economic development in developing countries. By investing in carbon offsets, organizations can demonstrate their commitment to environmental responsibility and sustainable development.

However, there are limitations to what carbon offsets can achieve. One of the primary concerns is that they can create a sense of complacency. For example, a company might continue environmentally harmful practices while relying on offsets to balance their emissions, rather than taking direct action to reduce their carbon footprint. The issue is that carbon offsets don’t address the root cause of the problem - i.e. the ongoing emission of greenhouse gases. 

Moreover, the effectiveness of carbon offsets depends on the quality and longevity of the projects they fund. There's a risk that some offset projects may not deliver the long-term environmental benefits they promise.

Take the example of a tech giant like Apple. Apple continues to release new versions of the iPhone or Macbook annually, even if the technological modifications are minor and mainly for aesthetic purposes.

The iPhone doesn’t change that much each year, but consumers want the newest thing and so Apple products remain a success. However, the never-ending production of the iPhones is detrimental to the environment. If we all kept our current iPhones for longer than a year, there would be less technology that inevitably gets thrown away – a practice that ultimately contributes to landfills. 

A company like Apple is probably more concerned about their profit margin and staying on trend, but consumers increasingly care about the environment and so companies are under pressure to demonstrate their commitment to sustainability.

Apple, for instance, implements programs like device trade-ins as a gesture towards environmental responsibility. This initiative allows consumers to exchange their old devices, offsetting the cost against the purchase of new ones. By doing so they not only promote the idea of recycling and reducing e-waste but also align with the growing environmental concerns of its customer base.

Yet, this approach of offsetting emissions fails to address the true impact of carbon emissions. The endless demand and production of new products inevitably contribute to carbon emissions - something that is not fully compensated for by recycling or trade-in programs alone. The frequency with which consumers upgrade to newer models plays a significant role in driving production cycles, which in turn affects the company's carbon footprint.

Therefore, while initiatives like Apple's trade-in program are steps in the right direction, they also highlight the need for a deeper change in both corporate strategies and consumer behaviors. It's not just about balancing emissions through offsets, it's also about fundamentally changing consumption patterns and corporate practices to prioritize long-term environmental health over short-term gains. So, while carbon offsets are valuable, they need to be part of a larger strategy that includes direct efforts to reduce emissions.

Is it really possible to buy your way out of creating harmful greenhouse gases that cause climate change?

Governments, companies and individuals already participate in carbon offsetting schemes that try to balance their emissions by finding other ways to reduce carbon in the atmosphere by an equivalent amount.

Can carbon offsetting help the planet? - BBC News

When considering whether to invest in carbon offset projects, it's important to understand their role and effectiveness. Carbon offsets are valuable for balancing out emissions, but they don't stop these emissions from entering the environment initially.

Therefore, the decision to invest in a carbon offset project should be strategic. It's most beneficial when a company or individual has already taken steps to reduce their primary carbon emissions and has the financial capability to contribute further. Investing in carbon offsets can then be an additional measure, complementing direct emission reduction efforts.

With so many carbon offsetting options on the market these days it can be difficult to know what to look for when selecting a project. For companies committed to genuine environmental impact, it's important to select the most impactful and reliable ones. Let us help demystify the process. 

Common types of projects within these programs include:

Forestry projects - These focus on reforestation, tree planting, and preventing deforestation, playing a crucial role in carbon sequestration.

Methane capture - Targeting one of the most potent greenhouse gases, methane capture projects aim to reduce emissions from landfills and agriculture.

Renewable energy projects - Investments in wind farms, hydroelectric power plants, and other renewable sources help reduce reliance on fossil fuels.

Direct carbon capture - Advanced technologies that directly remove carbon dioxide from the atmosphere or industrial emissions.

Key factors to consider to ensure the effectiveness of the carbon offset project:

Third-party verification and credibility - Opt for programs that are verified by reputable third parties. This ensures that the carbon offsets are real, quantifiable, and make a genuine difference in reducing CO2 emissions. 

Tangible and measurable impact - Choose programs where the impact on CO2 emissions can be clearly measured and is permanent. The program should have a transparent method for quantifying its environmental benefits, ensuring that your investment is actually contributing to reducing carbon emissions.

Efficient management and supervision - A well-managed program that is run efficiently and with transparency is more likely to achieve its goals. Look for programs that have a track record of successful implementation and are managed by competent, experienced teams.

Community benefits - Consider programs that go beyond just offsetting carbon emissions and also provide socio-economic benefits to local communities. This could include job creation, biodiversity conservation, or improved local environmental conditions. Programs that positively impact local communities tend to have a more sustainable and long-lasting effect.

Compliance with international standards - Ensure that the program adheres to international standards and best practices in carbon offsetting. This not only lends credibility to the program but also ensures that your investment is contributing towards globally recognized environmental goals.

When selecting a carbon offset program, it’s vital to look beyond the surface and evaluate the program’s real impact, management, community benefits, and adherence to high standards. This thorough approach helps prevent the risk of ‘greenwashing’ and ensures that your investment genuinely contributes to combating climate change.

Let's explore the top 5 carbon offset projects that stand out for their impact and innovative approaches:

Terrapass emerges as a frontrunner in combating climate change. With a mission centered on reducing carbon footprints, Terrapass offers a variety of projects for both individuals and businesses. Their initiatives range from renewable energy to methane capture and landfill gas capture, all verified by third parties for their effectiveness. Terrapass has made a significant impact by providing accessible options for anyone looking to make a positive environmental change.

Specializing in air travel, Atmosfair focuses on reducing carbon emissions caused by flights. They offer various subscription models to offset the carbon footprint of your air travel. Atmosfair's user-friendly approach, complete with a personal certificate for contributions, makes it a go-to choice for environmentally conscious travelers - whether it’s for business travel or leisure. 

Operating globally, Myclimate aligns its carbon offset projects with the UN Sustainable Development Goals. Their diverse projects cover areas like hydropower, energy efficiency, land improvement, and water purification. Transparency is key for Myclimate, as evidenced by their annual ESG reports and third-party project certifications.

With the rise of e-commerce, Carbon Checkout provides a seamless way to integrate carbon offsetting into online shopping. Their unique widget allows customers to choose a carbon offset project at checkout, addressing the carbon footprint of their purchases. This integration makes Carbon Checkout a practical option in our increasingly digital world.

Distinguished by its Quality Assurance Standard (QAS) certification for all carbon offsets, Clear offers a wide range of options to offset daily activities. Whether it's your commute, online activities, or even recreational activities like skydiving, Clear provides accessible and diverse ways to balance your carbon footprint.‍‍

If reading this article has inspired you to consider your company’s own carbon footprint, Greenly can help. Learn more about Greenly’s carbon management platform here. 

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