Publications
Publications
- December 15, 2023
- Harvard Business Review Digital Articles
What Every Leader Needs to Know About Carbon Credits
By: Varsha Ramesh Walsh and Michael W. Toffel
Abstract
Many companies have begun to look into credits to offset their emissions as a way to support their net zero goals as their target years get closer and closer. As it stands, the carbon credit market is too small to bear the brunt of reducing companies’ impacts on the environment. However, the voluntary carbon market has the potential to drive billions of dollars over the coming decade into climate solutions. Here, the authors offer a primer for leaders to learn about the carbon credit market. What’s the best way to participate in the market? Which types of credits are considered to be the highest quality, and thus carry the least reputational risk? Who are the players when it comes to standards and regulation? The authors answer these questions and outline the characteristics of high-quality carbon credits.
Keywords
Carbon Credits; Climate; Accounting; Carbon Offsetting; Carbon Abatement; Carbon Emissions; Carbon Footprint; Climate Change; Environmental Accounting; Environmental Regulation
Citation
Ramesh Walsh, Varsha, and Michael W. Toffel. "What Every Leader Needs to Know About Carbon Credits." Harvard Business Review Digital Articles (December 15, 2023).