No, this is not about Climate Change but about carbon and how companies play around with their carbon footprint. Generally companies have two options (or a combination of the two) on how to deal with their carbon footprint – reduce it or buy your way out of it. Let’s start with the last one first…
It has been very popular for companies to buy a clear carbon conscious. Let’s buy some renewable energy or a few credits here and there. I’m not disputing the benefits of buying renewable energy but I do question whether this is the right method for companies to deal with their carbon responsibility. Companies buying renewable energy or carbon credits as their main strategy to deal with emissions are not dealing with their actual impact. They are not reducing their impact but rather paying a “tax” to keep on polluting. To me it seems to be more in line with a sustainability bribe – I give money to some good cause to keep on doing what I’ve been doing all along; pollute without making my business any more sustainable than before.
That’s why I was really pleased to read that PepsiCo is moving away from buying renewable energy to a strategy that will focus on bringing renewable energy to their operations. That’s smart and that’s sustainable – instead of buying renewable energy they will bring alternative energy to their operations. Smart because they can tailor the method to the location and need. Use solar in places where you have loads of sun; bring in thermal in places where that works or biomass boilers where you create enough garbage. Sustainable because it cuts down on their reliance on other people providing them with energy in an increasingly energy challenged world. Furthermore, it’s sustainable because it’s part of their business – they can’t just walk away from it. This is backed by a strategy to reduce their emissions and work with their suppliers to reduce their emissions as well. Solid plan and a sustainable plan. Unfortunately not every company follows this plan.
We need renewable energy because people like myself or small business can’t always afford to create our own sources of renewable energy. But I do have a problem with large companies seeing the purchasing of renewable energy as their commitment to reduce their carbon footprint. Sorry, you are not reducing your carbon footprint. It reminds me of the good old English saying – Robbing Peter to pay Paul. You are “robbing” emissions and paying for renewables. Your impact haven’t actually been reduced now has it?
Furthermore, the cap-and-trade system is controversial at best and a failure at worst. I support the cap-and-trade system not because it is any good but rather because it is better than nothing in a world where too many companies look for a way out instead of a way to sustainability. But companies who want to be leaders in sustainability should not stop at cap-and-trade as their first and only stop. And they shouldn’t stop at buying renewable energy as their leadership position. Reduce your impact and make the solutions part of your business – then you can start talking like a leader.
Now for my last rant on this topic – the carbon neutral claim…
Come on. Carbon neutral? Really?
We live, we have an impact. We, as individuals and as businesses, will never be carbon neutral. We can reduce and we can offset but we cannot be neutral. But it is worse than that. Buying enough renewable energy or buying enough credits do NOT make you carbon neutral. You have done nothing to actually make your business carbon neutral apart from a nice play on words. Take action, reduce your impact and make it part of your business – that’s more sustainable. But just don’t claim to be carbon neutral.
Do you breathe? Hello. That’s not neutral.
(Full disclosure, PepsiCo is a client of the company where I work and I’ve worked with PepsiCo on numerous occasions but I had no idea this was happening.)