Corporations Invested in Carbon Offsets That Were 'Likely Junk', Analysis Says

Some of the world's most profitable -- and most polluting corporations -- have invested in carbon offset projects that have fundamental failings and are "probably junk," suggesting industry claims about greenhouse gas reductions were likely overblown, according to new analysis. From a report: Delta, Gucci, Volkswagen, ExxonMobil, Disney, easyJet and Nestle are among the major corporations to have purchased millions of carbon credits from climate friendly projects that are "likely junk" or worthless when it comes to offsetting their greenhouse gas emissions, according to a classification system developed by Corporate Accountability, a non-profit, transnational corporate watchdog. Some of these companies no longer use CO2 offsets amid mounting evidence that carbon trading do not lead to the claimed emissions cuts -- and in some cases may even cause environmental and social harms. However, the multibillion-dollar voluntary carbon trading industry is still championed by many corporations including oil and gas majors, airlines, automakers, tourism, fast-food and beverage brands, fashion houses, banks and tech firms as the bedrock of climate action -- a way of claiming to reduce their greenhouse gas footprint while continuing to rely on fossil fuels and unsustainable supply chains. Yet, for 33 of the top 50 corporate buyers, more than a third of their entire offsets portfolio is "likely junk" -- suggesting at least some claims about carbon neutrality and emission reductions have been exaggerated according to the analysis. The fundamental failings leading to a "likely junk" ranking include whether emissions cuts would have happened anyway, as is often the case with large hydroelectric dams, or if the emissions were just shifted elsewhere, a common issue in forestry offset projects.

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