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South Pole, the world's leading carbon project developer, was accused in October 2023 by media and internal whistleblowers of overstating the climate benefits of carbon credits generated by its Kariba REDD+ project, a large-scale forest conservation project, by a factor of at least five. Several media outlets and auditors have also found flaws in the project's accounting, with its financial flows difficult to track and much of the revenue appearing to flow back to South Pole and its partner Carbon Green Investments (CGI).
Despite South Pole's claims that the carbon credits sold under Kariba REDD+ are valid, questions have been raised about their quality. Major brands, including Gucci, Volkswagen, Nestlé, and McKinsey, have all purchased carbon credits from the project and claim carbon neutrality. However, when the controversy erupted, these companies had no choice but to accept damages or be labelled "greenwashers" or even face lawsuits.
Related reading: Global trend in anti-greenwashing: Government responses and corporate strategies