A number of big companies decided to create in-house carbon credits despite criticisms against offsets.
GSK, Volkswagen and Total are among the corporate firms that continue to lean on carbon credits to offset carbon emissions.
Corporate carbon offsetting means a polluting company buys a carbon credit to make up for the carbon it emits. Existing carbon offsetting schemes are facing backlash due to the poor quality of some offset projects.
Moreover, large companies seeking to use carbon credits to offset their emissions are coming under scrutiny, as carbon offsets are exploited in developing countries where most projects operate.
Carbon offsets are controversial. Some groups raise concern that heavy reliance on carbon offsets led to corporate greenwashing. Others believe that it can discourage companies from directly cutting their carbon footprint. Overall, there’s a consensus in the sector to ensure that corporate offsets don’t replace or delay urgent actions to decarbonize.