Summary
Business leaders and researchers are quick to point out that companies that engage in sustainability practices have higher stock market valuations. In effect, sustainability initiatives, including those aimed at combating climate change, are perceived to be linked to good business practice. The carbon neutral certification is a tool designed to improve the environmental and business performance of those who use it. Such certifications help companies quantify their greenhouse gas impact, and then identify a means to reduce it both internally and through the purchase of offsets. Companies can then leverage their certification as a competitive advantage.
This article investigates the effectiveness of carbon neutral certifications for achieving both economic and environmental benefits by asking: Do companies with carbon neutral certifications quantifiably reduce their environmental impact and achieve business benefits over time? An examination of the experience of a single coffee co-operative’s four-year engagement with a carbon neutral certification is used to answer this question. This article discusses both the environmental and business performance of the co-operative as linked to its carbon neutral certification. This co-operative is unique in that beyond improving its business, it looked to carbon neutrality as a means to secure the financial livelihood of its farmers. Taken from this perspective, tools like the carbon neutral certification seem to rewrite the role organizations might play in engaging climate-reducing programs that have multiple benefits.