The following is a guest post by Fly Air Inc CEO Stuart Bullard.
ESG is in the spotlight, and executives at major corporations are starting to take sustainability seriously. Corporations understand that they must measure, report, and manage their emissions efficiently. Some have even set their net-zero commitments, creating many challenges to overcome.
Carbon offsets or carbon credits are permits. Owners can emit a certain amount of carbon dioxide or other greenhouse gases. Bank of America estimates that carbon offsets to ensure companies meet these sustainability commitments must grow 30 to 50 times. Some posit the true number is closer to 300 times.
It won’t be inexpensive. Microsoft has annual emissions of about 16 million tonnes. Based on what a carbon offset costs now, which is between $2-$20, it could cost Microsoft tens or hundreds of millions to comply.
Capital Allocation And Regulation
Needless to say, corporations face significant challenges in meeting both these disclosure requirements and managing their…