The role of off-setting in carbon management

Leading fund manager, Standard Life Investments will this week highlight the key elements in a credible corporate response to climate change.

Julie McDowell, Head of Socially Responsible Investment at Standard Life Investments, will address the topic as a key note speaker at the Conference, "Climate Change: How to get your company's message across to consumers" in a plenary session titled 'Carbon Offsets: Act Now to secure the high ground - and lower financial risk' on Wednesday 7th March in London's Copthorne Tara Hotel.

Julie McDowell, Head of SRI at Standard Life Investments, comments: "The issue of climate change continues to dominate the public agenda, requiring companies to demonstrate the steps they are taking to reduce their carbon footprint.

Increasingly, companies are purchasing carbon offsets to show that they have a credible approach to climate change.

It is important to recognise that there are significant differences between regulated and voluntary offsetting schemes.

The government's consultation on establishing a voluntary Code of Best Practice for the provision of carbon offsetting to UK consumers reflects a desire to promote a framework to support the development of robust, transparent, reliable and timely carbon offset products.

Before using carbon offsetting as a business strategy companies should consider which offset schemes have greater credibility and verifiability.

"We would encourage companies to make considered yet bold steps towards becoming environmental leaders, focusing first on energy efficiencies and improved disclosures, and to consider the advantages and disadvantages inherent in any carbon offset schemes they may choose thereafter." The speech will reiterate the conclusions of a report 'Carbon Management and Carbon Neutrality in the FTSE All-Share', which was co-sponsored by Standard Life Investments and the Environment Agency Pension Fund.

The report, written by the environmental research agency Trucost, recommended that companies should follow a well-defined process to manage their carbon emissions.

The implementation of energy efficiency measures is the most important and often the most economical approach to reducing corporate emissions.

These steps should be taken before using carbon offsetting techniques such as tree-planting.

The report also pointed out that there are significant differences between regulated and voluntary offsetting schemes, with regulated schemes having greater credibility.

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