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A registry is integral in offsetting organisational emissions. Purchasing credits that are issued on a registry provide credibility, transparency and security that the credits have undergone a rigorous due diligence process to ensure that they have not been previously issued, sold or double-counted.
It is best practice for organisations to use the registry, taking delivery of the credits from the seller, and retiring these in their own account. This ensures proof of ownership and acts as an auditable process that the credits have been retired.
Corporate responsibility is no longer a niche activity within companies and is increasingly focused on the integration of social and environmental responsibility into the core values of the business. Effective management of environmental assets, such as carbon, is a complementary aspect of a broader sustainability strategy, which should align with the organisational objectives. This is further enhanced if these projects also deliver socio-economic benefits to local communities. Markit Environmental Registry supports the full lifecycle of environmental assets and facilitates the main considerations corporate clients have when undertaking an offsetting programme.
Managing environmental assets as part of a sustainability programme demonstrates a strong leadership position to clients, partners, shareholders and employees. Conducting this via a registry enables corporate organisations to express a clear message regarding their strong emphasis and position on climate change and environmentally sustainability issues.
Building and implementing a Sustainability Strategy is a priority around the board table. Upholding organisational integrity is critical when such strategies are implemented. Managing the sustainability strategy using a registry for credit source and retirement ensures that integrity.
It is essential that all carbon credits purchased are authentic, real, have been verified, and have not been double-counted.
Increasingly auditors are requiring the use of a financial markets based registry as part of the company's audit process.
The Markit Environmental Registry lowers corporate buying risk providing transparency and authenticity of credits listed. Certification and Account Statements are often used in Annual Reports as evidence of asset holdings and offsetting retirements.
Companies developing carbon neutral products or services send a powerful message to clients, competitors and the wider public. This increases revenues by enabling access to new customers and markets that care about the impact their purchases have on the environment and provide clear competitive differentiation. Sharing these environmental concerns and moving towards neutralising emissions as a standalone business and right through the supply chain conveys that engaging with such an organisation can help counteract climate change.
As the topic of climate change and the expectations on businesses to manage their environmental footprint become entwined, it is increasingly imperative that companies actively engage in environmental issues and communicate this publically. Companies not doing so are publicly criticised and investors frequently consider this when valuing stock and taking positions. Utilising a registry as an effective component within a sustainability strategy acts as a positive counterbalance to potential negative commercial and reputational impact.
Markit Environmental Registry further supports this by providing direct access to the carbon supply and facilitating choice to ensure businesses secure the offsets they're looking for. This aligns corporate values with the characteristics of the credits used to become neutral, enhancing the overall proposition to the public et al.
Using a registry visibly demonstrates commitment to delivering against the organisational offsetting and sustainability programme and provides a trusted platform for transparently conveying that appropriate credits have been purchased and retired.
Holding an account on the Markit Environmental Registry gives direct control over the management of environmental assets. Corporate clients have choice over what they are buying in regard to region, technology, social benefits and volumes of credits and can share this information as required with relevant parties. Retirement of credits can be carried out at any point so can reflect an organisation's footprint over time and give transparency to exactly what is being offset. This flexibility is further supported with access to the registry's Request For Information (RFI) platform, via which verified and issued credits can be sourced and contact made with sellers as necessary.
Some companies may in future be subject to existing or yet to be implemented regulated schemes, for example:
EU Emissions Trading Scheme
Companies that become part of the EU ETS will have caps on their emissions and may be entitled to reduce their overall emission footprint by buying of offsets. As a preparatory measure these companies may opt to act in the voluntary market now to understand more about offsetting emissions and to ensure they are ready for inclusion in a compliance regime.
Impending US cap and trade scheme
Companies can act in the voluntary market to purchase offsets now, as a hedge against future compliance risk. It is expected that voluntary offsets will be recognised under the planned US scheme, therefore offsets purchased in advance of the implementation of the scheme may be eligible to be used to meet a compliance target or sold to another compliance party.
This is entirely applicable for other countries yet to implement a regulated scheme, or for companies as yet not included in existing schemes. For industries not yet included in a compliance scheme, demonstrating that steps are being taken to offset current emissions may lessen the extent to which they are regulated in future.
For all companies actively procuring and retiring offsets, price is a key component of the process. Whilst choice of credit is important, best value is also critical. Acting sustainable should be cost-effective. As the largest voluntary carbon registry the Markit Environmental Registry has a pool of projects and differing credits.
The Markit Environmental Registry RFI platform provides an interactive search tool to source credits by price.
The Markit Environmental Registry focuses on excellence in service to meet organisational sustainability objectives.
- Market experience
- At the forefront of the emergence of registries as an integral component of environmental markets Markit Environmental Registry blends expertise and innovation with a proven track record.
- Brand reputation
- Markit Environmental Registry has established itself as the leading voluntary carbon market registry and is proud to be known as a "company which is good to do business with".
- Range of project types
- Markit Environmental Registry supports numerous standard types and facilitates a broad scope of differing credits to be issued. These cover all eligible carbon reduction technologies and include projects with verified social benefits.
- Location of projects
- Markit Environmental Registry is a truly global registry with offices, clients and projects in all regions. Therefore, we are able to provide access to credits that map to operational locations of corporate clients.
- Price
- Corporate clients cite that sourcing the right credits is their priority; however purchasing these at the optimum price is a key factor. Markit Environmental Registry provides access to a larger source of credits and our Request For Information (RFI) platform facilitates liquidity and price transparency.
Markit's global network of corporate clients bears testament to our exceptional service delivery and dependability. Our long term relationships with clients and ability to work in partnership with them ensures Markit continues to innovate and deliver against industry demands. Thus we are continually at the forefront of driving the environmental markets as a thought leader that reflects the needs of our clients. As such, the Markit Environmental Registry is uniquely positioned to be your corporate offsetting partner.
Markit Environmental Registry sets and follows the highest standards through every process in the lifecycle of credits in order to ensure accuracy, transparency and credibility. As a core component of the evolving markets, the role of Markit Environmental Registry is not only to provide a central repository for credits, but to demonstrate that credits have undergone appropriate due diligence and quality control. These standards run throughout the registry from the underlying technology through to the organisational structure and approach. Therefore a comprehensive process is followed for all projects and credits listed in the registry, meaning corporate clients.
Markit has incorporated a request for information (RFI) platform as an additional layer to the registry service. The platform allows clients of the registry to list credits, already issued in the registry, in order to source a purchaser for said credits. Registry account holders can then view the listings and make expressions of interest directly to the seller via the platform. The listing and expressions of interest are anonymous and once contact has been made, the parties can finalise the sales independently between themselves away from the registry and RFI platform.
Corporate clients can utilise the platform to identify credits that meet their criteria and directly engage with sellers to negotiate and finalise a price. Since all credits listed are already issued into the registry, they can be confident that they are all bona fide and supported by complete documentation that has passed the rigorous processes of the registry. As such Markit Environmental Registry is facilitating transparency and reducing risk for corporate clients who are sourcing credits in order to become carbon neutral.
Ultimately credits will be retired in order to act as an offset reduction. This can occur at any time and clients can transfer credits to their retirement account on the registry. Once retired, these credits are completely inactive and cannot be "un-retired", transferred or issued again. Again, these credits can be kept private or made visible on the public view. Specifically for Corporate clients, this is an ideal way to demonstrate their commitment to being carbon neutral and providing a transparent view of how this has been achieved via the public registry view.
To join the Markit Environmental Registry go to: www.markitenvironmental.com/registration
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