Relying solely on carbon offsets to hit net-zero targets isn't going to cut it anymore,according to energy investors.With a swelling number of corporations purchasing carbon offsets as a main source of reducing their carbon footprint,EIV Capital partner David Finan said a rising offset demand is coinciding with higher amount of capital that needs to be allocated to the business."If you think about the number of companies that are in the S&P 500 that have signed on for a net-zero commitment by 2040,that's a tenfold increase in the amount of offsets that are needed from today to 2040,"Finan shared at Hart Energy's Carbon Management Conference on May 16.To acquire the necessary capital,corporations will need to do more for their emissions reduction goals than buying carbon offsets;they need to make more substantial moves toward reducing their carbon footprint and increasing transparency with investors.According to Finan,investors are now more interested in the specifics of emissions reductions.They are no longer looking just for percentages of expected emissions reductions and offsets but also where the offsets are coming from-and the more transparent the data,the better.
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