The carbon market has received strong criticism in the past few years due to some high-profile carbon projects that were poorly managed and did not deliver the appropriate results. The public is sceptical about “carbon offsets” as they fear that they could be funding projects that involve corruption, the violation of indigenous people’s rights, child and forced labour concerns. In addition, companies that choose to use carbon offsetting are also criticized for not making efforts to reduce their emissions and using offset as a way to greenwash.
Baba Yaga’s client is a carbon project management company that has been in this industry for over 25 years. With strong experience and expertise in managing carbon projects using reputable standards such as Gold standards, VERRA, Clean Development Mechanism, etc. Over the years, they have helped countless international organizations and corporations managing important carbon projects across the globe. Across South America, Asia and Africa you may find renewable energy projects or reforestation projects that were managed by their teams. Having said that, the company has not been immune to the reputational challenges that the public has with carbon offsetting.
With the pressure mounting up from investors and clients, the company needed to quickly pivot their business to remain competitive. As part of their business strategy to pivot into climate finance, the company decided to apply for B Corp certification – a business certification that recognizes an organization’s management in ESG (environment, social and governance) areas in meeting high standards. Baba Yaga was consulted to support the company during this period, our work included:
👉Performing a multi-stakeholder materiality assessment to gather input from customers, investors, employees, NGOs, media and management team to identify the most material topics that the company should be focused on.
👉Using the outcomes of this assessment, aligning the company’s sustainability efforts with their stakeholder’s expectations.
👉Compiling the company’s first sustainability report in accordance with GRI reporting standards to increase transparency in the company’s operations, to build stronger trust with its stakeholders.
👉Applying for B Corp certification to validate that the company’s business management and operational practices in balancing profit, plant and people meet the highest management standards.
Achieving B Corp certification enhances a company’s credibility by validating its commitment to rigorous social and environmental standards—demonstrating authentic sustainability leadership. This recognition will help the company stand out in a crowded market, building stronger trust with stakeholders and attracting investors and customers who prioritize transparency and positive impact. With this solid foundation, the company is now better equipped to lead with integrity in the climate finance arena.
Whilst the final outcomes of this transformation project is yet to be seen, what is already obvious in the past year is that the executive team has better awareness of what its various stakeholders expect from them, and can take this input into improving the way they are managing their business. With more transparency, the company also opens a two-way dialogue with its investors and employees in their sustainability objectives, deepening the relationship.