The benefits of carbon insetting for businesses in Sri Lanka

Climate change is one of the most pressing challenges facing our planet today. Its effects are already being felt in Sri Lanka¹, from rising sea levels and extreme weather events to disruptions in agriculture and tourism. As the global community rallies to address this challenge, businesses have a crucial role in driving sustainable practices and reducing their environmental impact.

Carbon insetting emerges as a powerful strategy for businesses in Sri Lanka to take ownership of their carbon emissions and contribute to a more sustainable future. By investing in projects that reduce or remove carbon emissions within their value chains, businesses can mitigate their environmental impact, enhance their brand reputation, improve their supply chain resilience, and contribute to the country's sustainability goals.

This article explores the concept of carbon insetting, delving into its benefits for businesses in Sri Lanka, and highlights how DHL Express, a leading supporter of green logistics solutions, can help companies integrate sustainability into their business strategy.

What is carbon insetting?

Carbon insetting is an approach to climate action² where businesses invest in projects that aim to reduce or remove carbon emissions within their value chains. These projects can include initiatives such as:

• Sustainable agriculture: Implementing practices that improve soil health, reduce deforestation, and enhance carbon sequestration in agricultural lands.
• Renewable energy: Investing in renewable energy sources, such as solar or wind power, to reduce reliance on fossil fuels.
• Energy efficiency: Implementing measures to improve energy efficiency in operations, such as upgrading equipment or optimizing processes.
• Forest conservation and reforestation: Supporting projects that protect existing forests or plant new trees to absorb atmospheric carbon dioxide.

Unlike carbon offsetting, where businesses invest in projects outside their value chains to compensate for emissions, carbon insetting focuses on making direct improvements within their operations and supply chains. This approach offers greater transparency and control over carbon reduction activities, allowing businesses to directly contribute to the sustainability of their operations and the communities they impact.

Why carbon insetting matters for businesses in Sri Lanka

Sri Lanka has demonstrated a strong commitment to environmental sustainability and has set ambitious goals to reduce its carbon footprint. The country has pledged to achieve carbon neutrality by 2050³ and actively promotes renewable energy, sustainable agriculture, and forest conservation.

This is where businesses in Sri Lanka come in: to help achieve these national targets. By adopting carbon insetting strategies, businesses can actively contribute to reducing the country's carbon emissions and demonstrate their commitment to environmental responsibility. This not only aligns with national priorities but also enhances their brand reputation and strengthens their social license to operate.

Moreover, carbon insetting can help businesses improve their supply chain resilience⁴. By investing in sustainable practices within their supply chains, businesses can reduce their reliance on fossil fuels, mitigate the risks associated with climate change, and ensure the long-term viability of their operations.

Key benefits of carbon insetting

Carbon insetting offers plenty of benefits for businesses in Sri Lanka, contributing to their environmental, social, and economic performance. Some of the key benefits include:

• Reduced environmental impact: By reducing emissions within their value chains, businesses can minimize their environmental footprint and contribute to mitigating climate change. This can involve implementing sustainable practices in their own operations, such as using renewable energy or improving energy efficiency, or supporting sustainable initiatives within their supply chains, such as promoting sustainable agriculture or forest conservation.

• Enhanced brand reputation: Consumers are increasingly conscious of the environmental impact of the products they purchase⁵. Businesses can improve their brand reputation and appeal to environmentally conscious consumers by demonstrating a commitment to carbon insetting. This can lead to increased customer loyalty, improved brand image, and a competitive advantage in the marketplace.

• Improved supply chain resilience: Climate change poses risks to supply chains, such as disruptions due to extreme weather events or resource scarcity⁶. By investing in sustainable practices within their supply chains, businesses can enhance their resilience to these risks and ensure the long-term viability of their operations.

• Community engagement and social impact: Carbon insetting projects often involve collaboration with local communities, creating social benefits such as job creation, improved livelihoods, and enhanced social well-being. This can strengthen relationships with local stakeholders and contribute to the community's overall development.

• Innovation and efficiency: Carbon insetting can drive innovation and efficiency within businesses. By seeking ways to reduce emissions and improve resource management, businesses can identify new technologies, optimize processes, and reduce costs, improving overall performance.

Get started with carbon insetting with DHL Express

DHL Express Sri Lanka is a leading supporter of green logistics solutions and is committed to helping businesses in Sri Lanka integrate sustainability into their operations. The GoGreen Plus program offers a range of carbon insetting solutions, allowing businesses to reduce the environmental impact of their shipments and contribute to a more sustainable future.

Through GoGreen Plus, businesses can:

• Choose Sustainable Aviation Fuel (SAF): Reduce the carbon emissions associated with air freight shipments by opting for SAF, a cleaner alternative to conventional jet fuel.
• Support carbon reduction projects: Invest in verified carbon reduction projects within their supply chains, such as reforestation or renewable energy initiatives.
• Track and report on emissions: Monitor and track their carbon emissions and receive comprehensive reports on their environmental performance.

By shipping with DHL and utilizing the GoGreen Plus program for various import and export transactions, businesses can take a proactive approach to carbon management, reduce the environmental impact of commodity shipping, and contribute to Sri Lanka's sustainability goals.

Ready to embark on your carbon insetting journey? Open a DHL Express business account today and let us help you integrate sustainability into your business strategy.