Andersson, Hans
- Department of Economics, Swedish University of Agricultural Sciences
Abstract
Carbon offsets are promoted as a way for companies to reduce their net climate impact. However, critics argue they may delay deeper operational changes. Despite growing usage of carbon offsets, little research examines why companies finance offsets. This study addresses that research gap by exploring why companies choose to finance carbon offsets, how this is integrated into sustainability strategies, and what barriers companies perceive for implementation. Using semi-structured interviews and content analysis, the study focused on Swedish medium and large companies. Findings show offsets are typically integrated as a final step in sustainability strategies. A proposed model contributes to a context-bound understanding with three core motives: legitimacy, competitiveness, and individual responsibility. Additionally, seven distinct motives-labor retention, product differentiation, cost reduction, industry norms, risk minimization, corporate culture, and personal values-were identified. Barriers include concerns around additionality and stakeholder perceptions. This study contributes to corporate sustainability research by offering a structured framework for understanding corporate offset financing. For policymakers, findings highlight the need for stronger regulatory frameworks to ensure transparency and prevent ineffective offsetting practices. For practitioners, it provides a perspective on how companies can take a more proactive approach in integrating carbon offsets into their sustainability strategies.
Keywords
Carbon credit; Competitive advantage; Corporate legitimacy; Risk reduction; Sustainability strategy
Published in
Journal of Cleaner Production
2025, volume: 520, article number: 146049
Publisher: ELSEVIER SCI LTD
SLU Authors
Mark-Herbert, Cecilia
- Department of Forest Economics, Swedish University of Agricultural Sciences
- Department of Forest Economics, Swedish University of Agricultural Sciences
UKÄ Subject classification
Environmental Economics and Management
Environmental Studies in Social Sciences
Publication identifier
- DOI: https://doi.org/10.1016/j.jclepro.2025.146049
Permanent link to this page (URI)
https://res.slu.se/id/publ/143097