Sustainability

Carbon credits

Carbon credits are certificates that represent the reduction or removal of one metric tonne of CO₂ (or its equivalent in other greenhouse gases) from the atmosphere. Companies can purchase carbon credits to compensate for emissions they cannot eliminate, effectively funding climate projects like reforestation, renewable energy, or methane capture.

What types of carbon credits are there?

The main types of carbon credits are:

  • Avoidance credits: Fund projects that prevent emissions from being released (e.g. renewable energy, clean cookstoves)
  • Removal credits: Fund projects that actively remove CO₂ from the atmosphere (e.g. reforestation, direct air capture)

Are carbon credits mandatory?

It depends. For companies who fall under the EU Emissions Trading System (EU ETS) criteria, they are legally required to buy carbon credits or allowances to cover their emissions. Companies who aren't mandated to purchase carbon credits can still participate in voluntary carbon markets to support their sustainability strategy and compensate for their emissions. In the transport and logistics sector, most carbon credit use currently takes place in the voluntary market, but this may change as regulations like the CSRD and carbon pricing mechanisms evolve.

What is the difference between carbon credits and carbon offsetting?

Carbon credits are the certificates that represent one metric tonne of CO₂ (or equivalent) that has been reduced or removed from the atmosphere through a verified project. Whereas carbon offsetting is the action of using those carbon credits to compensate for emissions you cannot reduce directly.

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Carbon credits

Sustainability

Well-to-wheel emissions

Well-to-wheel (WTW) emissions are the total greenhouse gas emissions generated across the entire energy lifecycle of a vehicle, from producing the fuel or electricity that powers the vehicle to using it for transport. It combines both upstream and downstream emissions to give a complete picture of a vehicle’s environmental impact.

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Transport/Logistics

First mile delivery

First mile delivery refers to the initial stage of the delivery process, where goods are transported from the origin (e.g. a factory, farm, or supplier) to a distribution center, warehouse, or fulfillment facility.

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Regulatory

EU Taxonomy

The EU Taxonomy is a classification system for whether an activity is sustainable by setting out clear, science-based criteria to determine which investments can be considered environmentally sustainable. It aims to put an end to greenwashing and to direct more investments into activities that are truly sustainable. It sits alongside the CSRD but does not require any separate disclosures or reporting.

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