There are numerous reasons why climate protection projects are worthwhile for companies. Through these projects they not only make a positive contribution to global climate protection targets, they are also seen as responsible actors – which can bring long-term economic benefits, too. But which climate protection projects should companies support? Making the right choice is not always so easy; ultimately the financing should offer the greatest contribution to effective climate protection and be a good fit with the company’s corporate culture.
To ensure that projects are truly effective, the Foundation myclimate applies the strictest independent quality standards in selecting climate protection projects that they support, co-develop and guide in the long term, along with numerous other quality measures. This means that when companies come to select a climate protection project from the myclimate portfolio, they can be sure that it will genuinely lead to a reduction in CO₂ and boost their reputation. Below we explain how myclimate guarantees the effectiveness and integrity of climate protection projects and how companies should go about selecting a climate protection project that is right for them.
To gain a place in the myclimate portfolio, a climate protection project must offer reliable, measurable improvement to climate protection and sustainable development. In selecting and designing the climate protection project it offers, myclimate applies the strictest official quality standards – and it goes even further. All climate protection projects are carefully assessed using additional quality criteria, which reflect the interests of our clients as well as financial risk considerations.
With the following points, myclimate ensures that only high-quality projects of unquestionable integrity are accepted into its portfolio:
The most important factor in the quality of climate protection projects is official certification by high-quality standards. For international projects, myclimate only recommends and supports projects certified by Gold Standard in the energy field, and by Plan Vivo in the land use field. In a few, carefully selected and exceptional cases, myclimate also supports projects certified by VCS/Verra, and only when they are additionally certified by the standards CCB (Climate, Community & Biodiversity) and/or SD VISta (Sustainable Development Verified Impact Standard). Domestic projects are verified against the “myclimate Guidelines for Domestic Projects” or according to country-specific standards (for more details see: WWhat standards do our climate protection projects meet?).
These standards ensure that climate protection projects additionally offer a wide variety of social, economic and environmental benefits (additionality) alongside the reduction or storage of greenhouse gas emissions (SDGs). The integrity and effectiveness of the projects is ensured through regular monitoring, independent verification and strict safeguarding principles (for more details see: How is a climate protection project developed and its long-term effectiveness guaranteed ?).
A prior due diligence process goes beyond the requirements of the standards. myclimate also examines each newly developed carbon offset project for various potential risks far beyond the requirements of the standard (see How does myclimate develop carbon offset projects and ensure their effectiveness?), carries out a financial risk assessment and continuously monitors local conditions to ensure long-term effectiveness.
For a climate protection project to succeed in the long term, you need highly skilled project developers on the ground who are well connected with and accepted by the local population, and who are conversant with the local languages and cultures. myclimate has extensive experience and numerous reliable partnerships that have evolved over the years to facilitate close exchange and optimal cooperation.
Non-profit status
Just like like myclimate itself, our climate protection partners should be non-profit organisations. This ensures that any gains are reinvested in climate protection projects and not paid out to shareholders.
Financial transparency
There is often a lack of transparency around finance flows in climate protection projects, so it’s important that we can rely on project developers who ensure financial transparency. As a foundation, myclimate is obligated to transparently set out its own foundation finances in an annual report. Additionally, all new projects developed with project partners follow strict guidelines that determine where the finances are deployed. These guidelines are important for ensuring and enhancing the integrity of projects and guaranteeing that the funds earmarked for climate protection actually go where they are most needed.
The “credible climate claim”
Selecting a climate protection partner that offers a trustworthy claim and credibility in its communications is very important these days. That means no more support for projects by partners who still talk about “climate neutrality”, “offsetting” and related concepts. In late 2022 myclimate switched to an impact label to avoid the suggestion that a given activity might have no associated emissions. In addition, the new impact label also complies with the new framework conditions under the Paris Agreement in the areas of corresponding adjustment and avoidance of double counting (see myclimate presents the climate protection label of the future).
So, it’s important to select not just the right project but also the right climate protection partner – like myclimate.
The criteria assessed by myclimate ensure that the climate protection projects it offers fulfil the highest standards. But which project within the portfolio deserves particular support? Companies can start by asking themselves the following questions:
Example: a company that sources products or raw materials from a particular country could support a climate protection project there.
Example: a company in the food industry might support an agroforestry project for reducing greenhouse gas emissions.
Example: a company with a largely female target group might support a project that focuses on promoting women and girls.
Example: a company that aims to reduce its own packaging waste over the long term might support projects that promote the circular economy.
The climate protection projects that myclimate develops and supports are selected and guided according to the criteria set out above. Supporting these projects financially means taking responsibility for your own emissions and attaching a price to them in line with the “polluter pays” principle within (carbon insetting) or outside the company’s own value chain (beyond value chain mitigation). The projects are demonstrably effective, they have an immediate impact and they are fair – but for a comprehensive climate strategy, they are just one of many paving stones on the path to net zero.
That’s why, no matter which climate protection project a company chooses, myclimate always recommends a combination of internal and external measures for reducing emissions. Ideally, companies will pursue a net-zero strategy for reducing and preventing their own emissions. At the same time, they can offer climate education measures to their employees. These efforts form a complement to financing of climate protection projects. It is this combination that ensures effective climate protection and enables credible, transparent communication of this commitment to the outside world.
You can find more information on integrated climate commitment on our page Climate protection in companies.
