Shared Sustainability: The Future of the Carbon Market

In a world where sustainability is already part of the agenda not only for government entities but also for companies, shared sustainability emerges as an innovative and necessary solution.

This approach not only focuses on companies but also involves consumers, distributing responsibilities and benefits among all actors.

Benefits of Shared Sustainability

Shared sustainability offers multiple benefits. An IBM report reveals that 77% of consumers consider sustainability important and are more likely to choose brands that adopt sustainable practices.

By involving consumers, companies can leverage this growing interest in sustainability, improving their image and increasing customer loyalty.

Additionally, sharing the burden of mitigation reduces costs for companies and accelerates the implementation of sustainable strategies. A study by consultancy firm CDP showed that companies incorporating sustainable practices not only reduce costs but also increase their revenues by 18%.

Models of Shared Sustainability

Various sectors have successfully implemented models of shared sustainability.

In the fashion industry, brands like Patagonia have launched recycling programs where consumers can return used garments in exchange for discounts. This not only reduces waste but also incentivizes consumers to actively participate in sustainability.

In the food sector, Whole Foods promotes the purchase of local and organic products, involving consumers in supporting sustainable agriculture. These models are not only effective but also demonstrate how collaboration can generate significant impact.

However, today it is possible to go further. In carbon footprint mitigation processes through voluntary markets, processes are beginning to gain traction where companies and their consumers share the cost of certifying green products.

In these models, it is possible to design new lines of sustainable products or mitigate some processes in the value chain, such as transportation or energy consumption, to name a few.

Tools and Technologies to Implement Shared Sustainability

Technology is fundamental to shared sustainability. Blockchain, for example, allows for the tokenization of carbon credits, facilitating microtransactions and ensuring transparency.

According to a PwC report, tokenization in carbon credit management could reduce global emissions by 10% by 2030.

This same document emphasizes that tokenization in carbon markets presents three relevant factors that drive its adoption and effectiveness.

Firstly, accessibility allows for auditing individual transactions, ensuring that each carbon credit can be verified and tracked transparently.

Secondly, liquidity is increased thanks to the use of smart contracts that facilitate and streamline transactions in the market.

Finally, the auditable aspect guarantees the quality of carbon credits derived from projects and provides legitimacy to the system since each transaction and project can be reviewed and validated, strengthening trust in voluntary carbon markets.

The existence of this transparency technology invites consumers to trust and participate in shared sustainability.

By having the assurance that transactions are verifiable and that the projects funded are legitimate, an environment of trust is created that encourages consumer participation in mitigating climate change.

This not only improves the effectiveness of sustainability efforts but also reinforces the collective commitment towards a more sustainable and equitable future.

Xofia: A Leader in Shared Sustainability

Xofia positions itself as a leader in this concept thanks to our business approach and our advanced platform.

This ability to integrate blockchain technology and smart contracts in carbon credit management not only provides transparency and auditability but also facilitates consumer participation in shared sustainability.

With Xofia, both companies and individuals can effectively collaborate to reduce their carbon footprint, promoting a positive and sustainable environmental impact.

References

IBM, "Meet the 2020 consumers driving change"
www.ibm.com/downloads/cas/EXK4XKX8

CDP, "CDP Global Supply Chain Report”
www.cdp.net/en/research/global-reports/global-supply-chain-report-2019

PwC, "The Blockchain Effect on Carbon Markets"
https://www.pwc.com/m1/en/publications/documents/2024/carbon-credit-tokenisation.pdf