What Does the Gold Standard Report Say About Corporate Sustainability Strategies?

In May 2023, Gold Standard published a groundbreaking report that introduces a new paradigm, urging companies to “make a responsible contribution to global net-zero efforts and beyond, to an appropriate extent” (3).

The report outlines best practices for corporate sustainability communication, emphasizing that sustainability claims must be measurable, transparent, and verifiable. It also stresses the importance of avoiding greenwashing and provides detailed guidance on how to formulate honest communications that do not mislead consumers.

A central focus of the report is the identification of key components for a robust climate protection strategy, as outlined by Gold Standard:

1) Achieving Net Zero: Companies must work to reduce emissions within their value chains, both in the short and long term, in order to reach net-zero emissions.

2) Assuming Responsibility for Emissions: Businesses are encouraged to take responsibility for both current and historical emissions by financing additional climate protection initiatives, such as climate protection funds, voluntary carbon market projects, and investments in research and development.
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3) Non-Targeted Strategies: Companies should also implement non-targeted strategies, including ceasing lobbying that undermines positive climate protection policies, divesting from fossil fuels, and ensuring there is no deforestation or land conversion in their supply chains (4).

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What has Changed?

From a legal and financial standpoint, the publication of the Gold Standard report did not bring about immediate changes for companies. As a foundation, Gold Standard promotes best practices, and the report serves as a set of recommendations and considerations, rather than enforceable rules, on what constitutes a “responsible” sustainability strategy.

That said, the report marks an important milestone in the evolution of corporate sustainability. It introduces a new paradigm that raises the bar for what’s expected of companies, placing a greater emphasis on corporate responsibility. Rather than a compliance requirement, this guide should be seen as an opportunity for organizations to craft more comprehensive, impactful, and forward-looking sustainability strategies.

A key concept in the report is proportional contribution: companies are encouraged to contribute to climate protection efforts in proportion to their environmental impact and financial capacity. Smaller businesses are not expected to contribute at the same level as large multinationals. This principle, referred to as “profit per ton” during a Gold Standard webinar, suggests that contributions should reflect both profitability and emissions.

The following graphics illustrate how Gold Standard’s guidelines support a broader and more integrated approach to sustainability. Where past strategies focused largely on reducing emissions, offsetting, and achieving net zero, the modern approach goes further - positioning a company’s individual efforts within the wider context of global climate action.

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What Can Companies Do to Achieve the New Standard?

Climate protection is an increasingly important issue for customers, investors, and employees alike—making it clearly in every company’s interest to align with these emerging best practices (7,8,9).

The Gold Standard Report emphasises that companies need a comprehensive, forward-thinking sustainability strategy—one that goes beyond simplistic “net zero” calculations and embraces a broader sense of responsibility in the fight against climate change.

To begin aligning with this new standard, companies can:

• End Obstructive Lobbying: Cease all lobbying efforts that hinder progress in climate protection policy. Instead, actively support positive developments by engaging in policy advocacy, contributing to research projects, and participating in climate-focused initiatives.
• Assess and Reduce Supply Chain Emissions: Conduct a thorough analysis of your supply chain to identify and address the largest sources of emissions. Targeted reductions in these areas can significantly improve overall sustainability performance.
• Invest in High-Quality Carbon Storage and Reduction: Take responsibility for both current and historical emissions by investing in credible carbon storage and reduction solutions. This may include purchasing high-quality carbon credits on the Voluntary Carbon Market or supporting charitable climate projects.
• Support Projects with Co-Benefits: Prioritise initiatives that not only reduce emissions but also generate additional environmental and social benefits. These might include improving access to clean water, sanitation, education, or promoting biodiversity and nature conservation.
• Align Contributions with Emissions and Profit: Ensure that your level of support and investment is proportionate to your company’s emissions and profitability—embodying the "profit per ton" principle outlined by Gold Standard.

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Klim Supports Companies in Implementation

Klim helps companies invest in meaningful environmental protection based on nature-based solutions. Through our digital platform for farmers, we are scaling regenerative agriculture, which reduces greenhouse gas emissions and removes carbon dioxide from the atmosphere. Regenerative agriculture protects and strengthens soils—one of our planet's most important carbon sinks—and at the same time offers a variety of additional benefits, such as improved food quality and increased biodiversity in fields.

Companies from all industries can improve their sustainability strategy by buying climate credits: with our high-quality, regional emission reductions and carbon storage, companies can clearly demonstrate that they are taking responsibility for their unavoidable emissions and making a comprehensive contribution to climate protection.

Food companies can also work with Klim to reduce emissions along their supply chain (instead of or in addition to buying credits). Klim works directly with farmers to support food companies in addressing their biggest source of emissions: their supply chain.

Klim can therefore help companies take several steps toward a Gold Standard-compliant climate strategy, including:

• reducing greenhouse gas emissions and removing carbon dioxide from the atmosphere,
• generating positive co-benefits such as improved food security, enhanced food quality, and protection of biodiversity,
• reducing emissions within the supply chain (for food companies only).

Working with Klim can be an integral part of a comprehensive, responsible sustainability strategy that supports high-quality, impactful projects.

Want to know more about Klim Credits? [Read more here.]

Interested in insetting? [Get more information here.]

sources: (1), (2), (3), (4), (5), (6), (7), (8), (9)