Some companies have already developed solid emissions reductions strategies

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Carbon markets are responding to the emerging schemes and adaptingtheir products and services. Options and ease of access willeventually encourage trading and offsetting. At the moment, it ismaking corporate executives' heads spin.

As regulatory bodies introduce new rules, and carbon markets react,big business struggles to make sense of its trading and offsettingoptions.

Recent research by Ethical Corporation Institute, an ethicalbusiness research institute, finds that some companies have alreadydeveloped solid emissions reductions strategies.

Leading companies reveal their trading and offsetting strategies inthe new report Essential strategies for effective emissions tradingand offsetting.

This practical report that serves as a reference guide to upcomingregulations and changes within the carbon markets and mandatorytrading schemes. The report also provides practical informationabout the corporate benefits and downfalls of emissions trading andoffsetting, based on 13 case studies of companies that haveexperience in carbon markets.

The Institute finds various motives among companies that trade oroffset. Some companies offset to fulfill their obligations undercompliance schemes. Others value the potential reputational gainsof voluntary credits. Yet others seek to cut costs or hedge risk.

Ford has emphasized the long-term reputational gains that can beachieved through simple and cost effective energy efficiencystrategies. It does not offset, as its priority is to achieveenergy reduction directly by investing in energy-efficientequipment in its stores and warehouses.

Other companies, such as the alternative investment provider, ManGroup, that are not covered by a mandatory emissions trading schemechoose to trade emissions voluntarily. The Group also invests inemission reduction projects. While these projects add incrementallyto the return on their client's investment, Man Group anticipatesthat some of these may also qualify as tradeable Clean DevelopmentMechanism projects in the future.

One of the forthcoming initiatives to cut carbon emissions is theUK Government's Carbon Reduction Scheme, which is currently in itsinitial phase. Ethical Corporation Institute has also researchedwhat this upcoming regulation will mean for UK businesses, of whichroughly 5000 will be affected.

Ethical Corporation Institute produces practical, robust marketintelligence reports, issue and regional management briefings, andoccasional free research papers on ethical business issues.