Carbon Credits and Business Competitiveness:: How the Adoption of Sustainable Practices Can Generate Strategic Advantages

Abstract

The relevance of this article is based on business competitiveness and the use of carbon bonds as an instrument to adapt to climate change, these bonds have the ability to encourage the reduction of GHG emissions, allowing companies to offset their emissions through projects for the conservation of natural environments; It also investigates how the adaptation and implementation of sustainable practices generates strategic advantages for companies, making them more competitive in a market that cares about corporate responsibility and sustainability. In addition to helping reduce emissions and improve public image, the use of carbon credits allows financial benefits to organizations; highlighting an Irish case where companies that grow seaweed issue carbon credits, taking advantage of this biomass in terms of rapid growth and ecosystem benefits. The research also covers the impact of sustainable practices on the financial profitability of organizations, it is expressed that the adoption of these sustainable practices, such as energy efficiency and waste reduction, brings cost savings, in contexts of operational efficiency, in addition as added value customer loyalty and financing opportunities. Mention is made of local initiatives, where legal regulations that encourage care and protection of the environment have been implemented from the legislature, and in the same way mitigation policies for climate change, on the other hand, as governmental entities use economic instruments to set the price of carbon credits.