Factors Contributing an Organization to Invest in Carbon offset Projects

The increase of climate change impacts such as floods, rise of sea level and long drought periods has forced many countries to formulate and enforce effectively environmental regulations. However it is through undertaking carbon offset projects that help to reduce these impacts. This has been enabled many organization to comply with these environmental regulations. The study explores why an organization can be interested in investing in carbon offset projects. Based from the empirical literature review, findings of the study argued that compliance to the environmental regulations are the main driving force for an organization to invest in carbon offsetting projects. However, an organization can go beyond voluntarily to invest in order to increase energy efficiency and its supply sustainability. Moreover, an organization can undertake carbon offset projects due to rise of the cost of raw materials, improving values of shareholders, market pressure from the consumers, to increase product competition and as a corporative social responsibility.