OER complements direct decarbonisation strategies

Taking action beyond the value chain alongside direct decarbonisation is not new. Companies have long funded carbon credits and invested in activities such as capacity building and research and development to help overcome barriers to value chain action.

Ongoing Emissions Responsibility (OER) builds on years of work on Beyond Value Chain Mitigation (BVCM) and related corporate climate action, providing a framework to bring these activities together, helping companies communicate them more clearly and ensuring their contribution is recognised.

Why do we need both OER and direct value chain action?

Companies need to reduce emissions across their operations and value chains if we are to reach global net zero. But even with ambitious targets, most will continue to produce significant emissions for years to come. As the remaining carbon budget shrinks and climate risks mount, OER offers a structured way to take responsibility for a company’s ongoing emissions while direct decarbonisation continues.

Combining OER and value chain action can help organisations demonstrate credible leadership and direct finance towards climate action that supports both their own transition and wider climate goals. The experience of the Scrubba, a brand owned by Australian company Calibre8 Pty Ltd, shows how a small business can pursue both: improving its products and operations while setting aside a dedicated budget for climate projects outside of its value chain.

Which activities fall under OER?

OER can include three broad types of activity:

• Unlocking near- and medium-term decarbonisation. Supporting actions that help remove barriers to emissions reductions in a company’s operations, value chain or wider sector, for example, supplier engagement, collaboration, advocacy and other enabling activities.
• Preparing for longer-term solutions. Funding R&D to develop and scale nascent climate solutions, such as durable carbon dioxide removal (CDR), and support innovation.
• Supporting global mitigation. Directing funding through high-integrity carbon credits to high-impact projects that deliver additional near-term mitigation outcomes in line with science. For example, directing a portion of funding to actions that deliver access to basic energy services for communities in developing countries.
• Case study: the Scrubba

Overall approach

The Scrubba, a brand that makes portable wash bags for small loads of laundry, has long recognised that making and distributing a physical product has environmental impacts. It responds in two complementary ways: by working to reduce those impacts through product durability, material choices, packaging and logistics, and by supporting credible climate action beyond its value chain.

“We see these as complementary parts of the same approach: making a product that serves a useful environmental purpose, improving how it is made and delivered, and contributing to wider climate solutions,” said Ashley Newland, Managing Director and Patent Attorney at the Scrubba.

The company focuses on practical improvements it can identify and implement, integrating environmental considerations into product development and operational decisions. Understanding the impacts of individual materials and manufacturing processes requires supplier cooperation and consistent methods for allocating energy and other inputs. The company must also balance environmental goals with product performance, cost and delivery. It acts where the benefits are clear while working to improve the data it uses to assess more complex trade-offs.

Setting a climate budget

The Scrubba uses Change Climate’s Business Emissions Evaluator (BEE) to estimate its emissions. It has also developed a preliminary, bottom-up estimate of the production footprint of an Original Scrubba wash bag, using material quantities, published emissions factors and estimated manufacturing energy use. It used this estimate and a carbon fee to set a climate budget.

“Having a dedicated climate budget has helped make environmental responsibility an ongoing business commitment rather than an occasional discretionary expense. It has also allowed us to support credible climate projects while continuing to invest in practical improvements to our own products and operations,” Newland explained.

Funding climate action beyond its value chain

Between 2021 and 2025, the Scrubba invested US$35,904 in carbon credits beyond its value chain and retired 3,545 tonnes of CO₂e. These investments sit alongside other climate actions, including capacity building, change management activities and contributions to environmental organisations.

The Scrubba uses external expertise to help assess and select projects. “As a small business, we have generally relied on Change Climate’s guidance and recommendations when selecting carbon credit projects. We value having access to their expertise and due diligence rather than attempting to assess every project independently with our limited resources,” Newland said.

The Scrubba focuses on project credibility, robust monitoring and verification, and the likelihood of meaningful climate benefits. It also aims to deliver wider environmental and community benefits, where they can be supported by evidence.

Why it matters to the business

Rather than claim a direct commercial return, the business points to the importance of acting in line with its values and the expectations of its stakeholders.

“We know that many of our supporters appreciate our environmental values and the fact that we are trying to operate responsibly. It is also personally important to us as a business. We would not want to overstate the commercial benefit, but we believe these commitments are consistent with the expectations of our customers and the purpose behind the Scrubba wash bag,” said Newland.

What the Scrubba has learned

Newland credits the ongoing commitment to helping keep environmental considerations in the company’s decisions: “Having an ongoing commitment has helped ensure that environmental considerations remain part of our business decisions, rather than something we address only when a particular opportunity arises.”

If starting today, the company would establish a more structured system for collecting supplier and manufacturing data earlier. Better information on materials, energy use and freight would make it easier to assess product changes and track progress over time.

The Scrubba’s experience points to a practical lesson for other companies: you can start before every part of your emissions data or strategy is finalised, provided your approach is credible, transparent and consistent. The case shows how even a small company can work to reduce its own emissions while using a climate budget to make climate action beyond its value chain an ongoing commitment.

Next steps

Where a company starts will depend on its size and resources. Larger companies may be able to integrate a broader portfolio of OER activities, alongside their other climate commitments, into existing governance, procurement and reporting. The aim is not to wait for a perfect strategy, but to act now.

Gold Standard’s OER Working Group is intended to help companies work through some of the challenges of implementing OER. If your company recognises itself in the Scrubba’s story, register your interest in joining the working group here.

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