This year’s UN’s Conference of Parties conference (“COP27”) has a goal of seeking clarity and concrete guidelines for Voluntary Carbon Market (VCM) players. Last year’s COP26 conference in Scotland ended with 632 of the world’s largest 2000 public companies by revenue announcing plans to achieve Net Zero greenhouse gas emissions. In 2021 the Global Carbon Markets surged to a record $851 billion, and is slated to grow at a CAGR of +30% to reach $2.4 trillion through 2027. Here now are FOUR Stocks that are industry leaders in their respective fields that are making aggressive efforts to achieve their own Net Zero commitments, helped along the way by voluntary carbon credits: Bank of Montreal (NYSE:BMO) (TSX:BMO), Delta Air Lines, Inc. (NYSE:DAL), Freeport-McMoran Inc. (NYSE:FCX), and Royal Caribbean Group (NYSE:RCL).
Bank of Montreal (NYSE:BMO) (TSX:BMO)
One of the entities that’s recently committed to purchasing more carbon credits is Canadian ‘Big Five’ bank, Bank of Montreal that recently announced its commitment to purchase carbon credits over five years via an agreement with Halifax-based CarbonCure Technologies. As per the deal, BMO’s purchase represents 5,750 metric tons of CO2 removal and reductions, and the credits are expected to be delivered every September from 2022 through to 2026.
"Since 2010, BMO has been carbon neutral in its own operations through a combination of reducing energy use, purchasing renewable energy certificates to match 100 per cent of our electricity use. and offsetting remaining emissions," said Michael Torrance, Chief Sustainability Officer, BMO Financial Group.
To date, BMO's leadership on sustainability has been recognized on a number of global rankings, including the Corporate Knights' Global 100 Most Sustainable Corporations, Dow Jones Sustainability Indices World Index, and Ethisphere Institute's list of the World's Most Ethical Companies.
Delta Air Lines, Inc. (NYSE:DAL)
On a global basis, Delta Air Lines boasts having become the first carbon neutral airline back in 2020. The world’s second-largest airline by revenue, Delta bought 12 million carbon credits, worth $137 million in 2021.
But their efforts didn’t end there, as they also spent approximately $3.2 billion to become more environmentally sustainable in 2021. While Delta has spent a lot of money on new aircrafts that are more efficient, helping make terminals more energy efficient, and vowing to make a quarter of its ground equipment electric by 2025, the airline still relies heavily on carbon credits to meet its goals.
Delta gives money to rainforest nations so that they can preserve their trees that absorb CO2. According to Bloomberg, Delta Air Lines accomplished this by spending roughly $2.31 per ton. It’s accomplished this feat by being one of the world’s largest carbon offset purchasers.
Freeport-McMoran Inc. (NYSE:FCX)
Energy giant Freeport-McMoran is working towards its own 2030 and 2050 Net Zero goals, all while dealing with the aftermath of an oil spill near Jean Lafitte, Louisiana.
As per the deal, Freeport gains preferred status from the sale of environmental credits related to projects funded with its settlement, which was signed off on by the State of Louisiana Department of Natural Resources. Also known as carbon credits, these are generated by projects that cut greenhouse-gas emissions, such as tree plantings or marsh restorations, and can be used to offset an owner’s other pollution-causing actions, or sold to other companies.
One of the ways Freeport receives credits such as these comes from its involvement in projects such as the Freeport Energy Storage and Carbon Sequestration Hub with Gulf Coast Midstream Partners.
Royal Caribbean Group (NYSE:RCL
Travel industry giant, Royal Caribbean Group is making a splash with its new $125 million, 161,334-square-foot terminal in Galveston, Texas that’s slated to have zero reliance on the state’s energy grid. Royal Caribbean claims the terminal will be the first LEED Zero Energy facility in Texas, with an official certification expected by the end of Q2 2023. Once confirmed, this terminal will be Royal Caribbean’s fourth LEED certified facility, which include Terminal A at PortMiami and the Innovation Lab at the company’s corporate headquarters in Miami.
"We are focused on innovating across all aspects of our company, especially in our work to advance sustainability in the communities we visit," said Jason Liberty, president and CEO, Royal Caribbean Group. "We deeply value both the oceans we sail and the communities we visit and operate in, and the modern design and development features at our terminal in Galveston will work in service of both."
Back in 2018, Royal Caribbean launched a carbon offset program with Southern Power. In order to be fully neutral, Royal Caribbean will mitigate its Galveston terminal emissions through the purchase of more carbon credits.
