St1 assesses all projects following a predetermined evaluation process that ensures all aspects of the projects are sustainable. The purpose of the evaluation is to map out any impacts and risks associated with each project.
A project should be able to demonstrate clear carbon sequestration potential. Other key aspects include evaluating community benefits and biodiversity. Nature-based solutions should always apply adaptation to the natural habitat. Changing the environment can lead to negative effects over time.
To qualify as a high-quality project, the project should also be able to demonstrate clear additionality, as well as satisfy permanence and other important criteria. All nature-based solutions should have a management plan whose duration is longer than that of the project.
Due-diligence evaluation of partners and countries are very important. When entering a partnership, it is vital that the partner intends to act solely in a way that improves the situation wherever and whenever possible. We expect all partners to agree to and sign our code of conduct and work against bribery and corruption.
The countries in which we establish projects need to be assessed separately. Human rights and social acceptance are key factors in ensuring that the geographical location of the project is sustainable. All human rights are assessed together with a third-party actor who has knowledge of the country, government and the local laws. Physical presence in the country is of great importance.
In order to ensure reliable carbon credits, we have chosen to only work with well-known certification bodies that have robust methodologies and verification processes. All carbon credits issued must meet certain minimum requirements and standards to ensure credibility. Another important advantage to working with these certification bodies is their transparency regarding their processes to ensure the proper retirement of carbon credits and the avoidance of double counting.
Transparent monitoring, reporting and verification processes are the cornerstones of credibility. Ensuring project deliverables and expected carbon sequestration rates is pivotal for achieving expected results. We are currently testing the accuracy of remote sensing through satellite images for more accurate, cost-effective and real-time monitoring possibilities. The initial results have been positive, and this will be further tested and developed throughout 2022-2023.
St1’s portfolio strategy regarding carbon sequestration projects is to align afforestation with avoided deforestation, protection of mangroves and wetlands and technical advancements within DACCS and BECCS. Our view is that each of these initiatives plays a role in our collective commitment to mitigating climate change, ensuring community benefits and enhancing the richness of species, for plants and animals alike.