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Carbon Credit Procurement Policy

Last revised on Feb 27, 2025.

1. Purpose and Scope

1.1 Purpose

This policy establishes guidelines and requirements for the procurement of carbon credits at SkootEco. It ensures that all carbon credits purchased by the company meet rigorous environmental integrity standards and social responsibility criteria in alignment with our B Corp certification requirements and corporate sustainability goals.

1.2 Scope

This policy applies to all carbon credit procurement activities undertaken by SkootEco, including offsetting operational emissions, product carbon neutrality claims, and climate finance initiatives. It covers all departments involved in carbon credit procurement decisions and implementation.

2. Definitions

  • Carbon Credit: A tradable certificate representing the reduction, avoidance, or removal of one metric ton of carbon dioxide equivalent (CO₂e) from the atmosphere.
  • Carbon Offset: The process of compensating for greenhouse gas emissions by funding projects that reduce, avoid, or remove an equivalent amount of emissions elsewhere.
  • Third-Party Certification: Independent verification and validation of carbon credits by recognised standards organisations to ensure they meet specific environmental, social, and governance criteria.
  • Additionality: The principle that carbon credit projects must result in emission reductions that would not have occurred in the absence of the carbon credit revenue.
  • Co-benefits: Additional environmental, social, or economic benefits beyond carbon emission reductions that result from carbon credit projects.

3. Policy Statements

3.1 Carbon Credit Quality Requirements

SkootEco shall only procure carbon credits that meet the following quality criteria:

3.1.1 Certification Standards

All carbon credits must be certified by internationally recognised third-party standards, including but not limited to:

  • Gold Standard (GS)
  • Verified Carbon Standard (VCS/Verra)
  • Climate Action Reserve (CAR)
  • American Carbon Registry (ACR)
  • Clean Development Mechanism (CDM)
  • Plan Vivo
  • CSA Group
3.1.2 Project Types

SkootEco prioritises the following project types, in order of preference:

  1. Renewable energy projects in developing countries
  2. Energy efficiency initiatives for disadvantaged communities
  3. Nature-based solutions (reforestation, afforestation, avoided deforestation)
  4. Community-based sustainable development projects
  5. Methane capture and utilisation
  6. Other high-quality projects with significant co-benefits
3.1.3 Technical Requirements

All carbon credits must satisfy the following technical criteria:

  • Additionality: Projects must demonstrate that emission reductions would not have occurred without carbon credit revenue.
  • Permanence: Emission reductions must be permanent or have appropriate safeguards for non-permanence risks.
  • No double counting: Credits must be uniquely claimed and registered in appropriate registries.
  • Measurability: Emission reductions must be quantifiable using approved methodologies.
  • Verification: All emission reductions must be independently verified.
  • Transparency: Project documentation must be publicly accessible.

3.2 Social and Ethical Requirements

SkootEco is committed to ensuring that carbon credits not only deliver environmental benefits but also uphold social justice and ethical standards:

3.2.1 Fair Labour Standards

All carbon credit suppliers and project developers must:

  • Pay fair wages that meet or exceed local living wage standards.
  • Provide safe and healthy working conditions.
  • Respect freedom of association and collective bargaining rights.
  • Prohibit child labour, forced labour, and all forms of discrimination.
  • Provide equal opportunities regardless of gender, ethnicity, religion, or other protected characteristics.
  • Offer training and skills development for workers.
3.2.2 Community Engagement

Projects must demonstrate:

  • Free, prior, and informed consent from local communities.
  • Meaningful consultation with stakeholders throughout project development.
  • Equitable benefit-sharing with local communities.
  • Respect for indigenous rights and traditional knowledge.
  • Grievance mechanisms for addressing community concerns.
3.2.3 Governance and Transparency

Suppliers must maintain:

  • Clear and transparent governance structures.
  • Anti-corruption policies and practices.
  • Regular public reporting on social and environmental impacts.
  • Mechanisms for stakeholder feedback and continuous improvement.

4. Procurement Procedures

4.1 Supplier Selection and Due Diligence

4.1.1 Supplier Screening

Before engaging with carbon credit suppliers, SkootEco shall:

  • Verify certification status and validity.
  • Review project documentation for compliance with this policy.
  • Assess supplier track record and reputation.
  • Evaluate any history of project implementation issues.
  • Check for any negative media coverage or controversies.
4.1.2 Documentation Requirements

Suppliers must provide the following documentation:

  • Valid certification from approved standards bodies.
  • Project design documents.
  • Monitoring reports.
  • Verification reports.
  • Social impact assessments.
  • Environmental impact assessments.
  • Evidence of stakeholder consultations.
  • Labour policies and compliance documentation.
4.1.3 Site Visits and Audits

For major procurement contracts:

  • Site visits shall be conducted when feasible.
  • Third-party audits may be commissioned.
  • Worker interviews shall be included in audit processes.
  • Community feedback shall be collected and considered.

4.2 Procurement Decision-Making

4.2.1 Evaluation Criteria

Carbon credit procurement decisions shall be based on:

  • Environmental integrity (40%)
  • Social impact and co-benefits (30%)
  • Labour standards and ethical practices (20%)
  • Cost-effectiveness (10%)
4.2.2 Approval Process

Carbon credit procurement requires approval from:

  • Sustainability Manager for purchases under $50,000
  • Chief Operations Officer for purchases between $50,000 and $250,000
  • Executive Committee for purchases exceeding $250,000
4.2.3 Documentation and Record-Keeping

For each procurement, the following must be documented:

  • Evaluation against policy criteria.
  • Due diligence findings.
  • Approval documentation.
  • Purchase agreements.
  • Certificate retirement information.
  • Impact reporting data.

4.3 Supplier Relationships and Monitoring

4.3.1 Contractual Requirements

All carbon credit purchase agreements must include:

  • Compliance with this policy as a contractual obligation.
  • Rights to audit and verify compliance.
  • Reporting requirements for social and environmental impacts.
  • Provisions for termination in case of non-compliance.
  • Requirements to maintain certification status.
4.3.2 Ongoing Monitoring

SkootEco shall monitor supplier compliance through:

  • Annual review of certification status.
  • Regular check-ins on project implementation.
  • Review of monitoring and verification reports.
  • Assessment of impacts on workers and communities.
  • Tracking of any grievances or controversies.

5. Reporting and Transparency

5.1 Internal Reporting

The Sustainability Team shall provide quarterly reports to management on:

  • Carbon credits procured and retired.
  • Supplier compliance with this policy.
  • Social and environmental impacts achieved.
  • Issues or concerns identified.
  • Recommendations for policy improvements.

5.2 External Reporting

SkootEco shall publicly disclose:

  • Total carbon credits purchased annually.
  • Projects supported and their locations.
  • Certification standards applied.
  • Estimated emission reductions achieved.
  • Co-benefits delivered to communities.
  • Any significant challenges or lessons learned.

6. Policy Implementation and Oversight

6.1 Roles and Responsibilities

6.1.1 Sustainability Team
  • Implementing this policy.
  • Conducting supplier due diligence.
  • Monitoring compliance.
  • Reporting on outcomes.
6.1.2 Procurement Department
  • Incorporating policy requirements into procurement processes.
  • Negotiating supplier contracts.
  • Ensuring documentation compliance.
6.1.3 Executive Leadership
  • Approving high-value procurements.
  • Reviewing policy effectiveness.
  • Addressing significant compliance issues.

6.2 Training and Capacity Building

  • All relevant staff shall receive training on this policy.
  • Guidance materials shall be developed and updated.
  • External expertise shall be engaged as needed.

6.3 Policy Review and Updates

This policy shall be reviewed annually to ensure alignment with:

  • Evolving carbon market standards.
  • Best practices in social responsibility.
  • SkootEco's sustainability strategy.
  • B Corp certification requirements.
  • Stakeholder expectations.

7. Exceptions and Deviations

Any exceptions to this policy must be:

  • Justified in writing.
  • Approved by the Chief Operations Officer and Sustainability Director.
  • Documented for audit purposes.
  • Reported to the Executive Committee.

Appendix A: Approved Certification Standards Details

  • Gold Standard (GS):
    • Focus on SDG impacts beyond carbon.
    • Strong stakeholder consultation requirements.
    • Rigorous sustainable development criteria.
  • Verified Carbon Standard (VCS/Verra):
    • World's largest voluntary carbon market program.
    • Sector-specific methodologies.
    • Additional certifications available (CCB, SD Vista).
  • Climate Action Reserve (CAR):
    • Focus on North American projects.
    • Standardised protocols for different project types.
    • Transparent registry system.
  • American Carbon Registry (ACR):
    • First private voluntary carbon registry in the U.S.
    • Science-based methodologies.
    • Strong focus on innovation.
  • Clean Development Mechanism (CDM):
    • United Nations-backed mechanism.
    • Global scope with focus on developing countries.
    • Rigorous MRV requirements.
  • Plan Vivo:
    • Focus on smallholder and community projects.
    • Strong emphasis on livelihoods and ecosystems.
    • Participatory project design approach.

Appendix B: Verification of Working Conditions and Fair Wages

SkootEco verifies that its carbon credit suppliers uphold fair labour standards through the following mechanisms:

Certification Requirements

  • All recognised certification standards include social safeguard requirements.
  • Standards like Gold Standard and Plan Vivo have explicit fair labour provisions.
  • Suppliers must maintain current certification at all times.

Additional Verification Methods

  • Review of supplier labour policies and procedures.
  • Assessment of wage rates against local living wage benchmarks using tools such as the Fairwage Guide (fairwageguide.org).
  • Verification of worker contracts and payment records.
  • Confirmation of health and safety policies and implementation.
  • Evaluation of training and development opportunities.

Documentation Requirements

Suppliers must provide documentation demonstrating:

  • Compliance with local labour laws and regulations.
  • Payment of fair wages (minimum documentation: sample payroll records, wage policy).
  • Safe working conditions (minimum documentation: health and safety policy, accident records).
  • Non-discrimination practices (minimum documentation: HR policy, diversity statistics).
  • Worker representation and grievance mechanisms (minimum documentation: employee handbook).

SkootEco may:

  • Commission third-party labour audits.
  • Conduct worker interviews during site visits.
  • Review certification audit findings related to social criteria.
  • Engage with local civil society organisations for independent feedback.

Contact Details

If at any time you would like to contact us with your views about our privacy practices, or with any enquiry relating to your Personal Data, please use one of the following means:

  • By email:
[email protected]
  • By mail or courier to:
Attn: Privacy Officer
SkootEco Group Ltd.
86-90 Paul Street, 3rd Floor
London, England
EC2A 4NE
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