納斯達(dá)克-2024年全球凈零脈搏 Global Net Zero Pulse

yNasdaa

2024SurveyReport

GlobalNetZero

Pulse

Contents

03b

Introduction

04b

KeyTakeaways

05

Research

Methodology

06b

Respondent

Demographics

08

CorporateNetZeroAlignment

10

CorporateCarbonCreditPurchaseStrategies

16

CarbonMarketDynamics

21

Glossary&References

2b

NASDAQESGSOLUTIONS

|GLOBALNETZEROPULSESURVEY|2024RESULTS

Introduction

Carbondioxideremoval(CDR)continues

tobeanecessarytoolwithinthecorporatenetzerotoolbox.

Sincelastyear’sinauguralNasdaqGlobalNetZeroPulsesurvey,thevoluntarycarbonmarket(VCM)continuestoevolveinlightofsignificantstakeholderfeedback,includingdevelopments

withcorporateCDRbuyercoalitions,evolvingScienceBased

Targetsinitiative(SBTi)corporatenetzeroguidance,andU.S.

governmentguidanceoncarbonoffsettingpractices.However,someaspectsoftheVCMhavenotchanged.Forexample,

limitingglobalwarmingto1.5°Cwillstillrequiregigaton-scale

removalofCO2fromtheatmosphereand,asaresult,1CDR

continuestobeanecessarytoolwithinthecorporatenetzero

toolbox.Thiswasevidentlastyearandremainsevidentin2024.Moreover,July2024record-breakingtemperatureeventsserveasareminderofthetimeboundconstraintstoaligntoanet

zerotrajectory.2

The2023surveyexploredthepivotalroletheVCMplaysin

globaleffortstocombatclimatebyenablingcompaniesto

achievenetzeroemissions.Unlikeregulatedcarbonmarkets,

theVCMallowscompaniestopurchasecarboncreditsona

voluntarybasis,helpingfinanceprojectsthatreduce,remove,oravoidgreenhousegasemissions.ConsideringtheexpansivedetailuncoveredwithintheVCMin2023,andacknowledging

thegrowingchorusofVCMsurveysinthemarket,theNasdaqESGAdvisoryteamapproachedthisyear’ssurveyeffortwith

muchexuberanceandinterestincapturinganswerstoasimplequestion:HowhastheVCMchangedinthelast12months?

WhiletheVCMisfarfromsimple,theteamembracessimplicityasmuchaspossibleandbringssurveydatatolifethroughtheperspectivesofcorporatebuyerswhoarenewtotheVCMandfamiliarwiththeVCM.Additionalinsightsfromnon-corporates

likeCDRsuppliersandinvestorsalsoserveasvaluable

datapointsinanalyzingresults.Thegoalofthisreportisto

provideincrementalvaluetothewidebodyofknowledgethat

continuestobebuiltinthelaboratories,policypanels,regulatory

summits,andcorporateboardrooms.

3b

NASDAQESGSOLUTIONS

|GLOBALNETZEROPULSESURVEY|2024RESULTS

KeyTakeaways

02

03

ProspectiveCDRbuyersstillrequireadditionaleducationoncarbonremovalcredits

beforepurchasing.

01

Corporatebuyersremainallegianttotheirtypicalcarboncreditpurchasestrategies.

Uncertaintyaroundtheregulatorylandscape

delayscarboncredit

procurementdecisions.

SincetheinauguralNasdaqGlobalNetZeroPulsesurvey,

corporatebuyerstrategieshaveremainedstatic.Thisyear,

surveyrespondentsacknowledgesimilarlevelsofsupportfor

optimizingtheimpactofcarboncreditpurchases(25%in2023and27%in2024)versusoffsettingtheiremissionsonaton-for-tonbasisusingcarbonremovalcredits(24%in2023and22%in2024).

Moreover,thisyear’ssurveydatasuggeststhatwhilecorporatephilosophiesoncarboncreditsdiffer,therehasn’tbeena

noticeableshifttowardadominantphilosophywhichrepresents

a‘typical’carboncreditpurchasestrategy.However,with

elevatedconcernsaroundgreenwashing,companiesare

rightlycautiousaroundproperlyevaluatingcarboncredits.ThispresentsanopportunityforcompaniestomovebeyondlegacycarboncredittypestoexplorenewCDRcredittypesthatoffertheriskmitigationcharacteristicstheyseek.

Aprimaryfindingfromlastyear’ssurveywasthatcorporatesneedededucationtocomfortablynavigateandpurchasecarbonremovalcredits.Thisyear’ssurveydataconfirmedacontinuationofthattrend,alongwithafewadditionalinsights.Promisingly,2024surveyfindingsindicategrowingdemandfordurableCDR

creditportfolios,withatleast60%ofcarboncreditportfoliosexpectedtobecomprisedofCDRcreditsby2030.Additionally,80%ofcurrentorprospectivecarboncreditbuyersexpressinterestinfurthereducationoncarbonremoval.

WithadiverseassortmentofCDRcredittypes,surveydataconfirmedthat

companieslackfamiliaritywithsomeCDRcredits,suggestinghigherbarriersofentryintocorporatecarboncreditportfolios.Forexample,ocean-basedCDRcreditsaretheleastlikelytobeunderstoodbysurveyrespondents,whilemorethan50%ofrespondentsreportnotbeingatallfamiliarwithenhancedrock

weathering,enhancedcoastalweathering,andoceanalkalinityenhancement.Atpresent,somecompaniesareleveragingcarboncreditadvisorsandcarbonregistriesforeducation,butsurveydatasuggestsadditionalresourcesarestillrequiredtosupportcarboncreditprocurement.

Although57%ofsurveyrespondentsexpecttoutilizedurableCDR

creditstoreachnetzero,19%reporttheyarestillawaitingfurther

regulationandguidancefromrulemakingbodiesbeforetakingaction.

Surveydataalsoconfirmedthatsectorclassificationheightensthe

sensitivitytowardcomplianceandregulatoryobligations,ascompaniesinthematerialsandconsumerdiscretionarysectorsareparticularly

focusedonregulations.

Therapidlyevolvingpolicyandregulatorylandscapesalsoplaylarger

rolesindetermininghowcompaniesapproachtheirdecarbonizationandcarboncreditprocurementstrategies.72%ofsurveyrespondentsreportfeelingpressurefromacollectivesetofpoliciesimpactingtheusageofcarboncredits,particularlytheSEC’sClimateDisclosureRules(24%)andCalifornia’sAB-1305(14%).Navigatingtheinteroperabilityofoverlappingdisclosurerequirementswillbeanincreasinglysignificantrequirement

forcorporatecarboncreditbuyerswhohavehistoricallyreliedonvoluntarydisclosureguidancefromthird-partygoverningbodies.

4

NASDAQESGSOLUTIONS

|GLOBALNETZEROPULSESURVEY|2024RESULTS

Research

Methodology

IfCDReffortsexpectto

leveragetheVCMasafinancingvehicleforbothconventional

andnovelCDR,adeeper

analysisofcompanybuyingpreferencesiscritical.

ThisledtheNasdaqESGAdvisoryteamtoconductasurveyfromJunetoJuly2024,targetingthecorporatebuyerpersonatofocusinsightsonthedemandsideofthemarket.SurveyquestionsspannedthreekeythemesnecessarytoscaletheVCMandCDRadoption:

1.CorporateNetZeroAlignment

2.CarbonCreditPurchaseStrategies

3.CarbonMarketDynamics

Ofthe120surveyresponses,70%arecurrentorprospectivecarbon

creditbuyers.Thecorporatebuyerperspectivesprovideinsightand

understandingintohowthemarketfordurablecarbonremovalcreditshaschangedoverthepastyearandtherolecarboncreditsplayin

5b

NASDAQESGSOLUTIONS

|GLOBALNETZEROPULSESURVEY|2024RESULTS

corporatenetzerostrategies.

RespondentsMarketCap

MegaCap

(>$200B)

The120surveyrespondentsarecorporate

Region

68%

UnitedStates

120

Respondents

4%

20%

LargeCap

($10Bto$200B)

21%

MidCap

($2Bto$10B)

23%

SmallCap

($300Mto$2B)

12%

MicroCap

($50Mto$300M)

20%

Private

Company

professionals,primarilysustainabilityleadersatpublicandprivatecompaniesglobally.Mostcommonly,theresponsesstemfrompubliccompaniesintheUnitedStates.Additionalsurveyrespondentdemographics

8%

Canada

4%

Africa

15%

Europe

3%

Asia-Pacific

2%

LatinAmerica

aredetailedbelow.

Sector

15%InformationTechnology

11%Energy

9%Financials

9%Industrials

7%ConsumerStaples

7%ConsumerDiscretionary

6%Materials

6%HealthCare

4%Utilities

2%RealEstate

2%CommunicationServices

22%Other*

*Otherisrepresentativeofprofessionalservices,consulting,biotechandnon-standardtechnologysubsectors.

6b

NASDAQESGSOLUTIONS

|GLOBALNETZEROPULSESURVEY|2024RESULTS

52%

ESG&

Sustainability

JobFunction

7%

Finance

7%

CorporateStrategy

5%

C-Suite

5%

Legal

4%

Sales&

Commer-cial

4%

InvestorRelations

4%

Facilities&Real

Estate

3%

3%2%

4%

Procurement&

SupplyChain

Human

Resources

Marketing

Other

CompanyDescription

60%B2B(business-to-business)25%B2C(business-to-consumer)

3%Non-corporateentity12%Other

CompanyRoleintheCarbonMarket

70%Buyerofcarboncredits11%Sellerofcarboncredits19%Other*

*Otherisrepresentativeofadvisoryservices,brokersanddealers,investors,marketplaceproviders,etc.

SizeofSustainabilityTeam

8%0

44%1-224%3-511%5-10

13%Morethan10

AnnualEmissions

Lessthan10,000tons

20%

12%

10,000to50,000tons

18%

3%

50,000to150,000tons

14%

8%

150,000to1,000,000tons

12%

17%

Greaterthan1,000,000tons

11%

16%

Notsure

20%

40%

Prefernottoanswer

5%

4%

●Scope1and2emissions●Scope3emissions

7

NASDAQESGSOLUTIONS

|GLOBALNETZEROPULSESURVEY|2024RESULTS

CorporateNetZeroAlignment

Morethan140countries,representing90%oftheworld’semissions,havepledgedtoreachnetzeroby

aroundmid-centuryinalignmentwiththeParisAgreement.3Whilecompaniesareeffectivelyaccountedforinthecarbontargetsofthecountriesinwhichtheyoperate,manyhavetakentheinitiativetomaketheirownindividualnetzeropledgesthroughvoluntaryschemes,suchasSBTi.

AccordingtoSBTi,morethan9,000companiesaretakingaction,withover6,100thathavesetascience-basedtarget,andover3,400thathavemadenetzerocommitments.In2024alone,morethan1,600

newcompanieshavemadeSBTicommitmentsandaround700havesuccessfullycommittedtoand

adoptedSBTitargets.4TheupwardtrendincompaniescommittingtoSBTiisapromisingsignforclimate

actionambitions.Whiletheneedtoprioritizeemissionsreductionsinthenexttwodecadesisapparent,

decarbonizationalonewillnotbeenoughtoreachnetzero.Evenwithsignificantglobalemissionsreductions,therewillstillbeunavoidable(residual)andhistoricalemissionsthatneedtobeaddressed.Forthis,high

qualitycarbonremovalwillbenecessary.

Despitedemand-sideuncertaintyinthemarket,most

companiesacknowledgetheneedfordurableCDRtoachievenetzero.

57%ofsurveyrespondentsplantoinvestinnature-basedandtechnology-basedcarbonremovalsolutions

toneutralizetheirresidualemissions.Furthermore,only13%plantouseothercarboncredits,including

carbonreductionandcarbonavoidance,andlessthan10%expecttoreachnetzerowithoutusinganycarboncredits.ComparingthistothesupplyofVCMprojectsrevealsaninverserelationshipwhere80-88%ofVCMprojectswereemissionsreductionandavoidanceprojects,whileconventionalandnovelCDRprojectsonly

madeup12%ofprojects.5Thissuggeststhatsurveyrespondentsassociateusingcarbonremovalcreditsasanintegralpartoftheirnetzerostrategy.

Ifyourcompanyhasanetzeroambition,doyouexpecttoutilizedurablecarbonremovalstomanagetheresidualemissions?

57%Yes,weexpecttoutilizedurablecarbonremovalcreditstoreachnetzero

13%No,weexpecttouseothercarboncreditstoreachnetzero10%Nosuchambition

8%No,weexpecttoreachnetzerowithoututilizingcarboncredits12%Other

ofsurveyrespondentsplantoinvestinnature-based

andtechnology-based

carbonremovalsolutionstoneutralizetheirresidualemissions

57%

8b

NASDAQESGSOLUTIONS

|GLOBALNETZEROPULSESURVEY|2024RESULTS

2024

2030

2050

Whatpercentageofyourcompany’semissionscouldbereducedormitigatedwithoutcarbonremovalcreditstodayandinthefuture?

Companiesplantoincreasinglyadoptalternativestrategiestomitigateandreducetheiremissions;however,

despitebesteffortstoreduce

emissions,someemissionswillcontinuetobeoutsideofthecompany’scontrol

andcanbeaddressedusingCDR.

Only40%ofcorporatebuyerrespondentsunderstandtheircompany’spathtoreducingcorporateemissionsbetween2024and2030.This

uncertaintygrowsascompanieslookto2050.Currently,30%of

corporatebuyerrespondentsexpecttoreducetheiremissionsbyupto40%withoutusingCDRcredits.Attheturnofthedecade,31%ofcorporatebuyerrespondentsplantoreduceemissionsbyupto60%

beforeusingCDRtoaddresstheremainingemissions.Thepercentageofcorporatebuyerswhoexpecttoreduceemissionsby80%ormoreby2050(16%)triplesfrom2030(5%).

Thoughthistrendshowsthatmanycompaniesareconfidenttoleverageexistingclimatetechnologiestodecarbonizetheirbusiness,thehard-

to-decarbonizesectorswillstillneedcarbonremovaltoaddressunavoidableemissions.

40%

ofcorporatebuyerrespondentsunderstandtheircompany’spathtoreducingcorporateemissionsbetween2024and2030

●Unsure

●80-100%

●60-80%

●40-60%

●20-40%

●0-20%

Theresultsshown

onlyinclude

thecurrentand

prospectivecorporatebuyerperspectives

(70%),notthefullsurveyresults.

9b

NASDAQESGSOLUTIONS

|GLOBALNETZEROPULSESURVEY|2024RESULTS

Carbonremovalcreditsplayakeyroleinthenetzerotoolbox,astheyallowcompaniestoneutralizehard-to-avoidemissions.

87%ofsurveyrespondentsreportcarbonremovalcreditsplayanimportantroleintheircompany’snetzerostrategywitharound40%indicatingCDRisveryimportantorextremelyimportanttotheirstrategy.

Moreover,B2CrespondentsarenearlytwiceaslikelytorankCDRasveryimportantorextremelyimportantthantheirB2Bcounterparts,suggestingconsumerpreferenceforcompanieswithproductsandservicesthataligntotheirnetzeroobjectives.

Ifyourcompanyhasanetzerotarget,whatroledocarbonremovalcreditsplaywithinitsnetzerostrategy?

17%Extremelyimportant

22%Veryimportant

21%Moderatelyimportant

27%Slightlyimportant

13%Notatallimportant

87%

ofsurveyrespondentsreportthatcarbonremovalcreditsplayan

importantroleintheircompany’snetzerostrategy

Toguidethecarboncredit

procurementprocess,most

companiesaresettingastrategythatalignstotheircorporate

sustainabilitygoalsandtargets.

93%ofcarboncreditbuyerrespondentsand88%ofallsurveyrespondentsreporttheircompanyhasacarboncreditstrategyinplace.Surveyrespondentsarenearlyequallysplitbetween

usingcarbonreductionoravoidancecredits(25%)orcarbon

removalcredits(24%)tooffsettheiremissionsonaton-for-tonbasis.Another25%aremakingpurchasedecisionstooptimizetheimpactoftheirpurchasedecisions,whichmayincludeallcarboncredittypes.

InlinewithfindingsfromNasdaq’s2023GlobalNetZeroPulsesurvey,strategiesthatfocusoncarbonremovalcreditsare

favoredbyrespondentsfromtheindustrialsandinformation

technologysectorsandlargercompanies.Respondentsfromthe

financialservicessectorandsmallercompaniesaremorelikelytohavestrategiesthatfocusinsteadoncarbonreductionor

avoidancecreditsorallcredittypes.

Lastly,16%ofrespondentsaretargetingstrategicinvestmentopportunities,enablingthemtosecurefuturesupplyofcreditsfromthecarbonremovalprojectstheyfinancetoday.CarboncreditbuyersinEuropearemostlikelytoadoptthisapproach.

CorporateCarbonCreditPurchaseStrategies

Howwouldyoudescribe

yourcompany’scarbon

creditstrategy?

25%●Weseektooffsetouremissionsonaton-for-tonbasisusingcarbon

reductionoravoidancecredits

24%

●

Weseektooffsetouremissionsonaton-for-tonbasisusingcarbon

removalcredits

25%

●

Weseektooptimizetheimpactofourcarboncreditpurchasesevenifitdoesn’tcompletely

offsetouremissions

Weseekstrategicinvestment

opportunitiestofinancecarbon

removalprojectstosecureaccesstofuturecarboncreditsupply

Other

Theresultsshownonlyincludethecurrentandprospectivecorporatebuyerperspectives(70%),notthefullsurveyresults.

10%●

16%●

Companiesthatmaynot

havehistoricallyparticipatedinthecarbonmarketsare

increasinglyreportingplansforfuturecarboncredit

purchases,signalinga

steadyincreaseincorporatedemandforcarboncredits.

Historically,around32%ofcorporatebuyer

respondentshavepurchasedsometypeofcarboncredit,whethercarbonreduction,avoidance,

orcarbonremovalcredits.Inthefuture,39%ofcorporatebuyerrespondentsindicateplanstopurchasecarboncredits.

Surveyfindingsalsoindicatea5%increaseincarbonreductionandavoidancecreditpurchasesinthe

future,relativetothepast,anda2%increasein

CDRcreditpurchases.Acrossthefullsetofsurveyrespondents,thelargestgrowthinfuturedemandforCDRstemsfromrespondentsintheenergyand

materialssectors–twoofthesectorscontaininghard-to-abateindustries,suchascement,steel,power,andchemicals.

Howwouldyoudescribeyour

company’scarboncreditpurchasehistoryandfutureplans?

18%We’vehistoricallypurchasedcarbon

reductionoravoidancecredits

23%Weplantopurchasecarbonreductionoravoidancecreditsinthefuture

14%We’vehistoricallypurchasedcarbon

removalcredits

16%Weplantopurchasecarbonremoval

creditsinthefuture

ofcarboncreditbuyerrespondentsand88%ofallsurveyrespondents

reporttheircompanyhasacarboncredit

strategyinplace

29%Notapplicable

Theresultsshownonlyincludethecurrentandprospective

corporatebuyerperspectives(70%),notthefullsurveyresults.

10b

NASDAQESGSOLUTIONS

|GLOBALNETZEROPULSESURVEY|2024RESULTS

WhatpercentageofyourcarboncreditAstheCDRcreditmarket

portfolioiscomprisedofcarbonremoval

creditsin2024versusanticipatedpercentagesin2030and2050?

matures,surveyfindingsindicateconsistentdemandfordurable

CDRincorporatecarboncreditportfoliosby2050.

●

●

●

●

●

●

Unsure

80-100%60-80%40-60%20-40%0-20%

TheinclusionofCDRcreditsincarboncreditportfolios

appearstobeuncommon.Carbonremovalcreditsupply

shortagespreventmanycompaniesfromincludingthemintheircarboncreditportfoliotoday,butsurveydatasuggestsaflighttowardhigherqualitycarbonremovalcreditsover

time.ThisindicatesthecurrentCDRmarketiscomprised

primarilyoftwocorporatebuyerpersonas,includingthoseexperimentingwithCDRinsmalleramountsandthose

thatcanaffordCDRtoremovemostoftheiremissions.

35%reportCDRcreditsmakeuplessthan20%oftheir

portfoliosin2024,butonly13%planforCDRcreditsto

beasmallpercentageoftheirportfoliosby2050.Onthe

35%

flipside,in2024,only4%ofrespondentsreportCDRmakesupmorethan80%oftheirportfolios.Thisgrowsto7%ofrespondentsby2030and10%ofrespondentsby2050.

Morethan50%ofsurveyrespondentsareunsureofthe

makeupoftheircompanies’carboncreditportfolios.Whileportfolioswon’tshiftovernight,thistrendsuggeststhat

whiletherewillbecontinueduncertaintyinmarketdemandforCDR,itmaycontinuetobuildasthecarbonremoval

marketmatures.

reportCDRcreditsmakeupless

than20%oftheirportfoliosin2024,butonly13%planforCDRcreditstobeasmallpercentageoftheir

2024

2030

2050

portfoliosby2050

11b

NASDAQESGSOLUTIONS

|GLOBALNETZEROPULSESURVEY|2024RESULTS

Whatpercentageofyourcompany’s

emissionsdoyouexpecttoabatewithhighqualitycarbonremovalcreditsatyourtargetpricerangein2024,2030,and2050?

Scope1&2Emissions2024

Whilemanycompaniesare

uncertainoftheroleCDRwillplay

intheiremissionsabatementnow

andinthefuture,aminorityof

respondentssignalanupwardtrend

inCDRdemand.

Over50%ofthecorporatebuyerrespondentsreportfeeling

uncertainoftheircompany’sScope1and2emissions

percentagesthatcouldbeabatedusingCDRin2024,2030,and2050.Theremainingrespondentssuggestasteadyincreaseinthepercentageoftheircompany’sabatementplansusingCDR.

2030

Whilein2024,lessthan10%of

respondentsexpecttoabate80%or

2050

moreoftheiremissionswithCDR,this

increasesby1.5xin2030and2xin2050.

Scope3Emissions

2024

Respondentsreportingthisupwarddemandtrajectorybetween2024and2050tendtofallwithintheinformationtechnology,financials,consumerstaples,andutilitiessectors.

50%+

Moreover,thereisevengreateruncertaintyamongcorporate

2030

buyerrespondentsinunderstandingtheroleCDRcouldplay

inaddressingtheirScope3emissions.Scope3emissions

2050

accountforthelargestportionoftotalemissions.Unfortunately,Scope3emissionsarealsousuallythehardesttoreduce.For

therespondentswhoaremorefamiliarwiththeiremissions

ofcorporatebuyerrespondentsreport

feelinguncertainoftheircompany’sScope1and2emissionspercentagesthatcouldbeabatedusingCDRin2024,2030,and2050

andtheroleCDRwillplayintheirclimatestrategies,thereisasimilarupwardtrendtowardagreaterpercentageofemissionsabatementbetween2024and2050.

●0-20%●20-40%●40-60%●60-80%●80-100%●Unsure

Theresultsshownonlyincludethecurrentandprospective

corporatebuyerperspectives(70%),notthefullsurveyresults.

12b

NASDAQESGSOLUTIONS

|GLOBALNETZEROPULSESURVEY|2024RESULTS

Ifcarbonremovalcreditsarenotpartof

yourcompany’sdecarbonizationstrategy,whichofthefollowingbestexplainswhy?

CompaniesarehesitanttoincludeCDRuntiltheyhavesignificantlyreducedtheiremissionsand

receivedenoughregulatory

Wewillconsidercarbonremovalonlyafterreducingouremissionsasmuchaspossible

31%

guidanceandsufficienteducationtomaketherightdecisions.

decarbonizationstrategyareprimarilydoingsobecausetheyprioritize

emissionsreductions(31%),lack

sufficientdirectionfromregulators

(19%),andneedfurthereducationonthetopic(17%).

Whilereducingemissionsshouldcontinuetoremainthe

primaryandpreferredcorporateresponsetomitigatingclimatechange,thisalonecouldproveinsufficientinreducingthe

residualemissions.

Only13%ofcompaniesreportthesupplyavailabilityand

costofcarbonremovalcreditsasreasonswhyCDRisnotapartoftheircorporatestrategies.Whilethesereasonsmakeupasmallerpercentageofsurveyresponses,theymayalsosuggestthereisalackofcorporateawarenessonsupportingCDRstartupsintheirearlyyearstohelpensureavailableCDRsupplyfor2030andbeyond.

ThoseexcludingCDRfromtheir

19%

We’reawaitingfurtherregulationand/orguidancefromrulemakingbodiesbeforepotentiallytakingaction

17%

Werequirefurthereducationaboutcarbonremovalsbeforepotentiallytakingaction

13%

Perceivedreputationalrisksassociatedwiththevoluntarycarbonmarket

9%

Carbonremovalcreditsaretooexpensive

4%

Thereisn’tenoughsupply

7%

Other

13b

NASDAQESGSOLUTIONS

|GLOBALNETZEROPULSESURVEY|2024RESULTS

Allelseequal,fromwhichregionswouldyouprefertosourcecarboncredits?

Over85%ofrespondentsprefercertainregionsoverothersintheexecution

CarbonCreditSource

oftheircarboncreditprocurementstrategies.

24%

Whensourcingcarboncredits,corporatebuyerrespondentsreport

apreferenceforcreditsfromtheU.S.(24%),Asia-Pacific(14%),and

NorthAmerica(UnitedStates)

Europe(13%).Another13%ofrespondentsareindifferenttotheregionwherethecreditsaresourcedfrom.

Interestingly,corporatebuyerrespondentstendtopreferlocally

sourcedcarboncredits.Theregionsthatmoststronglydemonstrate

Asia-Pacific

NorthAmerica(UnitedStates)

14%

thistrendincludeCanadaandAsia-Pacific,witharoundtwo-thirdsofrespondentsfromthoseregionsindicatingapreferencesforprocuringlocalcredits.

Indifferenttoregion

13%

13%

Europe

LatinAmerica

NorthAmerica(Canada)

Africa

MiddleEast

Other

Whensourcingcarboncredits,corporate

9%

Europe

8%

buyerrespondentsreportapreferenceforcreditsfrom:

Asia-Pacific

NorthAmerica(Canada)

LatinAmerica

Africa

8%

7%

4%

14%

Asia-Pacific

24%

UnitedStates

13%

Europe

Theresultsshownonlyincludethecurrentandprospective

corporatebuyerperspectives(70%),notthefullsurveyresults.

14b

NASDAQESGSOLUTIONS

|GLOBALNETZEROPULSESURVEY|2024RESULTS

Allelseequal,howwouldyourcompanyevaluatethe

importanceofeachofthefollowingcriteriainmakingacarbonremovalcreditpurchasedecision?

Withcarbonoffsetclaimsatriskofbeingcriticizedasgreenwashing,currentandprospectivebuyersarerightlyconcernedaboutproperly

evaluatingcredits.

MRV

Cost

Permanence

Registrystandard

Additionality

Co-benefits

0%20%40%60%80%100%

●Notatallimportant

●Slightlyimportant

●Moderatelyimportant

●Veryimportant

Theresultsshownonlyincludethecurrentandprospective

●Extremelyimportantcorporatebuyerperspectives(70%),notthefullsurveyresults.

Consistentwith2023surveyresults,measurement,

reporting,andverification(MRV),cost,andpermanence

77%

69%

65%

areprioritizedcomponentsforcorporatebuyerspurchasingcarbonremovalcredits.

Top3Priorities

MRVofreportedCO2removalisrankedbycorporatebuyer

respondents(77%)asthemostimportantcomponentofa

carboncreditpurchase,puttingitabovecostandpermanenceintermsofpriorityrank.

Costisanimportantfactorforcarboncreditprocurement

accordingtocorporatebuyerrespondents(69%),particularly

givenitdiffersbasedoncarboncredittypesand,withinCDR,itvariesgreatlydependingontheCDRpathway.

Permanence,orthedurationforwhichCO2canbesecurelystoredandavoidtheriskofreversal,isrankedbycorporatebuyerrespondents(65%)asanotherverycriticalaspectofdeterminingthequalityofacarbonremovalcredit.

OtherPriorities

Carboncreditregistriesandstandards,suchasPuro.earth,existtodevelop

standardizedprotocolsandmethodologies,aswellastrackavailableandretiredcreditsinthemarkettoensurecredibilityinthemarket.62%ofcorporatebuyerrespondentsreportregistriesandstandardsusedbycarboncreditsuppliersareveryimportanttotheirdecision-making.

Additionalityisimportanttocorporatebuyerrespondents(57%)topreserve

environmentalintegrityandoverallquality.Moreover,carboncreditsmustcome

fromprojec