Avoid greenwashing: How Tree.ly ensures real climate protection

Greenwashing: What does it mean?

Greenwashing describes the strategy of companies to make products, services or business practices appear more environmentally friendly than they really are. These companies deliberately use environmentally conscious terms, symbols and images of nature to create trust among customers and investors - often without making an actual, measurable contribution to climate, environmental or nature conservation.

A responsible approach to climate protection, on the other hand, is based on measurable, transparent measures that are confirmed by independent audits. To avoid greenwashing, it is important that a company's climate targets and measures are scientifically sound and that progress is regularly disclosed.

Greenwashing by project developers within the carbon market often occurs when quality standards and transparency requirements in CO₂ projects are not met. The following aspects are particularly vulnerable:

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  Non-transparent project governance and use of funds: ineffective project management, lack of or opaque monitoring and reporting, and unclear use of funds are common problems. A lack of regular monitoring or unclear documentation of how funds are used makes it difficult to track actual CO₂ reductions and reduces confidence in the projects. Transparency and monitoring of the use of funds is crucial to ensure that the financial contributions from buyers are invested directly and effectively in agreed climate protection measures. Furthermore, the contributions have very low "pay-out" rates, i.e. the amount that actually reaches the forest, because many intermediaries also benefit.

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  Lack of measures for a lasting climate impact: Weaknesses in the project methodology often mean that climate protection measures only have short-term effects. Projects that do not create additional climate benefits make little contribution to reducing emissions. In addition, emissions can rise again due to changes in activities in the surrounding area if no protective measures are implemented. Ensuring permanent storage of CO₂ is crucial to achieving long-term effects.

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  Inaccurate data and lack of third-party verification: Manipulated baselines - which are artificially high initial values - make projects appear more effective than they actually are. Without independent audits, such weaknesses often remain undetected. Projects that are not verified by recognised third parties (e.g. TÜV) jeopardise the credibility of the entire carbon market.

Greenwashing in the area of carbon offsetting is not only evident among project developers, but also on the buyer side. A common misunderstanding concerns the difference between offsetting (compensation for emissions) and contribution claims (contributions to climate protection).

Offsetting is about offsetting the CO₂ emissions caused by an activity by purchasing certificates (often as cheaply as possible) that represent savings or sequestration of CO₂ in other projects. For example, companies can purchase certificates from projects in the Global South that protect existing forests from deforestation or from reforestation projects that actively bind CO₂ from the atmosphere. This method is often used to justify a "climate neutral" label, which signals that a product or service does not cause any net emissions.

One problem with offsetting, however, is that it often only offsets existing emissions without reducing them at their source. Companies could limit their responsibility for real emission reductions to the purchase of certificates. Tree.ly therefore favours high-quality and regional projects and calls on buyers to 1) actively reduce emissions in the value chain and 2) see offsetting as a sensible addition to their own reduction measures.

A "net zero" approach goes beyond mere offsetting. It requires companies to systematically reduce their emissions - for example through energy-efficient processes, switching to renewable energies or optimising the supply chain. Long-term and sustainable climate protection can only be achieved through a combination of offsetting and actual reductions along the entire value chain.

Misunderstandings or reports about these differences can easily lead to accusations of greenwashing. Tree.ly therefore emphasises the need for a clear and differentiated presentation of purchases and climate protection strategies in order to build trust and ensure that climate protection measures are credible and effective.

Tree.ly's commitment to responsible climate action

Tree.ly is resolutely against greenwashing and pursues the highest standards of sustainability, transparency and credibility to ensure real and measurable climate protection. Tree.ly develops projects of high integrity and quality, which is why we ensure that all our projects store CO₂ in the long term and create additional climate benefits. Our forest and climate protection projects undergo strict auditing procedures and are certified by independent organisations (TÜV AUSTRIA and TÜV NORD). This guarantees that the actual value of our projects is substantiated and regularly reviewed. In addition, annual monitoring and investment plans are requested and reviewed for each project, which are disclosed to the buyer of carbon credits.

A key part of our work is the use of accurate and conservative baselines that reflect a realistic starting point for each project. This ensures that our projects achieve additional emission reductions that would not be possible without our involvement. Detailed information on our methodology can be found on our methodology page.

Tree.ly consciously sets itself apart from common greenwashing practices that burden the CO₂ market:

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  Contrary to unclear project management and use of funds: Tree.ly documents exactly which assumptions, data and measures are used to calculate projects. This also results in the project commitment of the forest owners. This Project Design Document (PDD) is audited by an independent certifier (TÜV Austria or TÜV Nord). In addition, annual monitoring takes place, during which the certifier checks compliance with the project commitment. The credits are thus only issued retrospectively (for the previous year), so-called "ex-post credits", versus high-risk "ex-ante" credits issued in advance (for decades into the future), without annual correction and verification options. In the interests of transparency, Tree.ly publishes both the PDDs and the verification documents of all projects in the project register. The projects can be viewed here.

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  Active measures for long-term climate impact: Our projects focus on solutions that not only store CO₂, but also protect and strengthen forests as intact ecosystems. Risks such as changes in land use, windthrow, pest infestation or drought are actively minimised through preventative measures. A central component is the use of a buffer: 10% of the carbon credits issued are channelled into a cross-project risk pool that compensates for damage caused by unforeseeable events. This solidarity-based approach ensures that the climate impact of our projects is maintained even in the event of force majeure. If an even greater calamity (forest damage) occurs, the project is immediately corrected in scope and impact from the year affected, thanks to annual monitoring.

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  Our response to unrealistic assumptions and lack of external control: our calculations are based on a mix of primary and secondary data, adapted to the region and composition of the forest we are working with, using the ISO-certified and TÜV-accredited SILVACONSULT method. Each project is regularly audited by independent validation and verification bodies that are experts in the field and have the necessary accreditations for auditing forestry projects. These audits by TÜV also take place directly on site in each project forest.

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  Against unclear or false claims by certificate buyers: Tree.ly supports companies in offsetting their emissions with high-quality certificates and at the same time encourages them to actively take measures to reduce their emissions. In addition, we help companies to present their climate protection measures clearly and correctly by communicating the differences between offsetting and contribution claims. In this way, we protect consumers from untrue claims such as "climate-neutral flying" and help companies to communicate their responsible contribution correctly and positively. Precise data and comprehensible reports ensure that companies can present their measures credibly. Of course, it helps a lot that Tree.ly projects do not take place anonymously anywhere in the world, but directly on site in the region, with the opportunity to visit these forests and take part in guided tours with those responsible for the forests (e.g. forestry managers).

With this approach, Tree.ly focuses on demonstrably effective projects that promote real climate protection and specifically counteract the challenges of greenwashing.

Find out how Tree.ly offers real climate protection solutions! On our methodology page, we show how we successfully implement sustainable climate protection projects with reliable approaches and the highest standards.