Impact Incentives

Over Impact Incentives

What are Impact Incentives?

Impact Incentives refer to the certificates that are traded in support of a sustainability claim. The certificates are issued when a set of criteria have been confirmed to have been met, and the physical goods and the Impact Incentives are traded separately from each other. The Impact Incentive certificates represent a specified quantity of verified material that has been produced but has not been physically traded as verified goods.

The way they work is quite simple; farms that meet a chosen standard or benchmark will be able to sell incentives for their volume of output, and brands can purchase these incentives to balance out their use of these output materials. The farms selling the incentives may or may not be in the supply chain of the brands, as the incentives trading system does not address any traceability. While this means that brands cannot make any content claims on their products, they can by-pass the cost and complexity of long or opaque supply chains in order to deliver impact quickly and efficiently. And they can still make claims about their support for best practices.

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