Live Earth. Alternative Energy. Green Building Initiatives. Eco-tourism. The green movement is in full swing, and the corporate world is taking notice: a cleaner environment is good business.

Companies are increasingly looking into ways to reduce their carbon footprint. In addition to conservation efforts, companies now have the opportunity to become completely carbon neutral.

Being carbon neutral does not mean a company has stopped releasing carbon dioxide from factories or fleet vehicles. It means balancing the company’s carbon output with a CO2 reduction elsewhere.

This balance is most easily accomplished by purchasing carbon credits, or “offsets,” from a carbon offset provider. The money from credit purchases is then used to subsidize other companies that are reducing emissions through renewable energy, energy efficiency, and reforestation projects.

For instance, an entrepreneurial wind farmer receives funds to expand his plant, or a small dairy farmer gets capital to install digesters on her farm to control methane emissions.

An online environmental directory, Ecobusinesslinks.com, offers a comprehensive comparison of the nonprofit and for-profit organizations providing carbon offsets. Calculate the Company’s Carbon Footprint
The first step to carbon neutrality is to calculate a company’s carbon footprint. This can most easily be done through online emissions calculators.

Most calculators, such as those on the LiveNeutral (DriveNeutral) and TerraPass Web sites, calculate carbon emissions specifically for vehicles. The calculators then provide the number of carbon credits necessary to neutralize those emissions.

For example, the DriveNeutral calculator at LiveNeutral.com shows that one gasoline-powered 2007 Dodge Ram 4x4 1500 produces about 21,146 lbs. of carbon dioxide annually. It would cost $74 to neutralize these emissions with a LiveNeutral offset certificate to support projects aimed at curbing climate-changing emissions.

To offset a fleet of 50 pickups would cost $3,700 per year.

More simply, with TerraPass, gasoline will cost about nine cents more per gallon used to counteract harmful emissions, according to Tom Arnold, chief environmental officer at TerraPass.

Other companies, such as Australian-based GreenFleet, will plant 17 trees for each fleet vehicle in the program. The cost is AU$40 per car. The GreenFleet Web site shows members with diverse fleet types, from HVAC to telecom. First, Reduce
Many carbon neutral organizations require member companies to reduce their footprint in other ways, prior to buying the credits.

“The idea is not to offset completely right away,” says Joe Madden, director of LiveNeutral’s outreach and business development. “There are some relatively inexpensive applications that can be quite cost effective right off the bat.”

For instance, increasing vehicle efficiency, planning routes more efficiently, spec’ing and deploying the right vehicle for the job, and performing preventive maintenance can cut back emissions right away. Look to Other Solutions
Sharky Laguana, owner of Bandago Van Rental, a company that rents vans to touring musical acts, claims to be the first auto rental agency to become carbon neutral. Laguana purchased carbon credits through LiveNeutral.

“It was an undertaking to become carbon neutral, because relative to the age of the vehicle, we’re contributing a fair amount of carbon,” Laguana says.

Laguana says it is not unusual for his clients to average 10,000 miles a month in Ford 15-passenger vans and tour-equipped Dodge Sprinters.

In addition to carbon credits, Laguana has instituted other policies to reduce his company’s carbon footprint. The company has a recycling program, and the head office in San Francisco uses florescent lights. By chance, the building is solar-powered.

In terms of fleet, Laguana is moving to the more fuel-efficient diesel Dodge Sprinter. He counsels clients to fill up with biodiesel B-5 and B-20 blends when possible and says he’ll be first in line to buy a fleet of hybrid full-sized vans if they ever make it to market.

Bandago’s vans are on strict preventive maintenance schedules. Fuel filters are replaced every 10,000 miles. When a van does fail, it is towed using Better World Club, which donates a percentage of its revenues to environmental causes.

Bandago expects to offset 823 metric tons of carbon dioxide – the equivalent of taking 240 passenger vehicles off the road for a year. Eco-Marketing Promotes Benefits
In addition to the goal of helping the environment, Laguana says the move to carbon neutrality was a smart business decision. Improving efficiencies saves money, and he has attracted new clients by marketing his efforts.

“Clients are that much more likely to choose us over someone who’s a little cheaper because of the shared responsibility in terms of what we’re doing for the planet,” Laguana says. “If you, as a company, are doing the right thing for your community, for the nation, and for the planet, your customers are going to be more loyal to you because they know they are supporting someone who is looking to do the right thing.”

Promoting the benefits of environmentally friendly business practices, also known as “eco-marketing,” is a valuable resource that can develop strong brand integrity. Hiring a green-focused public relations firm, putting “carbon neutral” decals on fleet vehicles, and branding corporate Web sites are all great ways to show off green efforts.

Abbott, a global health care company, recently publicized itself as the first Fortune 500 company to go “carbon neutral” with its entire U.S. fleet of sales vehicles.

Abbott will offer hybrid vehicle options to reduce emissions from its 6,000-vehicle fleet, which represents close to 11 percent of the company’s total emissions.

To become carbon neutral, the company will then purchase carbon offsets in early 2008 to balance the fleet’s impact on the environment. Be an Early Adopter
Corporations see it as smart business to be an early adopter in green initiatives.

Proactive companies are not only doing the right thing for the environment, they are improving operational efficiencies and thus saving money. Early adopters can also buffer themselves against potential climate-related regulations and compliance costs.

The same is true with carbon credits. As carbon credits are designed to be a free market commodity, they are bound to become more costly as more companies buy them.

“If you put yourself out in front and make the move to take a leadership role in regards to the environment, then there’s actually going to be benefits,” Laguana says. “I think in the future, if you’re dragging your feet, you’re going to see the opposite; there’s going to be penalties.”

Buying carbon credits, though an imperfect system, is just the start.

“We’re moving from being almost paralyzed by the enormity of the climate change challenge to taking the first baby steps,” says Arnold of Terra- Pass. “It’s not perfect, still driving the car. But, we’re doing something. We’re getting things moving.”