Connect with us

Published

on

Airbnb vs. Booking Holdings: Who’s Winning the Battle for Financial Growth and Green Goals?

Airbnb and Booking Holdings are two of the biggest online travel companies in the world. They help millions of people find places to stay and things to do when they travel. In 2025, both companies showed strong business results and made progress on their climate and sustainability goals.

This article looks at how each company performed in the first quarter of 2025 and compares their efforts to cut carbon emissions and reach net-zero targets.

Airbnb: Navigating Economic Headwinds

In Q1 2025, Airbnb reported revenue of $2.3 billion, marking a 6% year-over-year increase. This growth was primarily driven by an 8% rise in nights and experiences booked, totaling 143.1 million. 

However, the company faced some challenges. There was a small drop in the Average Daily Rate (ADR) and economic uncertainty in the U.S. As a result, net income fell to $154 million, down from $264 million in Q1 2024. 

Airbnb revenue and income q1 2025
Source: Airbnb Report

Adjusted earnings stood at $417 million, representing an 18% margin. Despite challenges, Airbnb still generated $1.8 billion in free cash flow. This kept their cash strong at $11.5 billion in cash and equivalents. The company also repurchased $807 million of its Class A common stock during the quarter. 

Booking Holdings: Leveraging International Demand

Booking Holdings posted strong Q1 2025 results, with revenue reaching $4.8 billion, an 8% increase year-over-year. Gross bookings totaled $46.7 billion, up 7%, driven by 319 million room nights booked. 

The company’s adjusted earnings rose 21% to $1.1 billion, with a margin of 22.9%. Adjusted earnings per share (EPS) came in at $24.81, surpassing analyst expectations. Free cash flow was robust at $3.2 billion, and the company returned $2.1 billion to shareholders through share repurchases and dividends.

Booking Holdings q1 2025 financial
Source: Booking Holdings Report

Both companies show strong financial performance. However, Booking Holdings leads in revenue and profit. It benefits from a diverse portfolio and a global presence. Airbnb, however, showcases resilience and strong cash flow generation, even amid economic uncertainties.

Now, let’s see how they perform in terms of the ESG and sustainability front, particularly on their emission reductions and net-zero efforts. 

Airbnb: Advancing Toward Net-Zero by 2030

Airbnb aims to reach net-zero greenhouse gas (GHG) emissions in its global operations by 2030. This goal includes Scopes 1, 2, and some Scope 3 categories. This commitment relies on science-based targets approved by the Science-Based Targets initiative (SBTi).

Carbon Emission Reductions

Airbnb aims to reduce its absolute Scope 1 and 2 emissions by 78.4% from a 2019 baseline by 2030. By the end of 2023, Airbnb had reduced about 82% of these emissions compared to the 2019 baseline. This drop came from using energy more efficiently and buying renewable energy to match 100% of its office needs.

Airbnb carbon emissions
Source: Airbnb Sustainability Report

In 2023, Airbnb kept its San Francisco headquarters on CleanPowerSF’s SuperGreen program. This means they continue using 100% renewable electricity from California wind and solar. This accounts for about 16% of their global office electricity use.

Scope 3 Emissions

About 92% of Airbnb’s total emissions come from Scope 3 sources, mostly from suppliers. Airbnb plans to cut Scope 3 emissions intensity by 55% per million dollars of gross profit by 2030, using 2019 as the baseline.

By the end of 2023, Airbnb reduced its Scope 3 emissions intensity by nearly 55% compared to 2019. This improvement happened even as business grew, thanks to better operations and more renewable energy use by key suppliers.

Supplier Engagement

In 2023, Airbnb continued its Supplier Sustainability Program, which launched in 2022. By the end of 2023, over 80 suppliers took part. These suppliers made up about 47% of Airbnb’s supplier-related emissions. The program asks suppliers to measure, report, and cut their greenhouse gas emissions, supporting Airbnb’s larger climate goals.

Carbon Offsetting and Nature-Based Solutions

Since 2021, Airbnb has invested in high-quality nature-based carbon credits. In 2023, the company kept up its investments, supporting projects that protect forests, restore ecosystems, and reduce powerful greenhouse gases. It bought 25% more credits in 2023 than the previous year.

Airbnb also stayed active in the LEAF Coalition, a group working to stop tropical deforestation. The company also launched a climate contribution tool in Germany, allowing guests to support sustainability projects when booking stays.

Beneficiaries include Pina Earth (protecting forests), MoorFutures® (restoring peatlands), and Tradewater (destroying polluting gas tanks in emerging markets), alongside other environmental initiatives.

Booking Holdings: Comprehensive Climate Action Plan

Booking Holdings aims for net-zero GHG emissions by 2040, ten years later than Airbnb. They set interim goals to cut absolute Scope 1 and 2 emissions by 95% and Scope 3 emissions by 50% by 2030, using 2019 as a baseline. These targets have been validated by the SBTi. 

Carbon Emission Reductions

By the end of 2024, Booking Holdings had reduced its absolute Scope 1 and 2 emissions by 85% compared to 2019. This big cut came from switching to 100% renewable electricity in its offices. Also, 98% of energy attribute certificates were bought in the same country where the electricity is used.

Booking Holdings carbon emissions
Source: Booking Sustainability Report

Scope 3 Emissions:

Scope 3 emissions, accounting for 99% of the company’s total GHG emissions, were reduced significantly by the end of 2024 compared to 2019.

Booking Holdings worked with key vendors covering about 50% of its 2023 emissions. They encouraged these vendors to measure, report, and cut their GHG emissions. This effort also aimed to enhance data quality in this area. 

Booking Holdings Scope 3 emissions
Source: Booking Sustainability Report

Sustainable Travel Initiatives:

Booking Holdings aims for over 50% of its bookings to be made on more sustainable offerings across its platforms by 2027. As of 2023, over 40% of bookings were made on such offerings.

Over 1.4 million accommodations have shared their sustainability practices. Also, more than 16,000 partners have received third-party sustainability certifications. 

Industry Collaboration and Advocacy:

In 2023, Booking.com teamed up with the United Nations Tourism Organization and launched an online training series. This series helps travel providers improve the sustainability of their accommodations.

The company also worked with BeCause, an enterprise software provider. This partnership allows real-time updates on accommodations with third-party sustainability certifications. With it, travelers can make informed choices.

Who’s Leading the Green Getaway? A Side-by-Side Look

Airbnb vs Booking Holdings net zero
Data source: Company Reports

Airbnb and Booking Holdings both aim for net zero, but their approaches differ. Airbnb aims for net zero in Scopes 1 and 2 by 2030. They have reduced operational emissions by 25% since 2019 and now use 100% renewable energy. Its supplier engagement is growing, though Scope 3 data is limited. 

On the other hand, Booking Holdings targets full-scope net zero by 2040, validated by SBTi. It has cut Scope 1 and 2 emissions by 41% and Scope 3 by 25%, while expanding its Sustainable Travel Badge program and engaging over 400 suppliers. Booking shows broader Scope 3 action, while Airbnb excels in direct operations.

Both Airbnb and Booking Holdings have made significant strides in their sustainability and net-zero efforts. They set ambitious targets and implemented comprehensive strategies to reduce their carbon footprints. Their initiatives not only show corporate responsibility but also contribute to the broader goal of combating climate change within the travel industry.

The post Airbnb vs. Booking Holdings: Who’s Winning the Battle for Financial Growth and Green Goals? appeared first on Carbon Credits.

Continue Reading

Carbon Footprint

Designing an Insetting Program: A Step-by-Step Playbook for Procurement

Published

on

Insetting program design starts with your supplier map. The carbon claim comes much later.

Consider a coffee procurement team that funds a farm intervention before checking its sourcing data. The supplier aggregates coffee lots from several regions. The buyer lacks farm-level traceability. Another purchaser expects to report the same outcome. A more attractive project brochure solves none of these problems.

If the distinction between a value-chain intervention and a purchased credit is still open, read CCC’s Insetting vs Offsetting guide before you set the brief.

Insetting program design begins with the purchasing relationship and works outward. You need to decide 1) where an intervention belongs, 2) what business problem it addresses, 3) who pays for it, 4) how results will be measured, and 5) what the evidence will let you say about them. This five-step playbook turns that sequence into a procurement plan.

Step 1: Insetting program design starts with supplier mapping

Start with the commodities that matter most to your Scope 3 inventory and sourcing continuity. Ask finance for spend by supplier, sustainability for the emissions baseline, and category managers for origin and volume records. Then identify which suppliers can trace material to a jurisdiction, sourcing region, producer group, or individual land-management unit.

The level of traceability affects what you can account for. Under the GHG Protocol Land Sector and Removals Standard, the spatial boundary for purchased land-based products depends on the traceability associated with each volume. Farm-specific factors or removals require physical traceability through an acceptable chain-of-custody model. A contract with a tier-one trader, by itself, does not establish a link to the farms behind its deliveries.[1]

Build a first-pass table with five columns: commodity and annual volume; supplier and origin; current traceability level; land-use and production risks; and the business owner who can change the purchasing terms. Mark missing data plainly. A blank cell is cheaper to fix before a program starts than after a claim is drafted.

If your company sets an SBTi Forest, Land and Agriculture target (FLAG), keep its land-related target boundary separate from energy and industry emissions. The current FLAG guidance also requires relevant companies to assess primary deforestation-linked commodities in their value chains.[2]

Step 2: Choose a commodity and jurisdiction for a pilot

Select one supply corridor where the sourcing connection can be established and procurement has a reason to stay. A useful pilot has repeat purchases, suppliers willing to share records, an intervention matched to a diagnosed problem, and a defined plan to measure the result. Carbon potential alone is a poor selection rule if the supplier cannot deliver the crop your business needs.

Compare candidate regions on land-use risk, supplier concentration, local rights and tenure, the availability of baseline data, and exposure to drought, erosion, or forest conversion. Check the relevant legal requirements separately. A nature project does not satisfy a due-diligence obligation merely because it has a carbon method attached.

Consider a coffee buyer sourcing from two districts. In the first, producer-group records identify the farms, while recent dry seasons have increased rejected green coffee lots. In the second, deliveries pass through several intermediaries and farm origins are unknown. Pilot shade management in the first district, with local agronomic advice and quality checks built into the plan. The buyer can trace purchases there and test the intervention against a defined sourcing problem.

Use a short decision memo to record why the selected corridor beats the alternatives, what remains uncertain, and what would stop the pilot. That memo is the first control against a project drifting toward whatever happens to photograph well.

Step 3: Design the supplier engagement and commercial model

The intervention needs an owner on each side of the contract. Decide who supplies planting material or training, who maintains the practice, who bears the cost if a harvest disappoints, and how long the buyer expects to purchase from participating suppliers. Where smallholders participate, budget cash flow and technical support for practices that offer a later return.

Put these terms in a supplier agreement or pilot addendum. It should cover eligible farms and volumes, consent to data collection, access for monitoring, any land or carbon rights that matter, benefit sharing, and what happens if the purchasing relationship ends. Ask local counsel and producer representatives to review the arrangement. The Accountability Framework is a useful reference for supply-chain work involving forests, ecosystems, and human rights.[3]

Avoid assigning an automatic carbon benefit to the buyer. The contract should say which party has the right to report each outcome, how overlapping claims will be checked, and how any issued credits will be handled. A reduction reported in a buyer’s inventory cannot simply be sold for someone else’s offset claim without an accounting review. SBTi FLAG guidance excludes purchased credits used as offsets from near-term FLAG target achievement.[2]

Set commercial measures beside environmental ones: delivered volume, rejection rate, supplier retention, and procurement cost. They tell you whether the program works as a supply-chain investment, even if carbon accounting takes longer to resolve.

Step 4: Build monitoring, reporting, and verification before rollout

Agree on the baseline and data flow before paying for a full rollout. Identify the land units or sourcing regions in scope, the practices that change, the records suppliers already keep, and the additional measurements the program requires. Decide which data can come from field visits, transaction records, or remote sensing, and who checks each source.

For carbon, separate three questions. Did the practice happen? Did emissions or removals change under an applicable method? Can the buyer attribute a defensible share to its purchased goods without double counting? The GHG Protocol’s 2026 guidance includes dedicated chapters on spatial boundaries, data and methods, evaluating actions, credited outcomes, and assurance.[1] These are distinct jobs. A photograph of a planted tree answers only part of the first.

CCC’s MRV and Additionality article explains the separate evidence questions a project reviewer will ask.

Create an evidence file for every reporting period: dated supplier and farm records, purchase volumes, methods and emission factors, uncertainty, quality checks, and changes from the baseline. Specify who can challenge the data and how corrections are recorded. If a project also seeks credit certification, keep project accounting and corporate inventory accounting separate. The GHG Protocol says its land standard focuses on entity-level inventories and does not set the rules for credit certification.[4]

Start with the minimum viable measurement design that can survive review. Add complexity when the pilot tells you which data actually changes a decision.

Step 5: Decide what can be reported and claimed

Insetting program design needs reporting rules before the marketing copy. Procurement, sustainability, finance, and legal should agree on four distinct outputs: operational performance; observed land or nature outcomes; inventory effects, if the accounting criteria are met; and any separately issued credits. One dashboard can display them, but they should not share a single unqualified headline.

SBTi FLAG guidance allows certain land-based removals within a company’s operations or supply chain to contribute to FLAG pathways, subject to criteria including permanence, traceability, data quality, and allocation. It does not allow purchased offsets to meet near-term FLAG targets.[2] Eligibility therefore depends on evidence and the applicable target rules, not on calling an activity “insetting.”

Draft a claims register. For each proposed sentence, record the period, boundary, data owner, calculation method, reviewer, and whether the result is measured, estimated, or still a goal. If the evidence supports only “we funded a pilot with 200 farms,” say that. Do not turn a funding fact into a verified emissions reduction.

What good looks like by year three

Treat year three as a review point, not a promised payback date. A mature pilot should have mapped participating supply volumes, a stable supplier agreement, a repeatable data collection process, and a comparison of commercial and environmental results against the baseline. It should also have a documented answer for outcomes that cannot be included in the buyer’s inventory.

Scale only where the pilot improves a sourcing decision and the evidence can follow the product. If neither condition holds, redesign the intervention or change the corridor. A disciplined program can conclude that a site is unsuitable. That is useful procurement intelligence.

Discuss your insetting program with CCC

Carbon Credit Capital designs nature-based supply chain investments around sourcing needs and measurable sustainability outcomes. Schedule a consultation with our carbon and sustainability experts to map your tier-one supplier network, FLAG exposure, and first pilot decision.

Sources

[1] GHG Protocol, Land Sector and Removals Standard, version 1.1, and companion Guidance, June 2026: https://ghgprotocol.org/land-sector-and-removals-standard ; https://ghgprotocol.org/land-sector-and-removals-guidance

[2] Science Based Targets initiative, Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, especially pp. 16–17, 37, and 41: https://sciencebasedtargets.org/resources/files/SBTiFLAGGuidance.pdf

[3] Accountability Framework initiative, Accountability Framework and guidance for companies: https://accountability-framework.org/

[4] GHG Protocol, Frequently Asked Questions: Land Sector and Removals Standard, questions 10 and 18: https://ghgprotocol.org/blog/frequently-asked-questions-land-sector-and-removals-lsr-standard

Continue Reading

Carbon Footprint

The Strategic Case for Nature-Based Carbon Investments

Published

on

Nature-based carbon investments deserve consideration when they address a specific business dependency and produce outcomes you can measure. Imagine Moonbucks, a global coffee roaster planning next season’s espresso blend. It is considering natural Grade 4 coffee from Jimma, in southwestern Oromia, Ethiopia. Its sourcing decisions affect the roasting schedule and the cash tied up in coffee purchases. Moonbucks needs to understand which measures could protect that supply, what they would cost and how it would judge the results.

1. Define the sourcing problem before choosing a project

Moonbucks needs a dependable component for its espresso blend. Its procurement team wants continuity of volume and an agreed cup profile. Replacing a shipment at short notice could require new sample approval and changes to the blend, and given the schedules for cultivation, processing, and freight delivery, is practically impossible. Moonbucks needs to get this right, and its initial concern is inconsistent deliveries. It commissions an assessment of the supplying farms and post-harvest chain. The questions cover land condition, harvest availability and whether drying or storage problems are affecting saleable lots.

This distinction changes the investment brief. A tree-planting proposal cannot be assumed to fix drying problems. Better storage cannot restore eroded land. The team must establish which problem exists before selecting the response.

CCC’s guide to finding nature-based solutions in your supply chain explains where to look. Here, the next task is to turn a broad concern into a testable proposal.

2. Develop nature-based carbon investments around the actual supply chain

The assessment would trace Moonbucks’ purchases back through the exporter and supplying producer groups. Which farms supply the contracted lots? Who controls land-management decisions? How long does the buyer expect to maintain the purchasing relationship?

Furthermore, Jimma natural Grade 4 cannot be treated as interchangeable with every Ethiopian coffee. Moonbucks would need to test any substitute against its own blend and quality requirements.

Suppose Moonbucks’ assessment identifies an opportunity to maintain shade trees and restore vegetation along exposed streambanks. The IPCC describes agroforestry as a way to store carbon in vegetation and soil, with potential benefits for erosion control and water quality.1 Moonbucks would need local advice on species, growing conditions and maintenance before deciding how these measures fit its sourcing plan.

The proposal now has a defined sourcing connection and a candidate intervention. The next steps are to test its effect on production, assess carbon eligibility and build the financial case.

3. Compare the proposal with other ways to protect supply

WBCSD’s Nature-based Solutions Blueprint recommends comparing nature-based options with other responses across their benefits and costs.2 For Moonbucks, that means evaluating the landscape proposal alongside drying improvements, storage controls and alternative sourcing arrangements.

The product’s natural-process designation matters. Moonbucks should examine the drying and dry-milling chain alongside land conditions. Its team would check storage practices, contamination risks and incoming-lot quality to see whether problems arise before or after the coffee leaves the farms.

The revised proposal might combine land stewardship with separate post-harvest controls. Each component needs its own purpose and budget. A sustainability label should not obscure which activity is expected to solve which problem.

The project develops as the evidence improves. Its scope should follow the diagnosis rather than preserve the first idea unchanged.

4. Establish what the carbon outcome could count toward

Moonbucks’ sustainability team now tests the proposed carbon case separately from the sourcing case. Is the objective a measurable change in Moonbucks’ value-chain emissions, verified credits for separate voluntary use, or distinct outcomes under carefully defined arrangements?

Scope 3 covers value-chain emissions. A purchasing relationship alone does not prove that a farm intervention can be included in Moonbucks’ inventory. The team needs an applicable accounting method, defensible boundaries and evidence supporting attribution.

SBTi’s FLAG Guidance (forest, land and agriculture), version 1.2, says purchased credits used as offsets cannot meet near-term FLAG or energy and industry targets. Eligible land-based removals are subject to accounting requirements.3 Moonbucks needs to test its proposal against those rules before including an outcome in its targets.

For Moonbucks’ Jimma proposal, maintaining existing trees and establishing new vegetation could involve different carbon questions. Specialists must examine the baseline and additionality, meaning what changes because the project proceeds. They must also assess measurement and the risk that stored carbon is lost. CCC’s MRV and additionality article introduces those tests.

Until that work is complete, Moonbucks should not budget an assumed Scope 3 reduction or credit-sale receipt. Direct emissions reductions remain the priority.

5. Build a financial case that survives weaker assumptions

Moonbucks’ finance team would now build a multi-year budget. UNEP’s State of Finance for Nature 2023 compares current finance with the investment needed to meet climate, biodiversity and land-restoration goals.4 The company would cost its proposed activities, farmer participation and ongoing monitoring. Verification, where required, is a separate expense. Maintenance and responsibility for replacing failed plantings must remain visible after the initial establishment budget ends.

Operational benefits need equally careful treatment. If fewer rejected lots reduce emergency purchasing, count that saving once. Do not add “supply resilience” as another financial benefit when it represents the same avoided cost.

Moonbucks should compare a base case with slower benefits, higher implementation costs and no carbon revenue. It should also distinguish production outcomes from quality and shipment outcomes. A single good harvest would not prove that the landscape intervention caused better delivery performance.

A project can remain worth funding even when its carbon case needs more work. That decision must rest on the operational evidence and the company’s objectives, without unsupported environmental claims.

6. Fund a pilot with a clear expansion decision

Moonbucks’ first approval would fund a bounded pilot, rather than commit the entire sourcing program. Before spending, Moonbucks would agree on participating farms, responsibilities and the evidence needed at review.

Its scorecard could track farmer participation, implementation costs and plant survival, alongside accepted coffee volumes and lot-quality results. Carbon measurements would follow the selected method. Farm-level traceability must connect the intervention to the actual sourcing relationship.

Suppose Moonbucks’ review later finds that storage changes explain most quality improvements, while the land measures need longer observation. Those findings would shape the next decision: expand the proven component, adjust the landscape work or pause further spending. They would not justify crediting all improvements to tree planting.

This gives nature-based carbon investments a practical place in a multi-year strategy. Funding increases as the evidence supports it, and the project can change direction before a larger commitment.

Discuss a sourcing opportunity with CCC

Carbon Credit Capital’s nature-based supply-chain investment service uses its Dual-Value Model to examine supply-chain economics alongside potential sustainability outcomes.

Schedule a consultation to discuss your sourcing exposure and the questions to resolve before allocating capital.

Sources

  1. Intergovernmental Panel on Climate Change (IPCC), Climate Change 2022: Mitigation of Climate Change, Chapter 7, Agriculture, Forestry and Other Land Uses, section 7.4.3.3 (Agroforestry).
  2. World Business Council for Sustainable Development (WBCSD), Nature-based Solutions Blueprint, 5 June 2024.
  3. Science Based Targets initiative (SBTi), Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, section 3.1.4, pp. 37–38.
  4. United Nations Environment Programme (UNEP), State of Finance for Nature 2023, 2023.
Continue Reading

Carbon Footprint

How to buy plastic credits, and what to check before you do

Published

on

A plastic credit funds the collection of plastic waste in places where no formal system exists to collect it. Each credit represents a measured, independently audited quantity of plastic taken out of the environment or returned to use, tracked on a public registry.

Continue Reading