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| About Tricorona Products & Services Carbon Project Development Investor Relations Media Contact us | |||||||||||||||||||||||||||||||||||||||||||||||||||
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  Our costsTricorona Climate Partner is a profit-making business, where our business model is to make money by selling carbon offsets of the highest standard to our customers. We know that the best way to succeed in this is to focus on quality, both in terms of our internal processes and the projects we invest in. Most organisations that offer carbon offsetting to consumers are resellers of carbon projects developed by third parties – in many cases Tricorona's projects – and their primary activities are marketing and sales. These organisations sometimes report their reseller markup or “administrative costs”, as being in the range 25-50%, and sometimes higher. In contrast to such organisations, Tricorona is a “vertically integrated” carbon offset provider, with a portfolio of our own projects that we have invested in and developed. It is this side of the business where we have most of our employees and most of our costs, covering activities such as early stage project planning, project finance, implementation, certification, continuous auditing by third parties, etc. For organisations that resell carbon projects developed by others, these costs count as external costs, but for us they are internal costs. Other activities, such as consultancy, marketing and sales, take place within our unit Tricorona Climate Partner, which constitutes less than 10% of the company (by employee count, June 2008). To make it easier to compare our business with other organisations, we publish the proportion of our carbon offset income that is used within Tricorona Climate Partner, which corresponds to other organisations' administrative costs. During 2007 and 2008 this ratio was roughly 17%. The rest of the money goes to project activities, both internal and external, where we – if we succeed – will also make a profit over the long term. In one way, this discussion of costs is less applicable to Tricorona than most other offset providers, since we always deliver the volume of carbon offsets that we are paid for. Many organisations use their income to pay their staff and other internal costs first, and then use what is left to purchase offsets – and for such organisations, the proportion of their staff costs is very important since it determines the likelihood that you get what you were promised. At Tricorona, we have the opposite model: we start by delivering to the customer the carbon offset they have bought, and hope that the money that is left is enough to pay our staff and other costs – if not, then we make a loss, but then it is our shareholders, not our customers, who lose out. |
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Tricorona AB, Kungsgatan 32, Box 70426, SE-107 25 Stockholm, Sweden, Phone +46 (0)8-506 885 00, Fax +46 (0)8-34 60 80,  |
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