Last updated:
May 24, 2024


What is Insetting?

Insetting is an innovative approach within environmental management where companies integrate carbon offset projects directly into their own supply chains or operational processes, rather than investing in external offsetting schemes.

What is the difference between Insetting and Offsetting?

In contrast to carbon offsetting, which often involves purchasing offsets from external projects, insetting provides companies with direct control over their carbon reduction projects This is because insetting projects are typically more integrated into the core business processes and can thus contribute directly to a company's profitability and sustainability goals. This internal approach to carbon management allows companies to directly reduce their carbon footprint and enhance sustainability within their value chain.

Key Aspects of Insetting:

  • Internal Focus and Value Chain Integration: Insetting projects are developed within the company’s own operations or supply chain, enabling direct control over emissions reduction strategies.
  • Operational Influence: By embedding sustainability initiatives directly into their operations, companies can ensure these initiatives are fully aligned with their business goals and operational realities.

Why Should Companies Explore Insetting?

  • To comply with regulations by actively reducing emissions, monitoring and reporting progress, and aligning with existing and emerging environmental and social regulations, such as the Net Zero Standard.
  • Insetting strategies involving supply chain engagement and carbon offsetting help address emissions beyond a company's direct operations. This helps address regulatory requirements related to supply chain sustainability and carbon neutrality.
  • Transparency, accountability, and community engagement in insetting initiatives strengthen a company's ability to adhere to environmental and social regulations by demonstrating a commitment to responsible business practices.

Examples of Insetting Projects:

  • A coffee company investing in sustainable agricultural practices where they source their beans, thereby reducing emissions and enhancing the quality of their product.
  • An apparel brand promoting sustainable cotton farming, reducing emissions, and securing a greener raw material source.
  • A manufacturing company investing in renewable energy sources for its facilities, directly reducing its operational carbon footprint.

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