SERVICES | CARBON INSETTING AND OFFSETTING
Carbon insetting and offsetting
Achieving Net Zero greenhouse gas emissions across Scope 1, 2 and 3 emissions is extremely challenging for most organisations. The priority should always be reducing emissions at source through operational, energy and value chain decarbonisation.
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Managing unavoidable residual emissions
Carbon offsetting and insetting can help organisations address these unavoidable emissions as part of a wider Net Zero strategy.
Offsetting
Involves compensating for residual emissions by funding verified carbon reduction or carbon removal projects outside the organisation’s value chain.
Insetting
Focuses on reducing, avoiding or sequestering emissions within the organisation’s own value chain through operational improvements in the supply chain, supplier engagement on their overall emissions or projects in value chain communities.
JRP helps organisations assess if, when and how offsetting or insetting may be appropriate – ensuring any approach supports practical decarbonisation rather than replacing it.
Ongoing Emissions Responsibility (OER)
Alongside reducing emissions, organisations are increasingly expected to demonstrate responsibility for emissions that continue to occur during the transition to Net Zero. The Science Based Targets initiative (SBTi) refers to this as Ongoing Emissions Responsibility, providing a science-based framework for supporting additional climate mitigation while emissions reduction initiatives are implemented.
This reinforces that organisations should prioritise reducing emissions at source, while taking credible action to address the climate impact of ongoing emissions through high-quality mitigation activities.
The benefits of carbon offsetting and insetting
A well-structured offsetting or insetting approach can help organisations:
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Address unavoidable residual emissions
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Support wider Net Zero and sustainability strategies
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Strengthen climate commitments and stakeholder confidence
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Support verified carbon reduction or removal projects
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Align carbon investment with organisational values and priorities
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Encourage value chain decarbonisation and supplier engagement
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Support long-term sustainability resilience
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Demonstrates commitment to decarbonisation whilst waiting for progress in hard-to-decarbonise industries within the supply chain
Offsetting should not be viewed as an alternative to reducing organisational emissions.
Frameworks such as the Science Based Targets initiative (SBTi) and ISO 14068 do not recognise carbon offsetting as contributing towards direct organisational emissions reductions. Instead, offsetting is treated separately as a mechanism for compensating for unavoidable residual emissions after (or alongside) meaningful reduction activities.
The SBTi’s emerging Ongoing Emissions Responsibility (OER) framework further reinforces this approach by encouraging organisations to take responsibility for the emissions that continue to occur during their transition to Net Zero through additional, credible climate mitigation. This recognises that emissions reductions and climate contributions have complementary but distinct roles within a robust Net Zero strategy.
For most organisations, the priority should therefore be:
- Measuring emissions accurately
- Reducing emissions at source
- Engaging with key suppliers to understand their direct and upstream value chain decarbonisation
- Addressing residual emissions only where they cannot yet be eliminated
The quality and credibility of offsetting or insetting projects is also critical. Projects should be independently verified, transparent, measurable and demons
Carbon offsetting and insetting can be complex, and not all projects deliver the environmental benefits they claim.
Common challenges include:
- Difficulty identifying credible and verifiable projects
- Limited understanding of carbon credit quality and methodology
- Unclear alignment between projects and organisational objectives
- Concerns around additionality and genuine carbon savings
- Lack of transparency in project performance and reporting
- Over-reliance on offsetting before emissions reduction opportunities have been fully addressed
Without proper due diligence and verification, organisations risk investing in projects that do not deliver meaningful or measurable environmental outcomes.
We help organisations assess, develop and implement practical offsetting and insetting approaches as part of a wider Net Zero and sustainability strategy.
Our support focuses on ensuring projects are credible, proportionate, verifiable and aligned with long-term organisational objectives.
Our approach is structured around five clear stages.
Scope and carbon review
We review existing emissions data, Net Zero objectives and current carbon reduction activity to identify where achievable emissions reduction opportunities remain.
Options assessment
We assess whether offsetting, insetting or alternative carbon reduction approaches are appropriate based on organisational priorities, risks and sustainability objectives.
Project evaluation
We evaluate available schemes, carbon credits and project types to assess credibility, transparency, additionality and long-term value.
Recommendations and findings
We provide clear recommendations on the most suitable offsetting or insetting approaches, including project alignment, carbon benefit potential and implementation considerations.
Monitoring and verification
We support organisations with ongoing monitoring, verification and performance review to help ensure carbon savings remain credible, measurable and aligned with
Why organisations choose us
We provide practical, independent support to help organisations develop credible offsetting and insetting strategies aligned with long-term sustainability goals.
Get in touch
Ready to develop a credible carbon offsetting or insetting approach for your Net Zero strategy?
CASE STUDIES
Our impact
See how we help organisations reduce energy costs, meet compliance requirements and build resilience to climate change.
