Using offsets responsibly as part of an emissions strategy
Offsets can play a role in corporate climate strategies, but they must be used carefully and only after maximising direct reductions. Choose high-quality projects and treat offsets as a bridge while reducing operational emissions.
Guiding principles:
- Reduce first: prioritize energy efficiency, renewables, and low-carbon operations before offsetting residual emissions.
- Quality matters: use offsets that are independently verified, permanent, additional (wouldn’t have happened without the offset), and transparent.
Types of offsets:
- Avoidance/reduction projects: renewable energy, methane capture, and cookstove programs.
- Carbon removal: afforestation, reforestation, and engineered carbon removal which store CO2 long-term.
What to check:
- Verification standards: prefer projects validated by standards like Gold Standard, Verra (VCS), or similar credible programs.
- Co-benefits and risks: assess social and ecological impacts to avoid harm or displacement.
Integration and communication:
- Be transparent about what is offset, how reductions were achieved, and the remaining reliance on offsets.
- Use offsets as part of a time-bound plan to reach net-zero and continuously reduce reliance on offsets over time.
Offsets can support climate action but should not replace robust reduction pathways and transparent reporting that shows a clear plan to decarbonize.