Carbon Offsets vs. Carbon Insets

As the world becomes more conscious of the impact of greenhouse gas emissions (GHG) on our planet, companies are seeking ways to reduce their carbon footprint. One way they can do this is through carbon offsets and insets.

Carbon offsets and insets are measurements of GHG emission reductions resulting from an investment of corporate resources. While carbon offsets are created when the environmental benefit is separated from the underlying good or service and sold to a third party seeking to claim that carbon credit against their own carbon debt, carbon insets are where the environmental benefit is sold alongside the underlying product or service.

One of the key differences between carbon offsets and insets is that offsets are governed by an external body, whereas insets are created as part of the climate accounting process. Carbon insets are used in climate accounting to reduce a firm’s carbon footprint through the purchase of zero or negative-carbon products.

Carbon insets are rapidly gaining in popularity because they recognize that 80% of a company’s GHG emissions come from their supply chain. Now, vendors inside a supply chain have a tool they can use to highlight the beneficial environmental attributes of their products and services. Decarbonizing the supply chain is a critical goal of Standard Carbon, as the decisions a company makes about where they source goods and services have a direct impact on global GHG emissions.

So, are carbon offsets or insets better? The answer is neither. Both carbon offsetting and insetting are environmental measures a company can take to help reach net zero. Both work in similar ways and complement each other. By using systems that reduce emissions externally and internally, companies can make a favorable impact on the climate by reducing the most emissions possible.

If you're interested in reducing your company's carbon footprint, a great place to start is by contacting Standard Carbon. Our carbon-reducing services and software can help you calculate your company's carbon emissions and identify areas where you can reduce your carbon impact.