Carbon offsetting: Tread carefully

If we are to stay within the planet’s liveable boundaries, we need to halve global emissions by 2030.

As companies grapple with building and implementing sustainability strategy, they often turn to offsetting to neutralise emissions currently generated by their operations.

On the surface, planting trees, mangrove swamps, rewilding projects might sound like a great solution to mitigate your company's emissions, however it’s not quite as simple as one might first think and we urge you to spend a little time understanding why.

There are some excellent schemes in place which truly deliver environmental benefits and support local economies, but there are also a few rogues out there so please do some research or take advice.

Below, we outline a few of the questions to ask before proceeding with offsetting:

• What is my climate ambition and can I achieve it without offsetting? Consider (energy) elimination, reduction and substitution as preferred options.

• Are carbon credits on offer verified? Research the projects and request proof of audit.

• Do the offsetting projects fit with our business model or priorities? If not, your offsetting can be devalued and considered as greenwash.

The bigger issues are market-related. It isn’t currently standardised, centralised or organised. As we write, carbon is vastly under priced but this is likely to change very soon under the remit of the Taskforce on Scaling Voluntary Carbon Markets, co-founded by Mark Carney.

In summary, carbon offsetting does play a role while businesses transition to low-carbon ways of operating but could really damage your corporate reputation if not used in the right way.

Offsetting emissions should be the last resort for a company, once they have taken every measure to reduce emissions. It is not a long term solution and shouldn’t be considered as one.