Insetting
Insetting is the practice of investing in carbon reduction or removal projects within an organisation’s own value chain, rather than purchasing offsets from unrelated third-party projects.
What is Insetting?
Unlike conventional offsetting (which funds emission reductions or removals outside the value chain), insetting funds projects within the company’s supply chain or operational sphere. Examples include funding renewable energy for a key supplier, supporting regenerative agriculture in the raw material supply chain, or investing in reforestation near operational sites. Insetting is considered more credible than external offsetting because it directly addresses the company’s own value chain emissions and builds supply chain resilience.
Practical Examples
A coffee company funds agroforestry projects within its farming supply chain, sequestering carbon while improving soil health and coffee quality.
A clothing brand invests in renewable energy for its textile dyeing suppliers, reducing its Scope 3 Category 1 emissions at source.
How Climatise Helps
Climatise maps your value chain emissions to identify the most impactful insetting opportunities within your supply chain.
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