What is Insetting?
Carbon reduction or removal projects implemented within an organisation's own value chain rather than through external offset projects. Insetting creates direct benefits for the business while reducing supply chain emissions.
Why it matters
Insetting is considered more credible than traditional offsetting because it directly addresses emissions within your operations or supply chain. It also builds resilience by improving the sustainability of key suppliers and sourcing regions.
Example
A chocolate company funds agroforestry projects on its cocoa suppliers' farms in Ghana. The trees sequester carbon while improving soil quality and crop yields, reducing both supply chain emissions and sourcing risk.
Related terms
Carbon Offsets
Credits purchased to compensate for emissions by funding projects that reduce, avoid, or remove greenhouse gases elsewhere. Examples include reforestation, renewable energy projects, and methane capture. One offset typically equals one tonne of CO₂e.
Value Chain
The full range of activities needed to create a product or service, from raw material extraction through production, delivery, use, and end-of-life disposal. Understanding your value chain is essential for accurate Scope 3 emissions reporting.
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