Carbon offsets can form part of a business’s approach to carbon neutrality, but they should not be treated as a substitute for reducing the emissions the business can reasonably avoid.
A business would normally start by defining and measuring the carbon footprint covered by its carbon-neutral claim. It can then identify opportunities to reduce emissions directly, such as improving energy efficiency, reducing fossil fuel consumption or changing operational processes.
Carbon credits can be used to address emissions remaining within the defined footprint. These credits may be generated by projects that reduce greenhouse gas emissions or remove greenhouse gases from the atmosphere. The quality and environmental integrity of the credits are important, as not all projects provide the same level of assurance or long-term climate benefit.
Businesses should also be transparent about their use of carbon credits. A carbon-neutral claim should not imply that the organisation produces no emissions or conceal the extent to which the claim depends on offsetting.
For longer-term decarbonisation, businesses should continue reducing their own greenhouse gas emissions rather than relying indefinitely on purchasing offsets.
