To offset a carbon footprint, a business first needs to calculate the greenhouse gas emissions it wants to compensate for, measured in tonnes of carbon dioxide equivalent (CO2e).
It then purchases an appropriate number of carbon credits from projects that reduce or remove greenhouse gas emissions. One verified carbon credit normally represents one tonne of CO2e. However, businesses should assess the quality of the credits, including whether the project is additional, how its carbon benefit has been calculated and verified, whether the benefit is expected to last and how double counting is prevented.
Credits used to compensate for emissions should be retired on the relevant carbon registry so that they cannot subsequently be sold or claimed by another organisation.
Carbon offsetting should complement rather than replace action to reduce emissions. Current UK Government principles recommend that businesses prioritise emissions reductions within their own operations and value chain before using high-integrity carbon credits to address remaining emissions.
Businesses should also keep records of the emissions being offset, the credits purchased and retired, and any environmental claims made using them.
