Monitise Avoided Emissions
A typical business with a net-zero target has committed to reduce Scope 3 greenhouse gas emissions by 30%. Today, the main way companies reduce supplier emissions tends to come:
- Supplier engagement: direct engagement will suppliers to encourage them to reduce their own operational emissions has many benefits for both businesses. However, this is a multi-year process and with all suppliers serving multiple clients, is not always easy.
- Purchase carbon offsets: purchasing offsets generate an immediate impact and reduce the need for near-term emission reductions by suppliers. However, carbon offset projects are not directly linked to the business or their value chain. And since they are a long-term operational expense may be subject to price increases and annual budgetary pressures.
Corporations are now increasingly exploring the direct reduction in scope 3 emissions via carbon insetting to meet net zero goals.
Put simply, carbon insetting is the reduction of emissions directly within the value chain. This directly reduces a company’s scope 3 emissions while also improving the operational performance of participating supply partners.
Here’s what makes insetting different and when you might consider using this approach over purchasing offsets:
● Insetting requires investment directly into the corporate supply chain to remove emissions
● Carbon reduction solutions are financed in year one. Carbon reductions are created for the lifetime of the project.
● Insetting reduces the need to purchase offsets
● This approach leads to the production of more sustainable products
● Insets will become tradable: enabling them to pass from one company to another as they change supplier
● The trading of insets creates a new revenue stream that further improves the economics of carbon reduction investments.
About Insetting
Represent emission reductions directly from a company’s supply chain
Claim reduction for towards Scope 3 net-zero target
Reduces need to purchase carbon offsets
Value
Verified emission reduction claims are fungible. Transfer certificates from one company to another
Generate a new revenue stream
Improve supply chain project economics (e.g., IRR)
Impact
Engage your most valuable customers
Improve supply chain resilience
Front foot sustainability leadership
Bloom offers carbon inset solutions on a sector-by-sector basis.
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