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 their value chain emissions is:

● Accelerate Decarbonisation: 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.

● Lower Risk: companies that purchase carbon credits (offsetting) 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. They are not without credibility, delivery, price and reputational risk. Companies that purchase inset certificates from directly within their value chain.

● Resilience: To improve supply chain resilience corporations are now exploring the direct reduction in Scope 3 emissions via carbon insetting to meet net zero goals and build stronger supply networks.
Put simply, the goal of carbon insetting is to directly reduce emissions from within the value chain. This benefits the large corporate’s Scope 3 emissions target while also improving the operational performance of participating supply partners.