Carbon Insetting

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:

  1. 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.
  2. 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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