GlossaryCarbon insetting

Carbon insetting

Insetting refers to the reduction of emissions within the company's own value chain.

What does insetting mean?

In contrast to offsetting, which focuses on external compensation projects, insetting, also known as carbon insetting, focuses on reducing emissions within the company's own value chain. This can involve climate protection projects at the production site, but also activities such as improving energy efficiency through new technologies.

For example, a company in the food industry could introduce regenerative agriculture methods, such as undersowing and intercropping, which not only improve soil quality and promote biodiversity, but also help to sequester carbon from the atmosphere and thus reduce the company's overall emissions.

The advantage of the carbon insetting approach is that it contributes to the sustainability of core business activities. It also has the potential to help companies identify and address risks related to climate change, such as supply chain disruptions and resource scarcity.