Carbon offsetting: what it is, when to use it and what to watch out for
Carbon offsetting is often misunderstood. For some, it feels like a silver bullet. For others, a dirty word. The reality sits somewhere in the middle.
Used properly, offsetting can play a legitimate supporting role in a credible carbon reduction strategy. Used badly, it can undermine trust and land businesses in hot water.
So let’s cut through the noise. Watch our new video.
What is carbon offsetting?
In simple terms, carbon offsetting means compensating for emissions you cannot currently avoid by investing in projects that reduce or remove greenhouse gases elsewhere. This might include renewable energy, nature-based solutions or carbon removal technologies.
Offsets are typically measured in tonnes of CO₂e and purchased once an organisation has calculated its footprint.
When should offsetting be used?
Offsetting should never be the first step.
The priority must always be to measure, reduce and avoid emissions at source. That means looking at energy use, travel, materials, logistics and operations, then putting reduction plans in place.
Offsetting comes last, as a way to address residual emissions that are genuinely hard to eliminate in the short to medium term. Think of it as a bridging mechanism, not a free pass.
If offsetting is used to mask inaction, stakeholders will see straight through it.
How does it work in practice?
Once emissions are calculated, organisations can choose certified offset projects that align with their values and risk appetite. High-quality projects are independently verified, transparently reported and deliver benefits beyond carbon, such as biodiversity or community impact.
Look for recognised standards such as Gold Standard or Verra, and understand exactly what you are funding.
Common pitfalls to avoid
This is where many organisations come unstuck:
Offsetting without a reduction plan
Making broad “carbon neutral” claims without evidence
Using low-quality or poorly verified credits
Failing to explain the approach clearly and proportionately
With increasing scrutiny from regulators, customers and investors, vague claims are a real reputational risk.
What good looks like
Credible offsetting is transparent, limited and clearly positioned as part of a wider transition plan. It is supported by robust data, realistic targets and honest communication.
If you’re unsure, talk to the experts. A good sustainability partner will challenge you, not sell you shortcuts.
Our new YouTube video unpacks all of this in more detail and offers practical guidance on how to approach offsetting responsibly.
Watch the video and get in touch if you want help building a strategy that stands up to scrutiny.