Developing carbon offset projects within a company’s own supply chain   

As public concern about climate change grows, private sector companies are increasingly recognising the case for strategic carbon management in order to protect their bottom-line, and to retain market competitiveness. Companies have faced increased stakeholder and consumer pressure to invest in supply chain emission reductions. This has prompted a growing number of forward thinking organisations to invest in an emergent carbon management strategy termed Insetting.

However, there has been a lack of under-standing about what the term ‘Insetting’ meant, and therefore what constituted best practice. Consequently, in 2016 ICROA commissioned Bristol University to conduct research into the topic. 

The term Insetting was first used in 2009 to refer to the direct investment of a company within its own value chain (up- and down-stream) in order to reduce its carbon footprint. ICROA defines the term as "a carbon reduction project, verified by an offset standard, which occurs within a company’s supply chain or supply chain communities"

ICROA research has shown that emission reduction projects deliver a range of socio-economic and environmental benefits to local communities, in addition to mitigating climate change. Companies who choose to invest in Insetting, and locate emission reduction projects within their own supply chain, are are able to capture more of these non-carbon benefits. In turn, this can lead additional return through effects such as increased supply chain efficiency and customer loyalty.

ICROA recommendations for Insetting best practice

Download the full study here.