Is your organisation ready to move from offsetting to insetting? 

Everyone is familiar with the term offsetting – when a company buys credits to compensate for carbon dioxide emissions. How familiar are you with insetting?  

MyClimate.org defines ‘insetting’ as an investment by your company in emissions reduction projects within the supply chain. In contrast to emissions reduction in external climate protection projects (carbon offset projects), climate protection money remains within your company’s value creation cycle.’ 

Insetting is not a new concept.  

Insetting was promoted, nearly 10 years ago by sustainability standards Plan Vivo and Pur Projet. Since COP26, insetting is fast becoming the new buzzword flying around corporate board rooms. Why? Companies of all shapes and sizes are being held accountable for their actions by consumers and investors. Therefore, their boards are keen to get their ESG houses in order and proactively drive down their organisations carbon emissions in a more sustainable way. Offsetting does not tackle an organisations emissions within its supply chain. Whereas insetting focuses on the impact of manufacturing, running operations and transportation.  

The organisations moving away from offsetting recognise to successfully adopt ‘insetting’ they cannot do this alone. It requires a partnership. Who better to align with than the organisations they do business with – the supply chain.  

John Dowdall, CRO Pulse Market commented: “The financial services sector is beginning to realise that instead of investing in carbon offsets, they can spend that same money to strengthen their supply chain and have a wider impact on the people and the planet. This more proactive approach is very much aligned with why we created the Pulse ESG passport, namely increasing the impact firms can have when working together” 

In order to make real change happen companies need to think seriously about who they do business with not just how they do business. This is more important than ever with the tightening up of ESG reporting requirements for the financial services sector. Buyers and suppliers need to act together.  

The question is how do buyers align suppliers with their ESG goals and vision. The answer is the Pulse Market ESG passport: the simple solution to align and educate your suppliers with your ESG vision.  

Discover more and book a demo today at ESG Passport