ENERGY MANAGEMENT & SUSTAINABILITY
THE POWER OF CARBON INSETTING
Carbon insetting has a lot to offer businesses that are looking to reduce carbon emissions and reach net zero. Nick Campbell, Director: Energy Intensive Clients at Inspired Energy, provides an overview of what this entails.
Sustainability is rising up the business agenda rapidly as we all see the impact climate change is having on the environment. The term net zero is no longer just a buzzword, it’s become mission critical for a number organisations and many facilities managers are the heart of this mission.
Those responsible for meeting net zero targets in their organisation will know all too well that it’s impossible for many businesses to operate without creating any carbon emissions. The answer for many has been carbon offsetting, but there’s a more sustainable way to reach net zero. Now it’s time to turn offsetting on its head and explore the benefits of carbon insetting.
Many of us are familiar with the process of carbon offsetting, in which an organisation finances a carbon reduction project to remove as much carbon from the atmosphere as they need to ‘offset’ their residual emissions. It might involve planting enough trees to absorb their CO2 emissions, for example, or investing in a renewable generation project.
These projects are often located in developing countries and have no links to the organisation. It’s a popular route to net zero though, in 2006 just 8.8m tonnes of CO2e were covered by carbon offsetting schemes, but by 2017, this figure had risen to 62.7m tonnes. But, we can do better all round with carbon insetting.
The benefits of carbon insetting A growing number of organisations are investing in carbon reduction projects within their own supply chain. Unlike carbon offsetting, in which businesses invest in carbon reduction initiatives that have no connection to the business, carbon insetting enables businesses to build stronger relationships with their suppliers by working with them to reduce the indirect emissions they produce throughout the supply chain.
Insetting is already gaining momentum among some of the UK’s leading businesses.
The Co-op is investing to help its suppliers become more climate resilient by implementing a programme
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designed to involve young people in the coffee value chain in their Co-operative Society in Kenya. Although both carbon offsetting and insetting require investment, the latter ensures that the investment stays within the organisation’s value chain.
By working with their suppliers, rather than investing in a separate project, businesses can identify emissions reductions opportunities that create shared value for everyone involved. With many organisations now setting Sustainable Development Goals (SDGs), they can also ensure that the projects they implement are closely aligned with their chosen SDGs and make a tangible impact on the communities in which they operate.
Businesses can also reduce their own carbon footprint by helping their suppliers to reduce their carbon emissions. Under the Greenhouse Gas Protocol, an organisation’s supply chain emissions are classed as ‘Scope 3’ emissions. Businesses that have been focused on improving their carbon footprint for some time are now finding that their Scope 3 emissions account for the majority of their overall footprint. Organisations like Pepsi and BT have both stated recently that their Scope 3 emissions now represent 90% or more of their total GHG emissions. For businesses like these, carbon insetting will go much further to helping them achieve their goals than carbon offsetting, as it gives them the opportunity to lower their Scope 3 emissions by implementing carbon reduction strategies throughout their supply chains.
A net zero future Carbon insetting has a lot to offer businesses that are looking to reduce carbon emissions and reach net zero. Wherever you are as a facilities manager on the journey to net zero, carbon insetting will help boost environmental creds and make a positive impact on the communities your organisation operates within. With the spotlight firmly on climate change as the UK hosts COP26, there has never been a better time to look at how you can make your operation more sustainable.
www.inspiredenergy.co.uk twitter.com/TomorrowsFM
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