Growing numbers of businesses, governments and organisations are working towards reaching net zero carbon emissions as part of their environmental initiatives.

Here, Niklas Kaskeala, Chief Impact Officer at environmental non-profit organisation Compensate, explains more about what carbon offsetting is and the role it can play in your business’s sustainability efforts.

“We all have a carbon footprint. As individuals, we all cause carbon emissions, for example when we eat, shop or take transport. Alongside this, business-related activities such as commuting, shipping, electricity generation, industrial processes and agriculture also contribute to the amount of carbon being released into the atmosphere.

While we can stop or reduce some emissions, others are still unavoidable. The good news? We can compensate for, or offset, some of those emissions by removing an equal amount – or better still, a greater amount – of carbon dioxide from the atmosphere.

Carbon offsetting, funding an equivalent amount of carbon emissions reductions or carbon removals, is an effective way to take responsibility for our carbon footprint. But it should always be preceded by measures to avoid and reduce emissions in the first place.”

“Some people claim carbon offsetting is cheating. And sometimes they’re right. As sustainability becomes an increasingly important concern for consumers and businesses, climate claims and greenwashing are more common too.

But when carbon offsetting is done well, it can have a big positive impact on climate, biodiversity, and human rights.

To ensure the effectiveness of carbon offsetting, it’s important to support projects that are guided by science and executed with integrity.”

“No. Compensation may seem cheaper and easier than reducing emissions, so it’s often seen as an excuse to continue our destructive habits.

But to mitigate climate change, we need to cut our emissions and offset more than we emit. Going carbon neutral is not enough, and here’s why.

We exceeded the safe level of carbon dioxide in the atmosphere in 1986, according to the US’ National Oceanic and Atmospheric Administration (NOAA)¹. Even if we cut emissions down to zero today, we would still need to remove that excess carbon from the atmosphere.

Take plastic, for example. We must stop putting plastic into the ocean, but we also need to remove the plastic that’s already there to make our oceans truly clean.”

“The climate crisis is the biggest challenge humanity has ever faced. But it will take time and effort to stop emitting greenhouse gases completely. Compensating is a way of taking responsibility for these still unavoidable emissions today.

We need a fundamental change in our thinking and approach to achieve the EU’s commitment under the Paris Agreement – a reduction of greenhouse gas emissions of 55% by 2030 compared to 1990.

We see compensating as an investment, not a cost. Understanding your carbon footprint can be the first step towards making impactful changes and reducing emissions for a sustainable future.

So yes, compensating is voluntary, but at the moment it’s the one of the best ways to make up for those emissions that can’t yet be avoided.”

“Start by looking at the emissions that your business currently produces, as conducting a review can help you see where reductions can be made.

There are three types of carbon emissions associated with businesses. Scope one emissions are those caused directly by a business’s activity, for example any fuels burned on-site, or the emissions from company vehicles. Scope two emissions are those caused by the energy supplied to your business from sources outside of your control.

Scope three emissions are more difficult to quantify. These occur because of a business’s activity but come from sources outside of the business’s remit. So, for example, the emissions caused by employees commuting into work, or from the production of a piece of equipment you might buy.²

If you are based in the EU you can look at Compensate Plus to calculate, track, and compensate your company’s carbon emissions. We created it so that small businesses especially can easily take climate action.

To learn more about carbon offsetting, head to the Compensate website or download our white paper for a deep dive into the carbon market.