Carbon footprint offset – what is it?
Carbon footprint offset, or carbon offsetting, is an action to offset carbon dioxide (CO₂) and other greenhouse gas emissions by investing in projects that reduce or absorb an equivalent amount of emissions.
The most common forms of offsetting include:
- tree planting and forest conservation,
- investments in renewable energy sources (RES),
- projects that improve energy efficiency,
- CO₂ capture and storage (CCS) technologies.
By offsetting, companies can neutralize their own environmental impact, aiming for climate neutrality (net zero) – an increasingly common requirement in global trade and logistics.
Why it matters:
- Market and reputational requirement – more and more counterparties are requiring suppliers to be environmentally friendly and report emissions.
- Sustainability – emissions offsetting is part of ESG and corporate social responsibility (CSR) strategies.
- Competitive advantage – companies reducing their carbon footprint gain an image as modern and responsible business partners.
- Supporting the energy transition – investments in green projects contribute to global emission reductions and climate protection.
Frequently Asked Questions (FAQ)
1. What is the difference between emission reduction and carbon footprint offsetting?
Emission reduction is the reduction of one’s own emission sources (e.g., energy-efficient technologies), while offsetting is the balancing of unavoidable emissions through investment in green projects.
2. How do companies calculate their carbon footprint?
The carbon footprint is calculated by analyzing energy consumption, transportation, production, waste and other processes. International standards such as the GHG Protocol or ISO 14064 are used for this.
3. Is emissions offsetting mandatory?
No, but it is increasingly becoming a contractual requirement or industry standard, especially in the logistics, industrial and food sectors.
4. What does the term “carbon-neutral supply chain” mean?
It’s a climate-neutral supply chain in which CO₂ emissions from transportation, production and logistics are fully reduced or offset to achieve zero emissions.
