Offsetting Emissions
What does this all entail, and what should a company keep in mind?
More and more companies are choosing to offset their CO₂ emissions by investing in projects such as reforestation or renewable energy. But what exactly does offsetting mean? And how does it compare to actual emissions reduction? In this article, we explain why transparency is so important, why offsetting is not the same as reducing, and how to approach CO₂ offsetting carefully and responsibly. This will give you a better understanding of exactly what offset emissions are and what your organization needs to keep in mind.
Paraskevi Koumadoraki
Author
What exactly are offset emissions?
Offset emissions, also known as offset emissions, refer to
greenhouse gases emitted by a company or product, but which are later “neutralized”
through the purchase of CO₂ offset credits or
investments in offset projects such as reforestation or renewable energy.
It is important to emphasize that these emissions are still occurring and
contribute to climate change. While offsetting can help, it is not
the same as reducing emissions at the source. Offsetting is a
separate measure and, according to the Greenhouse Gas Protocol (GHGP) and
ISO standards, must be reported separately to ensure transparency and
accountability.
Why separate reporting is so important.
Transparency and accountability are playing an increasingly important role for stakeholders such as consumers, investors, and regulators. They need clear information about the volume of emissions, the extent of reductions, and the amount that may be offset. This prevents companies from primarily offsetting their emissions without implementing actual reductions—a risk that can lead to greenwashing. That is why it is important for companies to focus first on actual emission reductions, using offsetting only as a last resort.
Key considerations if you want to offset emissions include:
• Transparency and accountability: you need a clear understanding of how much is being emitted, reduced, and offset.
• Preventing greenwashing:you cannot simply offset emissionswithout implementing actual reductions.
• Prioritize actual reductions: focus on reducing emissions first, then offset them.
• Alignment with international standards:You must comply with global frameworks and guidelines such as the Greenhouse Gas Protocol, CDP, SBTi, and the European CSRD.
International standards, such as the Greenhouse Gas Protocol, CDP, and the Science Based Targets initiative (SBTi), emphasize the importance of strictly distinguishing between direct emissions (Scope 1), indirect emissions (Scopes 2 and 3), and offset activities. This approach is also followed within Europe: the Corporate Sustainability Reporting Directive (CSRD) sets clear requirements for transparent reporting on CO₂ emissions. The recently adopted Green Claims Directive (EU 2024/825) goes even further and mandates that every type of CO₂ offset must be explicitly and transparently disclosed.
These regulations are part of a broader effort to improve the credibility and reliability of environmental claims in marketing. As a result, advertisements based on carbon offsetting are now subject to stricter regulations. For example, companies may no longer label their products as “climate-neutral” if this claim is based solely on offsetting and not on actual emissions reductions.
Product Offsetting in ClimateCalc
When your company uses ClimateCalc to calculate the carbon footprint of printed products
, you also have the option to mark an order as offset
. ClimateCalc offers a specific label for products that have been both assessed
and offset.
In the product calculation module, the total emissions for an order must first be calculated at
before any offsets are applied. Only then can your company, as a
, submit information for an offset certificate (e.g., proof of CO₂-
offset credits) that is directly linked to the specific product and the
corresponding amount of CO₂-equivalent emissions.
This process ensures transparency and follows the principle of measuring and reducing
emissions before offsetting.
*Important NOTE: If you use a substrate that has already been
offset by another party, you are still required to offset the remaining emissions on your end
(such as production processes, transportation, etc.). To do so, you must
also upload your own offset certificate as a company.
If your company is going to offset its carbon footprint, what’s the best way to do it?
Customers, consumers, and clients are increasingly taking a critical look at how companies handle carbon offsetting. As a business, you therefore want to not only make the right choices internally, but also be prepared for the questions your customers ask about this. To help you in a practical way, here are 4 key points to consider when setting up your offsetting policy:
- Transparency about what you offset and how
Make sure you can clearly demonstrate exactly what you are offsetting (which emissions, how much, and from which projects) and according to which method. Customers expect clear documentation and insight into the underlying projects. It is also important to be transparent about the scope of your calculation: does it concern direct emissions (Scope 1), indirect emissions from energy use (Scope 2), or broader supply chain emissions (Scope 3)? The clearer you are about what is and isn’t included, the more credible you are. - Reduce first, then offset
Consumers and clients value companies that actively work to reduce their own emissions. Show the specific reduction measures you’re already taking—such as energy savings, more efficient production, more sustainable materials, and logistics optimization. Offsetting should always be the final step in your efforts, not the starting point. - Choose independent certification
Work with projects that are certified by recognized, independent standards. Reliable offset projects provide detailed information, are demonstrably “additional” (the project would not have been implemented without the contribution), and are strictly monitored. This enhances the credibility of your claim. - Communicate honestly about climate claims
Avoid empty claims such as “climate neutral” if offsetting is the only measure taken. Often, “climate neutral” means that emissions are still occurring but are being offset. Be clear about what you’re claiming and back it up with solid evidence. Honest communication is appreciated by customers, clients, and regulators alike.
Would you like us to help you with your sustainability policy?
Whether it’s about reducing CO₂ emissions, offsetting them, or fully mapping out your Scope 1, 2, and 3 emissions, it can sometimes be difficult to get a clear picture of the big picture. We’re happy to help you make your sustainability policy concrete and actionable, so that you not only comply with regulations but also take real steps toward a more sustainable business process. Fill in your details below, and we’ll contact you with no obligation to discuss how we can support you.
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