Beyond Offsets: The Case for Insetting in Corporate Climate Strategies

The global drive for net-zero emissions often favours reducing and offsetting carbon footprints, however, a more holistic solution called “insetting” is gaining traction. Unlike offsets, which outsource carbon reduction by investing in external projects, insetting incorporates sustainability directly within an organisation’s own value chain, creating better climate action alongside environmental and social benefits.

What is insetting and why does it matter?

Insetting entails investing in sustainability initiatives inside a company’s supply chain and operations (e.g. regenerative agriculture, renewable energy, or energy efficiency in supplier facilities) instead of purchasing offsets elsewhere. This approach:

• Reduces emissions in a more systematic way, where companies have direct influence
• Builds resilience and equity in the local communities associated with the business
• Offers greater transparency and accountability by prioritising verifiable, internal initiatives

By embedding climate action within business, insetting encourages long-term sustainability rather than simple carbon balancing.

How does insetting strengthen climate strategies?

1. Tackling supply chain emissions: The largest carbon impacts are often from supply chains. Insetting helps embed sustainability into resource use, production and logistics by effectively engaging suppliers to adopt greener practices.
2. Generating social benefits: Insetting projects help support local livelihoods and overall wellbeing (i.e. improving health, income and education), helping to align climate goals with both resilience and social equity.
3. Building trust and social license: By reducing social risk and aligning practices with community priorities, transparent insetting can strengthen both corporate reputation and stakeholder relationships.
4. Enabling collaboration: Successful insetting means collaboration between NGOs, governments and local actors, and can create better sharing of resources as well as scalable, systemic impact.
5. Improving reporting: Insetting helps organisations meet increasing requirements for credible sustainability disclosure by providing clear, measurable outcomes on emissions and social value.

How can Strategy&Ops support insetting through strategic advisory?

• Designing integrated insetting frameworks: We aid in linking carbon reduction with environmental and social co-benefits within supply chains
• Facilitating stakeholder engagement: At Strategy&Ops, we advocate for inclusive dialogue and knowledge sharing among communities, suppliers and partners to create sustainable solutions collaboratively.
• Building partnerships: Our multidisciplinary team helps mobilise resources and expertise for impactful insetting projects through fostering collaborations between governmental entities, NGOs, as well as industry consortia.
• Robust measurement and reporting systems: Strategy&Ops helps implement robust systems to demonstrate transparent, credible progress on insetting goals.

Insetting moves beyond traditional offsets, enabling organisations to embed climate action directly within their operations and value chains. For companies committed to credible and transformative climate strategies, contact our multidisciplinary team info@strategyandops.net so we can support your corporate climate journey

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