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Improvements & Decarbonisation
Carbon Inset Advisory
Carbon Insetting reduces greenhouse gas emissions within your own value chain — typically in agricultural supply chains, forestry, or upstream manufacturing — rather than purchasing external carbon offsets, and delivers measurable Scope 3 reductions that support SBTi compliance.
The SBTi FLAG (Forest, Land and Agriculture) Guidance — mandatory for companies with land-based emissions above a defined threshold — specifically recognises supply chain insetting as a valid approach to achieving Scope 3 FLAG targets. The GHG Protocol Scope 3 Standard and SBTi's Scope 3 guidance both require companies to demonstrate actual supply chain emission reductions over time, not just offset purchases. The SBTi position statement on environmental claims restricts the use of offset credits to meet near-term science-based targets, making insetting programmes a preferred mechanism for Scope 3 reduction. Without a structured insetting strategy, organisations with material Scope 3 FLAG emissions cannot credibly demonstrate SBTi-compliant reductions and face growing scrutiny from investors and customers on supply chain decarbonisation claims.
Our approach
A structured insetting strategy is developed to identify and implement emission reduction interventions within the value chain, with measurement and verification aligned with the GHG Protocol Scope 3 Standard and SBTi FLAG Guidance. The process identifies high-impact Scope 3 hotspot categories, designs supplier engagement and co-investment programmes, and establishes a robust measurement, reporting, and verification (MRV) framework. Outputs are designed to support SBTi Scope 3 target compliance, CSRD ESRS E1 transition plan requirements, and supply chain sustainability disclosures.
- Mapping of Scope 3 emission hotspots with focus on FLAG categories (agriculture, forestry, land use change) and high-volume supply chain tiers
- Identification of insetting intervention types: regenerative agriculture, improved forest management, clean cooking, energy efficiency for suppliers
- Development of supplier engagement strategies, co-investment models, and contractual frameworks for insetting programmes
- Design of MRV methodology aligned with GHG Protocol Scope 3 Standard and applicable Verra VCS or Gold Standard methodologies
- Measurement and third-party verification of emission reductions achieved within the value chain
- Integration of insetting outcomes into SBTi Scope 3 target tracking, CSRD ESRS E1 transition plan, and supply chain ESG disclosures
Outcomes
Verified Scope 3 emission reductions within the value chain contributing to SBTi near-term target compliance
SBTi FLAG-aligned insetting programme with robust MRV methodology and third-party verification
Strengthened supplier relationships and co-investment in supply chain decarbonisation
Credible supply chain sustainability narrative for CSRD ESRS E1, BRSR Core, and CDP Scope 3 disclosures
Reduced long-term exposure to carbon credit price volatility through owned value chain reduction activities
Speak with an expert
The team can walk you through exactly how Carbon Inset Advisory applies to your organisation's context and objectives.
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