{"id":1752,"date":"2022-05-18T13:26:33","date_gmt":"2022-05-18T11:26:33","guid":{"rendered":"https:\/\/ecochain.com\/blogs\/how-much-of-my-emissions-do-i-need-to-offset\/"},"modified":"2025-11-10T11:04:06","modified_gmt":"2025-11-10T11:04:06","slug":"how-much-of-my-emissions-do-i-need-to-offset","status":"publish","type":"post","link":"https:\/\/ecochain.com\/nl\/blog\/how-much-of-my-emissions-do-i-need-to-offset\/","title":{"rendered":"How Much Of My Emissions Do I Need To Offset?"},"content":{"rendered":"<p><i><span style=\"font-weight: 400;\">**This article was written in collaboration with our offsetting partner <\/span><\/i><a href=\"https:\/\/climateseed.com\/\" target=\"_blank\" rel=\"noopener\"><i><span style=\"font-weight: 400;\">ClimateSeed.<\/span><\/i><\/a><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s do a quick recap on carbon offsetting first.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to <\/span><a href=\"https:\/\/www.ipcc.ch\/2018\/06\/15\/ipcc-meetings-go-carbon-neutral\/#:~:text=A%20carbon%20offset%20is%20a,%E2%80%9D)%20an%20emission%20made%20elsewhere.\"><span style=\"font-weight: 400;\">IPCC<\/span><\/a><span style=\"font-weight: 400;\">, carbon offsetting is any activity that compensates for the emissions of CO<sub>2 <\/sub><\/span><span style=\"font-weight: 400;\">or other greenhouse gasses (measured in CO<sub>2<\/sub><\/span><span style=\"font-weight: 400;\">-eq) by providing an emission reduction elsewhere.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Companies can purchase carbon credits* to<\/span><b> compensate and neutralize<\/b><span style=\"font-weight: 400;\"> their own residual emissions- <strong>next to <\/strong><\/span><span style=\"font-weight: 400;\">their reduction strategy. These residual emissions include the emissions you haven\u2019t reduced yet and the emissions you really can\u2019t control (uncontrollable residual emissions). Your purchased carbon credits then finance- and support projects around the world that <\/span><a href=\"https:\/\/ecochain.com\/blog\/the-criteria-for-high-standard-carbon-offsetting-projects\/\"><span style=\"font-weight: 400;\">capture or avoid<\/span><\/a> CO<sub>2<\/sub><span style=\"font-weight: 400;\">\u00a0emissions.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But how many of your emissions should you offset?\u00a0<\/span><\/p>\n<p><em>The short answer: You reduce 100% of your carbon footprint with reduction efforts + offset 100% of your carbon footprint on top.\u00a0<\/em><\/p>\n<p>But you need to follow these steps <strong>first.<\/strong><\/p>\n<p><i><span style=\"font-weight: 400;\">*One carbon credit permits the emission of a mass equal to one ton of carbon dioxide.<\/span><\/i><\/p>\n<figure class=\"wp-block-image size-full is-resized\"><img fetchpriority=\"high\" decoding=\"async\" class=\"wp-image-18117\" src=\"https:\/\/ecochain.com\/wp-content\/uploads\/2023\/05\/lingchor-lDy1K7RkLeA-unsplash.jpg\" sizes=\"(max-width: 634px) 100vw, 634px\" srcset=\"\" alt=\"\" width=\"634\" height=\"419\" \/><\/figure>\n<h2><b>Carbon Offsetting: A Process Divided Into Two Phases<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Carbon offsetting is a process that\u2019s divided into two phases:<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<ul>\n<li>\n<h3><span style=\"font-weight: 400;\"> \u00a0 \u00a0 <\/span><b>Phase 1: <\/b><span style=\"font-weight: 400;\">Measure, Analyze &amp; Reduce your carbon footprint\u00a0<\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><span style=\"font-weight: 400;\">Offsetting doesn\u2019t help if you don\u2019t know if- and how it makes a difference in your carbon footprint.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><b>Step 1: <\/b><span style=\"font-weight: 400;\">Always measure<\/span><span style=\"font-weight: 400;\"> your company\u2019s or products\u2019 carbon footprint.<\/span><\/p>\n<p><b>Step 2:<\/b><span style=\"font-weight: 400;\"> Identify your biggest impact hotspots in your carbon footprint results. Where does your biggest impact come from?\u00a0\u00a0<\/span><\/p>\n<p><b>Step 3: <\/b><span style=\"font-weight: 400;\">Create and implement an emissions reduction strategy with clear targets and measures that aim to <\/span><span style=\"font-weight: 400;\">reduce your overall emissions to zero<\/span><span style=\"font-weight: 400;\">. In your reduction strategy, using offsetting as a <\/span><i><span style=\"font-weight: 400;\">reduction measure<\/span><\/i><span style=\"font-weight: 400;\"> should only be used to neutralize your final uncontrollable emissions (SBTi states this can only be a maximum of 5-10% of your complete carbon footprint).\u00a0<\/span><\/p>\n<ul>\n<li>\n<h3><span style=\"font-weight: 400;\"> \u00a0 \u00a0 <\/span><b>Phase 2: <\/b><span style=\"font-weight: 400;\">Strategize &amp; Offset residual emissions<\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><b>Step 4. <\/b><span style=\"font-weight: 400;\">Analyze your residual emissions in your scope 1 (direct emissions), 2, and 3 (indirect emissions). Residual emissions are the emissions you haven\u2019t reduced (yet) or can\u2019t control.\u00a0<\/span><\/p>\n<p><b>Step 5. <\/b><span style=\"font-weight: 400;\">Define the short-and long term carbon offsetting strategy + targets for these residual emissions.<\/span><\/p>\n<p><b>Step 6. <\/b><span style=\"font-weight: 400;\">Look for offsetting <a href=\"https:\/\/ecochain.com\/blog\/the-criteria-for-high-standard-carbon-offsetting-projects\/\" target=\"_blank\" rel=\"noopener\">projects that fit your business<\/a>. And buy carbon credits based on your targets.\u00a0<\/span><\/p>\n<p><b>Step 7.<\/b><span style=\"font-weight: 400;\"> Communicate your efforts transparently.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To answer how much we can offset, we focus on <\/span><b>steps 1-5.<\/b><\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" class=\"wp-image-18136\" src=\"https:\/\/ecochain.com\/wp-content\/uploads\/2023\/05\/How-much-of-my-emissions-do-I-need-to-offset_Ecochain-1.jpg\" sizes=\"(max-width: 1480px) 100vw, 1480px\" srcset=\"\" alt=\"\" width=\"1480\" height=\"1680\" \/><\/figure>\n<h2><b>Step 1. Measure your company\u2019s carbon footprint\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">A carbon footprint is the total amount of greenhouse gasses (GHG) emitted into the atmosphere by a company\u2019s activities- over a certain time period.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Now- a carbon footprint can be measured with Life Cycle Assessment (LCA) tools. Such as our own footprinting tool Ecochain<\/span><span style=\"font-weight: 400;\">. An LCA is a scientific method that calculates the environmental footprint of your company or product(s).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">One of LCA\u2019s 15+ impact results is \u2018climate change\u2019. It groups all greenhouse gas emissions into one outcome, expressed in kg CO<sub>2<\/sub><\/span><span style=\"font-weight: 400;\">-eq: <\/span><b>the carbon footprint. <\/b><span style=\"font-weight: 400;\">The GHG Protocol divides these company emissions into three scopes.<\/span><\/p>\n<p><b>Scope 1: <\/b><span style=\"font-weight: 400;\">Direct emissions from your organization\u2019s owned- or controlled sources. E.g., company vehicle emissions.<\/span><\/p>\n<p><b>Scope 2:<\/b><span style=\"font-weight: 400;\"> Indirect emissions from purchased energy sources. E.g., your organization\u2019s consumed electricity or cooling.\u00a0<\/span><\/p>\n<p><b>Scope 3:<\/b><span style=\"font-weight: 400;\"> All other indirect emissions within your value chain (upstream supply chain &amp; downstream emissions e.g. customers). E.g., waste disposal, transportation, and supplied goods. Scope 3 can account for up to 90% (!!) of your total impact. It\u2019s, therefore, crucial to include scope 3 in your measurements and reduction strategy.\u00a0<\/span><\/p>\n<h2><b>Step 2. Identify your biggest impact hotspots<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">This complete overview of your scopes shows you where the <\/span><b>biggest impact hotspots <\/b><span style=\"font-weight: 400;\">in your value chain lie.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Impact hotspots allow you to <\/span><b>focus<\/b><span style=\"font-weight: 400;\"> your reduction efforts, define your most efficient reduction measures, and set reduction targets. They simply offer the biggest impact reduction potential.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, if one of your biggest impact hotspots is the purchased products in your upstream supply chain- this is a good reduction opportunity. Sourcing alternative suppliers with sustainable products would be a good reduction measure.\u00a0\u00a0<\/span><\/p>\n<h2><b>Step 3. Create a reduction strategy based on impact hotspots<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><span style=\"font-weight: 400;\">Once your impact hotspots are clear, map out the corresponding reduction measures \u2013 and set your short and long-term reduction targets. You can set these targets according to the <\/span><a href=\"https:\/\/sciencebasedtargets.org\/\"><span style=\"font-weight: 400;\">Science-Based Targets initiative<\/span><\/a><span style=\"font-weight: 400;\"> (SBTi) or <\/span><a href=\"https:\/\/www.ipcc.ch\/sr15\/#:~:text=Limiting%20warming%20to%201.5%C2%B0C%20implies%20reaching%20net%20zero,particularly%20methane%20(high%20confidence).\"><span style=\"font-weight: 400;\">IPCC<\/span><\/a><span style=\"font-weight: 400;\">, both follow the Paris Agreement.<\/span><\/p>\n<p><b>The Goal of these targets:<\/b><span style=\"font-weight: 400;\"> Limit Global Warming to well below 2\u00b0C and pursue efforts to limit it to 1.5\u00b0C. By reducing our emissions by 55% by 2050 and 100% by 2050.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><i><span style=\"font-weight: 400;\">Example: How BMW applied Science-based Targets in their reduction strategy (link)<\/span><\/i><\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" class=\"wp-image-18125\" src=\"https:\/\/ecochain.com\/wp-content\/uploads\/2023\/05\/david-clode-R5ZAUNYSr2g-unsplash.jpg\" sizes=\"(max-width: 1920px) 100vw, 1920px\" srcset=\"\" alt=\"\" width=\"1920\" height=\"1277\" \/><\/figure>\n<h2><b>Step 4. Analyze your residual emissions<\/b><strong> (100%)<\/strong><\/h2>\n<h3><span style=\"font-weight: 400;\">What are residual emissions?<\/span><\/h3>\n<p><b>Simply put;<\/b><span style=\"font-weight: 400;\"> your residual emissions are 100% of your initial carbon footprint. There are two types of residual emissions. First, you have the residual emissions you haven\u2019t reduced yet with your reduction efforts- because reduction takes time. Second, you have the residual emissions you can\u2019t even avoid with your emission reduction strategy- your uncontrollable residual emissions.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You see, reaching zero emissions by reduction measures alone is possible <\/span><b>on paper.<\/b><span style=\"font-weight: 400;\"> But in reality, you will always have uncontrollable residual emissions you can\u2019t avoid.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><i><span style=\"font-weight: 400;\">Examples of uncontrollable residual emissions are:<\/span><\/i><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You now purchase green wind energy. But indirectly, the production of the necessary windmills also has an impact on our environment.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You still need specific equipment to perform your business operations, such as laptops. These can be sourced as green as possible, but are difficult to replace completely.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Even if you reduce your company\u2019s travel-related emissions to zero, you would still have remaining \u2018digital\u2019 emissions induced by online conferencing (internet use) needed to meet with international colleagues and partners.<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">These two types of residual emissions require two different offset approaches.\u00a0<\/span><\/p>\n<h2><b>Step 5. Define a short-and long term carbon offsetting strategy to offset 100%<\/b><\/h2>\n<h3><span style=\"font-weight: 400;\">Using carbon offsetting for compensation &amp; neutralization<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Carbon offsetting can be used for two purposes in your offsetting strategy: Compensation &amp; neutralization. But what do these two things mean?\u00a0<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">1. Compensation<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">You don\u2019t reduce emissions<\/span><i><span style=\"font-weight: 400;\"> immediately<\/span><\/i><span style=\"font-weight: 400;\">. Companies often monitor emissions quarterly or annually to track the results of their reduction efforts. To fill the gap between <\/span><i><span style=\"font-weight: 400;\">implementing<\/span><\/i><span style=\"font-weight: 400;\"> measures and <\/span><i><span style=\"font-weight: 400;\">gaining results<\/span><\/i><span style=\"font-weight: 400;\">\u2013 offsetting comes in as <\/span><b>compensation<\/b><span style=\"font-weight: 400;\"> for these residual emissions.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Say your company\u2019s initial carbon footprint is 100 tonnes of CO<sub>2<\/sub><\/span><span style=\"font-weight: 400;\">-eq. You would offset this exact number (100% of your footprint) and buy 100 carbon credits. Quarterly or annually, the amount you offset will decrease as your reduction efforts start to have results. E.g. you reduce your emissions by 15% the next year, which means you then offset 85 tonnes of CO<sub>2<\/sub><\/span><span style=\"font-weight: 400;\">-eq.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By compensating for the emissions you haven\u2019t reduced yet, you help your company, the planet &amp; society. Many offset projects support local communities in developing countries as well, which are the people who will be affected the most by climate change. Enabling others to transition towards net-zero too as well = climate positive. <\/span><b>Triple win.\u00a0<\/b><\/p>\n<h4><span style=\"font-weight: 400;\">2. Neutralization<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Carbon offsetting <\/span><span style=\"font-weight: 400;\">can\u2019t replace<\/span><span style=\"font-weight: 400;\"> emissions reduction efforts. So, to get to \u2018zero emissions\u2019, offsetting can only account for <\/span><b>neutralizing<\/b><span style=\"font-weight: 400;\"> your uncontrollable residual emissions. Neutralization is, therefore, the last step in your carbon offsetting strategy.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">How many emissions you have left to neutralize, really depends on your business model and reduction efforts. <a href=\"https:\/\/sciencebasedtargets.org\/resources\/files\/foundations-for-net-zero-full-paper.pdf\" target=\"_blank\" rel=\"noopener\">SBTi, however, states you can only neutralize 5-10%<\/a> of your total initial carbon footprint.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Say your company\u2019s initial carbon footprint is 100 tonnes of CO<sub>2<\/sub><\/span><span style=\"font-weight: 400;\">-eq. This means you are allowed by SBTi to use carbon credits to <\/span><b>neutralize<\/b><span style=\"font-weight: 400;\"> a maximum of 5-10 tonnes of CO<sub>2<\/sub><\/span><span style=\"font-weight: 400;\">-eq.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Setting a short- and long term offsetting strategy<\/span><\/h3>\n<h4><span style=\"font-weight: 400;\">1. Short-term strategy: compensation<\/span><\/h4>\n<p><span style=\"font-weight: 400;\"><strong>In the short term,<\/strong> you look for <\/span><a href=\"https:\/\/ecochain.com\/blog\/the-criteria-for-high-standard-carbon-offsetting-projects\/\"><span style=\"font-weight: 400;\">offset projects<\/span><\/a><span style=\"font-weight: 400;\"> that compensate for the residual emissions you haven\u2019t reduced yet with your reduction efforts.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These offset projects immediately contribute, as they offer you to buy carbon credits. This means you buy credits for emissions that have <\/span><b>really<\/b><span style=\"font-weight: 400;\"> been avoided already in the past. You are now officially compensating.\u00a0<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">2. Medium to long-term strategy: compensation + neutralization<\/span><\/h4>\n<p><span style=\"font-weight: 400;\"><strong>In the medium to long-term<\/strong>, you can invest in early-stage projects, such as carbon capture technology, or finance the expansion of existing projects. They are an investment and commitment, not an immediate compensation.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These projects don\u2019t generate carbon credits immediately, only afterward as collateral. So you receive credits to buy when the carbon capture or avoidance has taken place.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Finally, you will neutralize your uncontrollable residual emissions at the end of your reduction strategy (although sustainable improvements should never end). And repeat this neutralization annually.\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><b><i>Read more: <\/i><\/b><a href=\"https:\/\/ecochain.com\/blog\/the-criteria-for-high-standard-carbon-offsetting-projects\/\"><i><span style=\"font-weight: 400;\">How to select high-standard carbon offsetting projects (project typologies, criteria &amp; communication)<\/span><\/i><\/a><\/p>\n<blockquote class=\"wp-block-quote\"><p><em>\u201cA climate positive strategy provides an opportunity for companies to contribute not only to closing the emissions gap but also to closing the climate finance gap; and it is an avenue to evolve from an approach that \u201cdoes no harm\u201d to one that does good.\u201d<\/em><\/p>\n<p><cite>\u00a0SBTi \u2013 <a href=\"https:\/\/sciencebasedtargets.org\/resources\/files\/foundations-for-net-zero-full-paper.pdf\">Foundations for Science-based net-zero target setting in the corporate sector (2020)<\/a>.<\/cite><\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>**This article was written in collaboration with our offsetting partner ClimateSeed. Let\u2019s do a quick recap on carbon offsetting first.\u00a0 According to IPCC, carbon offsetting is any activity that compensates for the emissions of CO2 or other greenhouse gasses (measured in CO2-eq) by providing an emission reduction elsewhere.\u00a0 Companies can purchase carbon credits* to compensate [&hellip;]<\/p>\n","protected":false},"author":89,"featured_media":1753,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[75],"tags":[],"industries":[14,15,16,17,18],"use-cases":[21,23],"departments":[29],"class_list":["post-1752","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-other","industries-apparel","industries-construction","industries-food-beverage","industries-other","industries-packaging","use-cases-lca","use-cases-sustainability-claims","departments-sustainability"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.3 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>How much of my emissions do I need to offset? - Ecochain<\/title>\n<meta name=\"description\" content=\"You want to offset your company&#039;s carbon emissions. 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