Reduce Scope 3 Emissions with Insetting
It quickly becomes clear when calculating a company's greenhouse gas emissions, that these emissions are unevenly distributed: Emissions along the value chain outside a company's boundaries, known as Scope 3 emissions, usually significantly exceed emissions from a company's own activities (Scope 1 and 2). One CDP study found that, depending on the industry, supply chain emissions can exceed direct company emissions by a factor of 10 to 28. Reducing greenhouse gas emissions in your value chain with project-based measures is an important component of effective decarbonization strategies. First Climate is your experienced partner for insetting projects.
Contact us to find out more about how you can take effective climate action along your value chain through targeted insetting measures. Together, we can make a sustainable contribution to securing your value chain and competitiveness.
​
​
Our Expert Team
Marisa Kunze
Head of Nature-Based
Climate Solutions
Wolfgang Brückner
Managing Director
First Climate Projektentwicklung GmbH
(Project Development)
What is Carbon Insetting?
Carbon insetting reduces carbon emissions within a company's own value chain. Carbon insetting can, for example, be implemented with a climate project at a production site in Germany or abroad. One possible way to implement carbon insetting is by using a holistic approach that can take into account economic, as well as environmental and social challenges.
​
In contrast to buying carbon credits from external climate projects, developing a carbon insetting project along your calue hain has a direct emission-reducing effect on your company's Scope 3 footprint.
​
How does carbon insetting work in practice?
Carbon insetting requires all project measures to be tailored to the individual scope 3 emissions. Above all, this means that climate projects must be located and implemented along a company's value chain.
​
Examples of possible approaches to carbon insetting in the supply chain:
-
Measures to reduce waste from production
-
Measures to reduce energy consumption
-
Adopting sustainable soil and land use techniques
-
Implementing agroforestry programs
After a detailed analysis, together we can determine which insetting solution is suitable for your company. To develop your insetting strategy further, we can then define detailed project plans and highlight methods for implementing and evaluating the measures for an insetting project.
​
Developing an Insetting Project:
Our Offer for You
With First Climate's insetting solutions, you can take direct climate action and could alsocreate further benefits for people and nature in the project regions along your value chain. Here is the typical 4-step process for developing an insetting project:
1.
Scoping
Analysis
2.
Feasibility
Study
3.
Project Start and
Implementation
4.
Monitoring and Verification
1. Scoping Analysis
Where does an intervention along your supply chain make the most sense? As a first step, we support your company in identifying the priorities for Scope 3 interventions in your supply chain.
​
​
What are some possible benefits of carbon insetting?
There are many potential benefits of carbon insetting, dependant on the project. Companies that engage in insetting not only take climate action, but could also help create a positive impact on the environment and the people in the project regions. Carbon insetting also offers the advantage that a company's own value chain can become more resilient, qualitatively better and more cost-effective in the long term.
​
​
Climate Action and Scope 3 Emission Reductions
Improved Supply Chain Resilience
Improved ESG Scores
(CSRD, EU Taxonomy, CDP, etc.)
Insetting Project Example:
Pioneering Program Reduces Shea Supply Chain Emissions
Beiersdorf, AAK and First Climate implement a project for climate-efficient cooking in Ghana and Burkina Faso.
​
Beiersdorf, in partnership with the Swedish plant-based oil specialist, AAK, and First Climate, developed a forward-thinking carbon insetting project in Ghana and Burkina Faso. The project reduces emissions from the shea supply chain. Shea butter is an important raw material for cosmetic products.
​
Learn more about this project.
​
​
