What is insetting?

What is insetting?

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Insetting is a strategy that focuses on reducing emissions and capturing carbon within a company's own supply chain or industry. Rather than relying on external projects for offsetting, insetting involves directly investing in activities such as planting trees, using renewable energy, or adopting sustainable practices. Not only does this lower the company's carbon footprint, but it also brings additional benefits such as improved landscapes and support for local communities.

Understanding Carbon Insetting

Carbon insetting tackles climate change by focusing on a company's own operations and supply chain. Unlike offsetting, which involves investing in emission reduction projects elsewhere, insetting directly reduces emissions within the company's sphere of influence. This can involve the use of renewable energy, the implementation of sustainable farming practices, or even the planting of trees. The benefit of insetting is two-fold: it reduces the company's carbon footprint while potentially creating positive social and environmental impacts within its own network.

Insetting vs Offsetting

Both carbon insetting and offsetting are strategies for tackling climate change, but they target emissions in different ways. Offsetting involves investing in emission reduction projects outside a company's operations, such as planting trees in other locations. Insetting, on the other hand, focuses on directly reducing emissions within the company's value chain. This can involve switching to renewable energy sources or implementing sustainable practices with suppliers. While both approaches are valuable, insetting can lead to more holistic improvements, benefiting the environment and potentially even the company's supply chain.

The Benefits of Insetting

When companies adopt insetting, they directly invest in the sustainability of their own industry and supply chain. This means that the benefits of insetting are not only environmental but also have a positive impact on local communities and the company's operations. By adopting sustainable practices and investing in renewable energy within their own value chain, companies can create a ripple effect of positive change. This approach not only reduces their carbon emissions but also leads to more sustainable and resilient supply chains.

How Insetting Supports Climate Change Mitigation

Insetting plays a critical role in climate change mitigation by directly addressing a company's own emissions. This approach is not about offsetting emissions elsewhere but about making meaningful and lasting changes within the company's own operations and supply chain. By investing in renewable energy, implementing sustainable practices, and supporting carbon capture initiatives within their own industry, companies can make a significant contribution to the fight against climate change.


In conclusion, insetting is a powerful strategy for companies looking to reduce their environmental footprint and contribute to climate change mitigation. By focusing on their own operations and supply chain, companies can create meaningful change that not only reduces their carbon emissions but also brings additional benefits to their industry, local communities, and their own operations. As sustainability managers explore the question, "What is insetting?", they will find a strategy that offers holistic improvements and sustainable benefits for their company and the environment.

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