Should you offset your carbon emissions?
Running a small business is busy enough, and tackling environmental issues can feel like just another job to squeeze in. But it’s no longer a nice to have, it’s now part of everyday business. Customers are paying attention, partners are asking questions, and even future employees want to see evidence of environmental action. On top of that, many tenders now ask for details of your carbon footprint as the UK moves towards net zero.
Even with your best efforts to reduce carbon footprint, most businesses will eventually hit a wall. You may have reduced energy use and improved efficiency but still found some unavoidable emissions. That’s where carbon offsetting comes in.
But while offsetting can look like a quick win, it’s not without its challenges. Some schemes are misleading, and others have limited impact. More importantly, offsetting should never replace your efforts to cut emissions at the source.
So, is offsetting right for your business? This guide explains what carbon offsetting is, how it works, the benefits and risks, and how to decide whether it makes sense for you.
Carbon offsetting helps to balance the emissions your business can’t avoid. You calculate your carbon footprint, then support projects that reduce or remove the same amount of CO2 elsewhere.
Think of it like balancing the scales. If your office produces 10 tonnes of CO₂ in a year, you could fund a project that removes 10 tonnes somewhere else. That might mean planting trees, supporting a wind farm, or improving energy efficiency in a community.
For offsetting to be effective, the project must be additional. In other words, it wouldn’t have happened without your support.
But even if you offset, the emissions don’t vanish – it’s simply a tool for dealing with what you can’t remove. That’s why experts recommend it only as a final step, after exploring all the other options. Even companies claiming to be ‘net zero’ rarely have zero emissions – they reduce what they can and offset the rest.
Looking after the environment isn’t just about doing the right thing, it can also make your business stronger. Even small steps can make a difference. By reducing your environmental impact, you can:
But there’s a bigger picture beyond your business too. Climate change is happening fast, and human activity is the main cause: NASA evidence that humans are the main cause for climate change. Every step your business takes to reduce emissions will have a positive impact on the planet.
Carbon offsetting may sound complex, but the process is straightforward and usually follows three simple steps:
The types of projects you can fund vary, but they often fall into a few common categories:
On its own, offsetting won’t solve everything, but it can make life easier for your business and show you care about the bigger picture. Beyond balancing the unavoidable emissions, it can build your brand reputation, save resources, and even support communities around the world.
Here are a few of the benefits:
Carbon offsetting can be useful, but there are some things to keep in mind before you invest in a project.
Take tree planting, for example. It’s one of the most common projects but is not always guaranteed to work as planned. Trees can die, get cut down, or be lost to wildfires. Reforestation can sometimes conflict with farming, and importantly, planting trees doesn’t reduce the demand for fossil fuels.
Greenwashing is another risk. Some businesses claim carbon neutrality without reducing their own emissions first. Others invest in projects that aren’t properly managed, and a lack of transparency can damage your credibility. In fact, some corporate offsetting claims have even been challenged in court.
Not all projects create new carbon reductions either. A European Commission study found that three quarters of projects would have happened anyway. Without careful selection, your offsetting efforts may have less impact than you expect.
Relying solely on offsets can give a false sense of progress. Without taking direct action to reduce emissions and being transparent about your efforts, your business risks greenwashing. The best approach is to use offsets alongside measurable steps to reduce your carbon footprint.
Offsetting works best as a final step in a wider sustainability plan, once you’ve done everything you can to reduce carbon emissions directly. Here’s a practical approach to follow:
It’s especially useful when emissions are unavoidable, or when customers expect visible action.
Not all offset schemes are the same. To make sure your investment has real impact, look for projects that are:
The Gold Standard, set up by WWF and other NGOs, ensures projects are measurable and contribute to the UN’s Sustainable Development Goals. Buying credits through schemes like this will give confidence that you’re helping make a real difference.
Before you commit to any offsetting schemes, it helps to ask yourself a few questions:
Your answers will help you decide if offsetting makes sense and how it fits into your wider sustainability plan.
Carbon offsetting isn’t a magic solution and should never replace direct action to cut emissions. But, when used well, it can balance the emissions you can’t avoid, support global projects, and show your business is serious about the environment.
The key is choosing credible projects with real benefits, being honest about your approach, and making offsetting just one part of sustainability.
If you’d like practical advice on carbon offsetting or help with business sustainability, get in touch with our team. We’re here to support Barnsley businesses reduce their carbon emissions.
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Why ESG is good for Barnsley businesses – and how to get started
