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Carbon Offsetting is Becoming Part of the Net-Zero Journey

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With mounting pressure from investors, customers, and governments, the spotlight is squarely on businesses to act responsibly and commit to reducing their greenhouse gas (GHG) emissions to combat climate change and meet the Paris Agreement’s goal of limiting global warming to 1.5°C and achieving net-zero carbon emissions globally by 2050.


The concept of carbon offsets is that any process that emits carbon dioxide can be offset by compensating someone else to implement projects that capture carbon or reduce current emissions such as through biomass from reforestation or, methane capture and use from landfills and biodigesters, or from the generation of renewable energy. It is a practical way to lower an individual or company’s carbon footprint while contributing to a more sustainable future.


Companies, like individuals through their activities, cause greenhouse gas emissions through manufacturing, transportation, and energy usage. Calculating the amount of carbon emissions that an organisation emits (its carbon footprint) during a specified period is the first step in the carbon offsetting process.


To calculate a company’s carbon footprint, data is required from various parts of its operations, including logistics, operations, and supply chain, to name a few. Identifying what exactly has to be included and establishing parameters for direct and indirect carbon emissions is necessary. This data can then be used to identify areas of risk for your organisation.


Through carbon offset schemes, individuals and businesses can fund environmental initiatives to offset their own carbon footprints, allowing them to select environmental projects that fit their mission and meet their own standards. The projects are typically located in developing countries and aim to reduce future emissions.



Companies and governments that are legally required to account for their carbon emissions participate in the compliance market, which is a type of carbon offset programme imposed by regulatory bodies at the national, regional, and international levels. While non-governmental organisations (NGOs) primarily service the voluntary carbon market, in which organisations can engage as part of an industry-wide programme.


Accelerating climate-neutral projects


Understanding your company’s carbon footprint is an important aspect of developing a comprehensive corporate sustainability programme. ESC has significant experience assessing carbon footprints for clients in major industries and delivered renewable projects that include environmental support for reforestation, waste to energy, and renewable energy projects such as Kon Plong Wind Power and the Tengeh Floating Solar Farm projects which have made valuable contributions towards decarbonisation. With our keen insights into carbon management and energy strategy, we help you to integrate sustainability into your core business decision-making processes and culture.


Are you interested in what solutions exist beyond carbon initiatives? Contact us to learn how ESC can assist you with your carbon reduction efforts and help your company achieve net-zero status.

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