An alternative to traditional offsetting in corporate sustainability strategies, insetting refers to the practice of investing in local sustainability projects that directly address emissions and sustainability challenges within a company's operational footprint. Unlike offsetting, which often involves purchasing carbon credits from external projects, insetting allows companies to take a more localised and proactive approach.

3 benefits of insetting:

1- Local impact: While offsetting involves buying carbon credits or investing in projects elsewhere to offset emissions, insetting directs resources to local sustainability initiatives where companies operate. This approach allows companies to actively contribute to environmental and social improvements in the areas where they operate, generating tangible benefits for their local communities.

2- Increased engagement: Insetting provides an opportunity for companies to engage more directly with their stakeholders. By investing in local projects that align with their values and goals, companies can foster meaningful relationships with community members, employees and customers. This deeper engagement helps build trust with stakeholders, enhances brand reputation and demonstrates a genuine commitment to sustainability.

3- Holistic sustainability: Engagement can go beyond carbon neutrality by addressing a broader range of environmental and social challenges. Rather than focusing solely on offsetting greenhouse gas emissions, insetting initiatives can include initiatives such as waste management, renewable energy and community development. This holistic approach allows companies to address multiple sustainability issues simultaneously, leading to more comprehensive and impactful results.

Insetting can be seen as a complementary strategy to offsetting, and an effective tool for companies to align their sustainability efforts with the United Nations' Sustainable Development Goals (SDGs).