Discover carbon offsetting: a key strategy against climate change, combining environmental benefits and social upliftment.
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Solutions to different environmental and social problems

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Sustainability
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Carbon offsetting: solution or greenwashing?

Updated on
July 29, 2024

Carbon offsetting brings solutions to different environmental and social problems, and if accompanied by impact reduction strategies, it can be part of the solution to climate change.

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Carbon offsetting consists of reducing or removing from the atmosphere the same amount of emissions as those generated. Each tonne of CO2 eq. reduced or removed from the atmosphere is equivalent to one carbon credit.

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Carbon offsetting can sometimes be categorised as greenwashing. This is because investing in Certified Emission Reductions (CERs) does not directly reduce your company’s footprint, but the emissions generated by others. As such, carbon offsetting means investing in carbon capture or renewable energy generation projects.

‍In which cases does carbon offsetting become greenwashing?

  • When investing in voluntary projects that do not offset the total emissions generated.
  • When carbon offsets are not accompanied by emission reductions.
  • When two entities are responsible for the same emissions offset.
  • When investing in projects that are reversible in the long term, e.g. investing in reforestation projects where trees will be felled or burned, returning the captured emissions to the atmosphere.

However, certified carbon offsetting can have many environmental and social benefits.  

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Cecilia Bayas
Senior Sustainability Specialist

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Frequently Asked Questions (FAQs)

How Can You Calculate a Product’s Carbon Footprint?

Carbon footprint calculation analyzes all emissions generated throughout a product’s life cycle, including raw material extraction, production, transportation, usage, and disposal.

The most recognized methodologies are:

  • Life Cycle Assessment (LCA)
  • ISO 14067
  • PAS 2050

Digital tools like Dcycle simplify the process, providing accurate and actionable insights.

What Are the Most Recognized Certifications?
  • ISO 14067 – Defines carbon footprint measurement for products.
  • EPD (Environmental Product Declaration) – Environmental impact based on LCA.
  • Cradle to Cradle (C2C) – Evaluates sustainability and circularity.
  • LEED & BREEAM – Certifications for sustainable buildings.
Which Industries Have the Highest Carbon Footprint?
  • Construction – High emissions from cement and steel.
  • Textile – Intense water usage and fiber production emissions.
  • Food Industry – Large-scale agriculture and transportation impact.
  • Transportation – Fossil fuel dependency in vehicles and aviation.
How Can Companies Reduce Product Carbon Footprints?
  • Use recycled or low-emission materials.
  • Optimize production processes to cut energy use.
  • Shift to renewable energy sources.
  • Improve transportation and logistics to reduce emissions.
Is Carbon Reduction Expensive?

Some strategies require initial investment, but long-term benefits outweigh costs.

  • Energy efficiency lowers operational expenses.
  • Material reuse and recycling reduces procurement costs.
  • Sustainability certifications open new business opportunities.

Investing in carbon reduction is not just an environmental action, it’s a smart business strategy.