Carbon offset

    ESG & Governance

    A carbon credit used to compensate for a company's own emissions.

    When a company buys and retires a credit to balance part of its footprint, the credit acts as an offset. Offsetting does not reduce the company's own emissions. Integrity guidance increasingly says offsets should not be used to meet interim targets, and India's consumer greenwashing guidelines require evidence behind claims such as carbon neutral. Check the type, standard and vintage of any offsets a company relies on.

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