Organizations can take three steps to offset their carbon emissions:

Calculating Emissions.

There are special protocols that help companies do this. For example, the GHG Protocol is an internationally recognized accounting standard that helps organizations measure and manages their greenhouse gas emissions. The protocol divides emissions into three bands or ranges.

S 1 – are direct emissions from sources owned or controlled by the organization.

S 2 – are indirect emissions from electricity, steam, heating and cooling resources purchased by the organization.

S 3- is other indirect emissions from the organization's value chain.

Emissions are expressed in tons of carbon dioxide equivalent and include other greenhouse gases such as methane and nitrous oxide. Organizations should regularly assess their carbon footprint and include it in sustainability reports and other financial reports.

At least 40 countries require some form of emissions reporting. In the United States, companies that emit more than 25,000 tons of carbon dioxide are required to report their emissions to the EPA annually. The reporting threshold is lower in California at 10,000 tons.

Reduce emissions wherever possible. Once organizations measure their emissions and identify their sources, they can develop a sustainability strategy. Guidelines for reducing emissions can be found in the Science-Based Targets Initiative (SBTi) in line with the Paris Agreement targets. SBTi advises companies to use 80% renewable electricity by 2025.

Reduction in Emission.

Once organizations measure their emissions and identify their sources, they can develop a sustainability strategy. Guidelines for reducing emissions can be found in the Science-Based Targets Initiative (SBTi) in line with the Paris Agreement targets. SBTi advises companies to use 80% renewable electricity by 2025. CO2 reduction can be achieved by switching to a more sustainable diet or switching to more environmentally friendly modes of transportation, such as electric vehicles or trains with hybrid locomotives.

Compensate for Remaining Emissions.

Emissions that cannot be reduced can be offset. Reduction projects are projects that absorb or remove carbon dioxide. To issue a CO2 certificate, the project must be certified. Examples of international certifications:

Climate Action Reserve
Gold Standard
Plan Vivo

Once certified, third-party oversight organizations ensure projects meet standards such as

Positive Emission Removal.

Credits must represent reductions or reductions in emissions that otherwise would not have occurred. This requires the oversight body to ensure and confirm that the project uses validated methodologies and science in its calculations.

Leak-free.

The creation of a discharge certificate must not lead to discharge elsewhere. For example, if a project protects one forest, it will not increase deforestation in another unprotected area.

Permanent.

Credits represent emission reductions that cannot be reversed. For example, a project may aim to store carbon underground. The chances of this carbon returning to the atmosphere are slim.

Organizations must select Qualified Offset Projects that generate credits that meet these criteria. Additionally, projects should be selected that meet unique environmental and social criteria such as Supporting Biodiversity.

Post-purchase, organizations should be transparent with stakeholders about their offset strategy and the projects they support. Transparency is key to avoiding greenwashing allegations. Greenwashing is a marketing spin used to convince people that an organization's products, goals, and policies are environmentally friendly.