„Insetting"

What does it mean?

Insetting refers to measures to reduce greenhouse gas emissions within a company's own value chain (Scope 3). In contrast to compensation (offsetting), insetting directly avoids or reduces emissions at suppliers or in upstream processes. This can be achieved, for example, by promoting regenerative agriculture, using energy-efficient technologies or optimising transport routes. However, merely claiming 'insetting' is misleading under UWG § 5 if no concrete and comprehensible reduction figures and the underlying methodology (e.g. GHG Protocol) are disclosed. Substantiated presentation is essential to provide consumers with transparent information and to avoid risks of warning letters.

Typical phrasings

• 'Insetting through regenerative agriculture with our coffee farmers reduces Scope 3 emissions.'
• 'We invest in insetting projects to reduce the CO2 footprint of our supply chain.'
• 'Our insetting programme promotes the building of carbon sinks in agriculture.'

What you can write instead

Required evidence

• GHG Protocol Scope 3 accounting
• ISO 14064-1 verification of reduction
• Documentation of insetting projects