Insetting: Decarbonization and Integrated Environmental Value in the Supply Chain

A Strategic Approach to Emissions Reduction and Compensation

Insetting is an innovative approach to managing greenhouse gas emissions. It enables companies to integrate emissions reduction and compensation directly into their supply chain. Unlike offsetting—which involves purchasing carbon credits from external projects—insetting focuses on internal and local interventions that deliver measurable environmental impacts and sustainable competitive advantages.

Insetting and the European Regulatory Framework

Insetting aligns with key European directives on sustainability and emissions reduction, including:

• EU Regulation 2023/956 (CBAM): Encourages EU companies to lower emissions within their production processes, limiting carbon leakage.
• European Green Deal and Fit for 55: Promote decarbonization of production chains through integrated and sustainable solutions.
• EU Framework for Carbon Removals Certification: Emphasizes transparency, permanence, and environmental benefits in emission reduction projects.

Thanks to its ability to combine decarbonization with sustainable development, insetting is recognized as a key strategy for achieving climate neutrality goals.

The Advantages of Insetting

Insetting goes beyond emissions compensation: it creates direct value within the company’s supply chain by:

• Delivering measurable environmental impact: Reducing emissions through certified practices in soil and energy management.
• Providing local benefits: Enhancing soil quality, increasing biodiversity, and supporting local communities.
• Enhancing corporate competitiveness: Aligning business practices with ESG criteria required by investors, clients, and regulatory bodies.
• Improving economic efficiency: Reducing operational costs and reliance on external inputs through sustainable practices.

Examples of Insetting Applications

• Agri-food sector: Implementing regenerative agriculture practices on company-owned or supplier farms, improving soil fertility and reducing emissions.
• Wine industry: Sustainable vineyard management to reduce carbon footprint and improve climate resilience.
• Fashion and textile sector: Investing in low-impact fiber crops to reduce water usage and chemical inputs.

Insetting vs. Offsetting: A Comparison

Characteristic	Insetting	Offsetting
Application Scope	Within the company’s supply chain	External projects
Method of Intervention	Direct reduction and sequestration of emissions	Purchase of carbon credits
Environmental Benefits	Direct and measurable impact	Indirect contribution to global reduction
Economic Sustainability	Optimizes internal operational costs	Depends on external credit markets

Insetting allows companies to embed sustainability into their production processes, transforming the ecological transition into a competitive advantage.

Alberami’s Role in Insetting

Alberami develops custom insetting projects for companies aiming to reduce their environmental impact in a verifiable and standards-compliant way.

Through an advanced monitoring and certification system, we ensure:

• Independent validation: Carbon credits are verified by internationally recognized certification bodies.
• Advanced technologies: Satellite analysis, blockchain, and field sampling ensure full transparency and traceability.
• Tailored strategies: Projects designed around the specific needs of each company to maximize impact and scalability.

Integrate Insetting into Your Sustainability Strategy

Insetting offers a strategic opportunity for companies that want to strengthen their sustainability commitment without relying exclusively on external compensation markets.

Discover how Alberami can support your transition to a low-emission production model. Contact us for a personalized consultation.